Judge reversed on attorney’s fees

A state appeals court has reversed a state Supreme Court decision that denied fees to the Catholic Family Center, which served as a guardian for an incapacitated person.

The Catholic Family Center was appointed as guardian of Ralph C., a now-deceased incapacitated person. After Ralph C.’s death, the guardian submitted final accounting documents and applied to discharge the guardianship.

As part of the application, the guardian sought permission to disburse property to cover attorney related to the guardianship. In April 2018 Judge Joan S. Kohout denied the application, under Mental Hygiene Law 81.44 (d), and ordered the return of the funds to Ralph C.’s estate.

Although Kohout’s decision was part of a final order and judgment that that terminated the guardian’s right to appeal, the Appellate Division of state Supreme Court, Fourth Department, exercises its authority to review the decision under New York State Civil Practice Law and Rules 5520 (c).

“We agree with the guardian that Mental Hygiene Law … authorizes its retention of a reasonable amount of guardianship property for the purpose of paying its counsel fees in connection with the guardianship,” the Fourth Department wrote in the decision.

The Mental Hygiene Law states that “a guardian may retain guardianship property equal in value to the claim for administrative costs, liens and debts,” according to the decision.

The courts have held that administrative expenses of a guardianship include reasonable counsel fees, the panel wrote.

The Fourth Department sent the case back to Supreme Court “to fix a reasonable award of counsel fees,” according to the decision.

The Catholic Family Center was represented by Yolanda Rios, an associate at Dutcher & Zatkowsky.

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