154 Misc. 271 | N.Y. Sur. Ct. | 1935
This is an accounting proceeding. Objections have been filed to the account, nominally, by Patrick Boles, an uncle and sole next of kin of the decedent, but actually by his attorney in fact, the Transatlantic Estates and Credit Company. The purpose of these objections is to enforce the payment of the balance of the
It has been established beyond dispute that the status and relationship of Patrick Boles as the sole next of kin would have been proven without the intervention of the attorney in fact and that the balance of the estate would have been paid to him under the decree of this court.
The public administrator and the Consul General contend that the power of attorney and agreement of compensation procured by the corporation are illegal and void because they were procured by a corporation engaged in the practice of law and engaged in furnishing attorneys and counsel in violation of section 280 of the Penal Law.
The Transatlantic Estates and Credit Company was originally a New York corporation. It was formed by one Joseph Woerndle, an attorney admitted to practice in the State of Oregon. Woerndle came to New York city ten years ago. He sought admission to the bar in four successive applications to the Appellate Division. First Department, between the years 1925 and 1930. Each application was denied by that court. In 1924 he formed the corporation for the general purpose of carrying on the business of “ collecting and cashing inheritances and legacies.” Woerndle acted as president of the company and one Paul E. Schwabe was its secretary. Schwabe eventually left the business in 1930 and branched out for himself in a business of the same nature. Searchers were employed by the company to examine the records of the various Surrogates’ Courts to ascertain the names of next of kin and legatees residing in other States of the United States or in foreign countries. Correspondents were maintained in foreign countries who, after cabled notification of the names of prospective beneficiaries, solicited them to retain the Transatlantic Corporation as attorney in fact under powers of attorney. These powers of attorney ran to the company and to Woerndle. In certain cases agreements of compensation were obtained fixing a definite rate of compensation to be paid to the company. In other cases no rate of compensation was fixed and the amount was left open for whatever rate the company or Woerndle decided to charge.
Evidence has been developed in this proceeding as to the extent of the operations of Woerndle and his company. In a period of ten years approximately four hundred powers of attorney were filed in three hundred estates in the Surrogates’ Courts of the counties
At the close of the pending proceeding and after the development of the facts before me, Tuthill, as attorney for the Transatlantic Estates, endeavored to withdraw the claim of the company for compensation and also attempted to withdraw from the proceeding as attorney. Under all the circumstances in the case, I am unwilling to accept any withdrawal by him or his client which would prevent a complete determination upon the merits as to the invalidity of the actions of the Transatlantic Estates Company. In addition, his own conduct in representing the company in numerous estates over a period of years, and particularly his acceptance of approximately fifty retainers from the New Jersey corporation after his promise in 1929 to the New York County Lawyers’ Association to see that the activities of Woerndle through a corporation would cease in New York, require the censure of the court.
Submit decree on notice directing the transmission of the entire share of Patrick Boles to him through the Consul General of the Irish Free State, overruling the objections of the Transatlantic Estates and Credit Company, and settling the account accordingly.