N.Y. Surrogate's Court Procedure Act § 1807: Effect of allowance of claim by fiduciary 1

§ 1807. Effect of allowance of claim by fiduciary

1. Whenever a fiduciary shall allow a claim other than the fiduciary's

own the validity of the claim shall thereby be established, but if it

shall appear that the claim was improperly allowed or was fraudulently

or negligently paid, any party adversely affected thereby may file

objections thereto in any proceeding for the judicial settlement of the

account of the fiduciary. A copy of the objections shall be served upon

all parties who have appeared and if the claimant has not appeared a

copy shall be served upon the claimant personally or by mail. If the

court sustains the objections the claim shall thereupon be dismissed if

it has not been paid. If it has been paid, in whole or in part, and an

amended petition or objections request a direction that the claimant

repay to the fiduciary of the estate any amount of the estate assets

determined on the settlement of the account to have been paid to a

claimant as a result of fraud, negligence or collusion and if a

supplemental citation to this effect was issued and served upon the

claimant, then the court, is authorized in the accounting decree to

direct repayment by the creditor of the excess to the fiduciary of the

estate and may, in addition, impose a surcharge against the fiduciary or

otherwise as justice shall require. If there is no amended petition or

answer requesting a direction that the claimant repay the amount of

estate assets determined to have been paid as a result of fraud,

negligence or collusion then a surcharge shall be imposed against the

fiduciary in the amount the estate has been damaged by such fraud,

negligence or collusion.

2. In such accounting proceeding a party adversely affected may show

that a judgment on a claim against a fiduciary was obtained by fraud,

negligence or collusion. If the court determines that the judgment was

so obtained, a surcharge shall be imposed against the fiduciary in the

amount the estate has been damaged by such fraud, negligence or

collusion.