
Following the decedent’s death, Bank of America became successor trustee of four trusts created by the decedent. In 2016, the decedent’s children filed complaints against the bank, seeking accountings for the trusts. The bank submitted accountings and a complaint seeking court approval of the accountings. The decedent’s children then filed another complaint, seeking another accounting for a different time period, and filed exceptions to the accountings that had been filed by the bank.
With respect to the last complaint filed, the bank filed a motion to dismiss that action, which was denied. Although the parties then engaged in discovery and the bank produced an informal accounting for the relevant time period, it inadvertently failed to timely file an answer.
Later, during a case management conference, the decedent’s children revealed their intent to default the bank for failing to file an answer to the complaint. When the bank realized its erroneous failure to answer, it moved for leave to do so out of time. The judge denied the bank’s motion. The plaintiffs then requested the entry of default, which the bank moved to vacate. That motion was also denied.
On appeal, the Appellate Division reversed the trial judge. It noted that motions to vacate default judgments should be liberally indulged and that, although the bank mistakenly failed to file an answer, it had engaged in discovery and even provided an informal accounting. It concluded that, “rather than permit this suit to proceed on a one-sided basis, the judge should have vacated the default and allowed the parties to proceed without one side shackled by a default arising from mere inadvertence.” The appeals court reversed the lower court’s denial of the bank’s motion to file an answer out of time and to vacate the default, concluding that the judge had “erroneously exalted form over substance.”
A copy of In re Estate of Harris can be found here – In re Estate of Harris
For additional information concerning special needs trusts and disability planning, visit:
Categories
- Affordable Care Act
- Alzheimer's Disease
- Arbitration
- Attorney Ethics
- Attorneys Fees
- Beneficiary Designations
- Blog Roundup and Highlights
- Blogs and Blogging
- Care Facilities
- Caregivers
- Cemetery
- Collaborative Family Law
- Conservatorships
- Consumer Fraud
- Contempt
- Contracts
- Defamation
- Developmental Disabilities
- Discovery
- Discrimination Laws
- Doctrine of Probable Intent
- Domestic Violence
- Elder Abuse
- Elder Law
- Elective Share
- End-of-Life Decisions
- Estate Administration
- Estate Litigation
- Estate Planning
- Events
- Family Law
- Fiduciary
- Financial Exploitation of the Elderly
- Funeral
- Future of the Legal Profession
- Geriatric Care Managers
- Governmental or Public Benefit Programs
- Guardianship
- Health Issues
- Housing for the Elderly and Disabled
- In Remembrance
- Insolvent Estates
- Institutional Liens
- Insurance
- Interesting New Cases
- Intestacy
- Law Firm News
- Law Firm Videos
- Law Practice Management / Development
- Lawyers and Lawyering
- Legal Capacity or Competancy
- Legal Malpractice
- Legal Rights of the Disabled
- Liens
- Litigation
- Mediation
- Medicaid Appeals
- Medicaid Applications
- Medicaid Planning
- Annuities
- Care Contracts
- Divorce
- Estate Recovery
- Family Part Non-Dissolution Support Orders
- Gifts
- Life Estates
- Loan repayments
- MMMNA
- Promissory Notes
- Qualified Income Trusts
- Spousal Refusal
- Transfers For Reasons Other Than To Qualify For Medicaid
- Transfers to "Caregiver" Child(ren)
- Transfers to Disabled Adult Children
- Trusts
- Undue Hardship Provision
- Multiple-Party Deposit Account Act
- New Cases
- New Laws
- News Briefs
- Newsletters
- Non-Probate Assets
- Nursing Facility Litigation
- Personal Achievements and Awards
- Personal Injury Lawsuits
- Probate
- Punitive Damages
- Reconsideration
- Retirement Benefits
- Reverse Mortgages
- Section 8 Housing
- Settlement of Litigation
- Social Media
- Special Education
- Special Needs Planning
- Surrogate Decision-Making
- Taxation
- Technology
- Texting
- Top Ten
- Trials
- Trustees
- Uncategorized
- Veterans Benefits
- Web Sites and the Internet
- Webinar
- Writing Intended To Be A Will
Vanarelli & Li, LLC on Social Media