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5 Abb. N. Cas. 354

In re Thomas

New York Court of Common Pleas

Decided January 15, 1879

New York Court of Common Pleas · decided 1879-01-15

<p>Allowances to Counsel of Assignee for, the Benefit of Creditors.</p> <p>Allowances cannot be granted, to the counsel of the assignee for the benefit of creditors, out of the assigned estate, before the final accounting.*</p> <p>An assignee making any payments to counsel must do so upon his own responsibility.</p>

Decided 1879-01-15

J. F. Daly, J.

¶1Since this matter was referred, this court at special term has decided that there is no power to grant any allowance out of the fund to counsel for an assignee before his final accounting (Larremore, J. Matter of Youngs, Smith & Co.).*

¶2This decision is controlling, because the principle upon which the payments here asked for are urged, is substantially that there was employment of counsel by authority of the assignee (or by agreement of the assignment within the scope of his powers).

¶3I shall have to- order that this application stand over until the final accounting.

¶4Of coarse the assignee may make any payments he thinks proper, taking the responsibility for his action.

¶5 In the Matter of Youngs, &c. (N. Y. Common Pleas ; Special Term, November, 1878), Larremore, J., held that the court cannot grant an allowance or counsel fee to counsel for an assignee, except on an accounting. The assignee may, before accounting, make payments to counsel such as he deems necessary, subject to his obligation to show their necessity and reasonableness when he asks to be allowed for them on his accounting, as disbursements.

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