N.Y. DCD Law § 251

§ 251. Authority for committee or conservator to compromise claims. A\ncourt exercising jurisdiction over the property of a mentally ill\nperson, mentally retarded person, alcohol abuser or conservatee may,\nupon the application of the committee of the property of such\nincompetent person or the conservator of the conservatee, and for good\nand sufficient cause shown, and upon such terms as it may direct,\nauthorize the committee or conservator to sell, compromise or compound\nany claim or debt belonging to the estate of the incompetent person or\nconservatee. But such authority shall not prevent any party interested\nin the trust estate, from showing upon the final accounting of such\ncommittee or conservator that such debt or claim was fraudulently or\nnegligently sold, compounded or compromised. The sale of any debt or\nclaim heretofore made in good faith by any such committee or\nconservator, shall be valid, subject, however, to the approval of the\ncourt, and the committee or conservator shall be charged with and liable\nfor, as a part of the trust fund, any sum which might or ought to have\nbeen collected by him.\n