Matter Of Kaylie v. Kaylie — Case Summary
Summary of the case Matter of Kaylie v. Kaylie
The Appellate Division, First Department reversed the lower court's decision denying Lee Kaylie's petition for an accounting of a trust managed by Gloria Kaylie. The court found that Lee, as a beneficiary, is entitled to a judicial accounting despite the return of funds and receipt of bank statements. The court rejected Gloria's defense of unclean hands, noting the alleged conduct was by a nonparty and not immoral or unconscionable.
Key Issues of the case Matter of Kaylie v. Kaylie
- Entitlement to judicial accounting
- Application of the doctrine of unclean hands
Key Facts of the case Matter of Kaylie v. Kaylie
- Lee Kaylie is a beneficiary of the trust.
- Gloria Kaylie was the sole trustee from 2017 to 2021.
Decision of the case Matter of Kaylie v. Kaylie
Reversed and remanded for proceedings consistent with the opinion.
Opinions
Opinion 1 of 2
Matter of Kaylie v Kaylie (2023 NY Slip Op 04931) Matter of Kaylie v Kaylie 2023 NY Slip Op 04931 Decided on October 03, 2023 Appellate Division, First Department Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and subject to revision before publication in the Official Reports. Decided and Entered: October 03, 2023 Before: Kern, J.P., Mendez, Higgitt, O'Neill Levy, JJ. Index No. 151662/22 Appeal No. 663 Case No. 2023-02864 []In the Matter of Lee Kaylie, Petitioner-Appellant, vGloria Kaylie, Respondent-Respondent.
Reed Smith LLP, New York (Steven Cooper of counsel), for appellant. Hochheiser & Akmal PLLC, Garden City (Marc Rogovin of counsel), for respondent. Order, Supreme Court, New York County (Laurence L. Love, J.), entered on or about October 26, 2022, which denied the petition for an accounting, unanimously reversed, on the law and the facts, with costs, the petition reinstated, and the matter remanded for proceedings consistent with this opinion.
Petitioner, a beneficiary of the trust underlying this proceeding, is entitled to a judicial accounting by reason of the fiduciary relationship between him and respondent, who was the trust's sole trustee from 2017 until 2021 (see Mullin v WL Ross & Co. LLC, 173 AD3d 520, 522 [1st Dept 2019]; Koppel v Wien, Lane & Malkin, 125 AD2d 230, 234 [1st Dept 1986]). The fact that respondent has returned the trust's funds with interest does not affect petitioner's right to an accounting (see Simon v Moskowitz, 193 AD3d 520, 521 [1st Dept 2021]; Ull v Royal Car Park, LLC, 179 AD3d 469, 470-471 [1st Dept 2020]). Nor does petitioner's eventual receipt of the bank statements for the trust's accounts (see Matter of Grgurev v Licul, 203 AD3d 624, 625 [1st Dept 2022], lv dismissed 38 NY3d 1171 [2022]). We reject respondent's defense of unclean hands, as the conduct of which she complains was by a nonparty to this proceeding, not by petitioner (see Frymer v Bell, 99 AD2d 91, 96 [1st Dept 1984]).
Furthermore, the conduct was not “immoral or unconscionable” as required for the doctrine of unclean hands (id.), and in any event, respondent has not shown how it injured her. We have considered respondent's remaining contentions and find them unavailing. THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT. ENTERED: October 3, 2023
Opinion 2 of 2
Matter of Kaylie v Kaylie (2023 NY Slip Op 04931) Matter of Kaylie v Kaylie 2023 NY Slip Op 04931 Decided on October 03, 2023 Appellate Division, First Department Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and subject to revision before publication in the Official Reports. Decided and Entered: October 03, 2023 Before: Kern, J.P., Mendez, Higgitt, O'Neill Levy, JJ. Index No. 151662/22 Appeal No. 663 Case No. 2023-02864 []In the Matter of Lee Kaylie, Petitioner-Appellant, vGloria Kaylie, Respondent-Respondent.
Reed Smith LLP, New York (Steven Cooper of counsel), for appellant. Hochheiser & Akmal PLLC, Garden City (Marc Rogovin of counsel), for respondent. Order, Supreme Court, New York County (Laurence L. Love, J.), entered on or about October 26, 2022, which denied the petition for an accounting, unanimously reversed, on the law and the facts, with costs, the petition reinstated, and the matter remanded for proceedings consistent with this opinion.
Petitioner, a beneficiary of the trust underlying this proceeding, is entitled to a judicial accounting by reason of the fiduciary relationship between him and respondent, who was the trust's sole trustee from 2017 until 2021 (see Mullin v WL Ross & Co. LLC, 173 AD3d 520, 522 [1st Dept 2019]; Koppel v Wien, Lane & Malkin, 125 AD2d 230, 234 [1st Dept 1986]). The fact that respondent has returned the trust's funds with interest does not affect petitioner's right to an accounting (see Simon v Moskowitz, 193 AD3d 520, 521 [1st Dept 2021]; Ull v Royal Car Park, LLC, 179 AD3d 469, 470-471 [1st Dept 2020]). Nor does petitioner's eventual receipt of the bank statements for the trust's accounts (see Matter of Grgurev v Licul, 203 AD3d 624, 625 [1st Dept 2022], lv dismissed 38 NY3d 1171 [2022]). We reject respondent's defense of unclean hands, as the conduct of which she complains was by a nonparty to this proceeding, not by petitioner (see Frymer v Bell, 99 AD2d 91, 96 [1st Dept 1984]).
Furthermore, the conduct was not “immoral or unconscionable” as required for the doctrine of unclean hands (id.), and in any event, respondent has not shown how it injured her. We have considered respondent's remaining contentions and find them unavailing. THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT. ENTERED: October 3, 2023