RETRIEVE BILL
 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7294
 
                               2003-2004 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 25, 2003
                                       ___________
 
        Introduced  by  M.  of  A.  STRANIERE  --  read once and referred to the
          Committee on Judiciary
 
        AN ACT to amend the civil practice law and rules, in relation to  making
          technical corrections thereto
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1201 of  the  civil  practice  law  and  rules,  as
     2  amended  by  chapter  115  of  the  laws  of 1981, is amended to read as
     3  follows:
     4    § 1201. Representation of infant, incompetent person, or  conservatee.
     5  Unless the court appoints a guardian ad litem, an infant shall appear by
     6  the guardian of his or her property or, if there is no such guardian, by
     7  a parent having legal custody, or, if there is no such parent, by anoth-
     8  er  person or agency having legal custody, or, if the infant is married,
     9  by an adult  spouse  residing  with  the  infant,  a  person  judicially
    10  declared  to  be incompetent shall appear by the committee of his or her
    11  property, and a conservatee shall appear by the conservator  of  his  or
    12  her  property.  A person shall appear by his or her guardian ad litem if
    13  he or she is an infant and has no  guardian  of  his  or  her  property,
    14  parent,  or other person or agency having legal custody, or adult spouse
    15  with whom he or she resides, or if he or she is an infant, person  judi-
    16  cially  declared  to  be  incompetent,  or  a conservatee [as defined in
    17  section 77.01 of the mental  hygiene  law]  and  the  court  so  directs
    18  because of a conflict of interest or for other cause, or if he or she is
    19  an  adult  incapable  of  adequately prosecuting or defending his or her
    20  rights.
    21    § 2. Rule 1202 of the civil practice law and rules,  subdivisions  (a)
    22  and  (b)  as  amended  by chapter 115 of the laws of 1981, is amended to
    23  read as follows:
    24    Rule[.] 1202. Appointment of guardian ad litem.  (a)  By  whom  motion
    25  made.  The court in which an action is triable may appoint a guardian ad
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11751-01-3

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     1  litem at any stage in the action upon its own  initiative  or  upon  the
     2  motion of:
     3    1. an infant party if he or she is more than fourteen years of age; or
     4    2.  a  relative,  friend  or a guardian, committee of the property, or
     5  conservator; or
     6    3. any other party to the action if a motion has not been  made  under
     7  paragraph one or two within ten days after completion of service.
     8    (b) Notice of motion. Notice of a motion for appointment of a guardian
     9  ad  litem  for  a person shall be served upon the guardian of his or her
    10  property, upon his or her committee or upon his or her  conservator,  or
    11  if  he  or she has no such guardian, committee, or conservator, upon the
    12  person with whom he or she resides. Notice shall also be served upon the
    13  person who would be represented if he or she is more than fourteen years
    14  of age and has not been judicially declared to be incompetent.
    15    (c) Consent. No order appointing a guardian ad litem shall  be  effec-
    16  tive until a written consent of the proposed guardian has been submitted
    17  to the court together with an affidavit stating facts showing his or her
    18  ability  to  answer for any damage sustained by his or her negligence or
    19  misconduct.
    20    § 3. Section 1203 of the civil practice law and rules  is  amended  to
    21  read as follows:
    22    §  1203.  Default  judgment.  No  judgment  by  default may be entered
    23  against an infant or a person  judicially  declared  to  be  incompetent
    24  unless  his  or her representative appeared in the action or twenty days
    25  have expired since appointment of a guardian ad litem for him or her. No
    26  default judgment may be entered against an adult incapable of adequately
    27  protecting his or her rights for whom  a  guardian  ad  litem  has  been
    28  appointed unless twenty days have expired since the appointment.
    29    §  4.  Section 1206 of the civil practice law and rules, as amended by
    30  chapter 115 of the laws of 1981, the opening  paragraph  as  amended  by
    31  chapter  635  of the laws of 1988, subdivision (b) as amended by chapter
    32  205 of the laws of 1995 and subdivision (c) as amended by chapter 464 of
    33  the laws of 1995, is amended to read as follows:
    34    § 1206.  Disposition  of  proceeds  of  claim  of  infant,  judicially
    35  declared  incompetent or conservatee. [Except as provided in EPTL 7-4.9,
    36  any] Any property to which an infant, a person judicially declared to be
    37  incompetent or a conservatee is entitled, after deducting  any  expenses
    38  allowed by the court, shall be distributed to the guardian of his or her
    39  property, the committee of his or her property or conservator to be held
    40  for  the  use  and  benefit  of such infant, incompetent, or conservatee
    41  except that:
    42    (a) in the case of an infant who is married to  and  resides  with  an
    43  adult  spouse,  the  court may order that the property be distributed to
    44  such adult spouse for the use and benefit of the infant; or
    45    (b) if the value of the property does not exceed ten thousand  dollars
    46  the  court may order the property distributed to a person with whom such
    47  infant, incompetent or conservatee resides or who has some  interest  in
    48  his  or  her  welfare to be held for the use and benefit of such infant,
    49  incompetent or conservatee; or
    50    (c) the court may order that money constituting any part of the  prop-
    51  erty be deposited in one or more specified insured banks or trust compa-
    52  nies  or  savings  banks or insured state or federal credit unions or be
    53  invested in one or more specified accounts in insured savings  and  loan
    54  associations,  or it may order that a structured settlement agreement be
    55  executed,  which  shall  include  any  settlement  whose  terms  contain
    56  provisions  for  the  payment of funds on an installment basis, provided

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     1  that with respect to future installment payments, the  court  may  order
     2  that each party liable for such payments shall fund such payments, in an
     3  amount necessary to assure the future payments, in the form of an annui-
     4  ty  contract  executed by a qualified insurer and approved by the super-
     5  intendent of insurance pursuant to articles fifty-A and fifty-B of  this
     6  chapter.  The  court  may  elect  that  the money be deposited in a high
     7  interest yield account such as an insured "savings  certificate"  or  an
     8  insured  "money  market"  account. The court may further elect to invest
     9  the money in one or more insured or guaranteed United States treasury or
    10  municipal bills, notes or bonds. This money  is  subject  to  withdrawal
    11  only  upon  order  of  the  court,  except  that no court order shall be
    12  required to pay over to the infant who has attained the age of  eighteen
    13  years all moneys so held unless the depository is in receipt of an order
    14  from  a  court  of  competent jurisdiction directing it to withhold such
    15  payment beyond the infant's  eighteenth  birthday.  Notwithstanding  the
    16  preceding sentence, the ability of an infant who has attained the age of
    17  eighteen  years to accelerate the receipt of future installment payments
    18  pursuant to a structured settlement agreement shall be governed  by  the
    19  terms of such agreement. The reference to the age of twenty-one years in
    20  any order made pursuant to this subdivision or its predecessor, prior to
    21  September first, nineteen hundred seventy-four, directing payment to the
    22  infant  without  further  court  order when he or she reaches the age of
    23  twenty-one years, shall be deemed  to  designate  the  age  of  eighteen
    24  years; or
    25    (d)  the  court  may  order  that the property be held for the use and
    26  benefit of such infant, incompetent or conservatee as provided by subdi-
    27  vision (d) of [section] rule 1210.
    28    § 5. Rule 1208 of the civil practice law  and  rules,  as  amended  by
    29  chapter 844 of the laws of 1968, is amended to read as follows:
    30    Rule 1208. Settlement procedure; papers; representation.
    31    (a)  Affidavit of infant's or incompetent's representative. An affida-
    32  vit of the infant's or incompetent's representative shall be included in
    33  the supporting papers and shall state:
    34    1. his or her name, residence and relationship to the infant or incom-
    35  petent;
    36    2. the name, age and residence of the infant or incompetent;
    37    3. the circumstances giving rise to the action or claim;
    38    4. the nature and extent of the damages sustained  by  the  infant  or
    39  incompetent,  and  if  the  action  or claim is for damages for personal
    40  injuries to the infant or incompetent, the name of  each  physician  who
    41  attended  or treated the infant or incompetent or who was consulted, the
    42  medical expenses, the period of disability, the amount  of  wages  lost,
    43  and the present physical condition of the infant or incompetent;
    44    5.  the  terms  and proposed distribution of the settlement and his or
    45  her approval of both;
    46    6. the facts surrounding any other motion or petition  for  settlement
    47  of  the  same claim, of an action to recover on the same claim or of the
    48  same action;
    49    7. whether reimbursement  for  medical  or  other  expenses  has  been
    50  received from any source; and
    51    8.  whether the infant's or incompetent's representative or any member
    52  of the infant's or incompetent's family has made  a  claim  for  damages
    53  alleged  to have been suffered as a result of the same occurrence giving
    54  rise to the infant's or incompetent's claim and, if so, the amount  paid
    55  or  to be paid in settlement of such claim or if such claim has not been
    56  settled the reasons therefor.

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     1    (b) Affidavit of attorney. If the infant or incompetent or his or  her
     2  representative is represented by an attorney, an affidavit of the attor-
     3  ney shall be included in the supporting papers and shall state:
     4    1. his or her reasons for recommending the settlement;
     5    2.  that directly or indirectly he or she has neither become concerned
     6  in the settlement at the instance of a party or person opposing, or with
     7  interests adverse to, the infant or incompetent nor  received  nor  will
     8  receive  any  compensation from such party, and whether or not he or she
     9  has represented or now represents any other  person  asserting  a  claim
    10  arising from the same occurrence; and
    11    3. the services rendered by him or her.
    12    (c)  Medical or hospital report. If the action or claim is for damages
    13  for personal injuries to the infant or incompetent, one or more  medical
    14  or  hospital  reports,  which need not be verified, shall be included in
    15  the supporting papers.
    16    (d) Appearance before court. On the hearing, the moving party or peti-
    17  tioner, the infant or incompetent, and his or her attorney shall  attend
    18  before the court unless attendance is excused for good cause.
    19    (e)  Representation.  No  attorney having or representing any interest
    20  conflicting with that of an infant  or  incompetent  may  represent  the
    21  infant or incompetent.
    22    (f) Preparation of papers by attorney for adverse party. If the infant
    23  or  incompetent  is  not  represented  by  an attorney the papers may be
    24  prepared by the attorney for an adverse party or person and shall  state
    25  that fact.
    26    §  6.  Rule  1210  of  the civil practice law and rules, as amended by
    27  judicial conference proposal number 2 for the year 1969, subdivision (d)
    28  as amended by chapter 464 of the laws of 1995, is  amended  to  read  as
    29  follows:
    30    Rule  1210.  Guardian of infant. (a) Petition for appointment; by whom
    31  presented; contents. An infant, if of the age of fourteen years or more,
    32  or a relative or friend of an infant, may  present  a  petition  to  the
    33  court  for  appointment  of a guardian. The petition shall state the age
    34  and residence of the infant, the name and residence of any living parent
    35  and of the person proposed as guardian, the relationship  if  any  which
    36  such person bears to the infant, and the nature, status and value of the
    37  infant's estate.
    38    (b)  Hearing.  The  court  shall  ascertain the age of the infant, the
    39  amount of his or her personal property, the gross amount or value of the
    40  rents and profits of his or her real estate during his or her  minority,
    41  and the sufficiency of the security offered by the proposed guardian. If
    42  the  infant  is  of  the  age of fourteen years or more, the court shall
    43  examine him or her as to his or her voluntary nomination of  or  prefer-
    44  ence for a suitable guardian; if he or she is under the age of fourteen,
    45  the court shall select and appoint a suitable guardian.
    46    (c) Undertaking. The court shall make an order requiring or dispensing
    47  wholly  or partly with an undertaking, in an amount and according to the
    48  conditions set forth in section seventeen hundred eight  of  the  surro-
    49  gate's court procedure act.
    50    (d)  Direction as to management of estate. The court in its discretion
    51  may direct that the principal of  the  estate  or  any  part  of  it  be
    52  invested  in  bonds of the state of New York or of the United States, or
    53  invested in bonds or  other  obligations  of  any  county,  city,  town,
    54  village  or  school district of the state of New York, or deposited with
    55  any bank, trust company, insured savings and loan association or insured
    56  savings bank or insured state or federal credit  union  which  has  been

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     1  designated  as  a  depository  for  such fund; or invested in a bond and
     2  mortgage on unincumbered and improved property within the state,  having
     3  a  value,  to  be  shown  to  the satisfaction of the court, of at least
     4  double  the amount of principal invested, for the benefit of the infant,
     5  and may direct that only the interest or income be received by the guar-
     6  dian.
     7    (e) Filing of  certified  copy  of  order  of  appointment.  Upon  the
     8  appointment  of  a  guardian  of  the person or property, or both, of an
     9  infant, the guardian shall file a certified copy of the order of his  or
    10  her appointment with the clerk of the surrogate's court of the county in
    11  which he or she has been appointed.
    12    § 7. Rule 1211 of the civil practice law and rules, subdivision (a) as
    13  amended  by  chapter  276  of  the  laws  of 1972, is amended to read as
    14  follows:
    15    Rule 1211. Allowance for infant's support.  (a)  Petition  to  supreme
    16  court,  county  court  or surrogate's court; contents. A petition to the
    17  supreme court, county court or the surrogate's court for the application
    18  of an infant's property or a portion thereof to  the  infant's  support,
    19  maintenance or education shall set forth in detail:
    20    1.  the  amount and nature of the infant's property, where it is situ-
    21  ated and how invested, his or her income from such property or any other
    22  source and any claim against the infant;
    23    2. whether or not the infant's parents are living and,  if  either  of
    24  them  is  living, all circumstances relative to their ability to support
    25  the infant, and, if neither of  them  is  living,  the  names  of  other
    26  persons  legally  obligated  to support the infant and the circumstances
    27  relative to their ability to support the infant; and
    28    3. the terms of any previous order made by any court within or without
    29  the state for similar relief and the disposition made  of  any  property
    30  pursuant thereto.
    31    (b) Notice. Such notice as the court shall direct shall be given to:
    32    1.  the  guardian  of  the  property of the infant, if the petition is
    33  presented by a person other than such guardian;
    34    2. the infant's father if he  is  living  or,  if  not,  then  to  the
    35  infant's mother or, if neither parent is living, then to the person with
    36  whom the infant resides; and
    37    3. the infant if he or she is of the age of fourteen years or more.
    38    §  8. This act shall take effect immediately.