MHL ARTICLE 81

1 MHL ARTICLE 81. and related matters COLLECTED CASES. (Current through September 2021). Mental Hygiene Legal Service Second Judicial Department Michael D. Neville, Director Felicia B. Rosen, Principal Attorney Table of Contents I. RELATIONSHIP BETWEEN ARTICLE 81 & other PROVISIONS OF LAW .. 7. A. MHL ARTICLE 78 .. 7. B. SCPA 17-A and SCPA 17 ( and other matters involving minors) .. 8. C. Guardian ad litem .. 13. (i) Generally .. 13. a. Compensation of GAL .. 18. (ii) Does not have authority to consent to settlement of behalf of Ward .. 18. (iii) Does have authority to consent to settlement on behalf of 20. D. Powers of attorney/health care agents/trustees .. 22. E. Testamentary capacity/Revocation of Wills .. 31. F. Matrimonial 34. G. Habeas corpus .. 37. H. MHL Art 79 ( guardianship for Veterans) .. 38. I. Collections Matters .. 38. J. Assisted Outpatient Treatment (Kendra's Law) .. 40. K. Comparison to CPLR Art.

2 12 Infant Compromise .. 41. II. FUNCTIONAL LIMITATIONS/ALTERNATIVE RESOURCES/BEST INTERESTS OF IP .. 41. III. EFFECT OF guardianship ON RIGHTS OF AIP .. 56. A. Transfer to Nursing Home/Change of Abode .. 56. B. Consent to psychiatric hospitalization and treatment .. 58. C. Voiding questionable marriages and other contracts .. 60. D. Use of AIP's funds .. 65. E. AIP's and Guardian's right to sue or be sued .. 68. (i) Effect of guardianship on Running of Filing 68. (ii) Generally .. 69. F. Limitations on Guardian's powers .. 78. G. Power to do Estate and Medicaid planning .. 80. (i) Substituted judgment .. 80. (ii) Medicaid Planning trusts: Supplemental Needs/Pooled Trusts .. 89. i a. Funds that can be placed into trust .. 89. (i) Personal injury awards/own funds .. 89. (ii) Inheritances .. 94. (iii) Income and benefits .. 95. b. Proper trustees .. 97. c. Pooled trusts .. 100. d. Notice to and Involvement of local DSS.

3 101. e. Creation of SNT/Proper petitions and petitioners .. 102. f. Proper 104. g. Reformation of Trusts to SNTs .. 105. h. Trustee Compensation/Legal Fees .. 108. i. Court supervision of trusts .. 109. j. Termination of trust .. 111. k. Particular Terms of 111. (i) Attorneys Fees Subject to Review by Court .. 111. (ii) Amendment of Trust Only Upon Court Approval .. 112. (iii) Reversal of Gifts and Planning Devices .. 112. (iv) Dispensing with Annual 113. (v) Accounting Required Under ARTICLE 81 Methods .. 114. (vi) Terms Against the Best Interest of the Beneficiary and/or Against Public Policy .. 114. (vii) Requirement of Bond .. 115. l. Retroactive Establishment .. 115. m. Payback to 116. n. Calculation of NAMI .. 118. o. SNT as Alternative to guardianship .. 119. p. Duties of Trustee .. 120. q. Who May Create a Trust .. 120. H. Voiding previously executed legal instruments including Stipulations of Settlement, Wills, Conveyances, Contracts, Health Care Proxies and Powers of Attorney.

4 120. I. Guardian may waive professional privileges on behalf of ward .. 134. J. Guardian's power to protect ward's assets .. 134. K. Least restrictive alternative/Deprivation of liberty .. 135. ii L. Major medical/end of life decisions .. 139. (i) Pre-Family Health Care Decisions Act .. 139. (ii) Family Health Care Decisions 140. a. Legislative Intent .. 140. b. Honoring Preferences of Person Facing Death .. 141. c. Retroactivity .. 143. d. Burden of Proof/Clear and Convincing Evidence .. 143. e. Appeals .. 144. M. AIP As Incapacitated Fiduciary .. 144. N. Change of IP's domicile .. 145. O. Right/Obligation to Testify .. 145. P. Landlord/Tenant 146. Q. Power to control IP's social contacts .. 151. IV. GUARDIANS .. 152. A. Proper guardians .. 152. (i) Preference for Family Members Unless Unfit or Conflict .. 152. (ii) Public agencies .. 163. (iii) Out of State/Foreign guardians .. 166. (iv) Counsel or court evaluator as guardian.

5 168. (v) Creditors as Guardians .. 168. (vi) Conflict of Interest, Generally .. 169. (vii) Non-Citizens .. 170. B. Temporary Guardians and Provisional Remedies .. 171. C. Special Guardians .. 174. D. Protective Arrangements/Single Transactions .. 175. E. Nomination and Consent to Appointment of Guardian .. 176. F. Breach of fiduciary duty/removal/sanctions .. 178. G. Discharge/Termination/Resignation .. 191. H. Multiple wards .. 195. I. Compensation .. 195. J. 207. K. Defacto Guardians .. 209. iii L. Whether a Power is a Personal or Property Power .. 209. M. Rights and Immunity of Guardians .. 209. V. PROCEDURAL MATTERS .. 211. A. Petitions and 211. B. Service and Returns of Petitions and Orders to Show Cause .. 216. (i) Proper and timely Service .. 216. (ii) Notice of Petition .. 217. a. Validity of Constitutionality and statutory arguments .. 217. b. Who is entitled to the Petition? .. 218. (iii) Withdrawal of Petition.

6 218. C. Jurisdiction and Venue .. 219. (i) Uniform Adult guardianship and Protective Proceedings Jurisdiction Act (MHL Art 83) Issues 228. D. Consolidation with the guardianship Proceeding .. 230. E. 230. (i) Appointment and disqualification .. 230. (ii) Counsel and other fees .. 235. a. Responsibility for payment of counsel fees .. 236. (i) AIP's 236. (ii) Petitioner .. 241. (iii) Payment of fees pursuant to County Law 18-B .. 249. (iv) Public agencies .. 250. (v) Non-petitioning Nursing home .. 250. (vi) Non-party intervenor .. 252. (vii) The bar in general .. 252. b. To whom fees paid .. 252. (i) Retained counsel .. 252. (ii) Counsel for Cross - petitioners .. 255. (iii) Counsel for Public agencies and MHLS .. 256. (iv) Counsel for guardians/conservators .. 256. (v) Counsel for Guardian's 257. (vi) Counsel for non - 257. iv c. Reasonableness of fee requested .. 258. d. Proper Court to award fees Surrogate's or Supreme.

7 265. e. Fees set by other courts .. 267. (i) Foreign courts not binding .. 267. (ii) other New York Courts .. 267. F. Court 267. (i) Role .. 267. (ii) Appointment .. 270. (iii) Compensation .. 270. a. Enforcement of Fee 278. (iv) Report as evidence .. 279. G. Hearings .. 280. (i) Hearing required .. 280. a. Presence of AIP at hearing / Bedside hearings .. 284. b. Findings of Foreign Courts .. 287. (ii) Medical Testimony not 287. (iii) Applicability of rules of evidence .. 289. (iv) Clear and convincing 290. a. Physician-patient privilege .. 292. b. Social Worker - Client Privilege .. 295. c. Access to DSS/APS 296. d. Sealing of Courtroom/Court records .. 297. e. Fifth amendment .. 299. f. Information 302. g. Judicial Proceeding Privilege .. 303. (vi) Jury trials .. 303. (vii) Court's consideration of best interest and wishes of AIP .. 304. (viii) Burden of proof .. 304. (ix) Appointment of Independent Psychiatric, psychological and medical examiners.

8 306. (x) Findings .. 307. (xi) 307. (xii) Consent to Appointment of Guardian .. 307. v H. Intervenors .. 308. I. Sanctions .. 310. (i) Frivolous Conduct .. 312. (ii) Discovery .. 315. J. 316. K. Death of AIP .. 317. L. Payment of Rent or hospital charges during pendency of Art. 81 proceeding - stay of evictions 326. M. 327. N. Part 36 Rules .. 331. O. Secondary 333. (i) 333. P. Filing fees .. 335. Q. Parties / Non -parties .. 335. (i) Court Evaluator .. 335. (ii) Individuals entitled to notice under MHL (e) .. 336. R. Accounting 336. S. Contempt .. 339. T. Annual Reports/Court Examiners .. 343. U. Order to Gain 345. V. Commission and Bond .. 345. vi Case Summaries I. RELATIONSHIP BETWEEN ARTICLE 81 & other PROVISIONS OF LAW. A. MHL ARTICLE 78. Proceeding for the Appointment of a Guardian for Caitlin, 2017 NYLJ LEXIS 1043 (Sup. Ct., Kings Cty., 2019)(Lopez-Torres, Surr.). Unlike guardianships created under MHL ARTICLE 81 where the powers granted to a guardian are narrowly tailored to afford the guardian no more power over an individual than is absolutely necessary under the circumstances, the creation of a 17-A guardianship results in a plenary guardianship that affords the guardian virtually complete power over an individual.

9 Will of Josephine Brucato, 7/17/09 28, (col. 3) (Surr Ct. Kings Cty.)(Surr. Johnson). SCPA 1402 has not been amended to reflect the fact that committees and conservators have been replaced by guardians under ARTICLE 81 of the Mental Hygiene Law. Nonetheless, a guardian of a legatee has standing to petition to probate a will. Matter of Dennis Diaz, NYLJ, 7/6/04, p. 21 (Sup. Ct, Queens Cty.)(Taylor, J.). After an ARTICLE 81 hearing, a disabled man was found to be in need of a guardian of the person and property. He was found, among other things, to have the functional level of approximately a 5th grader and specifically to be in need of assistance in handling his own finances. Before a guardian could be bonded and qualified, he retained counsel and entered into a contract of sale to purchase a tavern with his own funds. Under pre-Art 81 law, contracts entered into by persons adjudicated incompetent and who have committees or conservators are presumptively void.

10 Contracts with persons who do not have committees or conservators but are of unsound mind and unable to appreciate the consequences of their own actions were considered voidable. ARTICLE 81. does not result in a finding of incompetence but rather only findings of specific functional limitations and guardianship powers tailored to be the least restrictive form of intervention. This AIP was found to lack the ability to handle his own finances so here, the Court does void and revoke the contract. Matter of , NYLJ, 10/31/01, (Sup. Ct., Suff. Cty.) (Berler, J.). Although CPLR 1201 refers to service of legal papers on incompetents and conservatees and it should also be construed to include incapacitated persons for whom Art. 81 guardians have been appointed. 7. Matter of Stephen D., 190 Misc2d 760, 739 913 (Surr. Ct., Bronx Cty. 2000). (Hotzman, Surr.). Where MHL Art 77 conservator dies after date of repeal of MHL , court can fill the vacancy by appointing an Art.