Mooney v. Madden, 193 A.D.2d 933 (N.Y. App. Div. 1993). · Go Syfert
Mooney v. Madden, 193 A.D.2d 933 (N.Y. App. Div. 1993). Cases Citing This Book View Copy Cite
52 citation events (48 in the last 25 years) across 13 distinct courts.
Strongest positive: Dernier v. Mortgage Network, Inc. (vt, 2013-10-18)
Treatment trajectory · 1999 → 2026 · click a year to view as-of
1999 2012 2026
Top citers, strongest first. 19 distinct citers. How cited ↗
examined Cited as authority (verbatim quote) Dernier v. Mortgage Network, Inc.
Vt. · 2013 · signal: see also · quote attribution · 1 verbatim quote · confidence high
a trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee's power when the beneficiary or beneficiaries consent or ratify the trustee's ultra vires act or agreement.
examined Cited as authority (verbatim quote) Dernier v. Mortgage Network, Inc., Mortgage Electronic Systems, Inc., and U.S. Bank National Association
Vt. · 2013 · signal: see also · quote attribution · 1 verbatim quote · confidence high
a trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee's power when the beneficiary or beneficiaries consent or ratify the trustee's ultra vires act or agreement.
examined Cited as authority (verbatim quote) Bank of America National Association v. Bassman FBT, L.L.C. (2×) also: Cited as authority (rule)
Ill. App. Ct. · 2012 · signal: compare · quote attribution · 1 verbatim quote · confidence high
a trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee's power when the beneficiary or beneficiaries consent or ratify the trustee's ultra vires act or agreement .
examined Cited as authority (quoted) Rigberto Sigaran v. US Bank National Assn
5th Cir. · 2014 · quote attribution · 1 verbatim quote · confidence low
a trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee's power when the beneficiary or beneficiaries consent or ratify the trustee's ultra vires act or agreement.
discussed Cited as authority (rule) Yvanova v. New Century Mortgage CA2/1
Cal. Ct. App. · 2016 · confidence medium
(Rajamin v. Deutsche Bank Nat’l Trust Co. (2d Cir. 2014) 757 F.3d 79, 88 ; Mooney v. Madden (1993) 193 A.D.2d 933, 934 [ 597 N.Y.S.2d 775, 776 ].) Because a trust beneficiary “retains the authority to ratify a trustee’s ultra vires act, such as a late transfer[,] . . . the act . . . must not be void; it must merely be voidable.” (Cocroft v. HSBC Bank USA, N.A. (7th Cir. 2015) 796 F.3d 680, 689 (Cocroft).) Thus “a mortgagor whose loan is owned by a trust, does not have standing to challenge the [mortgage assignee’s] possession or status as assignee of the note and mortgage based on …
discussed Cited as authority (rule) Yhudai v. Impac Funding Corp.
Cal. Ct. App. · 2016 · confidence medium
(Rajamin, supra, 757 F.3d at p. 88 ; Mooney v. Madden (N.Y.App.Div. 1993) 193 A.D.2d 933, 934 [ 597 N.Y.S.2d 775 ].) Under Embobo I, however, a stranger to the trust would have standing to assert that the unauthorized transaction is void, thereby giving “the stranger ... the power to interfere with the beneficiaries’ right of ratification.” (Rajamin, supra, at p. 89 .) The stranger’s right (under Embobo I) to declare a transaction void would thus conflict directly with the beneficiaries’ right to ratify the transaction.
discussed Cited as authority (rule) Jepson v. Bank of New York Mellon Ex Rel. CWABS, Inc.
7th Cir. · 2016 · confidence medium
As we have noted earlier, however, in interpreting this statute, “New York courts appear to have almost uniformly concluded that a beneficiary retains the authority to ratify a trustee’s ultra vires act.” Cocroft v. HSBC Bank USA N.A., 796 F.3d 680, 689 (7th Cir.2015) (citing Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (1993), and Tran, 2014 WL 1225575 , at *5).
cited Cited as authority (rule) Burgest v. HSBC Bank, USA, N.A.
Norfolk Cir. Ct. · 2015 · confidence medium
Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (N.Y.
discussed Cited as authority (rule) Robert Ferguson v. Bank of New York Mellon
5th Cir. · 2015 · confidence medium
Mellon v. Gales, 116 A.D.3d 723 , 982 N.Y.S.2d 911 , 911 (2014) (mem.) (finding borrowers "did not have standing to assert noncompliance with the subject lender’s pooling service agreement”)). 9 .See In re Levy, 69 A.D.3d 630 , 893 N.Y.S.2d 142 , 144 (2010) ("The essence of ratification is that the beneficiary unequivocally declares that he does not regard the act in question as a breach of trust but rather elects to treat it as a lawful transaction under the trust.”); Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (1993) ("A trustee may bind the trust to an otherwise invalid a…
discussed Cited as authority (rule) Arthur Laguette v. U.S. Bank N.A.
5th Cir. · 2015 · confidence medium
In Mooney , the New York Supreme Court, Appellate Division, held that “[a] trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee’s power when the beneficiary or beneficiaries consent or ratify the trustee’s ultra vires act or agreement.” Mooney, 193 A.D.2d at 933-34, 597 N.Y.S.2d 775 .
discussed Cited as authority (rule) Foiles v. Foiles
Colo. Ct. App. · 2014 · confidence medium
Ascher, Scott & Ascher on Trusts § 24.21.2, at 1760 (5th ed. 2007), states, "the consent of one of several beneficiaries to an act or omission of the trustee ordinarily does not preclude the other beneficiaries from holding the trustee liable for a breach of trust." See also Restatement (Third) of Trusts § 97 emt. e (2007) ("The consent, ratification, or release by one or more of the beneficiaries of a trust ordinarily ... does not preclude other beneficiaries of the trust-that is, noneconsenting present or future beneficiaries-from holding the trustee liable for a breach of trust."). e In M…
discussed Cited as authority (rule) Rajamin v. Deutsche Bank National Trust Co. (2×) also: Cited "see, e.g."
2d Cir. · 2014 · confidence medium
See King v. Talbot 40 N.Y. 76, 90 (1869) (“[t]he rule is perfectly well settled, that a cestui que trust is at liberty to elect to approve an unauthorized investment, and enjoy its profits, or to reject it at his option”); Mooney v. Madden, 193 A.D.2d 933, 933-34 , 597 N.Y.S.2d 775, 776 (3d Dep’t) (“Mooney ”) (“A trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee’s power when the beneficiary or beneficiaries consent or ratify the trustee’s ultra vires act or agreement....”), lv. dismissed, 82 N.Y.2d 889 , 610 N.Y.S.2d…
discussed Cited as authority (rule) Wolff v. Bank of New York Mellon
D. Minnesota · 2014 · confidence medium
July 30, 2013), citing Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (N.Y.App.Div.1993)) (“ ‘Courts applying New York law have treated actions by trustees as voidable.’ ”); Halacy v. Wells Fargo Bank, N.A., NO.
discussed Cited "see" Cocroft v. HSBC Bank USA, N.A. ex rel. Deutsche ALT-A Mortgage Loan Trust Series 2007-OA3 (2×)
7th Cir. · 2015 · signal: see · confidence high
See Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (N.Y.App.Div.1993); see also Anh Nguyet Tran v. Bank of New York, No. 13 Civ. 580, 2014 WL 1225575 at *5 (S.D.N.Y.
discussed Cited "see" Sandri v. Capital One, N.A. (In re Sandri) (2×)
Bankr. N.D. Cal. · 2013 · signal: see · confidence high
See Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (1993); Leasing Serv.
discussed Cited "see, e.g." John Svoboda v. Bank of America, N.A., et a (2×)
5th Cir. · 2014 · signal: see, e.g. · confidence low
See, e.g., Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (N.Y.App.Div.1993) (“A trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee’s power when the beneficiary or beneficiaries consent or ratify the trustee’s ultra vires act or agreement.”); Hine v. Huntington, 118 A.D. 585 , 103 N.Y.S. 535, 540 (N.Y.App.
discussed Cited "see, e.g." Calderon v. Bank of America N.A. (2×)
W.D. Tex. · 2013 · signal: see, e.g. · confidence low
See, e.g., Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775 (1993) (holding that trustee may bind trust to an otherwise invalid act or agreement that is outside scope of trustee’s power when beneficiary or beneficiaries consent or ratify trustee’s ultra vires act or agreement); Matter of Estate of Janes, 165 Misc.2d 743 , 630 N.Y.S.2d 472, 477 (Sur.1995), aff'd as modified sub nom.
discussed Cited "see, e.g." Lnc Investments, Inc. v. First Fidelity Bank (2×)
1st Cir. · 1999 · signal: see, e.g. · confidence low
See, e.g., Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (3d Dep't 1993) (noting that if the beneficiaries of a trust ratified or consented to the trustee's conduct, "they are bound by it").
discussed Cited "see, e.g." LNC Investments, Inc. v. First Fidelity Bank, N.A. New Jersey (2×)
2d Cir. · 1999 · signal: see, e.g. · confidence low
See, e.g., Mooney v. Madden, 193 A.D.2d 933 , 597 N.Y.S.2d 775, 776 (3d Dep’t 1993) (noting that if the beneficiaries of a trust ratified or consented to the trustee’s conduct, “they are bound by it”).
Retrieving the full opinion text from the archive…
Walter J. Mooney, Jr., Individually and as Trustee of a Trust Created by Walter J. Mooney
v.
Frances E. Madden, Individually and as Trustee of a Trust Created by Walter J. Mooney
Appellate Division of the Supreme Court of the State of New York.
May 13, 1993.
193 A.D.2d 933
1993 N.Y. App. Div. LEXIS 4841
Mikoll.
Cited by 21 opinions  |  Published
1 passage pin-cited by 1 case
Pinpoint authority: bottom 84%
Citer courts: Fifth Circuit (1)
Mikoll, J.

Appeal from an order of the Supreme Court (Brown, J.), entered April 29, 1992 in Saratoga County, which, inter alia, granted defendants’ cross motions for summary judgment dismissing the complaint.

The primary question presented on this appeal, as limited by plaintiff’s brief, is whether a 1962 agreement by the trustees of testamentary trusts to vote the shares of stock in certain corporations held in the trusts in a certain way is binding upon the trustees and enforceable so that votes cast in violation of that agreement may be set aside and declared a nullity.

Although there are situations where a trustee of shares of corporate stock may validly be bound to vote those shares in a particular way, including being bound to vote for particular directors or officers, the instant case involves an agreement by the trustees that is outside the scope of the trustee’s powers and which was not ratified expressly or impliedly by all of the beneficiaries (see, In re Palmer’s Will, 132 NYS2d 311, 315-316). A trustee may bind the trust to an otherwise invalid act or agreement which is outside the scope of the trustee’s power when the beneficiary or beneficiaries consent or ratify the[*934] trustee’s ultra vires act or agreement (see, 10 Bogert, Trusts and Trustees § 564, at 271-272; 12 Bogert, op. cit., § 688, at 183-186 [2d rev ed]). This beneficiary consent may be express or implied from the acceptance of the trustee’s act or agreement and may be given either after or before the trustee’s act, as when the beneficiary or beneficiaries direct the trustee to take the challenged act or enter into the agreement (see, ibid.). To be binding, beneficiary consent must be by all of the beneficiaries (see, id., § 564).

In the instant case the record indicates that the two beneficiary trustees are bound by the agreement because they signed it at its inception and have benefited from it for the 30 years it has been in existence and by presumptively consenting to their own actions as trustees. However, the will under which the trusts were established provides that plaintiff and defendant Frances E. Madden each have a life estate interest in the trust with the remainder interest passing to their respective issue. The record indicates that there are actual remainder issue of the two trustees and, thus, beneficiaries of the trust, but it does not indicate that they ratified or consented to the agreement or were parties to it. If they ratified it or consented to it they are bound by it. Additionally, there is the question of whether the acts of the trustees in signing the agreement and accepting its benefits while natural guardians of the respective infant beneficiaries, may have bound the infant beneficiaries.

In view of the foregoing, Supreme Court improperly grounded its decision on the invalidity of the agreement alone without considering whether the agreement had been consented to and/or ratified by the two trustees/beneficiaries and the remainder persons who also are beneficiaries. That part of the order of Supreme Court which granted the cross motions for summary judgment dismissing the complaint should therefore be reversed and the cross motions denied, so that the questions of fact may be resolved at trial.

Weiss, P. J., Yesawich Jr., Levine and Crew III, JJ., concur. Ordered that the order is modified, on the law, without costs, by reversing so much thereof as granted the cross motions; cross motions denied; and, as so modified, affirmed.