This is an application by the administratrix, the decedent's daughter, to remove the restrictions from her limited letters of administration so that she may receive and distribute the proceeds of a personal injury action.

The decedent suffered injuries as a result of alleged nursing home negligence. She died intestate on February 27, 2003. Her distributees are the petitioner and a son, who was served with process and defaulted.

Disbursements are allowed in the reduced sum of $7,104.17, reflecting the elimination of expenses normally considered office overhead and the disallowance of an interest charge on disbursements in the sum of $724.40. Although charging reasonable interest on legal fees and disbursements that were not timely paid in accordance with the terms of a retainer agreement might be allowable in some matters (see Ween v Dow 35 AD3d 58 [2006]), attorneys should pause to consider whether it is ever appropriate or prudent to make loans to clients and charge them interest. In any event, the court need not address the issue of whether it is appropriate to charge interest on disbursements in contingency fee cases under any circumstances, because counsel has failed to demonstrate that a full disclosure was made to the client to justify counsel, in effect, acting as the client's banker in a loan transaction. Counsel fees are allowed pursuant to the retainer agreement. The decedent's son is to be reimbursed the sum of $8,989 for funeral expenses. Statutory commissions may be paid to the petitioner. Medicare/MSPRC Liability, the claimant for Medicare benefits furnished to the decedent, was served with process and defaulted. Accordingly, the net distributable proceeds may be distributed to the decedent's children in equal shares without any payment being made to Medicare/MSPRC Liability. However, the court is not passing upon whether any Medicare claim may be pursued in federal court.

Submit decree.

SURROGATE