Section 1807. Effect of allowance of claim by fiduciary 1  


Latest version.
  • Whenever a fiduciary shall allow a claim other than the fiduciary's
      own  the  validity  of the claim shall thereby be established, but if it
      shall appear that the claim was improperly allowed or  was  fraudulently
      or  negligently  paid,  any  party  adversely  affected thereby may file
      objections thereto in any proceeding for the judicial settlement of  the
      account  of the fiduciary. A copy of the objections shall be served upon
      all parties who have appeared and if the claimant  has  not  appeared  a
      copy  shall  be  served upon the claimant personally or by mail.  If the
      court sustains the objections the claim shall thereupon be dismissed  if
      it  has not been paid.  If it has been paid, in whole or in part, and an
      amended petition or objections request a  direction  that  the  claimant
      repay  to  the  fiduciary  of the estate any amount of the estate assets
      determined on the settlement of the account  to  have  been  paid  to  a
      claimant  as  a  result  of  fraud,  negligence  or  collusion  and if a
      supplemental citation to this effect was  issued  and  served  upon  the
      claimant,  then  the  court,  is  authorized in the accounting decree to
      direct repayment by the creditor of the excess to the fiduciary  of  the
      estate and may, in addition, impose a surcharge against the fiduciary or
      otherwise  as  justice shall require. If there is no amended petition or
      answer requesting a direction that the  claimant  repay  the  amount  of
      estate  assets  determined  to  have  been  paid  as  a result of fraud,
      negligence or collusion then a surcharge shall be  imposed  against  the
      fiduciary  in  the  amount  the  estate  has been damaged by such fraud,
      negligence or collusion.
        2.  In such accounting proceeding a party adversely affected may  show
      that  a  judgment  on a claim against a fiduciary was obtained by fraud,
      negligence or collusion.  If the court determines that the judgment  was
      so  obtained,  a surcharge shall be imposed against the fiduciary in the
      amount the  estate  has  been  damaged  by  such  fraud,  negligence  or
      collusion.