Residual beneficiaries brought a motion for directions in a contested passing of accounts relating to a large estate.
They alleged that estate trustees had taken excessive executor’s compensation and sought review and possible repayment.
A former trustee sought to add an accounting firm as a party on the basis that the firm had received a substantial portion of the executor compensation through a partnership arrangement and might be vicariously liable under the Partnerships Act if the compensation was excessive.
The court held that there was a triable issue regarding whether the partner acted within the scope of partnership business or with the firm’s authorization, and that the firm’s presence was necessary to adjudicate the issues effectively.
The firm was therefore added as a party and a procedural timetable was established for discovery and trial of the passing of accounts.
