N.Y. SCP Law § 1813

§ 1813. Disputed or unsettled debt or claim may be compromised,\n compounded or sold; compromise of infant's claim or action in\n supreme court\n 1. Upon the application of a fiduciary or any person (other than a\nclaimant) whose rights or interests will be affected by allowance of the\nclaim, the court may for good cause shown either ex parte or upon notice\nto such persons and in such manner as it directs authorize the\ncompromising or compounding of any debt, claim or demand, due or to\nbecome due, which is necessary to be settled, adjusted or liquidated in\nconnection with the settlement of an estate and the sale at public\nauction on such notice as directed by the court of any uncollectible,\nstale or doubtful debt or claim belonging to the estate, but any party\ninterested in the final settlement who has not received notice may show\non the settlement that the debt or claim was fraudulently compromised or\ncompounded.\n 2. In addition to the foregoing powers, the surrogate of any county in\nwhich there is no resident justice of the supreme court qualified to act\nand in which there is then no term of supreme court in session may act\npursuant to the provisions of the CPLR with respect to an application\nfor the approval of a settlement of an infant's claim or of a cause of\naction belonging to an infant, pending in the supreme court in that\ncounty, to the same extent and with the same power and jurisdiction as\nthough he were a justice of the supreme court.\n