New York Consolidated Laws, Surrogate's Court Procedure Act - SCP § 1813. Disputed or unsettled debt or claim may be compromised, compounded or sold;  compromise of infant's claim or action in supreme court

1. Upon the application of a fiduciary or any person (other than a claimant) whose rights or interests will be affected by allowance of the claim, the court may for good cause shown either ex parte or upon notice to such persons and in such manner as it directs authorize the compromising or compounding of any debt, claim or demand, due or to become due, which is necessary to be settled, adjusted or liquidated in connection with the settlement of an estate and the sale at public auction on such notice as directed by the court of any uncollectible, stale or doubtful debt or claim belonging to the estate, but any party interested in the final settlement who has not received notice may show on the settlement that the debt or claim was fraudulently compromised or compounded.

2. In addition to the foregoing powers, the surrogate of any county in which there is no resident justice of the supreme court qualified to act and in which there is then no term of supreme court in session may act pursuant to the provisions of the CPLR with respect to an application for the approval of a settlement of an infant's claim or of a cause of action belonging to an infant, pending in the supreme court in that county, to the same extent and with the same power and jurisdiction as though he were a justice of the supreme court.