American Surety Co. v. Gainfort

123 F. Supp. 743, 1954 U.S. Dist. LEXIS 3077
CourtDistrict Court, S.D. New York
DecidedMay 3, 1954
StatusPublished
Cited by2 cases

This text of 123 F. Supp. 743 (American Surety Co. v. Gainfort) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Surety Co. v. Gainfort, 123 F. Supp. 743, 1954 U.S. Dist. LEXIS 3077 (S.D.N.Y. 1954).

Opinion

CONGER, District Judge.

This suit was tried without a jury upon seven claims for relief. The first six involve judgments obtained in California while the seventh involves fraud of creditors.

All the evidence in the case was documentary.

The following judgments were established :

June 13, 1935, Superior Court, County of San Francisco, in favor of S. Heyman against J. H. Gainfort in the sum of $2,220 with interest etc.

June 14, 1935, Superior Court, County of San Francisco, in favor of J. L. Duns-comb against John Gainfort et al. in the sum of $6,329 with interest etc., nunc pro tunc as of June 30, 1930.

May 25, 1925, Superior Court, County of San Francisco, in favor of San Francisco Hotel against J. H. C. Gainfort in the sum of $489.78 with interest etc.

May 9, 1925, Superior Court, County of San Francisco, in favor of Emma L. Hume against J. H. C. Gainfort in the sum of $9,516.97 with interest etc.; partially satisfied to extent of $830.58.

September. 21, 1927, Superior Court, County of San Francisco, in favor of Lewis P. White against John H. C. Gainfort in the sum of $558.50 with interest etc.

October 4, 1929, Superior Court, County of San Francisco, in favor of Lewis P. White against John H. C. Gain-fort and Isabel [sic] Gainfort in the sum of $782.10 with interest etc.

There is no questian that the defendant John H. C. Gainfort is the same person against whom all of the foregoing judgments were entered. The defendant Isabelle Gainfort was not served with process in this action.

It is undisputed, and documents establish, that each of the judgments, except that in favor of the San Francisco Hotel, was assigned to one Caroline Parish at various times and reassigned by Caroline Parish to the plaintiff on July 19, 1940. Although the amended complaint alleges the assignment of the San Francisco Hotel judgment to Caroline Parish, there is no document nor other proof in support of the allegation, so that it is impossible to find that plaintiff is the owner of this judgment.

The sole defense of John H. C. Gain-fort to these claims, aside from the plaintiff’s lack of title to the San Francisco Hotel judgment, is the statutes of limitations of California and/or New York.

Section 13 of the New York Civil Practice Act provides in part as follows:

“Where a cause of action arises outside of this state, an action cannot be brought in a court of this state to enforce such cause of action after the expiration of the time limited by the laws either of this state or of the state or country where the cause of action arose, for bringing an action upon the cause of action, except that where the cause of action originally accrued in favor of a resident of this state, the time limited by the laws of this state shall apply.”

[745]*745Section 13 above set forth requires the application of the California statutes since the period of limitation for suit on a judgment in that State is 5 years1 while in New York it is 20 years.2

It is plain, therefore, that all of the judgments were barred by the California statute long prior to the commencement of this suit on August 30, 1949 unless some other provision of the California statutes saves them.

Section 351 of the California Code of Civil Procedure provides as follows:

“If, when the cause of action accrues against a person, he is out of the state, the action may be commenced within the term herein limited, after his return to the state, and if, after the cause of action accrues, he departs from the state, the time of his absence is not part of the time limited for the commencement of the action.”

It was stipulated on the record that defendant John H. C. Gainfort did not leave California until September, 1936. It is admitted that he has not returned to California.

He was there, nevertheless, for eleven years after the Hume and San Francisco judgment, and for nine and seven years after the respective White judgments. These judgments are not aided by section 351; and I hold that they are barred by section 336 of the California Code of Civil Procedure.

Gainfort departed from California about fifteen months after the Heyman judgment and has not returned. This judgment is not barred since his absence tolled section 336. Section 351, supra.

The Dunseomb judgment is somewhat unusual. It was entered on June 14, 1935 nunc pro tunc as of June 30, 1930. The defendant John H. C. Gainfort makes no point of the 1930 date but treats the judgment as having been entered in 1935. I believe the judgment’s retroactive effect can only relate to the interest and has no significance with respect to the statute of limitations. Certainly the statute could! not run against a non-existent judgment. Were I to regard June 30, 1930 as the date of the judgment it would result in the anomaly, for example, of a judgment entered long after the time to appeal from it had expired. California Rules on Appeal, Rule 2(a, b).

I hold that the Dunseomb judgment is not barred since the statute of limitations was tolled by the defendant John H. C. Gainfort’s absence from California. Section 351, supra.

The seventh claim is substantially as follows: that one Thomas Sherwood Gainfort died in Dublin, Irish Free State on August 15, 1932 leaving, in addition to property in the Irish Free State, property consisting of $6,712.36 in cash on deposit with banks in San Francisco, California; that on October 24, 1934, in the Superior Court of California, one Nicholas Barron was appointed ancillary administrator c. t. a. of Thomas Sherwood Gainfort’s California estate, and that he filed a bond in the amount of $5,000 upon which plaintiff was surety; that the defendant John H. C. Gainfort was residuary legatee and devisee of the decedent Gainfort’s estate which residuary estate exceeded $25,000 in value; that during the pendency of the estate proceedings, defendant Gain-fort assigned his interest to his wife, Isabelle Gainfort, which assignment was made to defraud creditors of the defendant John H. C. Gainfort, was without consideration and in contemplation --of insolvency; that on April 17, 1935, Barron, at the direction of the Gainfor'ts, pursuant to a conspiracy among all three, without- authority, and to defeat creditors of defendant John H. C. Gain-fort etc., transmitted to the Irish executors of the estate of the decedént Gainfort the sum of $5,786.91;

That on April 10, 1937, in the Superior Court in California, one Caroline [746]*746Parish was appointed administratrix c. t. a. de bonis non of the Gainfort estate, Barron’s letters having been revoked on February 27, 1937 upon Caroline Parish’s petition; that thereafter, in May, 1938, Caroline Parish brought suit in the Superior Court against Barron, plaintiff American Surety and others on the bond of Barron and American Surety in the Gainfort estate, and on June 27, 1938 judgment was entered in favor of Caroline Parish in the amount of $5,000 which plaintiff herein paid; that various expenses set forth were incurred by plaintiff to protect its interest in the bond.

Various documents were offered3 in support of this claim. In part they substantiate the allegations of the amended complaint with respect to the Gainfort estate proceedings.

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Bluebook (online)
123 F. Supp. 743, 1954 U.S. Dist. LEXIS 3077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-surety-co-v-gainfort-nysd-1954.