Buffalo Cold Storage Co. v. Harding

214 A.D. 643, 212 N.Y.S. 751, 1925 N.Y. App. Div. LEXIS 10584
Appellate Division of the Supreme Court of the State of New York·Decided December 23, 1925·Published·Cited by 1 cases

Opinion

Clark, J.:

This action was begun in June, 1905. Plaintiff recovered a judgment against the defendant Herschel M. Bacon in June, 1903, for $10,830.79. That judgment has been kept in life and no part thereof has been paid. After an execution issued on said judgment had been returned unsatisfied this action was begun to set aside and have declared fraudulent and void a certain mortgage dated [644] June 24, 1902, which was executed by defendant Herschel M. Bacon and wife to his uncle Napoleon B. Bacon, covering the premises described in the mortgage which was given to secure the payment of $7,000 and interest two years from the date of the mortgage. Said mortgage was recorded in the Orleans county clerk’s office on the 3d day of February, 1903. It is the claim of plaintiff that this mortgage was given by Herschel M. Bacon and received by the mortgagee for the purpose of covering up and concealing the property of the mortgagor and delaying plaintiff in the collection of its judgment against Herschel M. Bacon, and that the mortgage was fraudulent, null and void.

The case was tried before the late Justice John M. Davy as referee. Both defendants, Napoleon B. Bacon and Herschel M. Bacon, appeared, answered and testified before said referee that the mortgage in question was given for a valid consideration and without the intent to cheat and defraud the creditors of Herschel M. Bacon. Referee Davy, after due consideration, decided that the mortgage was valid and dismissed the complaint as against the defendant Napoleon B. Bacon. Thereafter Napoleon B. Bacon, the mortgagee named in said mortgage, commenced an action to foreclose it. This plaintiff was made a party defendant and answered, setting up as a defense that said mortgage was given by Herschel M. Bacon and received by the mortgagee with the intent to place the property of the mortgagor beyond the reach of his creditors and to cheat and defraud them. After issue was thus joined the attorneys for the parties entered into a stipulation to the effect that if the judgment rendered in the plaintiff’s action against the Bacons, which had been tried before Referee Davy, was finally affirmed on the appeal then pending, the plaintiff in the foreclosure action (Napoleon B. Bacon) could apply at Special Term for judgment of foreclosure and sale in that action.

The record shows that subsequently the judgment entered on the report of Referee Davy was affirmed in the Appellate Division (Buffalo Cold Storage Co. v. Bacon, 123 App. Div. 916) and in accordance with the terms of the above stipulation judgment was entered in the foreclosure case. The property described in the mortgage was sold at foreclosure sale and the sale was confirmed and no appeal was ever taken from the foreclosure judgment and it is valid and subsisting to-day.

On or about August 18, 1909, plaintiff moved for a new trial on the alleged ground of newly-rdiseovered evidence. The new evidence consisted largely of an alleged confession made by Herschel M. Bacon to the effect that the evidence he gave on the trial before Referee Davy with reference to the consideration for the [645] Napoleon B. Bacon mortgage, heretofore referred to, was in the main false. A new trial wív ’ granted by the late Mr. Justice Hooker and plaintiff amended its complaint alleging that said mortgage was fraudulent from its inception and asking that it be so adjudged and for judgment against the estate of Napoleon B. Bacon for the amount the premises had brought on foreclosure sale. The defendant administrator of Napoleon B. Bacon’s estate answered but Herschel M. Bacon did not and the case was sent to another referee, Mr. Stedman of Batavia, for trial. After many hearings and long delays the new referee made his report in favor of the defendants and judgment was entered dismissing the complaint and that judgment was affirmed on appeal to this court in May, 1924. (Buffalo Cold Storage Co. v. Harding, 209 App. Div. 846.) Then this motion was made by plaintiff for another new trial on the ground of newly-discovered, evidence and the motion was granted.

Whether or not the mortgage was made to defraud creditors was an issue in the foreclosure action in which plaintiff appeared as a defendant and answered. That case went to judgment and it has never been modified, set aside or reversed and it remains in full force and effect. That judgment should dispose of the issues raised by the pleadings and be conclusive as between the parties. (Campbell Printing Press & Mfg. Co. v. Walker, 114 N. Y. 7; Barber v. Kendall, 158 id. 401; Goldsmith v. Engs, Inc., 169 N. Y. Supp. 828.)

After the trial of this action before Referee Davy and before the Stedman trial Napoleon B. Bacon died and his administrator was substituted as a defendant.

It was conceded on the second trial before Referee Stedman by plaintiff’s attorney that Herschel M. Bacon was alive and resided in the county where the trial took place. Counsel for plaintiff knew at that time that Herschel had made the alleged confession to bis daughter. Herschel was available as a witness on the second trial and no satisfactory reason is given why plaintiff did not call him. Plaintiff after sitting supinely by and not attempting to procure the attendance of a witness whose testimony it now claims to be material and necessary and whose attendance could have been procured cannot now be heard to say that his testimony is newly-discovered evidence and would likely change the result on a new trial. (Postal Telegraph Cable Co. v. City of Jamestown, 114 Misc. 689; Thompson v. Welde, 27 App. Div. 186; Kurshan v. Heitner, 203 N. Y. Supp. 435; People v. Prime, 208 App. Div. 445.)

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Buffalo Cold Storage Co. v. Harding, 214 A.D. 643, 212 N.Y.S. 751, 1925 N.Y. App. Div. LEXIS 10584 (N.Y. Ct. App. 1925).

214 A.D. 643 (Buffalo Cold Storage Co. v. Harding) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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