Cullen v. Walsh

97 Misc. 177
CourtNew York Supreme Court
DecidedOctober 15, 1916
StatusPublished
Cited by1 cases

This text of 97 Misc. 177 (Cullen v. Walsh) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cullen v. Walsh, 97 Misc. 177 (N.Y. Super. Ct. 1916).

Opinion

Delehanty, J.

Defendants demur to the complaint herein on the grounds of misjoinder of parties plaintiff, that causes of action are improperly united, and that the facts alleged are insufficient to constitute a cause of action. This is a controversy among the representatives of three judgment creditors concerning the application of a fund in the hands of the administrators of a judgment debtor. It appears from the complaint that in June, 1896, one Mary McDonough duly recovered a judgment against the intestate for $5,327; that said judgment was assigned to one Margaret Phillips, and from her to defendant John M. Phillips, who in turn assigned the same to R. Emmet Walsh, its present holder. It further appears that in December, 1897, one John Cullen obtained a judgment for $1,027 against the decedent and Margaret Phillips, and that in March, 1899, the firm of Candee & Smith also recovered a judgment against the same parties for $3,367; that executions were issued upon each of these judgments, and tbe same returned wholly unsatisfied. It is alleged that after the entry of the foregoing judgments the dece[179]*179dent or his estate came into funds which are now ready for distribution; that in an accounting proceeding before the surrogate of Queens county it was held that the judgments of the plaintiffs, who claim ownership through Cullen and Candee & Smith, respectively, were valid claims against the estate of the decedent; that the Surrogate’s Court, because of want of jurisdiction so to do, refused to pass upon the questions arising between the parties hereto as to the respective rights of the plaintiffs and the defendant R. Emmet Walsh to the payment of their respective claims under the aforesaid judgments, and on appeal from the decree of said Surrogate’s Court, which provided for the payment of the said McDonough judgment, the said decree was modified by the Appellate Division of this court in the second department by inserting a provision that the same was “ without prejudice to the bringing in equity a new suit which appellants (these plaintiffs) may be advised to institute.” The complaint further alleges facts tending to show that in the transfer of the McDonough judgment there is and was a scheme to cheat and defraud the holders of the Cullen and Candee judgments, and that the defendant administrators are now about to pay over the fund to R. Emmet Walsh, their brother-in-law, who is not financially responsible. The holders of the Cullen and the Candee & Smith judgments have united as parties plaintiff in this action for the purpose of reaching the fund in question and of determining the rights of the respective judgment creditors in connection' therewith. An injunction was granted ex parte at a Special Term of this court, restraining the defendants from paying out the fund pending the trial of this case. Thereafter upon a contested motion the injunction pendente lite was continued, with leave to the administrators to pay the fund over to R. Emmet Walsh upon his giving [180]*180security to indemnify the plaintiffs in the event of their recovery upon the trial. According to the well-established rule in this state, judgment creditors holding distinct and several judgments may unite in an action to set aside a conveyance by the common debtor made in fraud of their rights as creditors. White’s Bank of Buffalo v. Farthing, 101 N. Y. 344. In the early case of Brinkerhoff v. Brown, 6 Johns. Ch. 139, it was held that different judgment creditors may unite in one bill against their common debtor, the object of all of them being the same, for the aid of the court to enforce their liens at law. There the court stated (p. 151): “It is an ordinary case in this Court, * for creditors to unite, or for one or more, on behalf of themselves and the rest, to sue the representative of their debtor, in possession of the assets, and to seek an account of the estate. This is done to prevent multiplicity of suits, a very favorite object with this Court.” This doctrine has been repeatedly quoted as the law of the state. Defendants’ citation from White’s Bank case, in 23 Weekly Digest, 176, is not complete. That case is not authority for the proposition that if the plaintiffs succeed they would be entitled “ to a judgment setting aside the conveyance merely,” but for the proposition that “ the court may compel the fraudulent grantees to convey to a receiver to be sold to satisfy the plaintiffs’ judgment.” In other words, a court of equity in a case like this1 may hear and determine the rights of the respective parties in and to the fund in question. See Jones v. Conlon, 48 Misc. Rep. 174; Wood v. Sidney S. B. & F. Co., 92 Hun, 22, 25; Smith v. Schulting, 14 id. 52. The contention that there is a misjoinder of causes of action cannot be sustained. Plaintiffs are judgment creditors having claims against the estate which are perfectly established, and are not the subject of litigation in this suit. [181]*181The general relief demanded by the complaint is the application of the fund in the hands of the administrator to the payment of the plaintiffs’ judgments. The subject of the complaint and of the relief and the only matter in litigation is the fraud alleged against the defendants. A recent case decided in this department reiterates the law laid down in earlier decisions upon the points now under consideration. In Hatch v. Heinze, 172 App. Div. 675, 679, it is stated: The case of Reed v. Stryker (4 Abb. Ct. App. Dec. 26), decided in 1858, held that judgment creditors might join in one bill transferees who were not in privity with each other. The court on page 31, said: * The object of the suit is single. The plaintiffs, defeated in the collection of their debts by the ordinary process of law, now seek to reach the property of their debtor in the hands of those to whom he has dishonestly conveyed it. However numerous the persons with whom the property has thus been deposited, however distinct the transactions by which the debtor has sought to place it beyond the reach of his creditors, or however widely it may have been scattered in the execution of this purpose, the effort to recover the property and have it applied to the satisfaction of his debts embraces but a single cause.of action.’ That case has been followed by the lower courts and cited with approval, but some of the cases have intimated that in order to join transferees all must be privy to one scheme of disposition. This we believe to be a misconception. It is true that in order to join several parties in one action the main issues of fact and law must be common to all, but we do not consider it necessary that each transferee must be privy to every transfer. All are bound together sufficiently for the purposes of an action like this if the transfers are made by the transferor under the influence of a contin[182]*182uing intent to defraud. To quote the language of Chancellor Kent, in Brinkerhoff v. Brown, 6 Johns. Ch. 139, which was adverted to with approval in the above mentioned case of Reed v. Stryker: ‘ It * * * appears from the bill that all the defendants were not jointly concerned in every injurious act charged. There was a series of acts on the part of the persons concerned in the company, all produced by the same fraudulent intent and terminating in deception and injury to the plaintiffs.

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Bluebook (online)
97 Misc. 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cullen-v-walsh-nysupct-1916.