Curry v. Brockway

12 Daly 17
New York Court of Common Pleas·Decided March 15, 1883·Published·Cited by 1 cases

Opinion

Charles P. Daly, Chief Justice.

There are but two causes of action set up'by the complaint. The first is, that the defendant, knowing that Curry was of unsound mind, and in fraud of Curry, and of Curry’s creditors, induced him to execute and deliver to the defendant a bill of sale or some other instrument in writing, purporting to transfer to the defendant four valuable horses; that no delivery of the horses was made by Curry during his lifetime; and that, after his death, the defendant, in fraud of the plaintiff and of the creditors of Curry's estate, took possession of and removed them from the stables of Curry; and though the surrender of the horses had been demanded by the plaintiff, as the administratrix of the estate of Curry, the defendant refused to surrender them, and had converted them to his own use.

The second cause of action is simply for a taking by the defendant, after the death of Curry, of two whips, six blankets and a lap-robe, of the value of $50, belonging to his estate, which, although demanded of him by the plaintiff, the defendant refused to deliver.

The first cause of action is not an action to set aside or in avoidance of the bill of sale or instrument under which the defendant claims title to the horses, upon the ground that it was made with intent to defraud Curry’s creditors. It is not averred to have been made in pursuance of a corrupt agreement for that purpose between Curry and the defendant; or that there was any fraud on the part of Curry. On the contrary, the fraud alleged is the fraud alone of the defendant, in inducing Curry, knowing that he was of unsound mind, in fraud of him and of his creditors, to execute and deliver to the defendant the bill of sale or instrument in writing purporting to transfer to the defendant the four horses. Averring that the defendant induced Curry to execute the instrument in fraud of Curry’s creditors, as well as in fraud of Curry, and that after Curry’s death the defendant, in fraud of Curry’s creditors, removed the horses from Curry’s stable, does not make it an action by the administratrix as trustee for "Curry’s creditors, which, [20] as will be hereafter shown, is an action different in its nature and in the nature of the remedy.

An action to recover property or its value, which the vendee fraudulently induced a person of unsound mind to transfer to him bjr a bill of sale or otherwise, may be brought in behalf of the person defrauded during his lifetime, or by his personal representative after his death, who recovers the whole of the property, or the value of it, as a part of the assets of the deceased’s estate to which the administrator or executor has succeeded. The cause of action, in such a case, is the fraud practiced by the vendee upon the vendor, which in itself renders the conveyance or transfer void; and it is wholly immaterial in such an action, whether, in addition to defrauding the vendor, the vendee intended also to defraud the vendor’s creditors. No inquiry in such an action is requisite as to the creditors of the deceased; nor is it material whether his estate be insolvent or not; for it is not upon that ground that the personal representative recovers the property or its value, but upon the ground, as I have said, that it is part of the deceased’s estate, wrongfully withheld by the defendant, the instrument under' which he claims title to it being, as against the vendor, absolutely void. This is the action and the only one which the plaintiff could support upon the averments contained in the first count of her complaint.

The action which an administrator or other personal representative may bring, where the deceased, in his life-time,disposed of property with intent to defraud his creditors, is one of a very different nature, which involves the application of principles and the existence of a state of facts not at all requisite in the other action. It is a well and long established principle of the common law, founded upon grounds of public policy, that a party to a fraudulent conveyance is, as respects himself, 1ns heirs, executors, administrators or assigns, forever concluded by it; the policy of the law being to leave the parties to fraudulent conveyances in the position in which they have voluntarily placed themselves, and subject to all the consequences that may result [21] from their fraudulent act, the rule being that a fraudulent transfer is good as against the grantor, his heirs, executors, administrators, vendees, grantees, agents, and parties claiming under him (Bump on Fraudulent Conveyances 438, 439; Jackson v. Garnsey, 16 Johns. 189; Osborne v. Moss, 7 Johns. 161; Hawes v. Leader, Cro. Jac. 270 ; Yelv. 196; Upton v. Bassett, Cro. Eliz. 445; Kellinger v. Riedenhauer, 6 Serg. & R. 535; Reichart v. Castator, 5 Binn. 112; Hall v. McAnulty, 4 Yates 49; Pringle v. Pringle, 59 Pa. St. 286; Walls v. Provident Inst. for Savings, 85 Mass. 96; Buehler v. Gloninger, 2 Watts 226 ; Law v. Smith, 4 Ind. 61) ; which general rule, however, has been limited in this state to executed conveyances, and held not to apply in the case of executory agreements (Nellis v. Clark, 20 Wend. 24, in error, 4 Hill 424; Mosely v. Mosely, 15 N. Y. 335.)

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Curry v. Brockway, 12 Daly 17 (N.Y. Super. Ct. 1883).

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