Davis v. Howard

26 N.Y.S. 194, 73 Hun 347, 80 N.Y. Sup. Ct. 347, 55 N.Y. St. Rep. 762
New York Supreme Court·Decided December 8, 1893·Published·Cited by 1 cases

Opinion

MERWIN, J.

This is an action in the nature of a creditors’ bill, brought by the plaintiffs, as judgment creditors of the defendant ;Seth Howard, to set aside as fraudulent against creditors a conveyance of real estate from Seth Howard and wife to the defendant Edwin A. Howard, dated November 28, 1887; also a bill of :sale of personal property from Seth Howard to Edwin A. Howard, dated November 28, 1887; also a general assignment for the benefit of creditors from Seth Howard to the defendant Franklin I. Howard, dated December 4, 1888. It was alleged in the complaint that each of these transfers was made with intent to defraud creditors. It was found at special term that there was not any such intent. The deed of November 28, 1887, included the “Home Farm,” so called, of 110 acres, and 2 swamp lots and 5 acres from a lot known as the “Lily Lot,” and also included about 200 acres of other lands, being substantially all the real estate Seth Howard then held. This latter part, however, was reconveyed by Edwin A. to Seth on November 1, 1888, and passed to the assignee. That left in the hands of Edwin the home farm and accompanying small, lots and the personal property, which the plaintiffs, by this action, seek to reach. Their judgments were recovered after the assignment. Edwin A. was the only son of Seth, and prior to 1872 he had been in .Ms father’s employ for several years, and his father then owed him for services and property purchased about the sum of $1,300, and he was contemplating moving, with his family, to a western state. This his father and mother did not want him to do. His father was then abundantly solvent, and owned several farms besides the [195] home farm. Thereupon, as the evidence tends to show, and as the special term in substance finds, it was verbally agreed between them that if Edwin would give up his arrangements to move west, and would remain at home, and go onto the home farm and live in the house thereon, and with his wife would assist the father in carrying on all the farms as long as he should desire or should need their services, performing such services as they could in and about the management of the farms and boarding the help, he, the father, in consideration of such services, and of the indebtedness then existing to the son, would convey to the son, free from incumbrances, the said home farm and accompanying small lots, and sufficient stock, tools, and other personal property to properly carry it on; that in pursuance of this arrangement Edwin gave up his western plans, moved with his family into the house on the home farm, and he and his wife performed the services as required by the agreement from the spring of 1872 to the fall of 1887, and in all things upon their part performed the agreement; that said Seth, up to the fall of 1887, received the avails of all the farms except what was furnished for the support of Edwin and his family; that the deed in question, so far as it covers the said real estate, and the bill of sale, were given and received in performance of said verbal agreement. It is also found that such services and indebtedness were full consideration for the property so transferred. There is evidence that tends to sustain this conclusion. The deed was not recorded until December 4, 1888. It, however, appears that the fact of the conveyance was not concealed by Edwin, but was known to many persons; that he left it with the attorney, who drew it, and directed him to place it on record, but through his neglect it was not done. He was all the time in the occupancy of the property, and Seth, from the time of the deed, ceased to receive the proceeds or control the management. The failure to record the deed was a circumstance to be considered on the question of intent, but was not conclusive. The fact that the debt to Edwin, standing alone, might to some extent be barred by the statute of limitations, does not .make its payment fraudulent. Livermore v. Northrup, 44 N. Y. 107; Hale v. Stewart, 7 Hun, 591. It has been held in cases somewhat similar to this that the owner of real estate could be compelled to specifically perform a parol agreement which had been fully performed by the other party. In Kenyon v. Youlen, 53 Hun, 591, 6 N. Y. Supp. 784, (decided by this court,) a paroi agreement between the owner of a house and lot and the defendant and another party, by which the owner, in consideration that the defendant and her associate would move onto the premises, and take care of the owner during the remainder of her life, agreed to convey or devise to them the premises, was held to be enforceable; th same having been fully performed by the defendant and her associate. A similar doctrine was held in Dill v. Harbeck, (Sup.) 1 N. Y. Supp. 832. If Edwin was equitably entitled to the property, the creditors of the father have lost nothing by the transfer. If the services and prior indebtedness were substantially the equiva[196] lent of the property transferred, and there was no intent to defraud, the creditors have no good ground for complaint.

Free access — add to your briefcase to read the full text and ask questions with AI

Davis v. Howard, 26 N.Y.S. 194, 73 Hun 347, 80 N.Y. Sup. Ct. 347, 55 N.Y. St. Rep. 762 (N.Y. Super. Ct. 1893).

26 N.Y.S. 194 (Davis v. Howard) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Leqve v. Stoppel
66 N.W. 124 (Supreme Court of Minnesota, 1896)