Dempsey v. O'Rourke

156 N.Y.S. 925
CourtNew York Supreme Court
DecidedDecember 17, 1915
StatusPublished

This text of 156 N.Y.S. 925 (Dempsey v. O'Rourke) 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
Dempsey v. O'Rourke, 156 N.Y.S. 925 (N.Y. Super. Ct. 1915).

Opinion

KELLY, J.

“He who comes into equity must come with clean hands.” It is impossible to consider the transactions of the plaintiff, her friend and witness, Carpenter, and her more recent ally, the defendant O’Rourke, with the dead woman, Sarah R. O’Rourke, without recurring often to this ancient and homely maxim of equity jurisprudence. Professor Pomeroy discussed the principle, many years ago, and his reason for the rule, stated with his accustomed clarity and force, might well be written into the decision of this case:

“It assumes that the suitor asking the aid of a court of equity has himself been guilty of conduct in violation of the fundamental conceptions of equity jurisprudence, and therefore refuses him all recognition and relief with reference to the subject-matter or transaction in question. It says that whenever a party, who, as actor, seeks to set the judicial machinery in motion and obtain some remedy, has violated conscience, or good faith, or other equitable principle, in his prior conduct, then the doors of the court will be shut against him in limine; the court will refuse to interfere on his behalf, to acknowledge his right, or to award him any remedy.” Pomeroy’s Equity Jurisprudence, § 397.

And the learned author proceeds in section 400:

“I shall now give some examples to illustrate the circumstances under which this principle operates in the administration of equitable relief, and the manner in which it is applied. The first instance which I shall mention is found in the familiar doctrine which controls the equitable remedy of the specific performance of contracts. A contract may be perfectly valid and binding at law; it may be of a class which brings it within the equitable jurisdiction, because the legal remedy is inadequate; but if the plaintiff’s conduct in obtaining it, or in acting under it, has been unconscientious, inequitable, or characterized by bad faith a court of equity will refuse him the remedy of a specific performance and will leave him to his legal remedy by action for damages. * * * The doctrine here applied means that the party asking the aid of the court must stand in conscientious relations towards his adversary; that the transaction from which his claim arises must be fair and just. * * * By virtue of this principle, a specific performance will always be refused when the plaintiff has obtained the agreement by sharp and unscrupulous practices, by overreaching, by concealment of important facts, even though not actually fraudulent, by trickery, by taking undue advantage of his position, or by any other means which are unconscientious; and when the contract itself is unfair, one-sided, unconscionable, or affected by any other such inequitable feature, * * * specific performance is refused simply because the plaintiff does not come into court with clean hands.”

I think the plaintiff and the defendant administrator on their own showing place themselves under the ban described SO' clearly by the learned commentator, because it is idle to endeavor to separate the plaintiff and the defendant administrator. They have openly allied themselves in this litigation; tire plaintiff insisting upon the specific performance of an alleged contract of the deceased Mrs. O’Rourke, by which plaintiff agreed to pay $50,000 for certain real estate in Brooklyn, although the heirs of tire dead woman offered to convey the [927]*927property to plaintiff for $44,000. But Mrs. Dempsey, although she agreed at one time to purchase from the heirs and to discontinue this action, in view of the charges of fraud made against her by the dead woman in her lifetime, and pocketed $500 of the heirs’ cash, suddenly changed her mind, and now disinterestedly insists that the original contract be carried out, and that she be allowed to pay $6,000 more for the property, because the husband of the deceased, Mrs. O’Rourke, insists that the first contract was genuine and worked an equitable conversion of the real estate into cash, which must go into his pocket as administrator, and not to' the heirs of the dead woman.

It is true that he was separated from his aged wife, a woman of some 75 years of age and many years his senior. It is true that she had commenced a suit for separation from him, the complaint in which cannot be found, although it is not claimed that the suit was discontinued before the death of this aged woman. It is true that she was on record in her sworn answer to plaintiff’s demand for specific performance, made in her lifetime, asserting that this contract was a fraud perpetrated on her. The plaintiff and the administrator of the woman who charged her with fraud have joined forces, and the learned counsel who, as attorney for the dead woman, vigorously and characteristically denounced this contract as an “outrageous swindle” has seen a new light in the doctrine of equitable conversion.

On Tuesday, August 19, 1913, Mrs. Sarah O’Rourke was a woman over 75 years of age. She was blind in one eye, but, although the other eye was somewhat impaired, she could see. It is not charged that she was of unsound mind. She lived a solitary and what must have been an unhappy life. Formerly the wife and then the widow of “Gen. Burbridge, of Kentucky,” separated from her second and more youthful husband, whom she had married in her declining years, she lived practically alone in the two dwellings, Nos. 108-110 Montague street, Brooklyn. The houses were badly in need of repair. There was a caretaker in the house, one woman, who hired a .room in the premises, and perhaps a companion or friend, a Mrs. Winegar, now deceased. It does not appear, however, that this Mrs. Winegar lived with Mrs. O’Rourke. Out of all our teeming population, but one witness was called, who pretended to any social relations with her —a Mrs. McKinney. This lady was called as a witness for the plaintiff, protesting that she was an unwilling witness, about which, however, I am not sure.

On the same morning, Tuesday, August 19, 1913, Mrs. O’Rourke had never seen Mrs. Dempsey, and Mrs. Dempsey had never seen or heard of Mrs. O’Rourke. On August 21st, before noon, Mrs. Dempsey had a contract by which the old lady agreed to convey to her the two houses mentioned for $50,000, title to be closed in 10 days, by which Mrs. O’Rourke was not to receive one cent of cash consideration, but was to convey her property free and clear of incumbrances, simply on Mrs. Dempsey’s promise that she would pay it in 5 years, secured by bond and a mortgage on her own property. Mrs. O’Rourke’s insurance policies had been turned over toi Mrs. Dempsey. She agreed to turn over her furniture to Mrs. Dempsey, receiving in payment a chattel mortgage, and Mrs. Dempsey, two or three days [928]*928later, moved into Mrs. O’Rourke’s house with her children and paraphernalia.

Mrs. Dempsey was a lady of no financial responsibility whatever. She was the mistress of a boarding house on Montague Terrace, but it was some other woman’s boarding house. The former manager had broken down in health, and Mrs. Dempsey went in to run it for her during the summer, and the rent was $50 per month, which is not exorbitant for a house on Montague Terrace, if things were working well. Mrs. Dempsey intended to take a lease of the premises. She was going to rent accommodations to a music school, and had other plans for improving her condition,' when she was so suddenly transfigured into- a real estate owner on the heights with $50,000 o-f property in her name. Apparently her lines had not been prosperous ones.

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Bluebook (online)
156 N.Y.S. 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dempsey-v-orourke-nysupct-1915.