Ducas v. Guggenheimer

90 Misc. 191, 153 N.Y.S. 591
CourtNew York Supreme Court
DecidedApril 15, 1915
StatusPublished
Cited by17 cases

This text of 90 Misc. 191 (Ducas v. Guggenheimer) 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
Ducas v. Guggenheimer, 90 Misc. 191, 153 N.Y.S. 591 (N.Y. Super. Ct. 1915).

Opinion

Blanchard, J.

This is an action to set aside a separation agreement which was entered into on December 3, 1906. The parties to the action were married in Miilhausen, Alsace, Germany, in August, 1900. The plaintiff, from my observation of her, is well educated and refined. She was the daughter of a man who was engaged in a reputable and remunerative business. While her family was not wealthy, as that term is commonly applied, it was most respectable and enjoyed all the comforts and some of the luxuries of life. The defendant had come to this country several years prior to his marriage and prospered. He built up a large and highly profitable business. At the time of the execution of the agreement in 1906 his income for that year was in excess of $64,000. His assets were in excess of $850,000. His income was made up of $25,000 per annum as salary of the B. P. Ducas Company and $12,000 voted him as additional salary, which appears to have been the profits of that company in excess of his salary. In addition he received $7,500 from another company [193]*193of which he was president. Several thousand dollars additional accrued to him as interest on book accounts and money in bank. The remainder was derived from stocks and bonds owned by him. The plaintiff claims that at the time of the marriage the defendant represented his income to be from $100,000 to $150,000 per year. This he.denies. Whatever may be the truth in this respect it is certain that he was at the time a man of large means. After the marriage they came to this country. The wife was an utter stranger to its people and ways and knew no one in the city of New York. The defendant rented a house in the city, for which he paid $2,400 per annum. They employed two maids, and after the birth of their child a nurse in addition. Thence they moved to the Savoy Hotel. Here the defendant expended from $10,000 to $12,000 per year. This sum did not, however, include the defendant’s personal expenses, sums devoted by him to relatives or his living expenditures while out of town. The evidence shows that he was absent on business several days in each week during most of the year. Subsequently they resided at the Hotel Netherland. From 1903 to 1905, inclusive, his expenditures for the plaintiff and her child, exclusive of board and lodging, varied from $5,500 to $6,800 per annum. In 1906 his entire expenditure appears to have been between $18,000 and $19,000. For several years prior to their separation disputes and quarrels occurred between them. Much evidence was admitted upon the trial concerning the causes of this strife. It is clear, however, that their bickerings may be ascribed to the desire of the defendant to curtail what he regarded as the plaintiff’s extravagance. Whatever may be the defendant’s justification for his attitude, either in law or in fact, is immaterial here. I am satisfied that he is a man in whom the acquisition and possession of money is the [194]*194dominant element. It petrifies Ms feelings and contracts Ms thougM and conduct. But in tMs action the court is not concerned with the right' or wrong of the conduct of either party. These questions are left by the law to be determined in a proper action under the statute. Johnson v. Johnson, 206 N. Y. 561; Erkenbrach v. Erkenbrach, 96 id. 456. The, evidence presented of the conduct of the parties is relevant only as showing in the case of the plaintiff whether she executed the agreement under conditions which made it an act of her own free will and with full knowledge of all material facts; and in the case of the defendant whether it fulfilled the test of good faith required by law. The policy of the law in permitting the making of contracts between husband and wife, as is pointed out in Winter v. Winter, 191 N. Y. 462, has been of slow growth. The courts in applying and construing these statutes have jealously safeguarded the rights of the wife. They have thrown around separation agreement's the cloak of their protection to the end that they shall be free from the taint of fraud or duress and that they shall be fair, equitable and adequate, considering the husband’s circumstances. Burr v. Burr, 7 Hill, 207; Hendricks v. Isaacs, 117 N. Y. 411; Winter v. Winter, supra; Hungerford v. Hungerford, 161 N. Y. 550; Galusha v. Galusha, 138 id. 272; Johnson v. Johnson, supra. In early times the domimon of the husband over the wife was presumed. Her freedom of action and of contract, apart from her husband, was most limited. As more enlightened views came to prevail and her individual freedom was established, the courts, being mindful of the special and intimate relation of the marital bond which .might place in the hands of the husband a weapon to be improperly used for his advantage, regarded it as one of a fiduciary character. Story in his “ Equity Jurisprudence says: “ But by far [195]*195the most comprehensive class of cases of undue concealment arises from some peculiar relation or fiduciary character between the parties. Among this class of cases are to be found those which arise from the relation of client and attorney, * * * husband and wife * * *. In these and the like cases the law, in order to prevent undue advantage from the unlimited confidence, affection, or sense of duty which the relation naturally creates, requires the utmost degree of good faith (uberrima fides) in all transactions between the parties. If there is any misrepresentation, or any concealment of a material fact, or any just suspicion of artifice or undue influence, courts of equity will interpose and pronounce the transaction void, and as far as possible restore the parties to their original rights.” And again: “So in cases of family agreements and compromises, if there is any concealment of material facts, the compromise will be held invalid upon the ground of mutual trust and confidence reposed between the parties. ’ ’ Story Eq. Juris. §§ 217,218. See, also, Boyd v. De La Montagnie, 73 N. Y. 498; Matter of Smith, 95 id. 522; Barnard v. Gantz, 140 id. 249. Any ordinary contract is vitiated by fraud or duress. Separation agreements thus arising out of a fiduciary relation, require a course of conduct uberrimae fidei on the husband’s part. While the law frowns upon separation agreements made while the parties are living together, it permits them if they are living apart. If parties are unable to agree they may separate, but any contract for the separate maintenance of the wife must be made under circumstances wherein all the material facts are disclosed. She must be placed in a position so that when she binds herself she does so under no misapprehension of what she is doing. She should know her husband’s circumstances and any other facts which might affect the terms of the con[196]*196tract, so that she may accept or reject her husband’s proposals. The courts have held that she is the best judge of what is necessary for her support (Winter v. Winter, supra), and that having entered into the agreement the same is, so long as observed by the husband, a complete bar to the maintenance of an action for a separation under the statute', and finally binding as to the amount she shall reóeive for her support. Galusha v. Galusha, supra; Johnson v. Johnson, supra.

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Bluebook (online)
90 Misc. 191, 153 N.Y.S. 591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ducas-v-guggenheimer-nysupct-1915.