Eberhardt v. Schuster

10 Abb. N. Cas. 374
New York Supreme Court·Decided May 15, 1879·Published·Cited by 10 cases

Opinion

Per Curiam.*

The examination of this case leads to the conclusion that the learned justice in the court below properly disposed of the motion heard by him. The evidence warrants the conclusion that the defendant’s attorneys had sufficient notice of the interest in, or lien of, the plaintiff’s attorney upon the claim herein, and were therefore under the obligation to notify the latter of the intended settlement, or in the absence of either of them to protect their rights or take the consequences of a settlement without their knowledge or concurrence.

. The order appealed from should therefore be affirmed, with $10 costs and disbursements of the appeal.

The trial of the action was thereafter proceeded with before the referee.

The facts shown and the questions arising upon the trial sufficiently appear from the referee’s opinion.

George Ticknor Curtis, Referee.

This is a very peculiar case, and I have given to it the most careful consideration. The main facts are not in dispute, and the case will be found to turn chiefly upon questions of law. The action was brought, August 27, 1877, to recover the plaintiff’s distributive share of the proceeds of an insurance policy on the life of her mother, which the defendant collected but had not paid over to her. The defense set forth in the answer is, that the defendant collected this money as guardian for the children of Mary F. Schuster (the person whose life was insured), and for their benefit, and that he has paid and applied the whole of it for their benefit in their sup[379] port, maintenance and education. The answer contains no averment as to what part of the money the defendant has applied to the support, maintenance or education of the plaintiff as distinguished from the other children of Mary F. Schuster. The pleading sets up no defense excepting that above stated. But at a subsequent stage of the case, the defendant was required to furnish a bill of particulars of the payments which he claims to have made for the benefit of the plaintiff, and by an order of the court he was restricted to the proof of certain items set forth in that order. The trial before me proceeded upon the issue as to the defendant’s right in this action to set off against her claim on him for her distributive share of the insurance, the alleged payments embraced in the bill of particulars covered by the order of the court. On this issue, of course, the burden of proof is on the defendant to show that the plaintiff was indebted to him for those payments at the time when the present action was brought.

The facts appearing on the evidence, and about which there is little or no controversy, are these:

The defendant married -the plaintiff’s mother, a widow of the name of Bosch, in 1864. At the time of this marriage Mrs. Schuster had three daughters, by her former husband, the plaintiff, Julia Bosch, being the eldest, and at that time about eight years old. The family continued to reside in a house and lot belonging to Mrs. Schuster in her own right, until her death, which took place on or about May 26, 1866. Prior to her death, the defendant supported her children as if they had been his own. After her death, her daughters became the owners of the house and lot above mentioned, and they were also entitled, in equal shares, to the proceeds of a policy of insurance on her life, issued by the Knickerbocker Life Insurance Company, and payable to her children on her decease. The [380] defendant collected this insurance money, but it does not appear that the plaintiff knew, at the time he received it, that he had done so, or knew until long afterwards that the claim on the insurance company existed. Defendant receipted for the money to the company as guardian of the children of Mary F. Schuster. lío legal guardianship is proved. From the time of Mrs. Schuster’s death, until May, 1876, the defendant continued to live in the house belonging to her children, and the plaintiff continued to live with him for a part of that time, and a part of the time lived elsewhere. During these ten years the defendant considered himself as bound to pay and as paying rent for the part of the house occupied by him, and he collected rent from a tenant who occupied another part of it. He also, as executor of his wife, collected some small sums which were part of her personal property.

The present action was commenced by the plaintiff through her attorneys, in August, 1877, she being at that time of full age and a married woman. Before, the action was commenced, the plaintiff was indebted to her attorneys for previous professional services and-moneys advanced, and in consideration thereof and of their undertaking to prosecute her action to recover this insurance money from the defendant, the plaintiff agreed that they should have one-half of the claim and of the amount recovered, and the taxable costs, as their compensation. This agreement was verbal, but a written power of attorney was executed by the plaintiff, appointing them her attorneys. She verified the complaint by her own oath, and appears at that time to have fully intended to prosecute the action and to recover all that was due to her., On or about August 13, 1877, one of her attorneys exhibited to the defendant, at his place of business, her power of attorney, and made some inquiry of him about the life insurance. The defendant denied that Mrs. Schuster’s [381] life had been insured in the Knickerbocker Company, and said that the company had refused to take her.

On February 14, 1879, the plaintiff met the defendant at the office of his then attorneys, S. F. and F. H. Cowdrey, without the knowledge of her- own attorneys, and remained there for some time. It appears that before they met at that office, the defendant and the plaintiff had agreed that he was to pay her $1,000, in settlement of all her claims upon him! The purpose of the meeting at the attorneys’ office appears to have been to talk over her claims, and to consummate a settlement. The result of the interview was that, in settlement of all her claims upon him, growing out of his receipt of rents and other sums belonging to her mother’s estate, and out of her insurance money, the plaintiff agreed to receive, and the defendant paid to her, $1,000. But it does not appear how much of this alleged balance resulted from an accounting in respect of the moneys due from the defendant to his wife’s estate, or how much of it resulted from an accounting in respect to the insurance money. A release was drawn up by the attorneys of the defendant, and executed by the plaintiff, but this paper is not in evidence.

On October 12, 1880, while the trial before me was going on, the plaintiff wrote a letter to the present attorneys of the defendant, Messrs. Coudert Brothers, of which the following is a copy :

[The letter states that plaintiff was cared for and educated by the defendant, since her mother’s death, has received all the articles specified in defendant’s account, and has directed her attorneys to abandon the action.]

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

Eberhardt v. Schuster, 10 Abb. N. Cas. 374 (N.Y. Super. Ct. 1879).

10 Abb. N. Cas. 374 (Eberhardt v. Schuster) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

National Exhibition Co. v. Crane
60 N.E. 768 (New York Court of Appeals, 1901)
In re Gates
51 A.D. 350 (Appellate Division of the Supreme Court of New York, 1900)
Williams v. Wilson
18 Misc. 42 (Appellate Terms of the Supreme Court of New York, 1896)
Oliwill v. Verdenhalven
7 N.Y.S. 99 (City of New York Municipal Court, 1889)
Howitt v. Merrill
2 Silv. Ct. App. 158 (New York Court of Appeals, 1889)
In re Weeks
5 Dem. Sur. 194 (New York Surrogate's Court, 1887)
Smith v. Chenoweth
18 Abb. N. Cas. 20 (City of New York Municipal Court, 1886)
Kipp v. Rapp
2 How. Pr. 169 (City of New York Municipal Court, 1885)
Hassell v. Van Houten
39 N.J. Eq. 105 (New Jersey Court of Chancery, 1884)
Smith v. Baum
67 How. Pr. 267 (City of New York Municipal Court, 1884)