Geiler v. . Littlefield

43 N.E. 66, 148 N.Y. 603, 2 E.H. Smith 603, 1896 N.Y. LEXIS 589
CourtNew York Court of Appeals
DecidedMarch 3, 1896
StatusPublished
Cited by2 cases

This text of 43 N.E. 66 (Geiler v. . Littlefield) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geiler v. . Littlefield, 43 N.E. 66, 148 N.Y. 603, 2 E.H. Smith 603, 1896 N.Y. LEXIS 589 (N.Y. 1896).

Opinion

Haight, J.

This action was brought by the plaintiff as a judgment creditor of one Diedrich Tragman, to have a certain *607 conveyance by Tragman to the defendant Frederick M. Little-field adjudged to have been made in fraud of the rights of creditors, etc.

On the 10th day of March, 1890, Tragman was the owner of certain property known as 210 and 212 West 105th street, and 57 and 59 West 124tli street in the city of Mew York, and on that day together with his wife conveyed the same to the defendant Littlefield for the consideration as expressed in the deed of five hundred dollars. On the 105th street lots there were two five-story unfinished double flats in process of erection, requiring for the purpose of their completion an expenditure of about six thousand dollars. On the 124tli street lots there had been erected two five-story flats which were substantially completed and partially occupied by tenants. On the 28th of March, 1890, Littlefield sold to one Maria E. Servoss the two 124th street lots for the sum of seventy-four thousand dollars, out of which he paid the liens existing against the premises, and had a surplus left in his hands of about the sum of five thousand dollars. At the time of the conveyance by Tragman to Littlefield, Tragman had a contract with the plaintiff to paint the buildings on 105th street, which contract was indorsed over to Littlefield and accepted by him. Thereafter, and on the 10th day of May, 1890, the plaintiff and defendant Littlefield entered into a new contract for painting the buildings at a price agreed upon of seven hundred and twenty-five dollars, which contract was drawn by the plaintiff’s attorney, and in the specifications attached thereto the property-is described as that belonging to Little-field. At the time of making this contract plaintiff knew of the transfer of the property by Tragman to Littlefield, he had attended the meeting of the creditors of Tragman, had become informed of his financial standing and of his purpose in making the conveyance. His own claim had then been reduced to judgment, and was in the hands of his attorney for the purpose of collection, and this action was brought on the 21st day of May thereafter. On the 13th day of June the defendant wrote the plaintiff the following letter: “ Dear Sir: My clerk *608 advises me that you called yesterday during my absence from tho office, and that yon advised that you were ready to carry out your contract. As I advised you the other day I certainly shall have to carry out mine, and I shall be pleased to do so. Regretting, however, that you feel obliged to institute proceedings against me after the very full explanation I gave you of aJl matters concerning tho 105th and 124th street properties. Please push your work as rapidly as possible and oblige.” Thereupon the plaintiff commenced his work on the contract, painted the buildings on 105th street, and was paid therefor by the defendant Littlefield.

The trial court found, as conclusions of law, that the plaintiff Geiler is estopped, by his admission of the defendant Littlefield’s title, from maintaining this action; that the defendant Littlefield was bound to perform his contract with the plaintiff, and that the plaintiff cannot affirm the deed of Tragman to Littlefield in part and disaffirm it in part.

We are not satisfied that there was any estoppel in this case. Tragman had a contract with the plaintiff to paint the 105th street houses.'. He had performed some part of the contract, when the transfer was made to Littlefield. At that time the-contract was also transferred to Littlefield, who accepted it. Littlefield knew all of tho facts connected with the transfer tollina, and as to whether the deed was made for the purpose of hindering, delaying and defrauding creditors. Knowing all of the facts, he entered into a new contract with the plaintiff to paint, the buildings upon the same terms embraced in the first contract, less the amount already earned thereon. The only purpose of the new contract that is apparent was to-relieve himself from personal liability for the amount that had been earned upon the first contract. The buildings were uncompleted, and, in order to make them of use and produce an income, they had to he completed and painted. It is not apparent that Littlefield was misled by the contract, or that he would not have had the buildings painted by others if the plaintiff had - refused to perform his contract. He paid the plaintiff for the painting it is true, and if his deed should now *609 be declared fraudulent lie might suffer to the extent of the amount so paid. But if he acted in good faith in the matter, and the court should so find, it, in the exercise of its equity powers, could protect him by requiring the amount so paid to be refunded out of any sale that might be decreed.

But should we assume that there was an equitable estoppel, such estoppel would be based upon the principles of equity and its principles should be invoked only so far as the rules of equity require. It was recognized and applied by the trial court to the 105th street property, but should it have been to the¡ 124th street property % It is true that the two properties were embraced in the same deed, and the respondent urges with much force that the deed was either voidable in toto or valid as a whole against creditors; that the plaintiff cannot affirm the deed in part and disaffirm it as to the remainder. This may be conceded to be the general rule, but in this case we have several distinguishing features which, to our minds, render it exceptional. The property embraced in the deed; consists of separate, distinct parcels of real estate located in different sections of the .city, and the contract for the paint-, dng was a separate, independent transaction and had references to the 105th street property only. The estoppel, if any, arises, out of the payment for the painting and is based upon the! theory that it would be unjust to permit the plaintiff to set. aside the conveyance to Littlefield after the premises had! been improved and the plaintiff paid by Littlefield for such improvement. The claim for which the plaintiff has procured! this judgment was for work done by him in the construction, of the 124th street buildings, and one of the elements of fraud! charged by him consisted in procuring him to withhold the filing of his lien against those buildings for the amount of his; claim, under promise of immediate payment, until after the) transfer had been made to Littlefield.

Assuming that the plaintiff possessed a good cause of action, and was entitled to the equitable relief that the deed should! be declared void as being in fraud of his rights as a creditor,, *610 the question is whether, by any act or conduct of his, the right to such relief is impaired, and, if so, to what extent. The object of the action is to obtain satisfaction of his judgment out of the property, not necessarily by sale of the whole, for it may be that one parcel may be sufficient to satisfy his -claim. If so, his right to equitable relief must necessarily be restricted to a sale of but one parcel. An express or implied waiver of his right to sell one of the parcels does not necessarily operate as a forfeiture of his right to obtain satisfaction ■nut of the other parcel.

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Bluebook (online)
43 N.E. 66, 148 N.Y. 603, 2 E.H. Smith 603, 1896 N.Y. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geiler-v-littlefield-ny-1896.