Gibbs v. Holden

137 Misc. 480, 244 N.Y.S. 10, 1930 N.Y. Misc. LEXIS 1409
CourtNew York Supreme Court
DecidedJuly 9, 1930
StatusPublished
Cited by7 cases

This text of 137 Misc. 480 (Gibbs v. Holden) 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
Gibbs v. Holden, 137 Misc. 480, 244 N.Y.S. 10, 1930 N.Y. Misc. LEXIS 1409 (N.Y. Super. Ct. 1930).

Opinion

Personius, J.

This motion was made under rule 106 of the Rules of Civil Practice, on the ground that the complaint did not state facts sufficient to constitute a cause of action, and rule 107, on the ground that it appeared that the contract was not in writing and, therefore, unenforeible under the Statute of Frauds.

The complaint does not state that the contract .alleged was oral, and no affidavit was presented, but it was conceded at the argument that the contract was not in writing. This concession is reiterated in both briefs.

The same motion was previously made but allowed to lapse. Apparently neither motion was made within twenty days as required by the rules, but this requirement is waived by the plaintiff.

The complaint alleges that the defendant’s son, while driving [481]*481the son’s automobile, and being intoxicated, negligently damaged the plaintiff and his property; that the son was arrested and arraigned, whereupon the defendant requested the plaintiff not to prosecute the son civilly or institute criminal proceedings against him, and promised that if the plaintiff would not do so, he, the defendant, would pay the plaintiff all his damages; that the plaintiff, relying upon this promise, refrained from so prosecuting the defendant’s son; that the plaintiff had suffered personal and property damage, which the defendant failed to pay within a reasonable time, upon demand. The complaint demands judgment for breach of contract, that is, for the failure of the defendant to pay as agreed.

The complaint alleges that the defendant’s son was charged with being drunk and disorderly.” It does not allege what disposition was made of this charge, but it appears by an affidavit of the magistrate submitted, that he plead guilty to a violation of the Highway Law and was fined ten dollars.

The defendant first based his motion not only upon the ground that the defendant’s agreement to pay the plaintiff’s damage was unenforcible under the Statute of Frauds, but upon the further ground (1) that the consideration was illegal and (2) that there was, therefore, an absence of any consideration therefor.

In his brief, the defendant expressly abandoned the question of the illegality of the consideration and does not argue that the forbearance of the plaintiff to prosecute civilly is not sufficient consideration for the defendant’s promise to pay if the promise had been in writing. I take it that the defendant now relies entirely upon the proposition that there was no consideration sufficient to sustain the defendant’s oral promise, that is, no consideration running to or of benefit to the defendant.

An oral promise to answer for the tort of another is within the statute. (27 C. J. 130.)

Whether an oral promise to pay the debt of another is enforcible under the Statute of Frauds seems to depend upon whether such promise is an original or a collateral promise. The distinction between such promises (originally somewhat confused) gradually clarified and in the case of White v. Rintoul (108 N. Y. 222) the Court of Appeals in an opinion by Finch, J., analyzed the previous authorities, pointing out that the early test of an original promise was whether it was founded upon a new consideration, either of benefit to the promisor or harm to the promisee, but that later such test had been modified and narrowed by requiring a new consideration ” necessary to establish an original promise moving to the promisor and beneficial to him.” This modification of the test eliminated all promises where the consideration was only harm to [482]*482the promisee, the resulting benefit being only to the debtor and not the new promisor.

The test of an original promise was still further limited, as pointed out in the White case. To be original,” the promise must not only be based on a new consideration moving to and beneficial to the promisor, but the promisor must also be primarily liable and not merely liable in case the original debtor default — in other words, is the promisor a debtor or merely a surety?

Judge Finch, in the White case, summarized the earlier cases as follows (108 N. Y. 222, 227): These four cases, advancing by three distinct stages in a common direction, have ended in establishing a doctrine in the courts of this state which may be stated with approximate accuracy thus, that where the primary debt subsists and was antecedently contracted, the promise to pay it is original when it is founded on a. new consideration moving to the promisor and beneficial to him, and such that the promisor thereby comes under an independent duty of payment irrespective of the liability of the principal debtor.”

Ackley v. Parmenter (98 N. Y. 425), one of the cases considered in the White case, uses this language (p. 433): “ In such a case it is not sufficient to show there was a consideration for the promise. There must be a consideration in every case, even if the promise is in writing. But a consideration is not of itself sufficient to supply the place of a writing where one is necessary. To take the case out of the statute, there must be a consideration moving to the promisor, .either from the creditor or the debtor. It must be beneficial to the promisor. That is the feature which imparts to the promise the character of an original undertaking (Mallory v. Gillett, 21 N. Y. 412). Forbearance or indulgence to the debtor, or the surrender to him by the creditor of a security for the debt, even at the request of the promisor, will not support a verbal promise by a third party to pay the debt.”

This doctrine has been consistently followed. (Richardson Press v. Albright, 224 N. Y. 497; Atlantic Macaroni Co., Inc., v. Schiaffino, 252 id. 547.)

In the Richardson case the Court of Appeals, by Judge Pound, conceded that the promise was a benefit to the promisor, thus supplying the element of a new consideration moving to him, and said (p. 501): “ But a promise may still be collateral, even though the new consideration moves to the promisor and is beneficial to him. The elements of beneficial interest and new consideration must be present to take the case out of the statute, but the inquiry remains whether the consideration is such that the promisor thereby comes under an independent duty of payment, irrespective of the [483]*483liability of the principal debtor.” Again (p. 502): When the primary debt continues to exist, the promise of another to pay the debt may be original'or it may not be, but it is regarded as original only when the party sought to be charged clearly becomes, within the intention of the parties, a principal debtor primarily liable.” (See, also, 27 C. J. 145, 147.)

We, therefore, have two inquiries: (1) Was the defendant’s promise (to pay to the plaintiff the damages which the plaintiff already had the right to recover from the defendant’s son) based upon a consideration moving to the defendant and beneficial to the defendant, and (2) if so, did the defendant assume to pay irrespective of the liability of his son?

If either of these inquiries be answered in the negative, then the plaintiff has and alleges no contract which is enforcible under the Statute of Frauds.

What beneficial consideration moved to the defendant? He received no money or other property.

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Bluebook (online)
137 Misc. 480, 244 N.Y.S. 10, 1930 N.Y. Misc. LEXIS 1409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibbs-v-holden-nysupct-1930.