Glasser v. Rogers

53 F. Supp. 668, 1943 U.S. Dist. LEXIS 1798
CourtDistrict Court, S.D. New York
DecidedDecember 31, 1943
StatusPublished
Cited by3 cases

This text of 53 F. Supp. 668 (Glasser v. Rogers) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glasser v. Rogers, 53 F. Supp. 668, 1943 U.S. Dist. LEXIS 1798 (S.D.N.Y. 1943).

Opinion

RIFKIND, District Judge.

This action was tried to the court without a jury.

The plaintiff is the trustee in bankruptcy of Helen Russell Rogers. The defendants are the bankrupt and her divorced husband.

The complaint alleges that the action is brought under Section 70, sub. e(l), of the Bankruptcy Act, 11 U.S.C.A. § 110, sub. e (1) ; that the bankrupt filed her petition in bankruptcy on September 13, 1940, and she was thereupon adjudicated a bankrupt; that on or about June 20, 1931, the bankrupt and her husband entered into an agreement which provided for the payment by the husband to the bankrupt of $11,000 a year until her death or remarriage, and of certain sums for the maintenance of the children of the marriage; that she has not remarried; that the bankrupt’s discharge has been denied; that she has been insolvent since 1932; that on January 13, 1938, the bankrupt and her husband entered into an agreement cancelling the agreement of June 20, 1931, making somewhat different provision for the bankrupt, and eliminating the special provision for the children; that on March 19, 1938, they entered into a further agreement whereby the amount payable by the husband to the bankrupt was reduced to $6,000 per annum; that the agreements of January 13 and March 19, 1938, constituted transfers by the bankrupt to her divorced husband, made without consideration, and “fraudulent and void under the laws of the State of New York as to many of the creditors listed in the bankrupt’s schedules”. The relief demanded is a decree setting aside the transfers, “adjudicating the plaintiff’s rights as to any sums that may be payable in the future” by the husband, and a money judgment for such sum as has become due and payable by the husband since the filing of the petition in bankruptcy.

The husband’s answer consists of denials and affirmative defenses. The first defense alleges that on June 20, 1931, an absolute decree of divorce was entered in a Nevada court in favor of the bankrupt and that the decree “ratified, approved and confirmed” the agreement of June 20, 1931; that in reliance upon the agreements of 1938 he refrained from applying to the Nevada court for an order reducing the amount awarded for the support and maintenance of the bankrupt by reason of the impairment of his financial means. The second defense alleges that in fact he paid the bankrupt a sum equal in the aggregate to at least $11,000 per annum since the making of the 1931 agreement, notwithstanding the agreements of 1938.

The bankrupt’s answer is substantially like the husband’s and in addition pleads lack of jurisdiction. [670]*670The proof developed few questions of 'fact. It was established that the husband had paid the bankrupt an amount aggregating more than $11,000 a year. The question remained whether payments in excess of $11,000 made prior to the bankruptcy were advances on account of alimony or were gifts. It appeared that two days before the agreement of March 19, 1938, the husband had given the bankrupt’s lawyer money for the purpose of filing a petition in bankruptcy in ■ her behalf. From this fact the inference is urged that the defendants entered into the 1938 agreements with actual intent' to defraud creditors.

Our first inquiry is whether the provisions of the 1931 agreement constituted alimony. For present purposes, it is sufficient to consider, not the whole agreement, but only the husband’s promise to pay the wife $11,000 per annum. I am of the opinion that it was alimony and that it would belong to that category of obligation whether or not it had been incorporated in a decree of divorce. Clearly it was provision for the support of the wife and was expressly intended to be in lieu of the general and undefined obligation of a husband to support his wife. That no distinction is to be drawn for present purposes between alimony awarded by a matrimonial decree and separate maintenance provided by agreement was held in Stevenson v. Stevenson, 1884, 34 Hun 157. And though that decision has been severely circumscribed by Romaine v. Chauncey, 1892, 129 N.Y. 566, 29 N.E. 826, 14 L.R.A. 712, 26 Am.St.Rep. 544, it has not been challenged with respect to the proposition for which it is here cited.

This point is made because the plaintiff argues that even if the husband’s original obligation were alimony, it ceased to be that when in January 1938, the parties cancelled the 1931 agreement and failed to incorporate the new agreements in a decree. The Stevenson case indicates that no change was thereby effected in the character of the obligation. Moreover, I think the plaintiff reads the word “can-celled” too literally. Actually, the parties did no more than modify their arrangement by reducing the husband’s obligations.

Having concluded that the husband’s obligation both before and after the 1938 modifications constituted alimony, the question is opened whether alimony is a special species of property incapable of being fraudulently conveyed; Romaine v. Chauncey, supra; but I need not explore this inquiry since a solution is available by the application of less metaphysical rules.

By the leading case of Romaine v. Chauncey, the rule was established in New York that, despite the absence of statutory exemption, alimony was not accessible to the wife’s creditors whose claims arose before the award of alimony. “A debt contracted by the wife after the decree, presumably for her support * * * stands upon a very different footing * * *” (129 N.Y. page 569, 29 N.E. page 827, 14 L.R.A. 712, 26 Am.St.Rep. 544).

Out of the latter comment has developed a rule that, if a creditor is to have access to alimony in satisfaction of his claims, he must show not only that the claim arose after the award but that it was for necessaries. Matter of Bolles, 1903, 78 App. Div. 180, 79 N.Y.S. 530; West v. Washburn, 1912, 153 App.Div. 460, 462, 138 N.Y.S. 230; Baskin & Co., Inc., v. Howe, 1929, 225 App.Div. 553, 233 N.Y.S. 648; Anna Tappe, Inc. v. Battelle, 1931, 140 Misc. 49, 249 N.Y.S. 589; Conlew, Inc. v. Thompson, 1936, 160 Misc. 551, 289 N.Y.S. 865; Matter of Dunnaway v. Clark, 1940, 174 Misc. 735, 22 N.Y.S.2d 69. True enough, a report of the New York Judicial Council, Seventh Annual Report, 1941, page 345, expresses the view that: “There are indications in some cases that a creditor whose claim arose subsequent to the alimony award will be accorded a remedy against the alimony even though his claim is not one for necessaries.” However, an examination of the cases relied on (Anna Tappe, Inc. v. Battelle, supra; Conlew, Inc. v. Thompson, supra) reveals that the indications have not gone to the extent of constituting sufficient evidence in a Federal Court that the State rule has been changed.

In the present case, plaintiff has established that there were creditors whose claims arose after 1931, but the record is barren of proof that the claims represented necessaries.

Plaintiff admits the absence of such proof, but advances the argument that it is sufficient that it appears from the face of the claims that they are for goods and services which are generally regarded as necessaries and that, therefore, the burden of going forward has shifted to him who would establish that the wife was already [671]*671adequately supplied with such wares. He relies on Wanamaker v. Weaver, 1903, 176 N.Y. 75, 68 N.E. 135, 65 L.R.A. 529, 98 Am. St.Rep. 621. But I do not think the cited case goes quite that far.1 Indeed, the term “necessaries” ordinarily becomes meaningful only when an attempt is made to impose liability on the husband for the debts of the wife.

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Bluebook (online)
53 F. Supp. 668, 1943 U.S. Dist. LEXIS 1798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glasser-v-rogers-nysd-1943.