Henderson v. Fullerton

54 How. Pr. 422
CourtNew York Court of Common Pleas
DecidedJanuary 15, 1878
StatusPublished
Cited by2 cases

This text of 54 How. Pr. 422 (Henderson v. Fullerton) is published on Counsel Stack Legal Research, covering New York Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. Fullerton, 54 How. Pr. 422 (N.Y. Super. Ct. 1878).

Opinion

McAdam, J.

The plaintiff had a claim against one Chapman, and executed an assignment of it to the defendant, so as to enable him to maintain an action in his own name against Chapman for the recovery of the debt. The plaintiff claims that the assignment was executed pursuant to a previous oral understanding that one-half of the amount ultimately collected should be paid to him after its collection by the defendant. The defendant accepted the assignment, and commenced an action thereunder in his own name against Chapman, which resulted in a judgment in favor of Fullerton, the present defendant, which, after an appeal therefrom to the general term of the supreme court and the court of appeals, and an affirmance thereof by each of said courts, was finally collected by the defendant with the costs of affirmance.

The plaintiff now sues Fullerton, to recover one-half of the amount so collected, excluding the costs, upon the oral understanding which the plaintiff claims formed the real consideration for the assignment.

"Upon the trial evidence was given tending to prove the oral agreement alleged by the plaintiff which was met by the defendant upon his cross-examination entirely by want of recollection. No satisfactory reason is given why the plain[424]*424tiff should have given a claim of $1,500 to the defendant unless it be that which is apparent throughout the case, i. <?., that under the law, as it existed in this state at the time, the assignment was made, 1855, the plaintiff could not have been a witness upon his own behalf, and that he therefore discontinued the action which he had commenced in his.own name against Chapman, and after paying his adversary’s taxable costs, that he immediately thereafter made the assignment in question to Fullerton, under which the latter commenced and succesfully carried into judgment the identical claim. Upon the trial, the want of sufficient evidence to sustain the oral understanding was not made ground of nonsuit, and the action was tried and submitted to the jury upon the assumption that such an agreement had been proved by the plaintiff and denied by the defendant, making the question one of conflict of evidence, upon which the jury found for the plaintiff, thereby determining in effect that the oral understanding upon which the assignment was executed and delivered, was in fact made in the manner claimed by the plaintiff,- and this brings us to the consideration of the important question of law involved in this appeal, i. e., whether it was en’or in the trial justice to have permitted the plaintiff to prove the oral understanding in question, in the face of the written assignment which the defendant claimed was the only legal evidence of the agreement, and that it could not be altered or varied, either in its terms or legal effect, by oral evidence. The assignment is in the usual form, absolute on its face, and neither reserves any interest in the plaintiff’s favor, nor does it create any trust for his benefit.

It purports to have been made “for value received,” but in what form or to what amount is not expressed, and the question presented is whether the proof of the oral agreement under such circumstances, on an issue like the present, violates the elementary rule of evidence before referred to. The principle established by the authorities seems to be, that if no consideration be expressed in a written agreement, or if it [425]*425purports to have been made on divers good considerations, that the true consideration may be proved aliunde (see the various cases on the subject collated in Sugden on Vendors [8th Am. ed), vol. 1, p. 238, note b, and see 6th ed., 3d vol., R. S., p. 672, sec. 124, and cases cited), and it is said by judge Huston in Bollinger v. Eckhert (16 Serg. & R., 424: “We have settled down in this: Whatever material to the contract was expressed and agreed to when the bargain was concluded and the article drawn may, if not expressed in the article, be proved by parol, unless it is expressed contrary in the writing.” Upon this principle parol evidence of what passed at the execution of a deed was held admissible in Pennsylvania, to show that the conveyance, though nominally absolute, was in fact for the purpose of enabling the grantor to institute an ejectment in the name of the grantee in the circuit court of the United States (Ingham agt. Crary, 1 Penrose & Watts, [Penn)., 389). In declaring the law in our own state justice Cowen, in McCrea agt. Purmont (16 Wend., 460), after a review of many of the leading authorities in England and in the United States, says in conclusion: “ Looking at the strong and overwhelming balance of authority, as collected from the decisions of the American courts, the clause in question, even as between the immediate parties, comes down to the rank of prima facie evidence, except for the purpose of giving effect to the operative words of conveyance. To that end, and that alone, it is conclusive. Such effect, I have no doubt, has long been ascribed to it by conveyancers and dealers in real estate. It is a construction that violates no rule of law, but harmonizes with well-settled . principles, and should be steadily maintained and applied whenever the ends of substantial justice may require it” (McCrea agt. Purmont, supra). This acknowledgment of consideration estops the grantor from alleging that the deed was executed without consideration, prevents a resulting trust in him and forever debars him from denying the deed for the uses therein mentioned; but for every other purpose it is open to explana[426]*426tion, and may be varied by parol proof (see cases cited in Sugden on Vendors [8th Am. ed.], p. 238, note b). There seems to be nothing in the rule referred to, which conflicts with the plaintiff’s right to prove the oral understanding upon which the assignment was executed and delivered. He did not prove that the written assignment made by him to Fullerton was executed without consideration, but was allowed to prove what the consideration was as matter of fact. Ho trust, by implication or otherwise, resulted from the assignment, because it was drawn in form absolute on its face, so as to enable Fullerton to prosecute in his own name an action upon the claims assigned; nor did the verbal understanding impress any trust upon the assignment in Henderson’s favor, because all his interest in the claim, as against Chapman, irrevocably passed by that assignment, and the verbal understanding did not operate as a reservation of any part of it. It created an inchoate right of action, however, in Henderson’s favor, as against Fullerton, which matured and became complete upon the collection of the judgment. The distinction here pointed out is observable in the authorities. Henderson does not impeach the assignment, and does not deny the validity-of the transfer. He merely seeks to enforce, as against Fullerton, the agreement which was the consideration for the transfer, which agreement became efficacious when the transfer produced its results.

In Durgin agt. Ireland (14 N. Y.,

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

Related

Van Epps v. Harns
34 N.Y.S. 337 (New York Supreme Court, 1895)
Young v. Purdy
4 Dem. Sur. 455 (New York Surrogate's Court, 1886)

Cite This Page — Counsel Stack

Bluebook (online)
54 How. Pr. 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-fullerton-nyctcompl-1878.