In re Lowerre

5 Mills Surr. 135, 48 Misc. 317, 96 N.Y.S. 764
CourtNew York Surrogate's Court
DecidedSeptember 15, 1905
StatusPublished
Cited by1 cases

This text of 5 Mills Surr. 135 (In re Lowerre) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Lowerre, 5 Mills Surr. 135, 48 Misc. 317, 96 N.Y.S. 764 (N.Y. Super. Ct. 1905).

Opinion

Belford, S.

This is a special proceeding brought under section 2750 of the Code, for the sale of the real estate of John R. Reid, deceased, for the payment of a debt alleged to be due the [136]*136petitioners as executors of the will of James Bulger, deceased-The allegation of the petitioners as to the debt is as follows- “ The sum of $3,500 and interest was due and owing from said John R. Reid to said James Bulger in his lifetime and to your petitioners after his death, said claim being for money paid by James Bulger to said John R. Reid on or about the 12th day of April, 1883, for the purpose of paying the same to one Marietta Purdy, and being the amount due and unpaid on a bond and mortgage held and owned by her, which said mortgage was a lien upon certain real property then owned by said James Bulger and which said sum the said John R. Reid failed and neglected to pay to said Marietta Purdy, but retained the same and applied the same to his own use without the ¡knowledge of the-said James Bulger.” The evidence offered hy petitioners to establish their claim is substantially as follows: The witness Hobby testifies that in 1883 he had charge of Mr. Bulger’s business and bank account, and that in April of that year he drew a check for ¡Mr. Bulger to the order of Marietta Purdy for $3,-500, in payment of the mortgage on the Pearsall farm (conceded to be the mortgage in question), and that he handed the-check to Mr. Bulger; that the check was afterward paid by the-bank on which it was drawn and was finally returned to Mr. Bulger by the bank when his book was balanced about a year after it was drawn. The witness George H. Todd, testifies that he was formerly an employee of Mr. Bulger’s. That sometime-in the spring of 1883, he went with Mr. Bulger to Judge Reid’s office and that Mr. Bulger on that occasion handed Judge Reid' an envelope with a paper enclosed therein and that Mr. Bulger said to Judge Reid that he would find in the envelope a check for $3,500, for the mortgage on the Pearsall place, held by Mrs. Purdy, of Amityville. He further testifies that Judge Reid' opened the envelope, took out and inspected the enclosure which] to the witness looked like a check. That Mr. Bulger saidr How that takes the black eye off the Pearsall place,” and that-[137]*137to this remark made by Hr. Bulger, Judge Reid replied: “ Yes,, that wipes all the stain out.” Eone of this testimony is contradicted. The check itself was not produced, but its absence, after so long a time, is accounted for by one of the witnesses, John H. Bulger, who says that a number of old checks of Hr. Bulger’s were destroyed while in his custody and that he has made diligent search for this check, but is unable to find it. It would be natural to presume from the foregoing facts that the money represented by this check was paid to Hrs. Purdy, but Hrs. Purdy .was examined as a witness and testified that she never received the principal of the mortgage from Judge Reid nor from Hr. Bulger, nor from his legal representatives, but that the mortgage being unpaid, was foreclosed in the year 1904, after the death of both Judge Reid and Hr. Bulger, and that the amount due was paid on the foreclosure and sale of the mortgaged premises. We have, therefore, this chain of facts uncontradieted:

First. The check for the amount of the mortgage was drawn.

Second. It was delivered to Judge Reid.

Third. Hrs. Purdy never received the money.

From this evidence it is impossible to reach any other conclusion than that Judge Reid received the money. But this is not all. It appears by the testimony of Hrs. Purdy that Judge Reid continued to pay her the interest on it every year from the time the mortgage was assigned to her by Judge Reid as administrator of James Reid, in 1871, to the date of his death, in 1902, a year and six months subsequently to the death of Hr. Bulger. In confirmation of this statement she produces and there were received in evidence nine letters which were written and sent to her by Judge Reid between 1894 and 1902, inclusive, in all of which he mentions the interest on this mortgage and in several of which he refers to a check which he encloses for $175 yearly interest. Three of these letters were written subsequently to Hr. Bulger’s death. On April 1, 1901, he writes, [138]*138Enclosed please find check to cancel interest on Pearsall mort.gage to date. The mortgage will not be paid off during the coming year.” In February, 1902, he writes The parties responsible do not wish to pay the principal of the Pearsall mortgage this year, when they want to pay the principal you will have at .■least three months’ prior notice. I will have the interest for you when it is due. I will mail you check on or about the first of April.” On the 25th of March, 1902, he writes, enclosing the .check for the interest. In some of these letters he speaks of having received a draft for the money which he offers to send or to .hold till she calls at his office. How if such drafts had actually ■been received by Judge Reid there would be some foundation for .a possible supposition that the $3,500 check had been disposed of in some mysterious way and that after all Mr. Bulger had not •carried out his purpose of paying the mortgage and taking the “ black- eye ” off the farm. And it is obvious that some of these drafts must have been received from the executors after Mr. .Bulger’s death. But both the executors were sworn as witnesses and both testified that no such drafts had been made, so that the conclusion is inevitable that Judge Reid paid of his own volition and out of his own pocket the interest on the mortgage for fhe two years, 1901 and 1902, and little room is left for doubt that he did the same for all the years prior thereto and subsequent to the delivery of the $3,500 check to him. I am therefore unable to reach any other conclusion than that Judge Reid received and applied to his own use this money. The mortgage remained a lien upon Mr. Bulger’s land. He subsequently conveyed the land with a warrany that it was free of incumbrance, ■and of course he and his estate were and are liable upon the covenant. In accepting this money from Mr. Bulger for the purpose for which Mr. Bulger paid him the money, constituted ■Judge Reid the attorney for Mr. Bulger. Mr. Bulger evidently ■trusted him and placed the money in his hands for the purpose of extinguishing' the mortgage, expecting him to do whatever [139]*139was necessary to be done to accomplish this result. It is suggested that there appears to have been no request made by Mr. Bulger for a satisfaction piece to have been furnished him or any request that the bond and mortgage should be delivered to him .after payment, but it is- evident that Mr. Bulger’s trust in Judge Beid was full and complete. It appears from the testimony of Todd that he went with Mr. Bulger to Judge Beid’s office on many occasions on legal business and ¡Mr. Bulger could fairly .assume that Judge Beid would do all that it was necessary and proper for him to do under the circumstances. Having accepted the money and agreed with Mr. Bulger as to the disposition of it, thenceforth he was the attorney for Mr. Bulger, and having misapplied the money he was liable for it without any demand. The language of Wood v. Young, 141 E. Y. 217, seems to completely fit this ease.

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Bluebook (online)
5 Mills Surr. 135, 48 Misc. 317, 96 N.Y.S. 764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-lowerre-nysurct-1905.