In re Mellen

18 N.Y.S. 515, 45 N.Y. St. Rep. 349, 63 Hun 632
CourtNew York Supreme Court
DecidedMarch 31, 1892
StatusPublished
Cited by1 cases

This text of 18 N.Y.S. 515 (In re Mellen) 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
In re Mellen, 18 N.Y.S. 515, 45 N.Y. St. Rep. 349, 63 Hun 632 (N.Y. Super. Ct. 1892).

Opinion

Yan Brunt, P. J.

It is impossible to consider in detail the lengthy record and argument of counsel upon the appeals from the various orders above mentioned. It will suffice in disposing of these appeals to deal with the merits of each in a general way, without attempting to particularize the various circumstances established by the record, and which have led to the conclusions-arrived at. It seems to us that this record exemplifies to a striking degree the impropriety of the appointment of an assignee for the benefit of creditors-who is a nonresident of this state. Although it is claimed the assignee in question appointed an attorney to appear for him in all proceedings which, might be brought against him, it is apparent from the facts appearing upon this record that service of papers upon the assignee was impeded by such non-residence, and he was enabled to delay his appearance because thereof. Although this, of itself, would probably not have been sufficient to justify the-removal of the assignee,- there are other facts disclosed which show that no-other conclusion could have been arrived at, not only in justice to the parties represented by the assignment in the case at bar, but also without setting a precedent which might be in other cases productive of the greatest mischief. It is apparent that the assignee sought by every means within his power to-further the interests of the assignor and his wife in the claims which were presented against the assigned estate; that he aided them in the procuring of' testimony, and even went so far in his advocacy of their claims as to employ their attorney as his counsel in the administration of the assigned estate. An assignee should certainly be unbiased as between the various parties interested in the assigned estate; and it is the grossest misconduct for an assigneeto employ the known counsel of a person holding property alleged by other parties interested in the estate to belong to such estate, and who has been retained to defend that possession. The result of the retainer of such counsel has been a studied attempt to throw every impediment in the way of those-seeking information in regard to this estate, even to the most outrageous prevarication; in one instance the counsel stating, when called upon to produce-certain books, that he had none in his possession, that none such had come-into the possession of the assignee, a.nd none into the possession of the attorney, and that, if they had come into the possession of the assignee, they-had not been sent to the attorney, when the fact subsequently appeared that, during all this time the attorney had the possession of these books, and had willfully suppressed the fact, making a false statement before the referee, in. order that the evidence might be reserved for certain other litigations in which-his real client, the wife of the assignor, was a party. It further appears that the assignee himself, in his eagerness to protect the wife of the assignor in. the possession of the property which she had received from him, did not hesitate also to swear to what it is evident he knew to be untrue. Certain charges were made in the moving papers against the assignee in respect to-deeds of property made by the assignor for the benefit of his wife, and claims were made against the assignee because of his failure to act in reference to-those deeds, and the charge was made that, before the making of the general assignment, he had knowledge of said deeds, and of the commencement of the partition suit, and of the claims of the petitioners herein! In answer thereto the assignee swore that he had no knowledge of such deeds, either be[517]*517fore or at the time said general assignment was made, and not until months afterwards. The assignment was made on the 24th of April, 1889, and it appears that on the 8th and 20th of April, 1889, the assignee had written to A. C. Ellis, the then attorney for the assignor and his wife, letters in which he ■shows his solicitude that the assignor’s wife should be able to maintain the integrity of the very conveyances which in his answering affidavit, above referred to, he had denied having any knowledge of. The petition also contained statements that the then attorney for the assignor and his wife had ■consultations with the assignee in regard to the making of the conveyances, etc., and the assignee, in his answer, stated that he had not seen and conversed with said assignor and his wife for at least seven months before said deed’s are alleged by the petitioners to have been made,—the date of the deeds being the 5th of November, 1888,—whereas, it was established upon this hearing that in October, 1888, he had seen and talked with the assignor, and ■even admitted the same upon his examination. It further appears that the assignee made no examinations of the books of the estate for the purpose of ascertaining its condition, nor for the purpose of learning whether there were assets other than those contained in the inventory filed by the assignor, and notwithstanding the fact that the assignee had notice soon after his appointment that the petitioners claimed that the assignor had assets not included in his inventory, the fact being that subsequent to the 24th of May, 1889, the assignee committed the whole business of the assigned estate to the attorney for the assignor and his wife, and used his position entirely for their benefit. And there are other circumstances which go to show that the assignee was more solicitous for the protection of the claim of the wife of the assignor upon the property which she had acquired from the assignor than he was to protect the interests of the creditors upon the assignor’s estate. But it is needless to go more at length into the voluminous testimony offered, because what has already been adverted to seems to be much more than sufficient to justify, but also to require, the removal of such an assignee. It is urged that the referee was guilty of error in admitting certain testimony, namely, that of Mr. Ellis and of Mr. Mellen, who was then deceased. Although the evidence given by Mellen in the partition suit may not have been strictly competent as against the assignee, he not being a party to that action, yet it is not of such a character as in any way to affect the conclusion arrived at upon other facts incontestably established. ’ As to the objections to the evidence of Mr. Ellis, they will be considered in the discussion of the appeal from the order which was made requiring him to testify. The order removing the assignee should be affirmed, with $10 costs and disbursements, to be charged against the assignee personally.

The next order appealed from is that referring it to a referee to take proof •of the facts stated in the petition for the removal of the assignee, and the answer thereto, the referee being required to report, with his opinion thereon. We are not aware upon what ground this appeal is based. The court undoubtedly had the power to refer any questions to the referee to take proof thereon, and report, with his opinion, for the purpose of aiding the conscience of the court; not that such report is binding upon the court, but it simply presents the evidence, with the opinion of the referee as to its weight, he having had the benefit of hearing the witnesses orally testify. This order should also be affirmed, with $10 costs and disbursements, to be paid by the assignee personally.

There seems to be no basis whatever for the appeal from the order denying the motion to remove the referee.

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Related

Mellen v. Banning
18 N.Y.S. 937 (New York Supreme Court, 1892)

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Bluebook (online)
18 N.Y.S. 515, 45 N.Y. St. Rep. 349, 63 Hun 632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mellen-nysupct-1892.