In re Perine

158 Misc. 597, 287 N.Y.S. 535, 1936 N.Y. Misc. LEXIS 1110
CourtNew York County Courts
DecidedFebruary 27, 1936
StatusPublished
Cited by1 cases

This text of 158 Misc. 597 (In re Perine) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Perine, 158 Misc. 597, 287 N.Y.S. 535, 1936 N.Y. Misc. LEXIS 1110 (N.Y. Super. Ct. 1936).

Opinion

Johnson, J.

The petitioner is seeking exemption from arrest as an insolvent debtor under the provisions of article 4 of the Debtor and Creditor Law. In his petition he prays to be exempted from arrest “ by reason of a debt arising upon a contract previously made or any existing judgment against him or otherwise.”

William G. Mulligan, Jr., a creditor, has filed objections — one of which is that the petitioner is not entitled to the relief demanded in his petition as against the objecting creditor by reason of the fact that such creditor is a judgment creditor holding a judgment against the petitioner which was a judgment in tort arising out of an assault and battery.

The petitioner moves to strike out such objection and the objecting creditor moves to dismiss the petition as to him, thus raising the question whether under article 4 of the Debtor and Creditor Law the petitioner may be exempted from arrest under a judgment in tort arising out of assault and battery.

Article 4 of the Debtor and Creditor Law provides that an insolvent debtor may be exempted from arrest or discharged from imprisonment as prescribed in that article (§ 100). The petitioner must pray that he be so exempted “ by reason of a debt, arising upon a contract previously made ” (§ 101).

He is required to annex to his petition a schedule such as is required in article 3 and an affidavit that he has not disposed of any of his property for the future benefit of himself or family or in order to defraud his creditors (§§ 102 and 103). If an order is made directing an assignment and an assignment made accordingly, the court must grant him a discharge declaring him forever thereafter exempted from arrest or imprisonment “ by reason of any [599]*599debt due at the time of making the assignment, or contracted before that time, though payable afterwards ” or by reason of any liability incurred by him on a bill of exchange or promissory note (§ 107).

Upon the face of this statute it would seem, therefore, that the right to exemption is confined to contractual indebtedness, that is, a debt arising upon a contract previously made. Such is the specific provision of section 101. The provision of section 107 is substantially the same, because the words therein used, debt due at the time of the making of the assignment,” are modified by the use of the subsequent words which show that the debt meant is a debt contracted, whether then due or payable afterwards.

In the only recent decision of an appellate court it was expressly held by the Appellate Division in the First Department that a judgment in a conversion action was not a debt upon a contract previously made and was not within the provisions of article 4 of the Debtor and Creditor Law so as to permit the judgment debtor to be exempted from arrest upon such a judgment. (Matter of Berman, 244 App. Div. 95.)

Petitioner, however, contends that this decision is erroneous and he urges that, if article 4 be construed to apply only to debts arising out of contract it would be meaningless and ineffectual because arrest or imprisonment upon such a debt is and has been for many years under our statutes impossible. An examination of the statutes is necessary in order to determine whether such contention may be sustained.

Articles 4 and 5 of the Debtor and Creditor Law are a continuance of legislation originally enacted in 1819. The provisions thereof, in substantially the same form as they exist today, were enacted into and became a part of the Revised Statutes, were at one time transferred to the Code of Civil Procedure and were finally placed in the Debtor and Creditor Law.

Article 4 relates to debts “ arising upon a contract previously made.” As to such debts, an insolvent debtor by following the procedure of the article may obtain exemption from arrest before arrest is made or discharge from imprisonment after arrest has been made.

Article 5, on the other hand, applies only to a person who has already been in prison, and applies to such imprisonment by virtue of an execution to collect a sum of money issued in a civil action or special proceeding ” (§ 120).

If, however, the sum or sums for which he is imprisoned exceed 1500, he cannot present a petition for discharge until he has been imprisoned for at least three months (§ 122).

[600]*600In Creble v. Youzwiak (138 Misc. 543) Mr. Justice McNamee, at Special Term of the Supreme Court in Columbia county, held that article 4 applied to a claim arising in tort as well as one arising in contract and said that articles 4 and 5 are a source of confusion.

On the contrary, it seems to me that they may be easily distinguished. Article 5 affects only a debtor who has been arrested and imprisoned upon an execution following a judgment, whether the judgment be one arising out of tort or of contract. If, however, the judgment exceeds $500, he may not be discharged until he has been imprisoned for at least three months.

Article 4, on the other hand, relates only to debts arising out of contract previously made and the debtor need not await judgment and imprisonment on execution before taking action. If he is insolvent, he may obtain an order exempting him from arrest before the arrest is made or even before an action is brought; or, if he has already been arrested, whether before or after judgment, he may obtain his discharge.

If article 4 was held to apply to all judgments, whether arising out of tort or contract, the anomalous situation would result that a judgment debtor on a tort judgment of more than $500 could obtain exemption from arrest or discharge from imprisonment under article 4 in spite óf the provisions of article 5 to the effect that he cannot be discharged from imprisonment in such case until he has been imprisoned for at least three months.

The two articles must be construed so that they will be consistent, and if article 4 is construed to relate only to contractual indebtedness, that end is attained. The result would be that if the debtor is a contract debtor, he may obtain exemption from arrest in advance, or, if he is imprisoned, may obtain discharge from imprisonment at once; but, if he is not a contiact debtor, but is, for example, a debtor in tort foi more than $500, he cannot obtain exemption from arrest in advance, and if imprisoned, must remain in prison for at least three months before he may apply for discharge.

The petitioner further contends, however, that if article 4 be construed as relating only to debts arising out of contract it is meaningless, because arrest may not be had on such a debt. That is not the fact. When the statute was first enacted in 1819, imprisonment could be had on a simple contract debt. That has not been possible since the enactment of the so-called Stilwell Act ” (Laws of 1831, chap. 300) abolishing the right to imprison for simple debt. (See Civil Rights Law, § 21.) Since that time provisions relating to arrests in civil actions and upon body executions have been in the statute in substantially the form in which they now exist in sections 764, 826 and 827 of the Civil Practice [601]*601Act.

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265 A.D. 939 (Appellate Division of the Supreme Court of New York, 1942)

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Bluebook (online)
158 Misc. 597, 287 N.Y.S. 535, 1936 N.Y. Misc. LEXIS 1110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-perine-nycountyct-1936.