Jaeger v. Koenig

30 Misc. 580, 62 N.Y.S. 803
CourtAppellate Terms of the Supreme Court of New York
DecidedFebruary 15, 1900
StatusPublished

This text of 30 Misc. 580 (Jaeger v. Koenig) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jaeger v. Koenig, 30 Misc. 580, 62 N.Y.S. 803 (N.Y. Ct. App. 1900).

Opinion

Giegerich, J.

The action is to recover $300 claimed to have been obtained by the defendant from the plaintiff through threats, coercion and undue influence, under circumstances hereinafter stated. The answer admits the receipt of said sum, and, for a further defense, alleges that it, together with a promissory note for $100, was given in settlement of an action in the City Court of Hew York, brought by the defendant against plaintiff’s husband, for larceny of divers sums of money, wines and cigars, etc., to the amount of $2,000 damages; ” that when such action was settled the summons, with notice, had been issued, the affidavit to obtain an order of arrest sworn to, the undertaking to procure such order signed by the defendant, and a retainer paid by the latter to his attorney. The issues were, by consent, referred to a referee for hearing and determination. The only witnesses who testified upon the refer[582]*582ence were the plaintiff and her husband, the defendant putting in no proofs. The referee, among other things, found that on the 8th day' of ETovember, 1896, the husband of the plaintiff was in the employ of the defendant as a bartender and was accused by the latter of having stolen a half dollar; that the sum in suit was the private property of the plaintiff and was paid by her because of defendant’s threat that in the event of her failure to pay it her husband would be locked up, and that such sum was not paid voluntarily, but under duress and because of the fear of defendant’s executing said threat. The defendant separately excepted to each finding of fact and to the conclusion of law of the referee. Judgment in favor of the plaintiff was rendered upon said report, which was sustained by the General Term of the City Court of ETew York, and the defendant appealed therefrom to this Court., It is urged that all the findings made and the conclusion reached by the. referee are erroneous, but after carefully reading the record I am convinced that they are in every respect warranted by the evidence. Upon the facts as found by the referee, the judgment is amply sustained, according to the authorities. Eadie v. Slimmon, 26 N. Y. 9; Schoener v. Lissauer, 101 id. 111; Adams v. Irving National Bank, 116 id. 606; Williams v. Bayley, L. R., 1 H. L. 200; Davies v. London & Provincial Marine Ins. Co., L. R., 8 Ch. Div. 469; Harris v. Carmody, 131 Mass. 51; 41 Am. Rep. 188; Jordan v. Elliott, 12 Week. N. Cas. (Penn.) 56; Coffman v. Lookout Bank, 5 Lea (Tenn.), 232; 40 Am. Rep. 31; City Nat. Bank v. Kusworm, 88 Wis. 188; 43 Am. St. Rep. 880; 26 L. R. A. 48; Lomerson v. Johnston, 44 N. J. Eq. 99. The first case cited is a leading one in this State upon the question under consideration. 'There the action was brought to recover the amount due under a policy of insurance upon the life of the plaintiff’s husband, the insurers depositing the money in court and leaving the contest between the widow and the defendant, who claimed under an assignment from the wife, but which she averred to be void as having been "obtained by coercion and by threats of prosecuting her husband for an embezzlement. Smith, J., in delivering, the opinion of the court, said (pp. 12, 13, 14): “ The assignment from the plaintiff to the defendant was most clearly extorted by a species of force, terrorism and coercion which overcame free agency; in which fear sought security in concession to threats and to apprehensions of injury. It was made as the only way 'of escape from [583]*583a sort of moral duress more distressing than any fear of hodily injury or physical constraint. * * * A deed executed at such a time, under such circumstances, should be deemed obtained by undue influence and ought not to stand.”

These principles were applied in Schoener v. Lissauer, supra, where a bond and mortgage were obtained from a mortgagor by a threat, that unless they were given, his son, who was charged with embezzlement, would go to State prison. The mortgage was set aside, and the judgment was, upon appeal, affirmed by the Oourt of Appeals. The facts of this case are stated in greater detail in the consideration of another branch of the case at bar. In Adams v. Irving National Bank, supra, payment by a wife of her husband’s debt, induced by threats of his arrest on the eve of his departure for Europe because of her fear of its effects on his shattered and feeble health, was held to be made under such-undue influence as entitled her to recover back the money paid, notwithstanding that there was lawful ground for such arrest. Brown, J., in giving the opinion of the court, elaborately reviewed the authorities, and in the course thereof said (p. 611): “ It is not an accurate use of language to apply the term duress ’ to the facts upon which the plaintiff seeks to recover. The case falls rather within the equitable principle which renders voidable contracts obtained by undue influence. However we may classify the case, the rule is firmly established that in relation to husband and wife or parent and child, each may avoid a contract induced and obtained by threats of imprisonment of the other, and it is of no consequence whether the threat is of a lawful or unlawful imprisonment.”

The case of Williams v. Bayley, supra, appears to be the leading English one upon the subject. There a son of the plaintiff carried to bankers, of whom he, as well as his father, was a customer, certain notes with the latter’s name upon them as indorser. These indorsements were forgeries, and on one occasion the plaintiff’s attention was called to the fact that a promissory note purporting to be indorsed by him was lying at the bank dishonored. He apparently communicated the fact to his son, who immediately redeemed it. There was no distinct evidence to show whether or not the plaintiff understood the nature of the transaction. After-wards the fact of the forgery was discovered, and the son failed to deny it. Thereupon the bankers insisted, though without direct [584]*584threats of prosecution, that the plaintiff should become a party to a settlement, to which he consented by executing an assignment to make an equitable mortgage on his property. The notes with the forged indorsements thereon were then delivered up to him. The agreement was held to be invalid, and the decree was affirmed by the House of Lords. While in the opinion of Lord Westbury it is explicitly stated that an agreement for “ stiffing ” a criminal prosecution affords sufficient grounds for holding the agreement void, the opinions of his associates are based mainly on the ground of undue pressure. The doctrine of this ease has been recognized and applied in numerous cases arising in this country, among which are the two last mentioned, and others which will be hereafter cited. »

In Harris v. Carmody, 131 Mass. 51; 41 Am. Rep. 188, it was held that a father may avoid a mortgage which he was induced to execute by threats of the prosecution and imprisonment of his son. The court, through Morton, J., said: “At common law, as a general rule, the defense of duress per minas must be sustained by proof of threats which create a reasonable fear of loss of life, or of great bodily harm, or of imprisonment, of the person to whom the threats are made, and one man cannot avoid his obligation by reason of duress to another. There is a well-settled exception to this rule in the case of husband and wife, all the authorities agreeing that each may avoid a contract if it was made to relieve the other from duress. ' The question whether this exception extends to the relation of parent and child does not appear to have been expressly adjudicated. But we find many dicta

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Bluebook (online)
30 Misc. 580, 62 N.Y.S. 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jaeger-v-koenig-nyappterm-1900.