Jewett v. Maytham

59 Misc. 56, 109 N.Y.S. 1000
New York Supreme Court·Decided April 15, 1908·Published·Cited by 1 cases

Opinion

Wheeler, J.

This action comes before this conrt upon the argument of a demurrer interposed by the defendant Edward J. Maytham, individually and as trustee, and by the defendants Clara L. Maytham, Dorothy Maytham and Donald Maytham.

The complaint alleges that the Imperial Shale Brick Company, on June 13, 1898, recovered a certain judgment against the plaintiff, Erastus C. Knight and all the other defendants named in this action except the defendants Clara L. Maytham, Dorothy and Donald Maytham; that these judgments were against the judgment debtors as members of a Lloyds insurance company; that, on February 13, 1902, the plaintiff, Edgar B. Jewett, and Erastus C. Knight paid the judgment and all costs, amounting to the sum of $3,004.91; that Jewett and Knight also paid and expended [58] $253.55 for defending said action, under and pursuant to an agreement among all parties to contribute for moneys so expended. The complaint alleges that Knight has sold and assigned to the plaintiff all his light to contribution from his fellow joint debtors, and that none of the defendants have contributed their quota. The complaint also alleges that five of the defendants are nonresidents of the State, and that one of them has been relieved of liability to contribute by proceedings in bankruptcy. The complaint further alleges that the defendant Edward H. Maytham.1, prior to the recovery of the Imperial Shale Brick Company judgment, for the purpose of defrauding creditors, made a transfer of all his property to his wife, the defendant Clara L. Maytham; that thereupon the said Clara L. Maytham, without consideration, transferred the same property to one Joseph B. Rogers, as trustee for herself and her children, the defendants Dorothy and Donald Maytham, and that subsequently the said Rogers .resigned as trastee and the said Edward H. Maytham was substituted as trustee in the place of said Rogers. The complaint .alleges that the defendant Edward H. Maytham has no property out of which to pay the plaintiff’s claim except the property fraudulently transferred. The plaintiff asks that the defendants against whom the Imperial Shale Brick Company judgment was recovered be compelled to contribute to the plaintiff their proportionate shares of the amounts which the plaintiff has been compelled to pay, including the amount of the judgment and the costs of defending the action. The plaintiff also demands that the conveyance made by said Edward H. Maytham to his wife, Clara L. Maytham, and by her to Rogers as trustee and now held by the defendant Edward II. Maytham may be declared fraudulent and void and set aside, and that he account for all property so recovered, and that the same be applied to the payment of such claim as may be found due the plaintiff by. the said defendant Edward H. Maytham.

In short, this action combines a cause of action for contribution with one in the nature of a judgment creditor’s bill to set aside an alleged fraudulent conveyance made by one of the defendants.

[59] The defendant Edward H. Maytham, individually, demurs on the ground that different causes of action have been improperly united. As trustee he interposes a separate demurrer on the same ground and on the further ground that the complaint does not set forth facts sufficient to constitute a cause of action. The defendant Clara L. Maytham also demurs on the same grounds as those set up by Edward IT. Maytham as trustee.

The demurrers on the ground that the complaint fails to set forth a cause of action against the Maythams to set aside the alleged fraudulent conveyance, in our opinion, are well taken, for the reason that the complaint does not allege that the plaintiff has exhausted his remedy against Edward H. Maytham by the recovery of a judgment and the return of an execution unsatisfied. This concededly has never been done.

It is the general rule that a creditor’s bill cannot be maintained until an execution has been issued and returned unsatisfied. ST. T. Bank v. Wetmore, 124 N. Y. 248; Code Civ. Pro., § 1871.

And it has become the settled rule in this State not to dispense with these preliminaries, although it may be made to appear by evidence that no benefit could result to the creditors from them. National Tradesmen’s Bank v. Wetmore, 124 N. Y. 248; Estes v. Wilcox, 67 id. 264; Adsit v. Butler, 87 id. 585.

Plaintiff’s counsel, however, contends that the rule is not without exceptions and that this case presents such an exception. The argument is made that, upon the payment of the Imperial Shale Brick Company judgment, the plaintiff became subrogated to the rights of the judgment creditor; that, having been paid, it was extinguished and could not be kept alive, even by assignment, so as to enable plaintiff to issue execution upon it against the other codefendants. Harbeck v. Vanderbilt, 20 N. Y. 395-397; Booth v. Farmers & M. Natl. Bank, 74 id. 228-232; Bank of Salina v. Abbot, 3 Den. 181.

Consequently, as it became impossible to issue execution and have it returned against Maytham, that requirement is [60] dispensed with on the general theory that the law does not require the performance of the impossible; that this action is prosecuted for the benefit of each of all the judgment debtors against whom the Imperial Shale Brick Company judgment was recovered, and all arc, therefore, interested in the success of the effort to set aside the alleged fraudulent conveyance; that, inasmuch as the other portion of the relief asked is for a contribution, and equitable in its nature, inasmuch as execution upon the shale brick company judgment has become impossible,- it is not necessary in law or equity to allege the recovery of a judgment for contribution against Maytham and the return of execution. The plaintiff cites, in support of his contention, the cases of National Tradesmen’s Bank v. Wetmore, 124 N. Y. 241—248; Lefevre v. Phillips, 81 Hun, 232; Patchen v. Rofkar, 12 App. Div. 475; Patchen v. Rofkar, 52 id. 367-370; Bateman v. Hunt, 46 Misc. Rep. 346—350.

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Jewett v. Maytham, 59 Misc. 56, 109 N.Y.S. 1000 (N.Y. Super. Ct. 1908).

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