Lawrence v. Trustees of Leake & Watts Orphan House

2 Denio 577
CourtNew York Supreme Court
DecidedDecember 15, 1845
StatusPublished
Cited by56 cases

This text of 2 Denio 577 (Lawrence v. Trustees of Leake & Watts Orphan House) 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
Lawrence v. Trustees of Leake & Watts Orphan House, 2 Denio 577 (N.Y. Super. Ct. 1845).

Opinion

The assistant vice chancellor,

in the opinion delivered by him, came to the conclusion upon the questions of fact, that the Messrs. Lawrence were responsible as partners upon their transactions with Leake, and that they were indebted to him in the sum of §50,000, which was on interest at five per cent, from July 1, 1826, and that this indebtedness was concealed and denied after the death of Leake, and was not discovered by his representatives until after Lawrence died. He then stated and enforced the following propositions, referring to the authorities as hereafter mentioned.

[580]*5801. That the relation of the Messrs. Lawrence being that of agents and brokers for Leake, was of a fiduciary character, and that the statute did not therefore commence running until June, 1827, when Miller as administrator applied to A. H. Lawrence for an account, and when the indebtedness was denied. (Murray v. Coster, 20 John. 576; Coster v. Murray, 5 John. Ch. R. 522; Spotswood v. Dandridge, 4 Hen. & Munf. 139; Goodhue v. Barnwell, 1 Rice’s Eq. R. 190; Hendrick v. Robinson, 7 Dana’s R. 165; Terrett v. Murray, 4 Yerg. 104; Yarborough v. Newell, 10 id. 376.) The continuation of the account down to the death of Leake, and the last entry made June 1, 1827, revived all previous items and constituted the' true balance an actual debt at that time, and prevented the running of the statute anterior to that date. (Tucker v. Ives, 6 Cowen, 193; Catling v. Skoulding, 6 T. R. 189; Cogswell v. Dolliver, 2 Mass. 217; Union Bank v. Knapp, 3 Pick. 96; Sumpterad v. Morse, 2 Hill, 92.)

2. That the provisions of § 9, (2 R. S. p. 448,) excluding from the" computation of time for the purposes of the statute of limitations, the period between the death of the decedent and the granting of "administration, not exceeding six months, and also the period of six months after the granting of letters, applies to this case, "although the demand in question existed before January 1, 1830, when the revised statutes went into operation. (Blackmore v. Tidderley, 2 Ld. Raym. 1099; Williams v. Jones, 13 East, 449; Palmer’s R. 530; Hutton’s R. 109; Call v. Hagger, 8 Mass. R. 429; Bigelow v. Prichard, 20 Pick. 175; Blackford v. Peltier, 1 Blackf. R. 36; Godfrey v Ward, 2 Ventr. 185; Snode v. Ward, id. 197.) Upon the same principle the term of eighteen months, directed to be deducted by § 8, (R. S. id.) must be allowed in this case; but the "statute does not extinguish the time already elapsed. (Hicks’ ex’rs v. Pouncey, 1 Brevard’s R. 115.) In this case therefore, assuming that the statute commenced running in "June, 1827, when Miller balled for an account and Lawrence denied the indebtedness, fifteen months had elapsed when Leake died, in September, 1828; but from this should be deducted six months, [581]*581according to the ninth section, even if Miller’s appointment was made immediately—leaving nine months. It commenced running again after the lapse of eighteen months, on the 10 th day of March, 1830, and if the six years limitation provided for the case of legal demands applies, the claim was barred on the 10th June, 1835, and the bill, was not filed until June, 1838.

3. But it is well settled that in courts of equity the statute, or the rule analogous to the statute, commences to take effect in cases of fraud from the time of its discovery, not from its commission, And the same rule is applied in several of. the states in courts of law, where there is no court of chancery. (Whalley v. Whalley, 3 Bligh P. C. 2; Booth v. Warrington, 4 Bro. P. C. 163; 2 Sch. & Lef. 634; Jones v. Conway, 4 Yates, 109; Shield v. Anderson, 3 Leigh, 729; Van Klyn v. Vincent, 1 McCord's C. C. 314; 4 Dessau. 480; Mitchell v. Thompson, 1 McLean's R. 104; Sherwood v. Sutton, 5 Mason, 143.) In this state, however, where the action is in a court of law it is immaterial when the fraud was discovered. (Troup v. Smith, in error, 20 John. 40.)

4. If the matter in controversy in a court of chancery is of a purely equitable nature, not cognizable in a court of law, the statute of limitations has no application, but the court will apply She doctrine of neglect and lapse of time according to discretion, regulated by precedents and the peculiar circumstances; but where the two courts have concurrent jurisdiction, and also where the aid of equity is invoked on account of special circumstances, such as the need of a discovery, the difficulty of. proceeding at law or the like, the statute is as effectual a bar as at law, with the qualification that in cases of fraud it commences running from the time of the discovery of the fraud. (Humbert v. Rector &c. of Trinity Church, 7 Paige, 195; S. C. in error, 24 Wend. 587; Roosevelt v. Mark, 6 John. Ch. R. 289; Bardine v. Sheldon, 10 Yerg. 41; Murray v. Mason, 8 Porter's R. 211; Steel's rep. v. Moxley, 9 Dana, 139; Hamilton v. Shepard's ex'r, 3 Murphy's R. 115.)

If the present claim therefore is one in which a court of law has concurrent jurisdiction with courts of equity, this suit was [582]*582barred by the statute of limitations in January, 1836—six years after the fraud was discovered. If it had been commenced in a court of law, the defence would have attached on the 10th of June, 1835—six years after the cause of action accrued, deducting the time allowed by the statute as before mentioned. But

5. Upon the death of A. H. Lawrence, the remedy against his estate was limited to a suit in equity, where alone his assets could be pursued. The executors could not be sued at law, either alone or with the surviving joint debtor. He alone was liable at law. (Postan v. Stanway, 5 East, 261; Grant v. Shurter, 1 Wend. 148.) If both parties are dead the suit must be brought against the executor of the survivor. (Calder v. Rutherford, 3 Brod. & B. 302; Richards v. Heather, 1 Barn. & Ald. 29.) In this country it has generally been held that the creditor cannot come into equity against the assets of the deceased1 joint debtor without establishing the insolvency of the survivor (Caldwell v. Stileman, 1 Rawle, 212; Alsop v. Mather, 8 Conn. R. 584; Reimsdyk v. Kane, 1 Gall. R. 385; Pendleton v. Phelps, 4 Day, 481; Hubble v. Perrin, 3 Ham. Ohio R. 287; Jenkins v. De Groot, 1 Caines' Cas. in Err. 122; Hammersley v. Lambert, 2 John. Ch. R. 508.) The cases in this state last referred to, determine that the creditor may come into this court upon the insolvency of the survivor, but do not hold that insolvency is essential.

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2 Denio 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-v-trustees-of-leake-watts-orphan-house-nysupct-1845.