Lyon v. Tallmadge

14 Johns. 501
CourtCourt for the Trial of Impeachments and Correction of Errors
DecidedMarch 15, 1817
StatusPublished
Cited by19 cases

This text of 14 Johns. 501 (Lyon v. Tallmadge) is published on Counsel Stack Legal Research, covering Court for the Trial of Impeachments and Correction of Errors primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyon v. Tallmadge, 14 Johns. 501 (N.Y. Super. Ct. 1817).

Opinion

Spencer, J.

Before I enter on the merits of this cause, I shall briefly examine some preliminary objections. It appears from the chancellor’s opinion, that a decree was read at the hearing, which had been given in the court of chancery in June, 1815, in a cause pending in that court, between Tallmadge and others against Lyon, setting aside a sale of the property ot Lyon and Dewey, under a judgment in favour of Richmond, and assigned to Tallmadge and others, on the ground that it was a fraudulent sale. That decree was taken by default, and the complainants in that suit were ailowed to resell the property, thus fraudulently sold, on that judgment. His honour, the Chancellor, considered this as a decisive objection to any relief to Lyon in this cause, on the ground that that decree having never been questioned, remained good, and could not be impeached in a collateral way.

I cannot assent to this conclusion. The subject matter of the appellant’s bill could never have been set up as a defence in that suit, for it was wholly a disconnected subject. If the sheriif’s sale was fraudulently procured by Lyon, he could not defend himself from that fraud, by insisting on the matters forming the grounds of the present bill. This consideration would be sufficient to show, that the decree in the former cause cannot operate as a bar to this suit. But there is another answer: the decree in the dormer cause, to be available, should have been pleaded, or relied on in the answer, as a bar. ■ It was not enough to read it at the hearing; -and I must doubt the propriety of its being read at all at the hearing.

It is a well-established rule in equity, that a plea in bar of a former decree must state so much of the former bill and answer, as to show that the same point was then in issue. (Hind. 176. 2. Atk. 603. 2. Ves. 577.) And, beyond all controversy, the case stated in the appellant’s bill was not, and could not have been, in issue in the former cause. It was then a mistake to-suppose that the appellants sought to attack or impeach the former decree, in a collateral way, or in any shape; and that de-, cree does not stand in the way.

It has been urged, and, I think, ungraciously, that the [516]*516answer of all the defendants, composing the firm of Tallmadge, Smith & Co., except one of them, adopts the answer of Richmond, and that no replication having been filed to their answer, it is admitted to be true ; and, then, it is insisted, all fraud, coilusión, or oppression is disproved. '

There can exist no doubt, that all the proof in the power of any of the respondents is before the court. The firm of Tallmadge, Smith & Co. appear to have had no personal concern in any of the transactions, and they admit their ignorance of them; but though their attorney, Mr. Mumford, under these circumstances, having referred to Richmond’s, Dewey’s, and William S. Tallmadge’s answers, and stated their expectation of being able to prove the facts set forth by the other respondents,’ we ought to consider the proof given by them, as the proofs of the respondents ; thus adopting and referring to the answers of the other respondents. Thete is yet a more decisive answer. The fact is not made out that there was no replication to these answers. There appears to be a replication, and the court is bound to intend it was filed in season, unless the contrary be proved. Besides, as this is mere matter of form, and all the evi-. dence has been adduced which the parties, or either of them, can bring forward, the court below would have permitted the replication to have been filed, nunc pro tunc, as both parties have proceeded on the idea that the cause was completely at issue. This appears by the commissions to examine witnesses, and the interrogatories.

This brings me to the merits of the cause ; and after as full a consideration as I have been able to give, I am bound to say, that, in my judgment, the decree in the court below ought" to be reversed, on two grounds :

First. On the ground that Richmond, if he, indeed, ever obtained' Lyon’s assent to the assignment of the judgment he held against Lyon, Dewey, and Brockway, and to the release of errors in the judgment in favour of Tallmadge and others, against him, obtained it under circumstances of such fraud and oppression as to render the assent nugatory and void.

Second. Admitting all the facts set up by Richmond to be true, they form no defence to the appellant’s title to the relief he asks.

The’object of the appellant’s bill is to set aside the assignment of the judgment in favour of Richmond against the appellants and Dewey, and the release of errors executed by Rich[517]*517ynond on the judgment against him, in favour of Tallmadge, Smith & Co., and to be permitted to make use of Richmond"1 s name in prosecuting a writ of error on the latter judgment. And unless the appellants have forfeited the right to prosecute the writ of error, it appears to me there cannot be a doubt, that, upon principles, as well of equity as of justice, they ought to be allowed to exercise it.

The question whether that judgment was erroneous, is not now to be considered; the object of the bill is to get rid of these acts, which operate as a hindrance to the prosecution of the writ of error ; and the question before us is, whether the appellants are not entitled to the interposition of the court of chancery, to enable them to proceed in the writ of error, by removing the obstacles which have been interposed.

It may be useful to ascertain under what circumstances of fraud and imposition a court of equity will give relief; that, having the principle, we may apply to it the facts of the case. Lord Hardwicke, (2 Ves. Rep. 155, 156.) specifies the kinds of fraud which a court of equity will relieve against; and under his third head, he speaks of fraud which may be presumed from the circumstances and conditions of the parties contracting ; and this, he says, goes further than the rule of law, which is, that it must be proved, not presumed ; but he adds, ie it is wisely established in equity to prevent taking surreptitious advantage of the weakness or necessity of another, which knowingly to do, is equally against conscience as to take advantage of his ignorance ; a person is equally unable to judge for himself in one as the other.’’ The same principles are maintained by Lord Erskine. (13 Ves. jun, 51.) He says, a court of equity will prohibit a party from taking advantage of an instrument obtained by an advantage taken of men unguarded in particular situations, and under circumstances, where courts of law cannot give adequate remedy ; though, he says, fraud, according to the ordinary understanding of the term, is equally the subject of their jurisdiction.

These are valuable and salutary principles, “ coming home to the bosoms and affairs of menand it is for us now to consider, whether the facts proved warrant the application of them.

I consider it to be immaterial whether Richmond did, or-'did not, agree, that Dyon and Dewey should have the right to [518]

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Bluebook (online)
14 Johns. 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyon-v-tallmadge-nycterr-1817.