Mason v. Libbey

26 N.Y. Sup. Ct. 119
CourtNew York Supreme Court
DecidedNovember 15, 1879
StatusPublished

This text of 26 N.Y. Sup. Ct. 119 (Mason v. Libbey) 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
Mason v. Libbey, 26 N.Y. Sup. Ct. 119 (N.Y. Super. Ct. 1879).

Opinion

Van Vokst, J.:

The plaintiff, who is the daughter of the defendant, has offered no evidence to sustain the claims in her complaint, with reference to the Tenth and Eleventh street houses, the title to which is in the defendant. And on the trial and argument plaintiff’s counsel limited her demand for relief to the Williamsburg and East Broadway property. It is conceded by the defendant that this latter property was acquired through the proceeds arising from the sale of the farm at Scotch Plains, New Jersey, the title to which stood in the name of the defendant, when sold, as it had for a period of over twelve years. These proceeds, the plaintiff claims, were funds received and held by her mother in a fiduciary capacity in trust to invest for her. That the defendant had promised her husband, the plaintiff’s father, as a condition to his signing the deed upon the conveyance of the New Jersey farm, that she would invest these proceeds for his and her daughter. If the claim of the plaintiff be well founded, that the proceeds of the New Jersey farm were received by her mother in trust, to invest for the plaintiff, this court would follow the fund, and charge with a trust in the plaintiff’s favor the property purchased therewith, although the title was taken in the mother’s name. In this view it is first to be determined whether the fiduciary relation claimed did in fact exist, and whether these proceeds received by the mother belonged in law or equity to the daughter, or wore held in pursuance of a trust in her favor. The New Jersey farm was purchased in the year 1851, and the title was taken in the-name of the plaintiff’s father, the defendant’s husband. But, the [121]*121defendant on the trial testified that, although the deed went to her husband, the consideration was paid by herself.

It appears that the husband and wife, shortly after their marriage, and in the year 1833, commenced a small business in a store in Grand street, in New York city. The wife had property to the value of a few hundred dollars belonging to her before her marriage. The proceeds of this property, she testifies, and there is no evidence to the contrary, was received by her husband and went into the business after marriage. The store was conducted almost exclusively by the wife. She gave it her personal care and attention for a period of nearly eighteen years, during which time the plaintiff was born, who is an only child. The husband generally bought the goods, but the wife attended at the store and sold them, and managed the details of the business. For a considerable portion of the time the husband had other affairs which engaged much of his individual attention. It must be believed, under the evidence, that the accumulations of money arising from the business were greatly owing to the diligent efforts and attention of the wife. A portion of these moneys were deposited by her, from time to time, through a series of years, in savings banks in the city of New York, in her own -name, and were drawn out by her as her exigencies required. Property, real estate, was purchased and finally deeded to her in her own name, without real or apparent opposition from her husband. It may be reasonably concluded that he acquiesced in the justice and equity of a claim on her part to the moneys so deposited and invested in real property. The case would indicate that, and there is nothing which shows the contrary. It is doubtless true that the earnings of the wife at this time, the fruits of her labors, belonged to her husband. But, in the absence of claims or objections, on the part of the creditors, he could surrender a portion of these earnings to his wife. He might acknowledge her equitable claims to them, and could consent to the acquisition of property through them in her own name and to her own use. (Kelly v. Campbell, 2 Abb. Ct. Ap. Decisions, 494.)

A husband may permit his wife to labor' for her own account. He may give her the proceeds she has earned, or allow her to .appropriate them to her own use. (Peterson and Wife v. Mul[122]*122ford, N. J. Court of Errors and Appeals, 7 Vroom, 486 ; Skilman v. Skilman, 2 Beas., 406; Donovan v. Sheridan, 37 Superior Court R., 256, 262.) It is claimed by the defendant, and she has so testified, that these moneys, acquired by her own efforts, her savings and earnings, together with rents of her own property,, paid for the New Jersey farm. There is no contradiction of her evidence that she paid for the New Jerscy farm, unless it be found in the language of the deed by which it was conveyed to her husband, which in the usual form acknowledged payment of the consideration. But it is not improper to explain by oral testimony the deed in this respect, and show that the consideration was, in fact, paid with the wife’s money. In 1853 the husband deeded the farm directly to his wife. This conveyance, though void at law, was not necessarily so in equity. (Hunt v. Johnson, 44 N. Y., 27; Peck v. Brown, 2 Robt., 119; Townshend v. Townshend, 1 Abb. [N. C.], 81; Simmons v. McElwain, 26 Barb., 419; Shepard v. Shepard, 7 Johns. Chy., 57; Story’s Equity Jurisprudence, vol. 2, § 1374.) Courts of equity will uphold grants from husband to wife, when they would bo void at law. The above cases uphold that doctrine. Equity would not, however, uphold grants of all his estate to his wife by which he would be denuded. (Beard v. Beard, 3 Atk. R., 72.) The circumstances of the husband would be considered where creditors are concerned. (Coates v. Gerlach, 8 Wright [44 Penn. S. R.], 45.) The husband did not denude himself by this conveyance to his wife. Ho had other property and means — real estate and stocks. The conveyance by the husband to his wife may well be regarded, in the absence of all evidence to the contrary, and in view of the foregoing facts, as a recognition on the part of the husband of the equitable claims of his wife to the land, or as a transaction in the nature of an advancement. (2 Story’s Equity Juris., § 1204; Welton v. Divine, 20 Barb. R., 9, and cases cited.) It is an indication of a clear intention on the husband’s part to invest her with the title to this property. There were no impending claims of creditors. The act was voluntary ; there is nothing to show the opposite, but that he intended in good faith to invest her with the title. Nor is there any good reason why a court of equity should not give effect to the husband’s act and intention at the time. In May, 1866, the hus[123]*123band, who was then, and had been for several years living in the State of Virginia, in a state of voluntary separation from his wife, joined with her in a conveyance of the farm to John Taylor Johnston. The consideration realized on this sale, $10,000 and upwards, was wholly received by the wife, who conducted all the negotiations for, and consummated the sale, her husband being in Virginia, where he executed the deed. The proceeds, received by the wife she invested in her own name in the property, the subject of this action, precisely as the farm stood before-it was sold to Johnston.

The trust claimed by the daughter grows out of the signing of the deed by her father. She has testified that her father, when applied to by his wife for the purpose, objected to signing the deed, unless-upon the condition that the defendant would invest the proceeds forher daughter. There is reason for the conclusion that the husband, did at first decline to sign the deed.

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Related

Hunt v. . Johnson
44 N.Y. 27 (New York Court of Appeals, 1870)
Lathrop v. Hoyt
7 Barb. 59 (New York Supreme Court, 1849)
Simmons v. McElwain
26 Barb. 419 (New York Supreme Court, 1857)

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Bluebook (online)
26 N.Y. Sup. Ct. 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-v-libbey-nysupct-1879.