Patterson v. . Brown

32 N.Y. 81
CourtNew York Court of Appeals
DecidedMarch 5, 1865
StatusPublished
Cited by8 cases

This text of 32 N.Y. 81 (Patterson v. . Brown) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. . Brown, 32 N.Y. 81 (N.Y. 1865).

Opinion

Wright, J.

The plaintiff purchased the premises from Mrs. Lombard, who held the legal title by a fraud, pending an action to enforce the claim of the defendant, Brown, a judgment creditor of Bowley, the equitable owner thereof. Bowley was in possession under a contract to purchase, and had paid all the purchase-money but $200, when- in June, 1858, with intent to defraud his creditors, and prevent the collection of the Brown judgment, he procured the legal title to be placed in Mrs. Lombard’s hands. The consideration for the transfer to the plaintiff, on the 11th April, 1859, and some seven months after the commencement of this action to subject the premises to the payment of Brown’s *92 judgment, was $700, of which amount $100 was paid when he took the conveyance, and the remainder ($600) he obligated himself to pay “ whenever the premises should be discharged from all claims and incumbrances to the satisfaction of the attorneys who drew the papers between the parties, or whenever he (Patterson) should be fully secured and indemnified to the satisfaction of such attorneys.” These were the plaintiff’s attorneys, and at the time the conveyance was made and this extraordinary obligation executed, they were defending the receiver’s suit for Mrs. Lombard, his grantor. He had no actual knowledge of the pendency of the action by the receiver at the time of the execution of the papers. He did know, however, of the judgment against Kowley, and that the defendant Brown was claiming to have a lien upon or interest in, the premises founded upon such judgment, and he had sufficient notice of the nature and character of the claim to put him upon inquiry in regard to it. Intermediate the commencement of'the receiver’s suit and the purchase by the plaintiff, the dwelling house on the premises had been destroyed by fire, and it is averred in the complaint but denied in the answer, and there is no finding on the subject, that at the time of the purchase, the premises were worth but the sum of $700 (the price agreed to be paid therefor), and was never at any time afterward, worth any further or greater sum, independent of the improvements put thereon by the plaintiff. Immediately after his purchase the plaintiff commenced improving the premises, but before he had expended any considerable amount in that way, the defendant Brown went to him, in good faith, for the purpose of giving him notice of his claim, and upon speaking to him upon the subject, was informed by him that he knew all about the claim, and had protected himself against it in his purchase. He continued improving the premises, although the defendants were guilty of no fraud or concealment on the subject of their claim and did nothing to mislead or induce him to go on with his improvements. Whilst the improvements were in progress, and several months before the trial of the receiver’s action, he became aware of *93 the proceedings in the action, and was fully advised of the nature and character of the same; yet after such knowledge, and before the trial and decree, he continued making them, and expended in that time an amount on the premises far greater than the whole amount of the defendant’s claim.

In May, 1860, the receiver obtained judgment, declaring that the transfer of the premises from Rowley to Mrs. Lombard was fraudulent and void, as against the defendant Brown, the judgment creditor; that Mrs. Lombard and her assigns held the premises in trust for the benefit of the plaintiff, as receiver of the debts, property, equitable interests and things in action of Rowley, and that the judgment of the defendant Brown, against Rowley for $529.06, recovered m December, 185Y, is a lien and charge upon the premises. The premises were ordered to be sold, and the proceeds (after payment of the fees and expenses of the sale), to be applied as follows: $200, with interest, from 24th July, 1858, to Mrs. Lombard, that being the amount of the purchase-money of the premises remaining unpaid by Rowley at the time of the transfer to her. 2d. To the payment to the plaintiff (the receiver), or his attorney,, the amount due on the Brown. judgment, being $501.53, with interest, from March, 1858. 3d. To the payment of the plaintiff’s costs in

the action, adjusted at $159.92, also the sum of $25 for the costs and charges in the proceeding, supplementary to execution, and $38.52 for the fees, commissions and charges of the receiver, or so much as the purchase-money of the premises will pay of the same.

After this decree had been perfected, and the premises, in pimsuance thereof, advertised for sale, and recognizing its legality and force as against him, the plaintiff comes into a court of equity, and asks that the premises be discharged from the lien and operation of such decree, upon his payment of the amount of the unpaid purchase-money, which he agreed to pay to Mrs. Lombard, less the sum of $200, awarded to her out of the proceeds of the premises. Conceding that the premises, at the time of his purchase from Mrs. Lombard, were worth no more than the price which he *94 agreed to pay therefor (which fact is not found), the relief asked, in substance, is that the meliorations and improvements of the plaintiff to the premises, after he acquired the legal title, be protected from the operation of the decree. Coming in subordinately to such decree, which gave the defendants the right to sell* the premises to make the amount of their claim, unless the same should be paid, instead of making such payment, which the plaintiff was at liberty to do, and relieve the premises from that charge, under pretense of protection to his improvements, made at his peril, it is sought to compel • the defendants to take a specific sum less than their claim, and deprive them of the full benefit of their decree. I am at a loss to conceive of any ground on which a court of equity should interpose and grant the relief prayed for.

The judgment of the court, charged the premises with the payment of Brown’s judgment and the receiver’s costs, amounting in the whole to over eight hundred dollars, The proposition is, that the premises be discharged by paying $550 of this amount, leaving the judgment creditor deficient the balance, and this upon the pretext that the premises are worth no greater sum, after deducting the $200 to be paid to Mrs. Lombard, independent of the improvements made thereon. Chargeable with notice of the pendency and object of the action in which the judgment was recovered, the plaintiff purchased the premises for the nominal sum of $700,' although, in fact, paying but $100, nor agreeing to pay any more until they were discharged from all claims and incumbrances to the satisfaction of his attorney, who was then defending the receiver’s action for his grantor. ISTo one can wink so hard as not to see that it was the defendant’s claim, that he was then prosecuting, that was in the contemplation of the parties by this arrangement. Stopping here, the plain tiff could not be regarded as a bona fide purchaser for a valu able consideration, and entitled, as such, to be protected by a >,ourt of equity. Had he stopped at this point, the theory on which this action is claimed to be maintainable, viz., that he is bound to no greater extent than the purchase-money *95 unpaid by him to his grantor, or the value of the premises without his improvements—would have no basis.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Da Silva v. Musso
559 N.E.2d 1268 (New York Court of Appeals, 1990)
Da Silva v. Musso
150 A.D.2d 73 (Appellate Division of the Supreme Court of New York, 1989)
Rochester Meadows Apartments v. City of Rochester
316 N.W.2d 242 (Michigan Court of Appeals, 1982)
Chilton's, Inc. v. Wilmington Apartment Co.
112 N.W.2d 434 (Michigan Supreme Court, 1961)
Buckhorn Plaster Co. v. Consolidated Plaster Co.
108 P. 27 (Supreme Court of Colorado, 1910)
Thomas v. Provident Life & Trust Co.
138 F. 348 (Ninth Circuit, 1905)
McCredie v. Buxton
31 Mich. 383 (Michigan Supreme Court, 1875)

Cite This Page — Counsel Stack

Bluebook (online)
32 N.Y. 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-brown-ny-1865.