Peck v. Sands

119 Misc. 804
CourtNew York Supreme Court
DecidedAugust 15, 1922
StatusPublished

This text of 119 Misc. 804 (Peck v. Sands) 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
Peck v. Sands, 119 Misc. 804 (N.Y. Super. Ct. 1922).

Opinion

McCann, J.

The plaintiff has recovered a verdict of $500. Defendant moves to set aside the same upon all the grounds specified in section 549 of the Civil Practice Act. Defendant’s counsel in his brief states several reasons why his motion should prevail, but for the purpose of disposing of the same, I have considered only the question of the right of the plaintiff to recover on a quantum meruit. The original complaint alleged that defendant engaged the services of plaintiff, who is a bank president, to assist her in the settlement of an estate of which she was an executrix, and that in consideration for the services so to be rendered, and which were subsequently rendered, defendant agreed to pay to plaintiff the fees which she was thereafter to receive as such executrix. Defendant moved for judgment on the pleadings on the ground that the consideration for such contract, to wit, the payment of the commissions to be received as executrix of the estate, was an illegal one and that the plaintiff could not recover. Judgment was, therefore, rendered dismissing the complaint, with costs, with leave to renew. The plaintiff thereupon served an amended complaint in which he alleged the same state of facts except that he did not allege that in payment for such services [805]*805he was to receive the commissions thereafter to become due and payable to defendant as executrix of such estate, but did, however, allege performance of the services and asked for a recovery based upon a quantum meruit. The amended answer sets out the agreement between the parties to the effect that the plaintiff was to receive as his compensation the fees and commissions thereafter to be allowed to the defendant as executrix. Upon these issues the case was tried. It was claimed that a part of the services rendered were legal services, which could only be rendered by an attorney at law. There is no evidence in the case to show that there were any strictly legal services performed. The services rendered were of a business nature, such as advising as to values of securities and real estate, aiding in the adjustment of claims and in the division of the estate among the beneficiaries and, in general, doing the work which would ordinarily be expected of an executor. The question then arises as to whether or not the original contract having been one which was void as being against public policy, plaintiff, having performed the services thereunder, may now recover upon a quantum meruit. Numerous cases have been cited by both plaintiff and defendant. The general rule of law is laid down in many of the cases cited but perhaps stated as well as anywhere in Ruling Case Law (Vol. 6, § 219, p. 827): “ As a general rule there can be no recovery on a quantum meruit for services rendered or other considerations furnished under a contract which is void for illegality or for reasons of public policy. Although this rule has by some courts been applied even to a champertous contract between an attorney and client, the weight of authority is to the effect that where such a contract is neither malum prohibitum nor malum in se, the attorney may recover on a quantum meruit. * * * Some authorities have taken the view that, if a contract has been executed and one of the parties has the avails, all the harm that can be done to the public has been done, and that therefore the party having the avails may be compelled to pay over the whole of them, or a proportionate share of them to the other party. But the weight of authority is opposed to this view.”

It is hardly necessary to discuss all of the cases which are cited upon the briefs. It will, however, be necessary in order that my views be presented, to refer to a few of them. I again quote from the same volume, page 829: The distinction between the cases where a recovery can be had and the cases where recovery cannot be had of money connected with illegal transactions is substantially this: Wherever the party seeking to recover is obliged to make out his case by showing the illegal contract or transaction, or through the medium of the illegal contract or transaction, or when [806]*806it appears that he was privy to the original illegal contract or transaction, then he is not entitled to recover any advance made by him in connection with that contract or money due him as profits derived from the contract; but when the advances have been made upon a new contract, remotely connected with the original illegal contract or transaction, and the title or right of the party to recover is not dependent upon that contract, and his case may be proved without reference to it, he is entitled to recover.”

This rule is in harmony with the decision in Bose v. Truax, 21 Barb. 361, which case was decided in 1855, and I do not find that it has ever been reversed, distinguished or even cited in any of the cases to which my attention has been called on the briefs in this action. In this case, services were rendered as an attorney and lobbyist. It was held that the services rendered were illegal and against public policy. The consideration to be paid to the attorney was based upon the amount saved for his clients. It was held that the contract was an entire one and, therefore, was not divisible and although there were servicés rendered which standing alone were legal, there could not be a recovery.

1 quote from Chitty on Contracts as follows: “ The test,” says Mr. Chitty, “ whether a demand connected with an illegal transaction is capable of being enforced at law, is whether the plaintiff requires any aid from the illegal transaction to establish his case.”

In the case at bar there was an agreement made up of two distinct elements: (1) Services of a business and advisory nature to be rendered. (2) The consideration therefor to be the payment of whatever fees the defendant should receive as executrix of her mother’s will (the services being rendered in connection with the settlement of said estate).

I do not believe it can be said that the legality of the services can be so separated from the illegality of the consideration that plaintiff is entitled to recover on a quantum meruit. The basis of this contract on the part of the defendant was that she was to pay out no more for the services to be rendered than was to be received by her from the court upon the settlement of the estate. It is possible that when the defendant made her contract with the plaintiff with reference to these services, she had in mind the fact that the value of his services was far in excess of the amount of fees which she was to receive from the estate, but that, if she could secure such services, she would be willing to pay him such fees. It is quite likely that if she had in mind the payment for his services based upon a quantum meruit, she would not have entered into a contract; therefore, it cannot be said that the services rendered [807]*807and the contract therefor are separable. Furthermore the agreement between the parties cannot be set forth without alleging the illegal portion thereof. It is true that the plaintiff in his amended complaint asked for a recovery upon a quantum meruit, and without mentioning the illegal consideration, but the defendant in his answer' alleges the balance of the contract between the parties and upon the trial it is not disputed. There is no question as to what the contract was. It was for legal services to be rendered and an illegal consideration to be paid therefor, and under the rule laid down by the author Chitty, the plaintiff required the aid of the illegal transaction in order to establish his contract.

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Related

Matter of Snyder
82 N.E. 742 (New York Court of Appeals, 1907)
Gray v. . Hook
4 N.Y. 449 (New York Court of Appeals, 1851)
Rose & Hawley v. Truax
21 Barb. 361 (New York Supreme Court, 1855)
Stearns v. Felker
28 Wis. 594 (Wisconsin Supreme Court, 1871)

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Bluebook (online)
119 Misc. 804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peck-v-sands-nysupct-1922.