Peyser v. Myers

18 N.Y.S. 736, 45 N.Y. St. Rep. 413, 63 Hun 634
CourtNew York Supreme Court
DecidedMarch 31, 1892
StatusPublished
Cited by1 cases

This text of 18 N.Y.S. 736 (Peyser v. Myers) 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
Peyser v. Myers, 18 N.Y.S. 736, 45 N.Y. St. Rep. 413, 63 Hun 634 (N.Y. Super. Ct. 1892).

Opinions

Andrews, J.

The firm of Halstead, Haines & Co. made a general assignment for the benefit of creditors on July 12,1884, and in that assignment the-defendants, as executors of John K. Myers, deceased, were given a preference-of $102,872. On August 9th of the same year said defendants recovered a. judgment against the assignors for the full amount of such preference, and in October, 1884, said sum of $102,872 was paid to the defendants by the assignee. The present action was commenced in the summer of 1888, and the relief sought was that such assignment should be set aside, upon the ground that it was made with intent to hinder, delay, and defraud creditors, and that the judgments obtained by the plaintiffs against said assignors should be paid out of said $102,872. The present action has been tried twice. Upon the first trial it was decided that the assignment was void, but the complaint was dismissed as to the defendant executors. Upon appeal to the general term, the decision of the special term as to the invalidity of the assignment was sustained, but it was held that said preference of $102,872 included compound interest, and upon that ground only the judgment was reversed, and a new-trial ordered. 9 IST. Y. Supp. 229. Upon the second trial it was conceded* that the assignment was void, and the court found that the amount of suck compound interest was $20,223. The action was tried at the same time with, another action, brought by Milliken and others against the same defendants, but which had been commenced before this action was brought. The plaintiffs in the Milliken action, having a priority, were adjudged to be entitled to-receive such sum of $20,223, and judgment was entered in this action dismissing the complaint as against the defendant executors, and from that judgment this appeal is taken; and it is now contended that the claim of the defendant executors, which was satisfied by the said sum of $102,872, was not. a just and valid one as against bona fide creditors for the following reasons:: First, because, if it existed at all, it was due by an insolvent firm to one of . its members, or his estate, and should therefore be postponed to the claims of" outside creditors; second, because it was not due by the firm which assigned;. third, because it was for the most part fictitious.

The validity of the reason first above mentioned depends upon the determination of the question whether John K. Myers, Sr., deceased, retired from, the firm of Halstead, Haines & Co. on December 81,1872, or whether he con-, tinned to be a member of that firm until the time of his death, in the year-1877. The contention of the plaintiffs is that said Myers, Sr., continued to-be a member of said firm until the time of his death; but this question has, [738]*738been decided adversely to the plaintiffs, twice by the special term and once by the general term of this court,—Peyser v. Myers, (Sup.) 9 N. Y. Supp, 229; •and, after a very careful consideration of the able and elaborate brief submitted by plaintiffs’ counsel, we have reached the conclusion that such decisions were correct, and that the evidence in the ease conclusively proves that said Myers, Sr., retired from said firm on the 31st of December, 1872. Hal-, stead, Haines & Co. was the firm style adopted by several firms which succeeded each other during the period from before 1860 down to 1884, when the firm last succeeding to the name executed the assignment in question, with the intent, as the defendants admit, to hinder, delay, and defraud creditors. Among the creditors preferred in the assignment were the defendants, who are the executors of John K. Myers, Sr., who died in September, 1877. Said Myers, Sr., was in his lifetime a member of the several successive firms which were distinguished from one another by letters of the alphabet. At the commencement of firm “I,” said Myers, Sr., having accepted the presidency of an insurance company, and wishing to give less time to the affairs of said firm, agreed to remain a partner during the continuance of said firm “I,” during the years 1870,1871, and 1872, and to receive in lieu of profits a fixed interest of 12 per cent, on his capital. Said firm “I” was dissolved, by limitation of time, on December 31, 1872, and the contention of plaintiffs is that said Myers continued to be a member of firm “K,” which commenced on January 1, 1873, up to the time of his death in 1877; whereas the contention -of the defendants is that on December 31, 1872, when firm “I” was dissolved, said Myers had an adjustment with his partners as to the amount of his capital, and did not become a member of the new firm “K,” but made a loan of the whole amount of his capital, as so adjusted, to said firm “K” at 12 per cent, interest.

Several witnesses who were called on behalf of the defendants upon the last trial testified that said Myers, Sr., retired from said firm on December 31, 1872. William A. Haines, Jr., testified that he went into the firm in January, 1870, and that Mr. Myers retired two or three years afterwards. He admitted that upon the first trial he had stated that he did not know when Mr. Myers retired, but explained that he supposed he was being asked about an exact date. He also said that he had always known that Myers, Sr., retired from the firm within two or three years from the time he went in,—in 1870. John IC. Myers, Jr., testified that he knew on the date of retirement that' his father had retired. On the first trial he testified that his father retired in the latter part of 1872, though he could not fix the exact date. The testimony given by these witnesses is criticised by plaintiffs’ counsel because of its alleged want of precision as to the date of retirement, and because of the alleged contradiction between the testimony given on the first and second trials. It appears, however, that at the time of retirement of Myers, Sr., ■his son, Myers, Jr., and Haines, Jr., were very young men, who had put no •capital into the firm, had no voice in its management, whose share of the profits was trifling, who acquiesced in whatever was done by their seniors, and who were admitted to the partnership merely because of their being sons of such senior members of the firm. Under these circumstances, after the lapse of 20 years, it is not surprising that their recollections are not more precise and definite as to the time of the retirement of Myers, Sr. The al-, leged contradictions between the testimony given by them, respectively, on the first and second trials of the action, are not of a serious character, and 'their testimony, taken as a whole, certainly tends strongly to establish the fact that Myers, Sr., never became a member of the firm “K.” William M. Hai- ■ stead, another member of the firm, was also examined as a witness, and he ■testified positively and unequivocally that Myers, Sr., retired on December ■ 31, 1872. His testimony is also criticised by plaintiffs’ counsel, upon the .ground,- among others, that on the first trial Mr. Halstead stated that inter[739]*739est was paid Myers, Sr., until 1877, under the agreement or arrangement ¡made in 1870; but we think it is clear from all the testimony given by this witness that such statement related to the amount of interest only which was paid, and not to the legal relations under which said payment was made. Plaintiffs’ counsel also criticises the testimony given by Mr. Halstead, to the •effect that the amount of Myers, Sr.’s, interest in the firm was not definitely settled up until 1877.

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Bluebook (online)
18 N.Y.S. 736, 45 N.Y. St. Rep. 413, 63 Hun 634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peyser-v-myers-nysupct-1892.