Rand v. Rand

138 Misc. 2d 226, 524 N.Y.S.2d 327, 1987 N.Y. Misc. LEXIS 2793
CourtNew York Supreme Court
DecidedDecember 18, 1987
StatusPublished
Cited by1 cases

This text of 138 Misc. 2d 226 (Rand v. Rand) 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
Rand v. Rand, 138 Misc. 2d 226, 524 N.Y.S.2d 327, 1987 N.Y. Misc. LEXIS 2793 (N.Y. Super. Ct. 1987).

Opinion

OPINION OF THE COURT

Ralph Diamond, J.

The applications before the court raise an issue of first impression, to wit: Does a former wife who is entitled by contract to inherit 20% of her former husband’s net taxable estate, on the conditions that she remained unmarried and survive the former husband, have standing to seek, and further, does this court have jurisdiction to grant an injunction, permanently enjoining and prohibiting the former husband from transferring or encumbering any portion of his assets during his lifetime?

FACTS

The parties herein were married on December 27, 1959. There are three emancipated issue of the marriage. On May 27, 1976, the parties executed a stipulation of settlement which provided in paragraph (k) that "the husband agrees that his Last Will and Testament, in effect at the time of his death, shall provide the following: (1) a gift, devise and/or bequest to the wife, if she shall remain unmarried and survive the husband, of twenty (20%) percent of his net taxable estate * * * (3) the husband and wife further agree that said provisions and gifts shall constitute a charge against the husband’s estate and upon default, if any, the wife * * * shall be entitled to a first lien against and to sue the husband’s estate for the sums amounting to the bequests provided herein-above.” By judgment dated May 28, 1976, the parties were divorced.

On or about January 16, 1987, the plaintiff received a letter from a Mr. Albert E. Johnson. The letter stated that Mr. Johnson was the former husband’s authorized representative and that he was writing to the former wife to assist the former husband’s estate-planning efforts. The letter indicated that the former husband’s health was failing and that it was the former husband’s intention to transfer all of his assets to his present wife. The former husband offered to execute a new agreement which would provide the former wife with $100,000 immediate lump-sum cash payment, a life insurance policy on [228]*228the former husband’s life naming the former wife as beneficiary in the amount of $350,000, and forgiveness of a $7,500 loan.

Thereafter, on or about February 5, 1987, the former wife commenced an action by service of a summons and complaint against the former husband and Albert Johnson, seeking the following relief: on the first and second causes of action, an order permanently enjoining and prohibiting the defendants from transferring or encumbering any portion of the former husband’s assets; and on the third cause of action an order adjudging the former husband in contempt and awarding the former wife a money judgment for unpaid support and maintenance.

By order to show cause dated February 11, 1987, the former wife seeks an order temporarily restraining the former husband from any disposition of his property during the pendancy of the action. The order to show cause signed by the Honorable Ralph Yachnin enjoined the defendants from transferring any property owned by the former husband pending a hearing on the motion.

After numerous and exhaustive settlement efforts by counsel and the court proved unsuccessful, the former husband brought the instant notice of cross motion which seeks an order dismissing the complaint pursuant to CPLR 3211 (a) (7) in that it fails to state a cause of action upon which relief may be granted.

PLAINTIFF FORMER WIFE’S ARGUMENTS

The former wife contends that pursuant to the agreement executed by the parties on May 27, 1976, which gives her the right to inherit 20% of the former husband’s net taxable estate on the conditions that she remain unmarried and survive him, she is a creditor with an unmatured claim and as such is entitled to set aside any fraudulent transfers by the former husband which would serve to defeat her unmatured claim. The former wife relies upon section 270 of the Debtor and Creditor Law which defines a creditor as any "person having any claim, whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent.” She cites Martin v Martin (29 AD2d 864), Rush v Rush (19 AD2d 846), Bowler v Bowler (46 Misc 2d 821), and Enthoven v Enthoven (167 Misc 686) in support of her position. In these cases, a former husband had transferred all his assets to a third party [229]*229rendering him unable to comply with the support provisions contained in a separation agreement. The courts held that by virtue of the existence of the support provisions contained in the separation agreement, the wife was a creditor as defined by section 270 of the Debtor and Creditor Law and as such had the right to seek to set aside any transfer which rendered the former husband insolvent as fraudulent. The former wife herein argues by analogy that by virtue of the inheritance provision contained in the parties, agreement dated May 27, 1976, she is a creditor and as such she may seek not only to set aside a fraudulent transfer but to prevent the possibility of a fraudulent transfer by obtaining a permanent injunction prohibiting any transfer of the former husband’s property during his lifetime.

The former wife also relies upon Matter of Granwell (20 NY2d 91), wherein the Court of Appeals in a proceeding for judicial settlement of the account an executrix held that the issue of the marriage was a creditor by virtue of certain terms of a separation agreement and as such was entitled to set aside particular transfers made by the child’s father as fraudulent.

THE DEFENDANT FORMER HUSBAND’S POSITION

The former husband contends that the wife’s action for a judgment declaring her entitled to inherit 20% of the former husband’s net taxable estate and enjoining him from disposing of his property is premature. Citing Allen v Payson (170 Misc 759) he asserts that a cause of action for an alleged breach of an agreement to make a provision for a testamentary disposition does not accrue until the death of the testator. It is the former husband’s position that the former wife may not maintain a cause of action until the death of the former husband and that upon his death the former wife is relegated to pursue any claim she may have by means of the procedures set forth in the Surrogate’s Court Procedure Act. Further, the former husband argues that in order for the court to grant relief there must be a justiciable controversy before the court. The court may not rule on academic, hypothetical or moot questions. As the former husband has executed a will in compliance with the agreement dated May 27, 1976, the former wife’s rights under the agreement cannot be adjudicated until the death of the former husband.

The former husband distinguishes Martin v Martin (supra), [230]*230Enthoven v Enthoven (supra) and Rush v Rush (supra), relied upon by the former wife as cases involving current, ongoing support obligation. He cites In re Searles’ Will (82 NYS2d 219) and Matter of Ullman (56 Misc 2d 495) wherein the Surrogate’s Court held that a separation agreement which provides for a testamentary bequest is not a promise to pay a sum of money but a promise to make a will containing certain provisions.

Finally, the former husband contends that the complaint should be dismissed as moot. Regarding the cause of action for contempt, he asserts that he paid any outstanding arrears more than four months ago.

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Related

Rand v. Rand
150 A.D.2d 543 (Appellate Division of the Supreme Court of New York, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
138 Misc. 2d 226, 524 N.Y.S.2d 327, 1987 N.Y. Misc. LEXIS 2793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rand-v-rand-nysupct-1987.