Rinchey v. Stryker

26 How. Pr. 75
New York Court of Appeals·Decided October 15, 1863·Published·Cited by 8 cases

Opinion

Balcom, J.

The main question in this case is, whether the defendant, as sheriff, could rightfully seize the goods in question and take them from the possession of the plaintiff, by virtue of attachments issued by a justice of the supreme court, in actions in that court against Cartwright and Hassard, on the ground that they, with the intent to hinder, delay and defraud their creditors, assigned the goods in question to Parise, who took them with the like [78]*78intent, and transferred the same to the plaintiff with notice of the fraud ?

Section 229 of the Code authorizes the issuing of an attachment in an action for the recovery of money, where the defendant has assigned, disposed of or secreted, or is about to assign, dispose of or secrete any of his property with intent to defraud his creditors.

The attachments were regularly issued in actions for the recovery of money. But they were wholly useless as processes, unless they authorized the sheriff to seize the goods in question as the property of the defendants named therein, and gave him such a specific lien on the goods seized as enabled him to show their transfers to Parise and the plaintiff were fraudulent as against the creditors of Cartwright and Hassard.

The numerous authorities cited by the plaintiff’s counsel have failed to satisfy me that an attachment is a useless process when the debtor has fraudulently assigned or disposed of his property before it is executed. They establish that a creditor at large, without any process or lien, cannot seize or hold the property of his debtor on the ground that he has transferred it with the intent to defraud his creditors. But none of them, except Hall agt. Stryker (29 Barb. 105), which was followed by the supreme court in this case, and induced the decision in Bentley agt. Goodwin (15 Abb. 82), show that an attaching creditor cannot prove, when sued for the property attached, that the plaintiff’s claim thereto is invalid and rests upon a fraudulent transfer of the property by the debtor.

The cases- mentioned in Hall agt. Stryker, which hold that an officer cannot justify, when sued by a stranger, for property he had taken on execution, without proving the judgment on which the execution was issued, as well as the execution itself, only tend to show that the production of the attachment by virtue of which the property has been seized, without the affidavit on which it was granted, is [79]*79insufficient as a foundation for the defence ; that the plaintiff’s claim to the property rests upon a fraudulent transfer of the same to him by the defendant named in the attachment.

The remarks of the judges who delivered the opinions in Frisby agt. Thayer (25 Wend. 396), and Hastings agt. Belknap (1 Denio, 190), and the other kindred cases cited, that a landlord, who seizes off the demised premises by virtue of a distress warrant, cannot prove, when sued for the goods by one who has purchased them from the tenant, that such purchase was fraudulent as against the creditors of the tenant, were obiter, and unnecessary to the determination of the cases in which they were made. Besides, a distress warrant is not granted by a judicial officer, but is issued by the landlord in person; and the right to seize goods of the tenant on-such a warrant, after they are removed from the demised premises, did not exist at common law. But I am constrained to say, if there is not any substantial difference in principle between those cases and the one under consideration, I cannot assent to the dicta in them: For the statute referred to in those cases only prohibits the seizure of the goods of the tenant, carried off from the demised premises, “ which shall have been sold, before such seizure made, in good faith and for a valuable consideration, to a person not privy to such fraudulent removal” (2 R. S. 2d ed. 413, § 17); and the right to distrain, without the right to prove that the distress was lawful, when sued for making it, is no right at all. I have much less hesitation in repudiating the dicta referred to, than I should ii distress for rent had not been abolished by the legislature. This course will not tend to unsettle any rule of law now acted upon by the profession or people at large, and it will open the way for establishing a principle upon a just foundation, which must be constantly acted upon so long as attachments are issued against debto'rs who have disposed of their property with the intent to defraud their creditors.

[80]*80The remark of Johnson, Ch. J., in Andrews agt. Durant (18 N. Y. R. 496), to the effect that a creditor cannot attack a fraudulent assignment of his debtor until he has proceeded to judgment and execution; and similar ones by other judges, in Reubens agt. Joel (3 Kern. 488), should have been qualified, as Denio, J., qualified his remarks in Van Heusen agt. Radcliff (17 N. Y. R. 580). He said:

“ When a conveyance is said to be void against creditors, the reference is to such parties when clothed with their . judgments and executions, or such other titles as the law has provided for the collection of debts.” Judge Bronson used similar language in Noble agt. Holmes (5 Hill, 194). He said : “ The sale could not be impeached by a creditor at large ; it must be a creditor having a judgment and execution, or some other process, which authorized the seizure of the goods.” He also said, in Van Etten agt. Hurst (6 Hill, 311), before creditors can attack a sale by their debtor for fraud, “ they must show a judgment as well as execution; or where they proceed by attachment, they must show that the justice had. jurisdiction, and that the process was regularly issued.”

Vice-chancellor Sandford held, in Falconer agt. Freeman (4 Sand. Ch. R. 565), that a creditor, who takes' out a warrant of attachment under the act relative to absent and concealed debtors, thereby obtains a lien upon the property of the debtor proceeded against; and if the sheriff be prevented from levying the warrant on the debtor’s property, by means of fraudulent claims or transfers set up. in respect to the same, the court of chancery will aid the creditor in enforcing the lien, by injunction and otherwise, on the same principle that the court aids an execution creditor similarly obstructed.

The New York superior court held, in Thayer agt. Willett, sheriff (5 Bosw. 344; S. C. 9 Abb. 325), that a sheriff, acting under a warrant of attachment issued as a provisional remedy under the Code before judgment, who has [81]*81seized property in the possession of a vendee claiming title under a bill of sale from the defendant in the attachment, may show, in defence of an action against him by such vendee to recover the property, that the alleged sale was fraudulent as against the attaching creditor. . And the decision in that case is supported by two well-considered opinions. The following cases agree with that: Skinner agt. Oettinger (14 Abb. 109); Patterson agt. Perry (10 id. 82); Belmont agt. Lane (22 How. Pr. R. 365) ; Kelly, sheriff agt. Breusing (33 Barb. 123). The same rule has been held in several other states; but it is unnecessary to cite the cases.

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Rinchey v. Stryker, 26 How. Pr. 75 (N.Y. 1863).

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