Schmitz v. Schmitz

234 A.D. 73, 254 N.Y.S. 109, 1931 N.Y. App. Div. LEXIS 8295
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 18, 1931
StatusPublished
Cited by4 cases

This text of 234 A.D. 73 (Schmitz v. Schmitz) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schmitz v. Schmitz, 234 A.D. 73, 254 N.Y.S. 109, 1931 N.Y. App. Div. LEXIS 8295 (N.Y. Ct. App. 1931).

Opinion

Martin, J.

The plaintiff by this action seeks to impress a trust in his favor upon two parcels of real estate situated at Nos. 1142-1144 Franklin avenue, borough of Bronx, city of New York, now in the name of his wife, the appellant herein, and demands a reconveyance thereof and an accounting with respect thereto during the years the property has been solely owned, managed and controlled by the defendant.

When the parties were married on April 25, 1903, the plaintiff was a ribbon weaver and worked at that business until October, 1911. Thereafter, he conducted a candy and stationery store at No. 3343 Third avenue, borough of Bronx. In 1914 he sold the candy store to his cousin and bought a store at No. 3347 Third avenue for which he paid the sum of $2,300 and conducted it until June, 1929.

Until the parties separated in October, 1925, the defendant was a faithful, hard-working helpmate to the plaintiff. They lived in rooms in the rear of or above the store, and the defendant, in addition to her household duties, regularly helped her husband in and about the business.

The property owned by this couple was accumulated through [74]*74the industry, hard work and frugality of both husband and wife, who appear to have toiled and. saved, each helping the other during their entire married life, and each from time to time taking a part of the property in his or her name, evidently with the intention that the part so taken should belong to the one in whose name it was placed.

The plaintiff testified that the property in his wife’s name belongs to him, was placed in her name in trust only and never belonged to his wife. The testimony and the documentary evidence disprove his contention.

During 1917, out of their savings, the plaintiff purchased at foreclosure premises No. 3349 Third avenue, adjoining their store, paying therefor the sum of $7,200, there being a first mortgage of $5,000 on the property, which, was paid off within three years. This property was sold in the month of June, 1922. While not the subject-matter of this action, this sale is important in establishing the source of the funds thereafter invested.

The plaintiff made several bad investments in 1920 and 1921. He loaned $1,500 on property in Germany, taking back a second mortgage payable in German marks. This mortgage is now worth but $76. He purchased German marks for $5,000 and they are now worthless. He also loaned $4,000 to Dalby & Stegmeier, who were in the provision business and who had leased premises 341 East Eleventh street, which building they intended to alter into a loft building. Their business did not prosper, and plaintiff, in addition to the $4,000 loan, advanced their rent from time to time. A fire occurred in these premises, resulting in the three top floors of the building being destroyed. Plaintiff, realizing that his investment was at stake, arranged with the Lustbader Construction Company to fix the building up,” and he agreed to pay the rent while such work was going on. It was then discovered that there were certain fire violations on the premises, which because of existing encroachments, could not be remedied. The plaintiff then stopped paying rent on the building as well as further payments under his contract with the Lustbader Construction Company, but not until he had invested an additional sum of about $6,000 in the building. On plaintiff’s failure to pay the Lustbader Construction Company, it started an action against him. The suit had not been actually instituted at the time when the premises No. 3349 Third avenue were sold in June, 1922. Plaintiff obtained a judgment against Dalby & Stegmeier for the $4,000 loaned, but the judgment proved worthless. The investments above adverted to totalled between $16,000 and $18,000, and were made against the advice of the defendant.

[75]*75The defendant says that she naturally became very much alarmed when she realized that such a large part of their savings had been dissipated by poor investments made by the plaintiff. She felt that out of the remaining property, having in mind her hard work in the business with her husband in accumulating their money, some protection should be afforded her against want in her old age. She testified that she spoke to her husband as follows: “ Q. Now go on with the conversation that you had with your husband at that time? A. Well, when all that money was gone, about eighteen thousand dollars, that was gone in about a couple of months’ time — about a year or so, I got frightened, I talked to my husband, I said Well, I really want some protection, because I see the money we saved, and there is very little of anything left, I would like to have some protection for myself. I worked hard all them years and I think it is not more than right,’ and he agreed with me to do so, so he says Well, if we sell that house, you take that money, you go up to Frey’s office and get the money, he will give it to you.’ ”

Shortly after the premises No. 3349 Third avenue were sold, the defendant went to the office of Mr. Frey, the attorney for Mr. Schmitz, and received $10,500, the proceeds of the sale, the plaintiff having instructed Mr. Frey to turn this money over to his wife. With this money the defendant opened a bank account in the Commonwealth Bank, but because she was then not familiar with business matters, her husband having theretofore attended to all such matters, the account was opened in the name of “ Maria Schmitz, by Emil Schmitz, Atty.” After the defendant received this $10,500, she learned that premises No. 1142 Franklin avenue were for sale and arranged to purchase same, and attended at the office of the attorney and signed the contract of sale. Title was taken in her name on July 13, 1922. The cash paid was approximately $8,800, and came out of the defendant’s account in the Commonwealth Bank. A purchase-money second mortgage for $6,000 was given back by the defendant. A few months later, in October, 1922, the defendant learned that the adjoining premises, No. 1144 Franklin avenue, were for sale, and she spoke to her husband about it. The defendant says he stated as follows: “ Well, yes, he only wants $6,000 cash, you have some left, and I give you more money then you can get the $6,000, and you buy the two houses for yourself. That is yours then for your work you did in here, and you should hold them always.”

The contract to purchase No. 1144 Franklin avenue was entered into and signed “Maria Schmitz by Emil Schmitz, Atty.;” title was closed on November 10, 1922, in the name of the defendant; and about $6,000 was paid in cash by defendant at the time of the [76]*76closing. This money consisted of the balance of the proceeds from the sale of No. 3349 Third a.venue remaining in the Commonwealth Bank, which was approximately $1,700, to which was added the money which had been received by way of rents from No. 1142 Franklin avenue previously purchased by the defendant. Such further sum as was necessary to complete the required amount was given to defendant by her husband. A purchase-money second mortgage for $8,000 was given back by the defendant in this transaction.

The conversations above referred to, and particularly the second one, if true, clearly indicate that these two parcels of property which are the subject-matter of this action were the defendant’s sole property, with both the legal and equitable title therein vested in her.

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Bluebook (online)
234 A.D. 73, 254 N.Y.S. 109, 1931 N.Y. App. Div. LEXIS 8295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmitz-v-schmitz-nyappdiv-1931.