Seth v. Cramer

4 Cow. 717
CourtCourt for the Trial of Impeachments and Correction of Errors
DecidedJune 15, 1825
StatusPublished
Cited by89 cases

This text of 4 Cow. 717 (Seth v. Cramer) is published on Counsel Stack Legal Research, covering Court for the Trial of Impeachments and Correction of Errors primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seth v. Cramer, 4 Cow. 717 (N.Y. Super. Ct. 1825).

Opinion

Walworth, C. J.

“ The facts in this case, as they appeal from the pleadings and proofs, are substantially these: John M. Berry of Moreau, in the county of Saratoga, was indebted to the complainants, S. & A. Hawley, in the sum of $1300, and to Marvin in the sum of $500. He was also indebted to the defendants, House & Myers, $1820, Stewart & ICnickcrbacker, $520, and to De Wolf, $950. One Isaac B. Payne was also supposed to be holden as endorser and surety for Berry in the sum of $2450, including a small debt actually due to him from Berry.

On the 6th day of August, 1816, Berry being in failing circumstances, to secure the payment of these several sums, he gave to all those creditors a joint bond, in the penalty of $15,000, conditioned to pay $7540 with interest; and also gave a warrant of attorney to confess judgment on the bond.

The defendant, Cramer, witnessed the bond; on the back of which was a memorandum of the amount due to the obligees respectively. A judgment was entered in the Supreme Court, on the bond and warrant, the 9th day of the [720]*720same month, by Cramer and his partner, Given, as attov the obligees. At the execution of the bond and it was known, to all the parties, that the $2450, jnc]u¿e¿ therein, was not all due to Payne; but that it principally consisted of debts for which hé was holden as Bend’s surety. One of these debts was a note from Berry to Wm. Given, endorsed by Payne. On this note the drawer and endorser were both sued, and separate judgments obtained against them thereon; and a fieri facias was issued on the one against Berry, to the sheriff of Saratoga, in October, 1816, for the amount of that judgment and interest. In February, 1817, the Hawleys paid Given the amount due on the note, together with the costs of both suits, and protest, and took an assignment of both of his judgments; and in March thereafter, the execution was satisfied, by a sale of Berry’s personal property; which was bid off by one of the Hawleys.

The debt, to Knickerbacker & Stewart, was reduced to $301, by payments from Berry. ' The amount actually due to Payne, including all the Berry debts for which he was made responsible as his surety, was ascertained to be only $890; and for that sum he afterwards assigned to De Wolf, all his interest in the $15,000 judgment. In March, 1817, Cramer & Given, as attorneys for the plaintiffs, and at the request of House, Knickerbacker, and De Wolf, issued an execution on the judgment, with a direction to levy $7557, 75 and interest, &c. By virtue of this execution the sheriff levied on all the real property of Berry, a farm in Moreau worth $5000 ; and on the 8th of August it was advertised to be sold at Waterford, on the 23d of September, 1817.

Shortly before, or at the sale, the Waterford creditors, who with Cramer are the defendants in this suit, without the knowledge of the complainants, mutually agreed that Cramer, the attorney, should attend the sale as their agent, and bid upon the farm, at his discretion, for their separate benefit. He did accordingly attend the sale as the agent of the Waterford creditors, in the absence and without the knowledge of the other persons interested in the judgment, and bid off the farm for $625. On the 26th of December, [721]*721x817, by direction of the Waterford creditors, Cramer sold the farm to Hugh Peebles for $3600, in cash ; which was the full value of the farm, exclusive of a mortgage of $1400 which Peebles held thereon. Cramer gave a quit claim deed of the farm and received the $3600, for the defendants; out of which they permitted him to retain $38 12 for the costs of suit and sheriff’s fees, and also $20 claimed by him to be due on an older judgment belonging to him, against the premises. They also left in Cramer’s hands what they considered the complainants’,shares of the $625, after deducting the $58 12 therefrom, and divided the residue of the $3600 among themselves; but in what proportions or by what ratio does not appear; except that De Wolf admits he received from $1818 to $1840, as his proportion. Before the filing of the bill, Cramer paid to the Hawleys $94 19, as their proportion of the proceeds of the sale, and which was received without prejudice to their further claims ; and he admits he has still in his hands $41 22, for Marvin, which he is, and ever has been, ready to pay over to him, as and for his share.

A preliminary question has been raised by the counsel for the defendants, of which I will first dispose. It is alleged, in the answer of House and Myers, that one Reynolds was jointly interested with them in their debt, as a partner. And it is now insisted that he should have been made a party to the suit.

It might perhaps be considered a sufficient answer to this objection, that Reynolds was not a party to the judgment against Berry, and has never been known in the transactions connected therewith; and therefore, as to the parties in this suit, he must be considered a dormant partner. But what is cdhclusive against the defendants, on this point, is the fact, that the statement of the interest of Reynolds, in the answer, is not responsive to any thing contained in the bill, and therefore is not evidence for the defendants. And they have produced no proof whatever to show that he was, in fact, a partner, or a party in interest.

On the part of the Hawleys, it is insisted, that the Given debt, with the two bills of cost thereon, being covered by [722]*722the amount inserted in the judgment bond for Payne, they as assignees of the debt, are entitled to a priority ; or at least to stand in the place of Payne, pro tanto.

So far as it respects the principal debt, and the costs of the suit against the drawer of the note, the Hawleys can have no pretence of claim on the fund raised by the sale oí the real estate of Berry. The evidence is'conclusive that the whole amount of the judgment against the drawer of the note was raised by the sale of his personal property which was bid off by Alpheus Hawley ; who also gave a receipt in full of the execution. As to the cost of the suit against the endorser, (about $35) under all the circumstances connected with that transaction, I think it may be fairly presumed to have been an advance of that amount, by the Hawleys, for the benefit of Berry, without any intention on their part of holding Payne responsible therefor; and without any expectation of being reimbursed out of the property secured by the $15,000 judgment. They have therefore no claim to be substituted in the place of Payne for the amount of that cost.

Neither can the claim of the defendant De Wolf, for the whole $2450, under the assignment from Payne be sustained in a Court of Equity. In his answer, De Wolf denies all knowledge of the actual amount due from Berry to Payne, at the time of the assignment. But this is not, sufficient to entitle him to the whole amount, as a bona fide purchaser without notice. He was the purchaser of a mere chose in action ; and took the right of Payne subject to all the equities which existed against that right, in the hands of Payne. (Coles v. Jones, 2 Vernon’s Rep. 692, Turton v. Benson, 2 id. 764, Tourville v. Naish, 3 Peer Wms. Rep. 307, Livingston v. Hubbs, 2 John. Ch. Rep. 512.) But on the principles which are applicable to purchasers of the legal estate, De Wolf, cannot be considered a bona fide purchaser for this whole amount. Being a party to the bond and warrant, he is constructively chargeable with notice of the real situation of Payne’s dent.

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4 Cow. 717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seth-v-cramer-nycterr-1825.