Starin v. . Kelly

88 N.Y. 418, 1882 N.Y. LEXIS 119
CourtNew York Court of Appeals
DecidedMarch 21, 1882
StatusPublished
Cited by59 cases

This text of 88 N.Y. 418 (Starin v. . Kelly) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starin v. . Kelly, 88 N.Y. 418, 1882 N.Y. LEXIS 119 (N.Y. 1882).

Opinion

Earl, J.

This action was commenced in July, 1868, to recover for the wrongful taking of property by the defendant as sheriff, on or about September 1, 1865. The defendant, in his answer, justified under attachments issued to him against the property of Theodore Besson. Upon the trial the plaintiff proved that before the levy of the attachments he purchased the property of Besson, and that at the time of the levy he had the property in his possession. The claim of the defendant was that the property was transferred to the plaintiff by Besson with intent to hinder, delay and defraud his creditors, and he gave evidence tending to show that the transfer was so made. The case was submitted to the jury under a charge of which no complaint is made, and they found in favor of the plaintiff. The only questions presented for our consideration have reference to the rulings of the trial judge upon questions of evidence, which we will briefly notice.

First. The plaintiff was called as a witness in his own behalf, and after giving evidence showing the purchase of the property from Besson, the manner in which he paid for the same, and that he had no notice of any fraudulent intent on the part of *421 Besson, he was asked this question, “ Did yon make this purchase with any object or intention of aiding or assisting him to hinder, delay or defraud his creditors % ” The defendant’s counsel objected to this as irrelevant and incompetent, and the court overruled the objection and defendant’s counsel excepted, and the witness answered, “ In no way whatever; I considered him perfectly good.” The statute declares that every conveyance or assignment of property, made with the intent to hinder, delay or defraud creditors, shall, as against the person so hindered, delayed or defrauded, be void, except that the title of a purchaser for a valuable consideration shall not in any manner be affected or impaired unless it shall appear that such purchaser had previous notice of the fraudulent intent of his immediate grantor. (2 It. S. 137, §§ 1 and 5.) To maintain the issue on the part of the defendant it was sufficient for him in the first instance to show Besson’s fraudulent intent in making the sale. Then it was for the plaintiff to show that he purchased the property for a valuable consideration. His title would then be unimpeachable unless the defendant should make it appear that he had previous notice of Besson’s fraudulent intent or that he participated in the fraud.

Under the statute, a creditor assailing a transfer of property as fraudulent may succeed by simply showing a fraudulent intent on the part of the vendor, or such intent on the part of the vendee. H, however, the vendee shows that he paid a valuable consideration for the property transferred to him, then proof of the fraudulent intent of the vendor only is not sufficient ; then there must be proof also pf a fraudulent intenifc on the part of the vendee or that he had notice of the vendor’s fraudulent intent. It is believed that these rules existed and were applied at common law before the statute against fraudulent conveyances was enacted. The proof of notice on the part of the purchaser of the fraudulent intent of the vendor, when it is necessary to establish it, need not be direct and positive, but such notice may be proved like any other fact in the case by circumstances and proper and legitimate inferences to be drawn from the whole transaction. It would be sufficient *422 for the party assailing the transfer to show that the purchaser was aiding and assisting the vendor in perpetrating a fraud, or that he himself, in making the purchase, also had the same fraudulent intent, and from such facts notice could be inferred.

Hence, in such cases, the good faith and intention of both parties is a proper subject of inquiry. In Jackson v. Mather (7 Oow. 301), it was held that a conveyance might be held to be fraudulent as to creditors upon proof of the fraudulent intent of the grantee without reference to the grantor’s inten tians. In Waterbury v. Sturtevant (18 Wend. 353), it was held that the question of fraud in such a case may depend upon the motive of both parties; that the purchase must be bona fide as well as upon a valuable consideration; and that the fraudulent intent of the grantee may be inquired into was also decided in 43 Barb. 448.

We are, therefore, of opinion that it is proper for the purchaser to testify directly in answer to such a question as here complained of, that he did not have any fraudulent intent, and that he made the purchase in good faith. That such a question is proper to be put to the purchaser was directly decided in the case of Bedell v. Chase (34 N. Y. 386). In that case, as we find by examining the papers in the action, one of the purchasers testified that he had no intent, nor was he aware that the vendors had sold the property then in question to hinder, delay or defraud their creditors. That evidence, as to the witness’ intent, was objected to by defendants’ counsel, as irrelevant, immaterial and incompetent, and that it called improperly for witness to state his intent. The objection was overruled, and defendants’ counsel excepted. Upon the argument of the appeal in that case in this court, the precise point was presented for consideration by the counsel for the defendant, which was brought to our attention in this case in the following language: It was error to admit the testimony of one of the purchasers as to his intent or his knowledge of the intent of the vendors. The question for the jury to determine was solely whether the vendors made the sale with intent to hinder the creditors of their lawful suits. This court have determined that an assignor *423 may be examined as to his intent, but have never held that a purchaser could be so examined.”

It is thus seen that the precise argument was made in that case that has been made before us in this. But the court held that it was “legitimate to permit the examination of the plaintiffs as to their intention in making the purchase.”

A contrary decision was made in Hathaway v. Brown, 18 Minn. 414, where it was held that a similar question put to a purchaser from a fraudulent vendor was incompetent. It is sufficient to say that that decision does not shake our confidence in the prior decision in this court referred to.

When there is evidence showing fraudulent intent on the part of the vendor and no evidence tending to show a fraudulent intent on the part of a purchaser for a valuable consideration, then the question of fact to be submitted to the jury is whether the purchaser had notice of the vendor’s fraudulent intent. Even in such a ease as bearing upon that question the evidence here complained of should be received. In case the evidence is clear that he had such notice this evidence will have no important bearing upon the issue. In a case of doubt and conflict it is entitled to some weight.

Second. A witness called for the defendant who was present at the place where the attachment was levied, was asked these questions :“ State the conversation which took place between you and Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

MacLeod v. Cohen-Erichs Corporation
28 F. Supp. 103 (S.D. New York, 1939)
Sandler v. Parlapiano
236 A.D. 70 (Appellate Division of the Supreme Court of New York, 1932)
E. W. Bliss Co. v. Progressive Smelting & Metal Corp.
208 A.D. 346 (Appellate Division of the Supreme Court of New York, 1924)
Wittemann Bros. v. Forman Bottling Co.
178 A.D. 674 (Appellate Division of the Supreme Court of New York, 1917)
Shenk v. Oliva
94 Misc. 702 (New York Supreme Court, 1916)
Bryant v. Wolf
94 Misc. 683 (New York Supreme Court, 1916)
Winslow v. Staab
233 F. 305 (S.D. New York, 1916)
Schultz v. Teichman Engineering & Construction Co.
79 Misc. 357 (New York Supreme Court, 1913)
Lehrenkrauss v. Bonnell
138 A.D. 493 (Appellate Division of the Supreme Court of New York, 1910)
Hickok v. Cowperthwait
134 A.D. 617 (Appellate Division of the Supreme Court of New York, 1909)
Allen v. Gray
63 Misc. 219 (New York Supreme Court, 1909)
Francese v. Geraty
104 N.Y.S. 358 (Appellate Terms of the Supreme Court of New York, 1907)
Tisdale v. Rider
119 A.D. 594 (Appellate Division of the Supreme Court of New York, 1907)
Hall v. Frith
51 Misc. 600 (Appellate Terms of the Supreme Court of New York, 1906)
Sjoberg v. Field
50 Misc. 412 (New York Supreme Court, 1906)
Wadleigh v. Wadleigh
111 A.D. 367 (Appellate Division of the Supreme Court of New York, 1906)
Hill v. Page
108 A.D. 71 (Appellate Division of the Supreme Court of New York, 1905)
Bailey v. Fransioli
101 A.D. 140 (Appellate Division of the Supreme Court of New York, 1905)
Gilmour v. Colcord
96 A.D. 358 (Appellate Division of the Supreme Court of New York, 1904)
Hackney v. Raymond Bros. Clarke Co.
94 N.W. 822 (Nebraska Supreme Court, 1903)

Cite This Page — Counsel Stack

Bluebook (online)
88 N.Y. 418, 1882 N.Y. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starin-v-kelly-ny-1882.