Sterling v. Van Cleve

12 N.J.L. 285
CourtSupreme Court of New Jersey
DecidedMay 15, 1831
StatusPublished
Cited by2 cases

This text of 12 N.J.L. 285 (Sterling v. Van Cleve) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sterling v. Van Cleve, 12 N.J.L. 285 (N.J. 1831).

Opinion

Ewing, C. J.

The controversy in this case is between two execution creditors, each claiming the proceeds of the sales of the goods and chattels of their debtor. The sales were made under both executions, the one of which was an alias fieri facias in favor of Sterling delivered to the sheriff in the afternoon of the 26th of October, 1829, and the other was a fieri facias in favor of Hunt delivered to the sheriff after-wards in the evening of the same day. Hunt insists that the execution of Sterling is to be postponed until his execution, though second in delivery, is first satisfied; because acts done by Sterling, not indeed fraudulent in design or intent, nor involving moral turpitude, are .nevertheless fraudulent in legal contemplation, or in other words, sufficient to-postpone the first, and entitle the second execution to priority.

. The property levied on was advertised for sale under both executions, in February, 1830, and an adjournment, in con[331]*331sequence of tlie sickness of the sheriff, then took place against the directions of Hunt, and without the consent of Sterling, until a day in March, when the sale was made.

The judgment in favor of Sterling was entered in May, 1826, and a fieri facias, then delivered to the former sheriff, was levied on the same goods and chattels. He claims, however, no efficacy from this execution and levy, but rests his right to the proceeds of the sale upon ,the alias execution already mentioned.

On the part of Hunt, it is insisted that a delay took place under the fieri facias in favor of Sterling, by an agreement for that purpose, made between him and the debtor, Van Oleve, amounting to legal though not actual fraud. And if the question was between the original execution and the execution of Hunt, the effect of this delay might be important to examine; but let it be admitted that full effect is given to the alleged legal fraud, and that the lien of the first execution is thereby destroyed, or that it must stand postponed to any subsequent fair execution, the controversy before us is not thereby closed, for as already observed, the claim on the part of Sterling is not *made under the first execution, and he requires no more than that he should be considered to have issued execution on his judgment on the 26th day of October, 1829. Nevertheless, this previous transaction is a proper subject of scrutiny. If in presents the naked fact of delay, it will be unimportant, as tho effect of delay, where no obstacle intervenes, is, at the most, to destroy merely as against a subsequent execution, the lien of tho prior one. Rut if the transaction evinces a design to set up, or keep on foot, an execution to cover the property of the debtor for his use, or to delay or defraud other creditors, it may be necessary to inquire what effect it may produce on the alias execution.

After the first execution was put into the hands of the officer and a levy made, the plaintiff agreed with the defendant to suffer the goods to remain in the possession of [332]*332the latter until the first day of April, 1829, and subsequently agreed to extend the time until the first day of April, 1830, in consideration that the defendant would pay to the plaintiff a rent therefor equivalent to their being kept in good order, and of the same value as before the levy.” And the goods and chattels, which consisted entirely of household furniture, did remain, as before, in the occupation of the defendant. In this transaction, I can discern nothing beyond a delay for the relief of the debtor, but without any design to injure or defraud others. The debtor is not to dispose of the goods as he may think proper without control or account. For even their very deterioration, their natural wear and decay, is to be made good. The interest on the debt would indeed accumulate'against them, but in every other respect they are to be made as sufficient to answer the claim of the plaintiff as at the time of the levy. .This arrangement was therefore not to the injury or prejudice, but rather to the benefit, of any other creditor. And most clearly does not evince a design to cover the property, or to protect it from the reach of others. This case has scarcely any feature in common with those of Matthews v. Warne, and Williamson v. Johnson. In the former, the debtor was allowed to exercise full dominion, without accountability, over all the provisions of his store, the furniture of his house, the crops and stock of his farm, the capital stock of a large tannery and of a shop for manufacturing leather into sadlery *and harness, to kill beeves, sheep and hogs, consume the way going crops of his farm, sell the horses, cattle and stock of a large farm and put the money in his pocket.” In the latter, after years of delay, in which the debtor was permitted to use and consume the goods, and in some instances to sell them, a sale was made impelled by the exigency of another execution, at which the creditor outbid all others and purchased every thing, and then suffered all to remain as before in the hands of the debtor without any engagement to compensate for their use, or, in any event, to deliver them up. [333]*333In the present case, I find nothing beyond the mere delay, and it is not necessary now to examine the question whether this alone will postpone an execution or destroy its lien in New Jersey, because, as already remarked, no lien or preference is claimed for the execution under which the delay occurred. In these previous transactions, there is then nothing to sustain the claim for prior satisfaction made by the second execution creditor.

This claim is farther sought to be supported by a transaction subsequent to the delivery of the two executions in question. On the 28th of October, 1829, an agreement was made between the sheriff and certain friends of the debtor, which was endorsed on an inventory of the goods, to the following effect: “ In consideration of the above goods and chattels being permitted to remain in the custody of the defendant, and a postponement of the sale thereof by virtue of the above stated execution until the first day of April next, we whose names are hereunto subscribed, jointly and severally promise and bind ourselves to deliver up the same to the sheriff on that day free from all rents.” The state of the case before us shows there was at that time about §300 of rent due and in arrear and consequently chargeable upon the goods, which at sale.brought §574.73. This agreement was made with the consent of Sterling. This consent was, however, afterwards withdrawn, and a writ of venditioni exponas issued by him after the adjournment and before the sale; the advertisement having been made by the sheriff under both executions. In this transaction I can discover neither actual nor even legal fraud on the part of the first creditor. An arrangement made by the sheriff ought not to be allowed to prejudice him, especially as the proceeds of the sale are not paid over or ^parted with, by the sheriff, but are under our control so as to be disposed of wherever they lawfully belong. The creditor, however, consented. But this consent can be no proof of fraud. It was to produce a valuable effect to all who were interested [334]*334in the proceeds of the property levied on, to clear it of a heavy amount of rent, and bring the whole avails to the satisfaction of the creditors. And this consent was withdrawn even at the loss of the removal of this incumbrance-of the rent when it was discovered it could not be persevered in with safety.

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Bluebook (online)
12 N.J.L. 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-v-van-cleve-nj-1831.