Stewart v. Sulger

174 A.D. 838, 161 N.Y.S. 489, 1916 N.Y. App. Div. LEXIS 8235
Appellate Division of the Supreme Court of the State of New York·Decided November 15, 1916·Published·Cited by 8 cases

Opinion

Woodward, J.:

The complaint in this action, after alleging the formal matters necessary to an action by a trustee in bankruptcy, alleges that prior to the 1st day of October, 1913, the defendant Henry Sulger was the owner and in possession of a hotel business, and also the owner and in possession of all the furniture, equipment, bar, stock of wines and liquors, and good will, known as the Brunswick Hotel in the city of Oneonta, and was actively engaged in the conduct of said business; “ that on or about October 1st, 1913 as hereinafter alleged, the defendant Henry Sulger intending to hinder, delay and defraud his creditors, executed and delivered to his wife, the defendant Ella L. Sulger, a bill of sale of said hotel business which included said furniture, equipment, bar, stock, good will and all its appurtenances without any valid consideration therefor. That notwithstanding said transfer to said Ella L. Sulger, the said Henry Sulger, without giving notice to his creditors or without making the same known to the public generally, continued the management of said business in his own name. That on or about April 1st, 1914, the defendant Ella L. Sulger intending to hinder, delay and defraud the creditors of said Henry Sulger, assuming to be the owner of said hotel business and property hereinbefore mentioned, sold and transferred said hotel business, furniture, equipment, bar, stock of wines and liquors, good will and appurtenances to one Dell Kohn for the sum of about five thousand ($5,000) dollars, which amount, or a large part thereof, she now withholds and unlawfully refuses to deliver to this plaintiff as such trustee. That a demand therefor has been made by the plaintiff upon said defendant Ella L. Sulger.”

The complaint then alleges that this transfer was made without giving the notice required by section 44 of the Personal Property Law (Consol. Laws, chap. 41; Laws of 1909, chap. 45),* which obviously has no relation to the kind of a transfer proved in this case of certain furniture and fixtures of a hotel, with a half interest in an automobile, and then sets forth that “at the time of the transfer of said hotel property to the defendant [840] Ella L. Sulger by the defendant Henry Sulger, he was largely indebted to many creditors,” naming some of them, and that “the schedules filed by said bankrupt contained names of several other creditors to whom he was indebted at the time of the execution and delivery of said bill of sale of said hotel property to the defendant Ella L. Sulger.”

The complaint closes with an allegation that “the transfer of said hotel business, furniture, equipment, bar, stock of wines and liquors, and good will was fraudulent as to the creditors of Henry Sulger and was known to the defendant Ella Sulger to be false and fraudulent and said transfer was intended by said defendants to hinder, delay and defraud the creditors of the said Henry Sulger and the defendant Ella Sulger at the time of the transfer aforesaid knew that the said Henry Sulger was indebted to various persons and she knew that by reason of said transfer,- said Henry Sulger would be without property or means of paying the same.”

While there appears to have been some confusion in the mind of the pleader as to the particular cause of action to be set forth, there can be no reasonable doubt that he contemplated an action in conversion; he seems to have thought that by alleging fraud, and demanding the return of the avails of the alleged fraudulent transfer, he had stated a cause of action for conversion, and he so stated to the jury in opening the case, and the trial and judgment proceeded upon this theory, a verdict having been directed by the court. This appears to have continued as the status of fche case until the learned trial justice, in denying a motion for a new trial, discovered that the plaintiff’s counsel did not know the theory of his case, and attempted to justify the judgment upon the theory of fraud, citing Murtha v. Curley (90 N. Y. 372). There was no offer on the part of the plaintiff to amend the complaint to conform to the proofs offered in evidence, and the record as it now appears in this court shows a recovery against both of these defendants as for a conversion, and it is the contention of the defendants that they were prevented putting in their case upon the alleged issue of fraudulent transfer because of the language of the complaint and the opening declaration of plaintiff’s attorney that this was an action in conversion. Satisfied that [841] the action in conversion would not lie, defendants declined to put in evidence in their own behalf, and we are of the opinion that they have a right to have the judgment considered from the standpoint of the pleadings as construed by the plaintiff’s counsel. The whole scope of the provisions of the Code of Civil Procedure permitting immaterial variances to be disregarded implies that all the material allegations of the plaintiff or defendant shall be spread upon the record, “shall be actually inserted in the pleadings, and when variances are disregarded, it is upon the principle that they may be amended nunc pro tunc at the trial, and the court will so order to perfect the record so that it shall show the question really litigated and decided. The principle still remains that the judgment to be rendered by any court must be secundum allegata et probata; and this rule cannot be departed from without inextricable confusion and uncertainty and mischief in the administration of justice. Parties go to court to tiy the issues made by the pleadings, and courts have no right impromptu to make new issues for them, on the trial, to their surprise or prejudice, or found judgments on grounds not put in issue, and distinctly and fairly litigated.” (Wright v. Delafield, 25 N. Y. 266, 270; O’Hehir v. Central New England R. Co., 152 App. Div. 677, 681; Gordon v. Ellenville & Kingston R. R. Co., 195 N. Y. 137, 139, 141.)

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

Stewart v. Sulger, 174 A.D. 838, 161 N.Y.S. 489, 1916 N.Y. App. Div. LEXIS 8235 (N.Y. Ct. App. 1916).

174 A.D. 838 (Stewart v. Sulger) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Maley v. Blakeney
184 Misc. 705 (New York Supreme Court, 1945)
Wettlaufer v. Rogers
172 Misc. 554 (New York Supreme Court, 1939)
Ben Bimberg & Co. v. Unity Coat & Apron Co.
150 Misc. 836 (New York Supreme Court, 1934)
Oberlin v. Harokopas
184 N.E. 257 (Ohio Court of Appeals, 1932)
In re Henningsen
291 F. 684 (E.D. New York, 1923)
McNeil v. Cobb
186 A.D. 177 (Appellate Division of the Supreme Court of New York, 1919)
Independent Breweries Co. v. Lawton
204 S.W. 730 (Missouri Court of Appeals, 1918)