Stilwell v. Carpenter

2 Abb. N. Cas. 238
New York Court of Appeals·Decided September 15, 1875·Published·Cited by 26 cases

Opinion

Folger, J.

The appellants have madé elaborate points, that certain of the findings of fact are without evidence to support them, and that thus there was error of law.

The testimony has been examined with care and patience. I am convinced that there is testimony, which relied upon in preference to that which is in conflict with it, sustains the findings in question; or that the evidence adduced would not necessarily have sustained a contrary finding.

[251]*251It appears from the instrument executed to Jacob Carpenter by Harris Wilson, that the latter did not take an absolute interest in the houses and lots conveyed to him by the former. Hence he did not take an absolute interest, (if he took any), in the claim against Stilwell for the rents of those houses and lots. He held both in the nature of mortgages.

It appears from the answer of Gilbert to the complaint of Schultz, put in evidence by the plaintiff, that the indebtedness to Wilson, for which the latter held the conveyance of the honse and lots and the claim, was paid before the assignment of the claim to Gilbert. Thus the lien of Wilson upon the houses and lots, and upon the claim, was discharged, and Carpenter was again the owner thereof, discharged from that incumbrance. Wilson did assign the claim to Gilbert, but it was at the request of Carpenter, and it was the same as if Carpenter had himself assigned it to Gilbert, after a re-assignment by Wilson to Carpenter.

This assignment to Gilbert was not an absolute one. It was to secure an indebtedness to Gilbert, upon the payment of which at any time Carpenter was entitled to a re-assignment to him of the claim, or rather, by a payment of it, the lien upon it was discharged, and Carpenter, the owner of it, would own it without incumbrance again. The note of Gilbert to George Carpenter was not materially different in legal effect from the instrument from Wilson to Carpenter, and the whole transaction between Gilbert and the Carpenters, did not divest Jacob Carpenter of a right and interest in the claim as owner, subject to their respective liens.

The answer of Gilbert to the complaint of Schultz, shows that on October 12, 1858, Jacob Carpenter was the owner in equity of the note from Gilbert to George Carpenter, and that it was then paid to Jacob Carpenter, and satisfied by Gilbert. The oral testimony of Gilbert shows that this payment and satisfaction was [252]*252upon a settlement of indebtedness of Carpenter to Mm, and was done by an assignment by Gilbert to Curtis, at the request of Carpenter, of the judgment against Stilwell, which Gilbert had recovered upon the claim. Gilbert was then paid his indebtedness. There is no showing of any subsequent claim by George Carpenter, and the special term might well infer that his demand, if any, was satisfied then, or before then.

Jacob Carpenter did thus become again the real owner of the claim, now merged in the judgment, without incumbrance upon it. Curtis held the legal title, but held it for Carpenter. It is not necessary at present to trace the subsequent, various dealings of Carpenter with the judgment, for it was before the last named date, that the transaction took place between him and Stilwell, by which, it is claimed, the judgment was paid, satisfied and released.

Here the appellants cite Eaton v. Alger (47 N. Y. 345). That case lays down no rule at variance with the view here taken. It was there ruled at circuit and held on review, that the actual holder of a .negotiable promissory note (S. C., 2 Abb. Ct. App. Dec. 5), was primafacie the owner of it; and that a receipt from him to the person named in the note as payee, in which he agreed to account for the note to that payee, did not prevent him from maintaining an action on it in his own name. The claim assigned in the action before us was not negotiable, and there could not pass by delivery only, as in Eaton v. Alger (supra), the entire title to it; so that the effect of the transaction upon the ownership of the claim here, is to be arrived at from all the facts of which that transaction is made up. There was in the case cited, no right left in the payee of the note to make payment of any sum to Eaton, and demand and have a re-assignment of the note. He could only enforce his contract as expressed in the receipt. Here Gilbert had the right to have a [253]*253return to him of his note to George Carpenter, in case he could not collect the claim. This involved the counter right in Carpenter, to surrender the note, and pay the indebtedness to Gilbert, and have a re-assignment of the claim. The case cited, decided only that the plaintiff had sufficient title to maintain the action under the provisions of the code of procedure, sec. 111. The opinion declares that it is a close case, —not free from doubt,—on the border line. Gilbert may have had such an interest in the claim as to entitle him to sue upon it; but Carpenter was an owner of it, subject to the payment of his indebtedness.

There is the positive testimony of one witness, that Carpenter executed a general release to Stilwell of all claims legal and equitable. Another witness testified to an alleged copy óf such a release contained in a draft of a complaint. Carpenter does not positively deny the execution of such a paper ; he denies recollection of it. This made a conflict of testimony, and put upon the trial court the duty, as it had the power, of saying which prevailed, and it found that such a release was executed.

The appellants here insist, that inasmuch as the verified answer denies the allegation of a release, contained in the complaint, that the fact of a release is not established, unless shown by two witnesses or by documentary evidence, ór by facts and circumstances ■mahing the proof equivalent to that from two witnesses. Such was the former rule in equity in this State, —when the bill could be so framed as to waive an answer on oath, or to compel an answer on oath, which would be evidence in the case. The answer in the latter case was testimony, and could be put in evidence, as well by the defendant in his behalf, as by the complainant against him. But since the code of procedure, the pleadings have not that attribute. They serve a different purpose. They are simply pleadings, the [254]*254machinery for reaching the issues to be tried. What is alleged in the complaint and hot denied in the answer, becomes' a fact in the case. What is denied, though the denial be verified, is not testimony for the defendant, does not weigh in his behalf as one witness, and so does not need to be overcome by the preponderance of one witness against it. The parties, now having the right to offer themselves as witnesses, occupy the position of other witnesses, and where the testimony of either conflicts with that of .another witness, though there be no other testimony upon the point in dispute, the preponderance is to be determined by the tribunal. .

There was testimony of the assignment by Stilwell, in blank, as to the name of the assignee, of certain judgments against Carpenter; that this assignment was the consideration for the release ; and was to pay and did pay the gross amount of the rents collected by Stilwell, from all the property. This testimony was credited by the special term. The Gilbert judgment was for a part of those rents. It was owned by Carpenter. It fell within the terms of the release executed by him, and within the language of the testimony; according to that testimony, it was paid by the assignment of the judgment, and was in fact discharged.

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Stilwell v. Carpenter, 2 Abb. N. Cas. 238 (N.Y. 1875).

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