Stout v. Rappelhagen

51 How. Pr. 75
CourtThe Superior Court of New York City
DecidedJanuary 15, 1876
StatusPublished

This text of 51 How. Pr. 75 (Stout v. Rappelhagen) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stout v. Rappelhagen, 51 How. Pr. 75 (N.Y. Super. Ct. 1876).

Opinion

Sanford, J.

— This action was brought in aid of an execution issued to the sheriff of the county of New York on the 8th November, 1875, under a judgment recovered November 5th, 1875, in favor of the plaintiffs and against the defendant Henry Buck. On and prior to said eighth November,-Buck, the judgment debtor, was engaged in the retail grocery business at No. 38 Orchard street, New York, owning a lease of the premises, the fixtures used in his business and a small stock of merchandise, consisting of tea, coffee, sugar, &e. The-business had been purchased by him on credit some years previously from the defendant Rappelhagen, who was the husband of his sister, "at the price of $2,800, whereof $2,100 had been paid prior to May 15, 1873, leaving then and ever since unpaid the sum of $700. The lease having then [76]*76nine years to run was assigned to Mm by Eappelhagen, May 1st, 1874, subject to the rents reserved therein, and in consideration of $120. per annum to be paid by Mm to Eappelhagen, in monthly payments, during the remainder of the term. Buck was without means when he bought the business, and has ever since lived with his sister and her husband. No bill of sale was ever delivered to him, and he gave no note or other written evidence of indebtedness for the price.

On Sunday, November 7, 1875, two days after the recovery of the plaintiff’s judgment against Buck, and the day before execution was issued thereon, it was verbally agreed between Buck and Eappelhagen, at the house of the latter, and in presence of his wife, Buck’s sister, that Eappelhagen should buy back the business, lease, fixtures and merchandise, for $1,100 then claimed and admitted to be due Mm from Buck. $700 of this amount was the unpaid portion of the purchase-money on the sale from Eappelhagen above mentioned, and the residue thereof, $400 (with eighty-four dollars besides, in all $484), was claimed as due for advances previously made by Eappelhagen for Buck’s account and benefit. Bor at least three months before, Eappelhagen had made no request for the payment of the money thus claimed to be due him, nor had he within that period visited Buck’s place of business. Early on the following morning, November eighth, Buck and Eappelhagen met at the store in-Orchard street, and went thence together to a lawyer’s office, where a formal bill of sale was drawn up and executed by Buck, purporting to transfer to Eappelhagen for the expressed consideration of $1,100, “all the stock and fixtures and lease of the grocery store located at and known as No. 38 Orchard street, New York city.” No examination whatever, was made by Eappelhagen, and no inventory taken of the stock on hand, nor were the books of the business referred to for information as to the accounts due to or from Buck." No money or other value passed at the time, nor is it claimed or pretended that there was any other consideration for the [77]*77transfer than the antecedent indebtedness above mentioned. A formal assignment of the lease, with an expressed consideration of one dollar, was at the same time drawn up and executed and acknowledged by Buck, and Bappelhagen was told by the lawyer, that he must take possession.” Buck and Bappelhagen then went back to the store, and Bappelhagen thereupon, as he swears (for no other witness was examined on behalf of the defendants), “ took possession.” By what particular process or in what precise manner this result was achieved does not appear, except that there was a conversation in substance as follows: Bappelhagen asked Buck if he would clerk for him, to which Buck replied that he would for eighteen dollars a month and his board. To this Bappelhagen agreed, and thereupon, to use his own language, he-went away to his own business in Ludlow street. He then was and ever since has been a dealer in feed and the proprietor of a feed store at Ho. —, Ludlow street. Buck has since remained in charge of the grocery, making sales of the stock from time to time, and he was found on the premises thus engaged on the evening of the eighth Hovember, when the deputy sheriff called there with the plaintiff’s execution. Ho ostensible indication of any change in the business or in its apparent ownership was exhibited until some days after the sale, when Bappelhagen’s name was put up over the shelving inside the store; but, on cross-examination, Bappelhagen, who had, in his own behalf, stated this fact, testified that he could not state whether it was done before or after the commencement of the present suit. He further testified that Buck had paid over to him the proceeds of sales every night, but it does not appear that he has ever personally taken any part in the conduct of the business.

From the evidence in the case, of which the foregoing is a brief summary, I have no hesitation in arriving at the conclusion, that the sale in question was not accompanied by an immediate delivery, and was not followed by an actual and continued change of possession of the thing sold,” and [78]*78was, therefore, as against creditors, presumptively fraudulent and void (2 R. S., 136, sec. 5). It was held by this court in Randall agt. Parker (3 Sandford S. C. R., 69), that by an actual change of possession the statute means an open, visible,, palpable change manifested by such outward signs as render it evident that the possession of the vendor as owner has wholly ceased, and that a constructive, secret and symbolical delivery is insufficient to pass title. The delivery of a key, although symbolically a delivery of the goods as between the parties, was in that case declared to be, in respect to creditors, an idle and unmeaning ceremony.” In like manner I cannot but regard the formal taking of possession by Rappelhagen in this case, under the advice of his counsel, as a delusion and a snare, and the continuance of Buck in the possession and charge of the premises and the property, under the guise of a clerkship, as a transparent device.

But the presumption of fraud, founded upon the fact of no immediate delivery and no actual and continued change of possession, is not absolutely conclusive. It may be rebutted by persons claiming under the sale, and who assert its validity, by affirmative proof on their part that it was made in good faith, and that the real intention of the parties involved no such fraud as the law imputed to them” (Randall agt. Parker, supra). The terms in good faith ” and without any intent to defraud,” are not entirely synonymous. That it was made in good faith ” as between the parties, may be predicated of a sale for an actual and valuable consideration, where a real and not merely colorable transfer is intended to be effected; but even such a sale will be fraudulent and void as against creditors of the vendor, where the conditions of the statute with respect to delivery and change of possession are not complied with, unless it be also made to appear, on the part of the vendee, that there was an entire absence of any intent on his part to withdraw the thing sold from the reach of legal process, or to prevent its application to the discharge of the vendor’s debts, which is the fraudulent pur[79]*79pose imputed and presumed from the fact of non-delivery and the continued possession of the vendor.

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

Related

May v. . Walter
56 N.Y. 8 (New York Court of Appeals, 1874)

Cite This Page — Counsel Stack

Bluebook (online)
51 How. Pr. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stout-v-rappelhagen-nysuperctnyc-1876.