Sullivan v. Greene

42 A. 320, 92 Me. 102, 1898 Me. LEXIS 94
CourtSupreme Judicial Court of Maine
DecidedNovember 3, 1898
StatusPublished

This text of 42 A. 320 (Sullivan v. Greene) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sullivan v. Greene, 42 A. 320, 92 Me. 102, 1898 Me. LEXIS 94 (Me. 1898).

Opinion

Savage, J.

In this case a controversy has arisen concerning the title to something over $6000 in the hands of one of the trustees, the Washington County Railroad Company. The defendant is Joseph N. Greene, and' his son, Lewis D. Greene, has appeared and become a party as claimant of the funds by virtue of an assignment to him from the defendant, dated May 6, 1896, and prior to the service of process upon the trustee in this suit. The, presiding justice before whom the cause was heard found that the assignment was void as to the plaintiff, a creditor of Joseph N. Greene, and ordered that the trustee be “charged for the amount for which the plaintiff shall recover final judgment, but not exceeding the ad damnum in the writ in this suit.” The claimant excepted.

“ Whenever exceptions are taken to the ruling and decision of a single justice as to the liability of a trustee, the whole case may be re-examined and determined by the law court, and remarjded for further disclosure or other proceedings, as justice requires.” R. S., c. 86, § 79. We have accordingly carefully examined the entire record in this case, in order to determine the correctness of the ruling complained of.

The allegations of the claimant, if any were filed, have not been printed as a part of the record. But an examination of the evidence of the claimant, taken by deposition at the instance of the plaintiff, shows that the position of the claimant is, that the assignment was made as security for an indebtedness of some $7000 said to be owed by Joseph N. Greene to the claimant, which indebtedness is said to have arisen, in brief, in this way: It is claimed that in the year 1883, Lewis D. Greene took the contract to build [108]*108what is known as the Mount Desert Branch of the Maine Central Railroad; that the profits of this enterprise amounted to about $50,000; that this sum belonged to Lewis D. Greene, the claimant; that the amount was received by Joseph N. Greene for Lewis D. Greene under a power of attorney, and was subsequently loaned to the Grand Southern Railroad Company; that in 1893 Lewis D. Greene recovered judgment against the Grand Southern Railroad Company for the money previously loaned, and subsequently, in the same year, about $45,000 was collected by Joseph N. Greene for the claimant, still acting under a power of attorney from him ; that of this sum, Joseph N. Greene used for his own purposes, with the knowledge and assent of the claimant, $7000 or more, for which sum he. became indebted to the claimant; and that this indebtedness continued up to and existed at the time of the assignment in question, and is the indebtedness attempted to be secured by such assignment.

The plaintiff contends that the assignment was without consideration, was expressly intended to defraud creditors, and particularly the plaintiff, and hence is void; that in fact the contract to build the Mount Desert Branch, though in the name of the .claimant, was in reality the contract of Joseph N. Greene; that the claimant’s connection with the contract was merely nominal and colorable; that he had no real interest in it, and that it was understood between him and his father that the latter was the real party; that, accordingly, the profits under the contract belonged to Joseph N. Greene; that the money loaned to the Grand Southern Railroad Company and subsequently recovered was tbe money of Joseph N. Greene; and that, therefore, Joseph N. Greene did not become indebted to the claimant by using any part of it. The justice below found substantially in accordance with the contentions of the plaintiff. If they are well founded, it needs no argument to show that the assignment to the claimant was without consideration, and fraudulent and void. The questions raised are purely questions of fact, and depend for their correct solution entirely upon the force and weight which may be properly given to the testimony of the claimant and his father.

[109]*109The claimant in his deposition testifies that at the time the contract for the construction of the Mount Desert Branch was made, he was twenty-six years old, was then and has ever since remained an officer in the regular army; that his income was limited to the pay he drew from the government as second lieutenant; that his father, Joseph N. Greene, was then and for thirty years had been civil engineer, and promoter and contractor of railroads, and was the chief engineer and contractor for the Mount Desert Branch; that his recollection is that the contract was originally in the name of his father, but was subsequently assigned by him to the claimant during the construction of the road, and while the claimant was in Maine under a leave of absence from the army; that the object of the assignment was to provide for him and to place obstructions in the way of his step-mother, who had entered upon a “domestic war” with his father; that he was consulted by his father before the assignment, but not before the contract was originally made, as he recollects; that all the part he took in the work was during his four months’ leave of absence from the army.

The claimant is in error in regard to any supposed assignment of the contract to him by his father. It appears that he, the claimant, was the original contractor, which he evidently has forgotten. He testifies that he was not present when the contract was made and did not sign it in person. It further appears from his testimony that he is uncertain in regard to the amount of money collected of the Grand Southern Railroad Company in the suit in his name, and the amount as recollected by him differs somewhat from that testified to by his father, who made the actual collection. He claims that of the money so collected, his father used for himself about $21,000, which he regards as in the nature of a loan to him; and that his father invested, in the name of the claimant, a large part of what he had not used. The claimant admits that the only knowledge he has of the investments and loans of his money made for him by his father, and of the amounts of his money used by his father, came by reports from time to time in his father’s letters to him; that these reports came at various times since 1893, the year in which the money was collected of [110]*110the Grand Southern Railroad Company. Upon inquiry, by plaintiff’s counsel, he said that he had the correspondence; that he kept copies of his own letters in reply; and being asked if he had his father’s letters transmitting his reports to him, he answered, “Yes, I think I have them all.” Being asked to file the originals or copies' as a part of his deposition, he answered that he did not feel disposed to furnish copies of these statements unless there was a legal necessity for it, that it would be a great deal of work, for no good that he could see. Elsewhere he testified that the assignment (for so he calls it) of the railroad contract by his father to him was purely voluntary; that his father suggested it; and that there had been no agreement on his part to reassign to his father at any time. He also testified that there had been no understanding between him and his father that the latter could use the moneys in his hands, but that there was in his own mind a moral obligation that his father should receive the benefits of that railroad contract so far as it was necessary for his own comfort and maintenance, and that the property, in case of his father’s decease, would come to him. He claims that he himself drew out and'used about $3,000 of the money collected from the Grand Southern Railroad Company. He says that his father has given him no notes or other security for the claimant’s money which he had used.

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Bluebook (online)
42 A. 320, 92 Me. 102, 1898 Me. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullivan-v-greene-me-1898.