Van Buskirk v. Warren

2 Keyes 119
CourtNew York Court of Appeals
DecidedSeptember 15, 1865
StatusPublished
Cited by3 cases

This text of 2 Keyes 119 (Van Buskirk v. Warren) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Buskirk v. Warren, 2 Keyes 119 (N.Y. 1865).

Opinion

Potter, J.

The first question to be considered in these cases is, whether the sale of the iron safes by Bates to the plaintiffs on the 2d of November, 1857, was a valid sale. It is urged that the sale was by a voluntary written assignment in trust to pay creditors, and that such assignment is void upon its face, by virtue of the provisions of our statute. (2 B. S., 135, § 1.) There is no express trust created in the instrument in question, nor is it a general assignment in trust for the benefit of the creditors of the assignor. I am unable to distinguish this instrument, in effect, from that in the case of Leitch v. Hollister (4 Comst., 211.) It is an assignment to creditors themselves, for the purpose of securing then-particular demands. Neither the statute nor the principle contended for applies to such a case. If, after the payment of the particular demands it was intended to secure, there should remain over a surplus, such surplus can be reached by any other creditor, by creditor’s bill, by attachment, and, perhaps, in some cases, by redemption. The conveyance is, in effect, a mortgage. If there was any trust whatever, it was not direct but incidental. It does not appear, from the face of the instrument, that a trust was the object of it; and, if the instrument had provided, in terms, that the surplus should be returned to the assignor, it would have been but the expression of what the law itself implies, and it would [126]*126not, for that reason, have been void under the provisions of the statute referred to. Instead of showing a design on its face to withdraw his property from his creditors, it was the direct application of it to that object; and a preference among creditors for this purpose, even when the assignor is insolvent, is not fraud per se. The several modern cases in this court, of Curtis v. Leavitt (15 N. Y., 9); Leavitt v. Blatchford (17 id., 521); Dunham v. Whitehead (21 id., 131), have clearly settled the law upon this point against the defendants. Bor, can this court hold the assignment to be fraudulent in fact. The finding of the judge at the circuit upon this point not being' reversed by the General Term, is conclusive. If we are right in these views, much of the argument upon the character of the instrument and the intent of the assignor in law and in fact is disposed of.

It is also insisted that if the assignment be not void on its face, still, that the title to the property did not pass to the assignees before the levy by the defendants’ attachments, three days after the assignment, as there was no evidence of the plaintiff’s acceptance of the assignment before the attachments were levied. Whatever may be the common law rule in this' respect, in regard to voluntary assignments in trust, where the assignee has no beneficial interest, it .is not the rule where the assignment is directly to a party having a direct beneficial interest in the acceptance of the assignment. In such case, prima facie, the assignee accepts the title (Townsend v. Tiehle, 3 Barn. & Ald., 31); and the onus is upon the party claiming in hostility, to show that there never was an acceptance. (Nicholl v. Mumford, 4 Johns. Ch., 528; Moir v. Brown, 14 Barb., 45.) There is no provision in the statute in relation to fraudulent contracts (2 R. S., 136, § 5) that makes instantaneous delivery an indispensable element to a valid sale, that would make void a sale of goods and chattels, or prevent the title thereto from passing to the vendee, even if unaccompanied by immediate possession. As against the creditors of the party making the assignment,- or subsequent purchasers in good faith, it is presumptively fraudulent. It throws a suspicion upon the transaction, [127]*127which casts the burden of proof upon the assignee to overcome. If he does overcome this presumption, if he satisfies a jury or a court, of fairness and of good faith; if he makes it appear that the sale was made without any intent to defraud such creditors or purchasers; he shows a valid sale,.and the title will have passed thereby. The finding of the court settles this question of good faith. The plaintiffs overcame this legal presumption to the satisfaction of the court below, and we are not at liberty here to question that finding. When this title passed to the plaintiffs, according to the statutes of this State, the defendants were not creditors within the meaning and intent of this statute. They were merely creditors at large; they did not bring themselves within the class of persons.who had a right to attack the assignment. It being thus a valid assignment in fact, and it being already shown that upon its face it is not obnoxious to the charge of creating a trust for the benefit of the assignor, or of delaying, hindering or defrauding the creditors of the assignor, we proceed to examine the next point in the case, which I regard as the most important one to be decided.

The defendants, and all the plaintiffs in this action (but one, who resided in Ohio) were residents of the State of New York at the time of the date of the conveyance by Bates to the plaintiffs, of the safes in question. The contract of assignment was made at Troy, in the State of New York. The said safes were in Bates’ store in Chicago, in the State of Illinois, at the time of the assignment. Bates, at the time of the assignment, was indebted to the defendants in a bona fide demand, for iron which he had used in the manufacture of his said safes. Three days after the date of said assignment the defendants obtained attachments in pursuance of the laws of the State of Illinois, out of a court of competent jurisdiction, and attached the said safes as the property of said Bates, and regularly proceeded to judgment, by virtue of which they sold the said safes. All these proceedings were regular by the laws of Illinois. The plaintiffs had not, at the date of the levy, taken actual possession of the said safes under the said assignment, but were proceeding in good [128]*128faith and with reasonable diligence to do so, and were prevented by the defendants’ attachments.

The question then presented is this: It is claimed by the plaintiffs that, by the law of the State of Hew York, the plaintiffs have shown the older and better title to the property in question; and by the defendants that, by the law of the State of Illinois, the defendants had secured the prior and better title. Assuming, as I think we must, the law in these two States to be as is claimed, and, there being this conflict of law, the case must be determined by decidihg which law controls, that of Illinois or that of Hew York.

In the view I have taken of this case, it does not raise the question of comity between States, nor does the question come in conflict with that provisión of the Constitution of the United States (art. 3, § 4), which requires that full faith and credit shall be given in each State to the public acts, records and judicial proceedings of every other State. Hor will it come in conflict, as is claimed, with the act of congress .of the 26th Hay, 1790, "which declares that the judgments of State courts shall have the same faith and credit in other States as they have in the State where they were rendered. The judgment record from the court in Illinois in favor of the defendants was not offered in evidence in this action, nor could it have been evidence between the parties to this action if it had been, as the plaintiffs in this action were not parties or privies to that judgment, so as to be bound by it.

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49 N.E. 65 (New York Court of Appeals, 1898)
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37 N.Y. Sup. Ct. 326 (New York Supreme Court, 1883)

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Bluebook (online)
2 Keyes 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-buskirk-v-warren-ny-1865.