Weil v. Reiss
Weil v. Reiss
Opinion of the Court
By general warranty deed dated December 26, 1895, and on the same day duly acknowledged and filed for record at five o’clock and three minutes p. m., Morris Reiss and wife conveyed a tract of land containing three acres, described in the petition, to Joseph Lorie. By a deed of trust of the same date, on the same day duly acknowledged and filed for record at six o’clock and ten minutes p. m., the said Reiss conveyed all of his goods, wares and merchandise, consisting of a stock of liquors, together with the fixtures and furniture in his storeroom at 603 Delaware street, Kansas City, Missouri, to Sigmund Harzfeld in trust to secure the payment of certain debts therein described to several of his creditors therein named.
Afterwards, on the twenty-eighth of December, 1895, Samuel N. Weil & Company, The Corning Company and Kate J. Rosenham, creditors of the said Reiss who were not secured by said deed of trust, instituted suits by attachment against said Reiss, which on the same day were duly levied on said real estate, and thereafter, on the tenth of January, 1896, the said Samuel N. Weil & Co. instituted this suit against the said Morris Reiss, Joseph Lorie, The Coming Company and Kate J. Rosenham, to set aside and annul said warranty deed from Reiss and wife to Lorie, ón the ground that the same was without consideration, and executed for the purpose of hindering, delaying and defrauding the creditors of the said Reiss. The answers of the defendants Reiss and Lorie were a general denial. The answers of The Corning Company and Mrs. Rosenham were each a cross-bill setting up, respectively, their claims, and for like cause a joinder in the prayer of the petition. On the hearing, the plaintiff’s bill, and the cross-bills of the defendants, The Corning Company and Mrs. Rosenham, were dismissed and from the judg
(1) The evidence tended to prove that the tract of land in question was worth from $900 to $1,000. That sometime in the latter part of the fall of 1895, the attention of Lorie was called to this tract of land by a Mr. Lietenberg, who told him it belonged to Reiss, and ashed him if he wanted to buy it. That in pursuance of this suggestion he called on Reiss the next day, ascertained his price, got a description of the property, and told Reiss he would look it up, and might buy i!. Thereafter Lorie examined the tract, consulted with his real estate agent Mr. Phelps as to the value of it, and subsequently made Reiss an offer of $900 for the tract, if Reiss would furnish an abstract of the title, whereupon Reiss told him to order the abstract and he would pay for it. Lorie ordered the abstract, which was completed and delivered to him on the twentieth of December, 1895. ITe thereupon turned the same over to Edwin E. Weil, a young attorney and notary public, a relative of his, and who was living with him, for the purpose of having the same examined and a deed drawn. Weil examined Hie abstract, reported the title all right, and on the twenty-fourth of December drew the deed in question, made an appointment for the parties to meet at his office on the morning of the twenty-sixth of December, to close up the trade, and on that morning on his way from his home to his office called at the Washington Hotel where Mrs. Reiss boarded, obtained their signatures to the deed, took their acknowledgment, and with Mr. Reiss went to his office where they met Mr. Lorie, who gave Mr. Reiss a check on the Metropolita:-.
It appears from the evidence that this young man Well •was in partnership with another young lawyer by the name of Silverman, and that they were practicing law under the firm name of Silverman & Weil; that their office, on the fifth floor •of the New York Life building, consisted of one room, with a single door from the public hall, divided into two compartments by a partition running across the room from the door, ■extending from the floor nearly to the ceiling. The entrance from the hall was into Weil’s compartment, thence near the door into Silverman’s.
The evidence further tended to prove that about noon on the twenty-sixth of December, Meyer Stern, a friend of Reiss, came to Silverman in his office, and requested him to- draw the deed of trust in question, and suggested the name of Benjamin E. Joffee as trustee. That after he left, Silverman drew the deed of trust as directed. That about four o’clock p. m. Reiss and Stern came in, when Stem informed Silver-man that Reiss objected to Joffee, and that they had agreed upon Mr. Harzfeld for trustee, thereupon the name of Joffee was erased, and the name of Harzfeld inserted a.3 trustee in the deed, the instrument was then signed by Reiss, acknowledged by him before Andrew E. Gallagher, notary public, delivered to Mr. Silverman, by him submitted to the officers of the Bank of Commerce, the largest preferred creditor, for approval, and afterwards filed for record as hereinbefore stated. Lorie testifies that he knew nothing about Reiss’s financial condition, and first heard of the deed of trust at his club on the night of that day. He was summoned as garnishee in the •attachment suits on the twenty-eighth of December, and his
The foregoing presents the main features of the case made by the evidence from one standpoint, which must now be considered in connection with the other evidence presenting a different phase of the ease, from another standpoint.
Benjamin E. Joffee, before mentioned, was introduced by the plaintiff as a witness, who testified in substance that he was a liquor dealer, had known Reiss about seven years. That four or five days before the deed of trust was executed, at the instance of Meyer Stem, he had an interview with Reiss in regard to his affairs. That Reiss informed him of his financial condition, what he wanted, to do, and that Silverman & Weil were his attorneys. That after five or six' interviews on the subject, about five o’clock p. m. of the twenty-fifth of December, 1895, Reiss & Silverman came to his place of business, and remained until eight o’clock, during which time it was arranged that Silverman should draw the deed of trust and have it ready by ten o’clock the next morning at Silverman & Weil’s office, where it was to be executed and turned over to him. That in pursuance of a telephone message next morning, he went to Silverman & Weil’s office, arrived there about eleven o’clock, met Reiss and Lorie in the hall, went with them into Silverman’s office. Silverman w'as there and had the deed of trust prepared. That Lorie read it, and whilst, the instrument was being read Julian ILaar came in, soliciting for the Cleveland Orphan Asylum. That in the conference between Reiss, Silverman, Lorie and witness, it was arranged, that another trustee should be named in the deed and that witness should go out and find cash purchasers for some of the goods. That in pursuance of this arrangement he did go out, and negotiated sales of liquors to Wolfson for $400, and to Baruch for $500. These sales were consummated and the goods paid for at Stern’s office about two o’clock in the after
(2) It is contended, however, that although Lorie may not have had any knowledge of Eeiss’s fraudulent purposes when his purchase of the real estate was consummated, yet that Silverman & Weil had such knowledge and their knowledge should be imputed to him. It is but fair to these young men to say that it does not appear from the evidence that Weil had such knowledge, and that the main support of the charge that Silverman had, is the evidence of the discredited witness Joffee. But whatever their knowledge, it is not imputable to Lorie. They were not his agents to negotiate the trade, and did not negotiate it. Lorie in this contest is not seeking to retain the fruits of a contract made by them, but of one made by himself in conducting which Weil was simply employed by him to examine the abstract, report upon the title shown by it, and draw the deed. The case does not fall within the principle of the eases cited by counsel in support of this contention.
(3) Finally it is contended that although Lorie had no knowledge, of Eeiss’s purpose to defraud his creditors, when he gave his check for the purchase money, accepted the deed and placed it upon record on the twenty-sixth of December,, yet as he afterwards on the night of that day learned that Eeiss had made the deed of trust of that day, and was on the twenty-eighth of December summoned,as a garnishee in the attachment proceedings by the unpreferred creditors, and his cheek was in fact not cashed by the bank until the morning of the thirtieth of December, and he made no effort to countermand the check, he ought to be held a participant of Eeiss’s fraud. If after Lorie had given his check to Eeiss, and before he had reason to believe his check had been cashed by the bank it had come to his knowledge that the sale and convey
It follows from what has been said that the judgment of the circuit court ought to be affirmed, and it is accordingly so ordered.
Reference
- Full Case Name
- WEIL v. REISS
- Status
- Published