Goll v. Stefanski
Goll v. Stefanski
Opinion of the Court
The opinion of the court was delivered by
The complainant, Goll, is trustee in bankruptcy for Francis Stefanski, la Polish Catholic priest, who was spiritual and business adviser-of a young woman, Dominika Michalewska, from
The learned vice-chancellor was also convinced that the defendant, Francis Stefanski, had the premises in question conveyed to his sister Mary in fraud of his creditors, and particularly for the purpose of defrauding the young woman, Dominika. With this finding we agree, but standing alone it is not enough to entitle Dominika’s loan of $3,000 to priority over the $700 loan of Mary Stefanski, who holds the legal title: Unless Mary was a party to the fraud she is entitled to the protection of her legal title to- the extent of her loan. Demarest v. Terhune, 18 N. J. Eq. 532.
The question, therefore, is was Mary a party to the fraud. The vice-chancellor did not expressly pass upon this point, but an examination of the evidence convinces us that she was. Assuming that the $700 loan was actually made, the other alleged advances from Mary were fictitious and merely gotten up for the purpose of attempting to bolster up her claim for a fee-simple title to the property. Her claim to a fee under the circumstances is, therefore, a fraud, and taken in conjunction with
Upon a careful examination of all the evidence in the case, therefore, we think' that the decree should in substance be affirmed. : Through inadvertence, however, as it would seem,' the vice-chancellor appears to have assumed that the conveyance in question to Mary was made by Francis himself and that, therefore, the proper remedy was to set the conveyance aside. Such, however, was not the case. The conveyance was from a former owner direct to Mary at the instance of Francis. The conveyance should not, therefore, be set aside for that would vest the legal title in the former owner who was no party to the fraud and is not a party to these proceedings. The decree should declare a trust in favor of the trustee in bankruptcy subject to the liens as indicated in the.decree of the court of chancery appealed from and should order a conveyance accordingly.
The case is remanded to the court of chancery in order that the decree may be technically modified as above indicated, and subject to such modification, the decree is affirmed, with costs.
For affirmance — Ti-ie Chief-Justice, Swayze, Trenchard, Parker, Bergen, Minturn, Kalisch, Blaók, White, ITep-PENI-IEIMER, WILLIAMS, TAYLOR, GARDNER, ACKERSON-14.
For reversal — None.
For modification — The Chief-Justice, Swayze, Trenchard, Parker, Bergen, Minturn, Kalisch, Black, White, ITeppeni-ieimer, Williams, Taylor, Gardner, Ackerson — 14.
Reference
- Full Case Name
- Beatrice I. Goll, trustee, complainants-respondents v. Mary K. Stefanski
- Status
- Published