Baker v. Dieterich
Baker v. Dieterich
Opinion of the Court
The opinion of the court was delivered by
The defendant was held to bail in an action brought jointly by plaintiffs for a debt alleged to have been fraudulently incurred. The order was set aside by a justice of the Supreme Court and plaintiffs appealed to the Supreme Court to' have it reviewed. The affidavits on which the order was based show that defendant had invented a machine for producing picture films, and entered into an agreement, December 2d, 1921, with the plaintiffs and Chester N. Stevens,
The first point argued is that the order of the justice of the Supreme Court discharging defendant is not subject to review by the Supreme Court on an appeal without the intervention of any writ of review, but if that question is arguable it has been settled, so far as this court is concerned, in
The order of the commissioner holds defendant to bail in the sum of $1,693.13, and is based, to the extent of $1,500, on the debt assigned to the plaintiff Baker by Stevens, who was the person defrauded, if the debt was fraudulently incurred. We have not deemed it necessary to determine whether the debt was fraudulently incurred, but assuming that it was, pass to the consideration of the question whether the assignment of such a debt carries with it to the assignee the right of the assignor to hold defendant to bail in a civil action for the recovery of the debt? According to the weight of authority this must be answered in the negative. The assignee has the right to recover the debt, but any fraud in incurring the debt was a personal fraud affecting the assignor only, and any remedy he might have because of it is not assignable, as that special wrong is in the nature of a tort. The only case we have been able to find tending to the contrary is King v. Kirby, 28 Barb. 49, which deals with the assignment of a judgment in an action where the basis was fraud in concealing property, part of which was done after the assignment. This case has never been cited by any other court in New York or elsewhere, and is contrary to Zabriskie v. Smith, 13 N. Y. 322, which has been often cited by other courts. It was there held that where a firm claimed to have a debt due which the debtor fraudulently contracted, gnd one of the partners assigned to the other, the latter could not sue, in his own name for the fraud, because his partner could not assign the fraud.
Except when provided by statute, nothing is assignable that does not directly involve a right of property. Weller et al. v. Jersey City Street Railway Co., 68 N. J. Eq. 659. An action for deceit cannot be maintained except by the person defrauded. No one but the person who relied on the misrepresentations can maintain a suit based on them. Lembeck v. Gerken, 88 N. J. L. 329. A defendant converted
In Defries v. Milne, 33 Ann. Cas. 257, the English Court of Appeal is quoted as saying: “It would be exceedingly bad policy to allow a person to sell rights of action for tort which he does not care to run the risk of enforcing himself, as, for instance, to allow a liquidator to put such rights up for auction and sell them to some one who might buy for a small sum of money on the chance of recovering a larger sum, or possibly of blackmailing.” In Farwell Co. v. Wolf, 96 Wis. 10; 65 Amer. St. Rep. 22, the defendants defrauded dealers by purchasing on credit. The dealers assigned their respective causes of action for damages to plaintiffs. The court held that the action was not for damages done to personal property, and not assignable, citing Reed v. Hatch, 19 Pick. 47; Cutting v. Tower, 14 Gray (Mass.) 183; Leggate v. Moulton, 115 Mass. 552; Brush v. Sweet, 28 Mich. 574; see, also, Sanborn v. Doe, 92 Cal. 152; 27 Amer. St. Rep. 101. In Hindman v. First National Bank, 50 C. C. A. 623, Judge Lurton said: “Plaintiff’s action, in the aspect now under consideration, is for fraud and deceit, and such action must be bottomed upon false representation made- to him with intent he should be influenced thereby.” '
The statute of the State of Minnesota provided that an attachment could be granted where “the plaintiff’s debt was fraudulently contracted,” plaintiff held by assignment a mortgage and sought an attachment on the ground that the debt it represented was fraudulently contracted. The court held “any fraud in the inception of the debt does not follow
Reference
- Full Case Name
- CHARLES WHITNEY BAKER AND JOHN JOSEPH SWAN v. LUDWIG M. DIETERICH
- Status
- Published