Curry v. Brockway
Opinion of the Court
There are but two causes of action set up'by the complaint. The first is, that the defendant, knowing that Curry was of unsound mind, and in fraud of Curry, and of Curry’s creditors, induced him to execute and deliver to the defendant a bill of sale or some other instrument in writing, purporting to transfer to the defendant four valuable horses; that no delivery of the horses was made by Curry during his lifetime; and that, after his death, the defendant, in fraud of the plaintiff and of the creditors of Curry's estate, took possession of and removed them from the stables of Curry; and though the surrender of the horses had been demanded by the plaintiff, as the administratrix of the estate of Curry, the defendant refused to surrender them, and had converted them to his own use.
The second cause of action is simply for a taking by the defendant, after the death of Curry, of two whips, six blankets and a lap-robe, of the value of $50, belonging to his estate, which, although demanded of him by the plaintiff, the defendant refused to deliver.
The first cause of action is not an action to set aside or in avoidance of the bill of sale or instrument under which the defendant claims title to the horses, upon the ground that it was made with intent to defraud Curry’s creditors. It is not averred to have been made in pursuance of a corrupt agreement for that purpose between Curry and the defendant; or that there was any fraud on the part of Curry. On the contrary, the fraud alleged is the fraud alone of the defendant, in inducing Curry, knowing that he was of unsound mind, in fraud of him and of his creditors, to execute and deliver to the defendant the bill of sale or instrument in writing purporting to transfer to the defendant the four horses. Averring that the defendant induced Curry to execute the instrument in fraud of Curry’s creditors, as well as in fraud of Curry, and that after Curry’s death the defendant, in fraud of Curry’s creditors, removed the horses from Curry’s stable, does not make it an action by the administratrix as trustee for "Curry’s creditors, which,
An action to recover property or its value, which the vendee fraudulently induced a person of unsound mind to transfer to him bjr a bill of sale or otherwise, may be brought in behalf of the person defrauded during his lifetime, or by his personal representative after his death, who recovers the whole of the property, or the value of it, as a part of the assets of the deceased’s estate to which the administrator or executor has succeeded. The cause of action, in such a case, is the fraud practiced by the vendee upon the vendor, which in itself renders the conveyance or transfer void; and it is wholly immaterial in such an action, whether, in addition to defrauding the vendor, the vendee intended also to defraud the vendor’s creditors. No inquiry in such an action is requisite as to the creditors of the deceased; nor is it material whether his estate be insolvent or not; for it is not upon that ground that the personal representative recovers the property or its value, but upon the ground, as I have said, that it is part of the deceased’s estate, wrongfully withheld by the defendant, the instrument under' which he claims title to it being, as against the vendor, absolutely void. This is the action and the only one which the plaintiff could support upon the averments contained in the first count of her complaint.
The action which an administrator or other personal representative may bring, where the deceased, in his life-time,disposed of property with intent to defraud his creditors, is one of a very different nature, which involves the application of principles and the existence of a state of facts not at all requisite in the other action. It is a well and long established principle of the common law, founded upon grounds of public policy, that a party to a fraudulent conveyance is, as respects himself, 1ns heirs, executors, administrators or assigns, forever concluded by it; the policy of the law being to leave the parties to fraudulent conveyances in the position in which they have voluntarily placed themselves, and subject to all the consequences that may result
After the passage of the English statute of frauds, 13 Eliz. c. 5, the general rule above referred to was modified in conformity with the provision in that statute, which declared such fraudulent conveyances or transfers to be void as against creditors; and it was consequently held that the administrator or other personal representative of one who had transferred his property to defraud creditors, was to be regarded in the administration of the estate of a deceased fraudulent grantor as in the position of a trustee for the benefit of creditors; and if there were not assets sufficient to pay the deceased’s debts, that he might maintain an action against the fraudulent vendee, to recover from him, at least so much of the value of the property fraudulently conveyed as might be requisite to satisfy debts for the payment of which there were no assets ( Walls v. Provident Inst. for Savings, 85 Mass. 96; Pringle v. Pringle, 59 Pa. St. 286; Bate v. Graham, 11 N. Y. 237; Babcock v. Booth, 2 Hill 181; Hawes v. Leader, Cro. Jac. 270); or a creditor of the deceased might maintain an action against the fraudulent vendee as an executor de son tort who was answerable for the debts of the deceased, to the extent of the property which had wrongfully come into his possession, upon the assumption that, the transfer being void, the property was
Where the action was brought by the personal representatives, to recover the value of the property transferred by the deceased, in fraud of creditors, it was necessary to aver the want of or a deficiency of assets to pay creditor's, and also to aver the extent of the debts for the payment of which there were no assets; that the remedy might be adequately applied; for a recovery of the value of the property fraudulently disposed of could only be to the extent of the debts for the payment of which there were no assets (Buehler v. Gloninger, 2 Watts 226; Stewart v. Carney, 6 Watts 445; Pringle v. Pringle, 59 Pa. St. 286; Hawes v. Leader, Cro. Jac. 270). And it has even been held that the action is not maintainable bjr the personal representative until he has exhausted the other property oí the deceased (Law v. Smith, 4 Ind. 56), for, if he has assets sufficient in his hands to satisfy creditors, the fraudulent transfer cannot be disturbed (Hawes v. Leader, Cro. Jac. 270; Hess v. Hess, 19 Ind. 238) ; being good as against the grantor, under the rule above stated, and all other parties except creditors.
A distinguishing feature therefore between the two actions is that if there are assets sufficient to pay the creditors of the deceased fraudulent grantor, the personal rep
To render the bill of sale void as to creditors, the fact of a fraudulent intent in making it, must be shown (Wilson v. Forsyth, 24 Barb. 105; Meux v. Howell, 4 East 1; Holbird v. Anderson, 5 Term 255) ; and if it was obtained by a fraud upon the vendor, though the effect of it may be to
The law upon this inquiry may be briefly stated. The essence of every contract is consent, and if a party to a contract was incapable of understanding the nature of it, from idiocy, lunacy, mental imbecility, or other infirmity, this essential element is wanting; and therefore, if the party obtaining the contract knew that the other party was imbecile, insane, or so impaired in intellect as not to be conscious of what he was doing, it would be regarded as having been procured from him by fraud, and therefore
The essential inquiry, therefore, in the present case is, whether the evidence shows that Curry was, by reason of mental infirmity, wholly incapable of contracting, and that the defendant knew it when he obtained the bill of sale; and after going over the whole of the voluminous evidence in this case, there was not, in my opinion, sufficient to sustain a finding by the jury to that effect. If it had been shown that Curry was insane and had lucid intervals, a contract made in a lucid interval would be valid; but the ■onus would be on the party for whose benefit the contract was entered into, to show that it was made in a lucid interval (Att. Gen. v. Parnther, 3 Bro. 443; Story on Contracts, § 36).
' It is not, however, claimed that Curry was insane. Dr. Watson, the only expert in the case, testified that he did not regard him as insane, but merely that his mind was impaired. His wife testified that she was thoroughly convinced that he was insane, because he made a trade, in Jersey City, of a team for horses, the team being worth twice as much as the horses, and that he gave a double set of harness to boot; but she did not state when he did this; whether it was before or after the making of the bill of sale; and she was not an expert upon the question of insanity.
The doctor who was called as an expert and who had been Curry’s physician for two years, and up to the time of his death, said that he did not regard his case as one of insanity,
It appeared that the bill of sale, although absolute upon its face, was in reality given as security for money due by Curry to the defendant; and that after Curry’s death, the defendant told the plaintiff, that he had a bill of sale for $900; that he proposed to sell the horses, as rapidly as possible, and that every dollar over that amount should go to her; and that he thought anyone of the horses ought to pay his bill.
It further appeared that, after Curry’s death, the defendant told the witness Vanderpoel, that the claim he had on the bill of sale was $725. It was also shown that the .value of the horses was about $2,220; and that they were removed by the defendant from the stable two days before Curry’s death; which relieves the case of any question that might arise, if the removal had been, as averred in the complaint, after Curry’s death; the rights of the plaintiff as administratrix relating back to and having effect from the time of his decease.
There is nothing in itself questionable, in the circumstance of the defendant’s obtaining a bill of sale from Curry, as a security for the amount due him, whether it was $900 or $725. It could be objectionable only if Curry, when he gave it, was incapable of understanding what he did, and if the defendant knew it. In support of that assumption the expert, his physician, Dr. Watson, testified, that in his
This witness underwent a very extended examination, as to his medical qualification to pronounce positively upon the nature, extent and effect of Curry’s mental infirmity; which showed that upon delicate and difficult inquiries of this kind, he was not an expert, who had made the subject a particular study, or who had a very extended practical experience; for, from his own statement, his reading had been limited to Beck’s Medical Jurisprudence, a work of Dr. Hammond, and a few monographs on insanity and mental diseases; and that the cases of mental diseases which he had treated were nervous diseases, such as would be ordinarily treated by a regular practitioner; that he had never treated insane people, except cases of insanity where the patient was kept at home, and treated by care and nursing;. and, of' this number, only four or five, during a practice of thirteen years in this city, and fourteen or fifteen out of it anterior to that time; and that the knowledge upon which he was able to give an opinion, was based, as far as the
In addition to what is above stated, the doctor also testified that Curry complained to him that he had difficulty in remembering what men said to him about his business affairs, and what he said to them in matters of trading and dealing; and that he could not remember what was going on with them from day to day ; and complained of this, as a loss that annoyed him very much, and of which he seemed to be conscious, showing, as the witness said, that his memory was not entirely impaired; that Curry did not remember visits that he had made to the doctor’s office; and that the doctor recalled these visits to him to test his memory; and that he did not remember them. The doctor further testified that he thought Curry’s “ libations—the act of drinking”—had a tendency to excite his brain, to a certain extent, and increase the congestion existing there; that one of the indications was a violent, turbulent state of his mind upon very trivial causes, which Curry himself tried to explain away and to make amends for, “ because he was so foolish.” The doctor testified that he considered these occasions were generally the result of Curry’s drinking to excess for some length of time, as, for a week; that he
What is above recited, is substantially the facts upon which the doctor’s opinion was based.
A witness named Shipman, who had business transactions with Curry and who saw him frequently during the three last -months of his life, was examined. He testified that when Curry would be talking to him, his tongue would get thick, and he could not understand what he would say; that he would talk about half-a-dozen different things at once; go from one subject to another constantly, sit in his chair asleep about half the time, which was not natural to him; and that the witness had to speak to him half-a-dozen times before he would notice him at all; that he complained about his head a great deal, and said he did not know half the time what he was doing; that he walked like a man half drunk, though not under the influence of liquor; shuffled his feet along; and that the witness formed the opinion that he was not rational. That he noticed these peculiarities about a month or six weeks before he died; about the middle of October, when he tried to buy horses from him. This witness, upon his cross-examination, admitted that the difficulty of articulation was an occasional and not an habitual one, and he could name only one occasion when he noticed it, and could not state that he observed it more than twice. He testified, that, about the middle of October, and after he had observed what is above stated, lie would have bought some'horses from him that he came to buy, if he and Curry could have agreed upon the terms. He said that, on this occasion, he wanted to buy them, but Curry said he wished him to wait a day or two, as he thought he was going to sell them for $750; that he expected to sell them to a party in Irving Place, whose name he .did not disclose. So that, notwithstanding the
The testimony of Mrs. Curry was to the same general effect, as to Curry’s occasional difficulty in articulating, or suspension df the power of speech; forgetting things that he had said, or directed to be done, and afterwards asking why they were done; that he could not depend upon his memory; that he would ask her to remember things for him in his business, and would forget the days of the week; assaulting her, and upon one occasion severely, without cause, for which assault she had him arrested and convicted ; upon which arrest, the reason he gave for what he had done, was jealousy. That he went with her, on the 23d of October, to the Herald office, and when he got back, foi’got that he had been there; that he asked her idiotically, like a child, if he could go there with her; that, in going there, he led her by the hand, and ran part of the time, and came back in the same way, running like a little child and holding her hand; that, on the same night, he came into the house, and went to bed with his clothes oh, about six o’clock in the evening; that when a ladjr came in, who lived next door, and she brought her into the room, he covered up his head with the bed clothes; that the lady spoke to him two or three times; that the only answer he gave was: “ Oh ! I am so cold,” and that he laid all night in the bed with his clothes on. That, on the morning after, he complained of the loss of the money referred to, and said to her: “Give me my money, or I’ll murder you;” that she called to her landlady to come in, which she did, when Curry went away, and that when he returned, the same day, he was perfectly docile. That, on the morning of the 25th of October, she went to the stable; that Curry was there, and she asked in his presence if he had lost any money; that he was very docile, looked at her, and kept rubbing and looking at his hands all the time ; that he stood there “stupid like and idiotic;” that she did not see him
She further testified that he was in the habit of talking' to himself about things she did not understand; that she had heard him try to preach; heard him pray, and swear about himself, worse than he did about any one else, all in about fifteen minutes; and that this occurred in May or June. The assault upon her, for which she had him arrested, was in April; when, she says, he sprang at her like a tiger, choked her and knocked her down; and that, when arrested, he claimed as the reason for doing this that he was jealous of the defendant. That he had assaulted her before, but that these assaults were not serious.
It further appeared that, although Curry was laboring, probably as the effect of his disease, under the infirmities described, of occasional interruption of the faculty of speech, loss of memory, and liability to excitement, he still attended to his business every day until eight days before his death, when he was taken with convulsions, and at the end of that period died. It further appeared that about the time this -bill of sale was executed, he sent for Doctor Lesser, a veterinary surgeon, to examine a team of horses that he wanted to sell, and the sale of which had been prevented by an unfavorable opinion as to their soundness, by another veterinary surgeon, Dr. Leotard. This interview, Dr. Lesser, the veterinary surgeon, said, took place towards the end of October within a day or two of the 27th, or, as he said, very likely after, as he did not keep a note of it and could not give the exact date. He said that, at this interview, his attention was called particularly to the horses by Curry, as Dr. Leotard had examined them; that Curry told him that Dr. Leotard, after examining them, had said they were unsound, making some allusion to a hock joint eurby, or an enlargement of the shoot of a tendon, as the doctor described it, running down the back portion of the os calcis and the hind leg; that the curb complained of was
This interview with the veterinary surgeon, occurring about the same time or very near the time when the bill of sale was executed, shows that, whatever may have been the mental infirmities of Curry, such as his occasional loss of speech, occasional loss of memory, liability to excitement, and the other infirmities detailed in the evidence, he was, notwithstanding, able to attend to his business, exhibiting on this occasion the faculties of mind, memory and judgment, and the general intelligence of an ordinary man of business, in the careful and judicious management of his affairs. With this evidence in the ease, given by one of the plaintiff’s witnesses, and which must be taken to be as true as any of the evidence given by them, there being nothing in the case to raise any doubt or question respecting it, the
It will therefore be unnecessary to refer to the testimony to show what knowledge the defendant had of Curry’s condition, there being a failure to establish the principal fact that he was, from mental imbecility or unsoundness of mind, incapable of contracting when he executed the bill of sale.
I am therefore of opinion that the exceptions should be overruled and judgment rendered for defendant dismissing the complaint.
Yah Bbwt and Beach, JJ., concurred.
Exceptions overruled, and judgment accordingly.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.