Byrd v. Hall
Byrd v. Hall
Opinion of the Court
The plaintiffs were merchants in the city of Hew York, and, on the 9th day of October, 1858, sold to one James Brown a bill of goods amounting to $507.90, which were shipped on the 15th of the same month. On the 20tli day of Hovember following, Brown made a general assignment to the defendant, giving preferences, and, on the 25th of the same month, this action of replevin was commenced by the plaintiffs to obtain possession of the goods so sold by them, on the ground that no title had passed by the sale to Brown. The court nonsuited the plaintiffs, on the ground that they had given no evidence to establish their cause of action, and the General Term of the seventh district affirmed the judgment. Several exceptions were taken on the trial, which it may become necessary to consider.
The general principles governing this class of cases are now well settled. In Nichols v. Pinner (18 N. Y., 295) it was decided that the mere omission of a purchaser to" disclose his insolvency to the vendor is not a fraud which avoids a sale of goods; that, where no inquiries are made, no false statements put forth, or artifice resorted to, to mislead the vendor, silence is not a fraud; that an honest purpose to continue business apd to pay for the goods is consistent with the vendee’s knowledge of his own insolvency, and a purchase
In Brown v. Montgomery (20 N. Y., 287) it was held, that, upon a sale of commercial paper, to withhold information that the maker’s check upon the bank in which he kept his account had been protested, was a fraudulent suppression, although the information to the vendor had been accompanied by the informant’s opinion that the maker was solvent.
In 23 N. Y., 264, the case of Nichols v. Pinner was again before the court, under the name of Nichols v. Michael, and its former doctrine reiterated, but in a somewhat different form. Both the judges delivered opinions averring, in substance, that where property was obtained upon credit, with a preconceived design not to pay for it, it was a fraud avoiding the sale (p. 266); or, as expressed by Seldeh, J., that, where concealment of the fact of insolvency is accompanied by an intent to cheat, it is a fraud (p. 274).
And in Hennequin v. Naylor (24 N. Y., 133) the principle was affirmatively announced that, though the omission of a purchaser on credit to disclose his insolvency is not necessarily fraudulent, yet, if the purchase be made with a preconceived design not to pay, it is a fraud; and that such design might be inferred by the jury from the circumstances and conduct of the vendee, not only in respect to the sale in question, but in other eotemporaneous transactions.
These decisions establish a system of law on this subject, harmonious, easily understood, and just. It is only in the application of the principles that courts and juries differ. A just appreciation of their effect, I think, must compel a reversal of this nonsuit, both upon the order of nonsuit and upon the exclusion of the evidence offered.
1. The evidence shows that in October, 1858, Brown was a barber in Rochester, and had a small shop in front of his shaving apartments, in which he kept a few fancy articles for sale; that he then owed $2,500 at least (as stated by him
2. It was said in Hennequin v. Naylor (supra), that such preconceived design not to pay for the goods purchased might be inferred by the jury from the circumstances and conduct of the vendee, not only in respect to the sale in question,- but in other cotemporaneous transactions. I am at a loss, therefore, to understand upon what principle the court rejected the plaintiffs’ offer to show the value of the assets that had passed under the assignment of Brown. He had made a general assignment, transferring all his property in express terms, and for the payment primarily of his old debts. If it had appeared that he had possessed a considerable amount of property in addition to his recent purchases, the jury might have considered that fact as a relief from the charge of fraud, while if he had nothing else, it "would properly have been looked upon by the jury as evidence of a fraudulent design, to wit, of procuring the present goods with which to pay his more favored creditors. The comparative amount of debts, with the value of the assets on hand, is always a fair subject for the consideration of a jury.
Again, I think the plaintiffs were entitled to the opinion of the jury on the question of fraudulent representations, which the judge ruled as a matter of law. The representations were proved by the plaintiff Byrd, and as Brown, although a witness in the case, was not asked in relation to them, the plaintiffs’ version is entitled to the fullest credit. Brown represented that he had been in business in [Rochester for eleven years, that he kept a fancy goods store in front of. his barber shop, where he sold shirts, collars, neck-ties, etc.
Judgment should be reversed and anew trial granted.
All the judges concurring,
Judgment accordingly.
Reference
- Full Case Name
- George Byrd and Alvah Hall v. Harvey Hall
- Cited By
- 6 cases
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- Published