Griffin v. Banks
Griffin v. Banks
Opinion of the Court
The only question in this court is, whether the appellants acquired a title to the property in question, by virtue of the assignment thereof to them, by the wife, in trust for her creditors, good as against the title, which is in the respondents, acquired by virtue of an assignment, subsequently made to them by the husband, in trust for the benefit of his creditors.
That the relation of husband and wife between Bruce McKinney and Mary B. McKinney was created by their marriage in 1842, and continued to exist down to the
The rights and powers of Mrs. McKinney, and, consequently, the title of the defendants, depend upon the effect of the deed of separation then executed between McKinney, his wife, and George Langdon, and the subsequent acts of the parties to this instrument. This deed, after reciting differences between the parties, McKinney and wife, and that they had agreed to *live separately, provides, that all the goods in the two stores, then occupied by them, and all the household furniture, and the leases of the stores and dwelling, and the debts that had accrued in the business theretofore done, should thereafter belong to the said Mary, for her, sole and separate use, as if she were sole. That the said Bruce should receive out of the stocks and profits of the business the sum of |2000, which he acknowledged the receipt of from said Mary. In consideration of which, said Bruce transferred to said Langdon, all his right to said property, for the use of said Mary, and providing further, that said Mary should pay all the debts that had accrued in said business. That they should thereafter live separately. That said Mary might thereafter carry on such trade or business as she might' choose, the same as if sole, without any interference of said Bruce. That the said Mary should absolutely enjoy and dispose of any property she then had, or might thereafter acquire, the same as if sole and unmarried.
It is insisted by the counsel for respondents, that
It is insisted by the counsel, that deeds or agreements of separation between husband and wife will not be enforced, either at law or in equity, unless there be a consideration therefor. This position is correct. (Beach v. Beach, 2 Hill 260.) But this is not enforcing the agreement. It merely applies the legal rules governing gifts of chattels, accompanied by delivery, to the agreement and acts cf the parties. This gift to Langdon, in trust for the wife, would have been valid against Bruce McKinney and his representatives, without any agreement for separation. Existing creditors of Bruce might have set aside the transfer, as fraudulent as to them
The counsel for the respondent insists, that the husband, having permitted the wife to carry on this business and make purchases upon credit,, became liable as debtor for such purchases, and cites in support of this position Gates v. Brower (9 N. Y. 205), and cases there cited. A close examination of these cases will show, that they are only applicable to cases where the facts warrant the presumption of an authority from the husband to the wife to make the purchases, as agent for him. So far from there being any such presumption in this case, it is wholly repelled by the facts, showing an entire want of authority by the wife to use the credit of the husband. The rule is, that, where credit is given solely to the wife, upon a sale to her, the husband is *not liable, although they live together and he sees her in possession of the goods thus bought. (Story on Contracts, 4th ed., § 103; Bright on Husband and Wife, 17, 18; Goulding v. Davidson, 26 N. Y. 604.)
In Knapp v. Smith (27 N. Y. 277), it was held by this court, that since the statutes of 1848 and 1849, enlarging the rights of married women, and before the act of 1860, a married woman might acquire property by purchase upon credit, to her own use, and that the husband acquired no title to such property, notwithstanding the inability of the wife to make a contract binding herself
But, if wrong in the above reasoning, how, then, stands the case ? If Bruce McKinney had title to or interest in the property, he had expressly authorized his wife, by the deed, to dispose of the same as she chose, the same as if sole and unmarried. Clearly, he could not annul this power, after execution by the wife, conferring interests upon third persons, to the prejudice of such persons. It is said, there was no such interests, for the reason, that-the wife, being incapable of binding herself to pay for goods purchased by her upon credit, there was no debts, and, consequently, no creditors' for whom the appellants are trustees. This, in one sense, is true; but, when the wife' has actually paid for goods so purchased, the money so paid cannot be recovered back by her. And where, as in this case, she has provided for .such payment, by transferring goods for that purpose, over which she had the absolute power of disposi^(-'n against all the world, such transfer will *not be set aside, although no judgment at law could have been recovered against her for the price. The title of the defendants can be sustained under the power given by the husband to the wife to dispose of the goods, which was exercised by her in their favor, before any pretended revocation by the husband. That
The judgment below should be reversed, and judgment entered dismissing the plaintiff’s complaint. As this is a contest between creditors, where equality is equity, this should be done, without costs to either party.
Judgment accordingly.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.