Ellis H. Roberts & Co. v. Buckley

• Decision Date: 09 February 1892
• Citation: 130 N.Y. 585,29 N.E. 1025
• Court: New York Court of Appeals Court of Appeals
• Parties: ELLIS H. ROBERTS & CO. v. BUCKLEY et al.

130 N.Y. 585

29 N.E. 1025

ELLIS H. ROBERTS & CO.

v.BUCKLEY et al.

Court of Appeals of New York, Second Division.

Feb. 9, 1892.

Appeal from supreme court, general term, fourth department.

Action by Ellis H. Roberts & Co., a corporation, against John Buckley, William F. Shirley, Patrick F. Bulger, George F. Vietor, Thomas Achilles, and others, to set aside as fraudulent an assignment for the benefit of creditors, made by said Buckley and Shirley to said Bulger, and also to set aside as fraudulent certain judgments against said Buckley and Shirley as coparthers under the name of Buckley & Co. A judgment entered upon the report of a referee was affirmed by the general term. Defendants Vietor and Achilles appeal. Reversed.

FOLLETT, C. J., and VANN, J., dissenting. 7 N. Y. Supp. 777, reversed.

George F. Danforth, James Dunne, and William Kernan, for appellants.

William A. Matteson, for judgment creditors, respondents.

William Quin, for respondent Bulger as assignee.

HAIGHT, J.

This action was brought by the plaintiff, a domestic corporation, as a judgment creditor, in behalf of itself and all other creditors of the firm of Buckley & Co. who might desire to join in the action, to set aside as fraudulent a general assignment for the benefit of creditors, made by the members of the firm of Buckley & Co. as such and as individuals to Patrick F. Bulger; and also to set aside as fraudulent certain judgments entered in favor of Thomas Wheeler, Daniel G. Major, and Chloe Spencer against Buckley & Co.

The firm of Buckley & Co., and the members thereof, were insolvent. The assignment was executed and delivered on the 17th day of March, 1886. In it the assignee is described as the party of the second part. It provides that-' Fifth. After the payment in full of all of the copartnership debts designated in Schedules A and B, as above directed, the said party of the second part shall pay all and singular the copartnership debts set forth and enumerated in the schedule hereto annexed, marked ‘C.’ in full, with interest. Sixth. After the payment in full of the copartnership debts set forth in Schedules A, B, and C, as above directed, the said party of the second part shall pay all and singular the copartnership debts set forth in a schedule hereto annexed, marked ‘D,’ with interest.' Schedule C, referred to, and forming a part of the attached assignment, contains a statement of the names of the creditors, as preferred in the assignment, the general nature of such indebtedness, and the a mount thereof. In it appears the following: ‘Name of creditor: Daniel G. Major. Residence: Washington, D. C. Consideration: Money loaned. Form of debt: Accounts and notes, which assignors are unable to describe; amount about $12,000.00. Date for interest: $1,000.00, Jan. 12, 1883; $1,500.00, Aug. S, 1883; $500.00, Oct. 4, 1884; $1,000.00, Feb. 4, 1884; $3,000.00, Feb. 10, 1884; $5,000.00, May 23, 1884,-as near as assignors are able to state.’ On the 7th day of April, 1886, John Buckley and William F. Shirley, as such assignors, filed their inventory and schedules, duly verified, as required by law, and among the firm debts set out by them in the schedule so filed is an indebtedness to Daniel G. Major, which is described as follows: ‘Daniel G. Major, Washington, D. C., $12,000.00. Accounts and notes: Jan. 12, 1883, $1,000.00; Aug. 8, 1883, $1,500.00; Oct. 4, 1883, $500.00, money loaned; Feb. 1, 1884, $1,00.00; Feb. 10, 1884, $3,000.00; May 23, 1884, $5,000.00.’ Major was a brother-in-law of the assignor John Buckley, and the amount of his claim so preferred, with interest, was the sum of $13,501.70.

The referee has found the following facts: 'Fifteenth. That at the date of the making, execution, and delivery of said assignment the time of $1,500,-August 8, 1883,-so preferred in said assignment, and set out in said schedules, had been paid off and discharged, the same having been paid by Buckley & Co. to Daniel G. Major by check of Buckley & Co. on the Oneida County Bank to the order of Daniel G. Major, dated December 11, 1883, for $1,530.75, which check was duly paid Daniel G. Major by said Oneida County Bank, and said check being given for $1,500 as the principal and $30.75 as the interest due on said loan of August 8, 1883.' ‘Sixteenth. That at the time of the making, executing, and delivery of said assignment the following items so preferred therein on behalf of Daniel G. Major, viz., $1,000, January 12, 1883; $5,000, May 23, 1884,-formed no part of the items of indebtedness then due or owing by Buckley & Co. to Daniel G. Major; nor do the said items, or either of them, appear upon the books of Buckley & Co. as amounts due by their firm to Daniel G. Major.’ The referee further found as facts ‘the indebtedness of Buckley & Co. to Daniel G. Major on the 17th day of March, 1886, including interest, to be as follows:

+------------------------------------------------------+
                ¦Note date Feb. 26, 1883, on demand, with   ¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦$1,000 00 ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦183 50    ¦
                +-------------------------------------------+----------¦
                ¦Note dated June 1, 1883, on demand, with   ¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦1,000 00  ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦167 67    ¦
                +-------------------------------------------+----------¦
                ¦Note dated Oct. 4, 1883, on demand, with   ¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦500 00    ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦73 58     ¦
                +-------------------------------------------+----------¦
                ¦Note dated Jan. 31, 1884, on demand, with  ¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦1,000 00  ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦127 67    ¦
                +-------------------------------------------+----------¦
                ¦Note dated Feb. 12, 1884, in one year, with¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦3,000 00  ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦377 50    ¦
                +-------------------------------------------+----------¦
                ¦Note dated May 6, 1884, on demand, with    ¦          ¦
                +-------------------------------------------+----------¦
                ¦interest, for                              ¦3,000 00  ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦335 50    ¦
                +-------------------------------------------+----------¦
                ¦Cash advanced by check, May 6, 1884        ¦500 00    ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦55 91     ¦
                +-------------------------------------------+----------¦
                ¦Cash advanced to pay note given for        ¦          ¦
                +-------------------------------------------+----------¦
                ¦accommodation of Buckley & Co., May        ¦          ¦
                +-------------------------------------------+----------¦
                ¦17, 1884                                   ¦2,538 75  ¦
                +-------------------------------------------+----------¦
                ¦Interest on same                           ¦279 27    ¦
                +-------------------------------------------+----------¦
                ¦Making a total of                          ¦$14,139 35¦
                +------------------------------------------------------+
                

‘As against this claim there are credits of money paid to Major from time to time by Buckley & Co. as follows, viz.:

+-------------------------------------------+
                ¦June 6, 1884, by check         ¦$1,000 00  ¦
                +-------------------------------+-----------¦
                ¦Interest to March 17, 1886     ¦106 83     ¦
                +-------------------------------+-----------¦
                ¦October, 1884, by cash         ¦100 00     ¦
                +-------------------------------+-----------¦
                ¦Interest thereon               ¦8 50       ¦
                +-------------------------------+-----------¦
                ¦December 18, 1884, by check    ¦50 00      ¦
                +-------------------------------+-----------¦
                ¦Interest                       ¦3 74       ¦
                +-------------------------------+-----------¦
                ¦November 15, 1884, by check    ¦50 00      ¦
                +-------------------------------+-----------¦
                ¦Interest                       ¦4 02       ¦
                +-------------------------------+-----------¦
                ¦February 5, 1885, by two checks¦100 00     ¦
                +-------------------------------+-----------¦
                ¦Interest                       ¦6 70       ¦
                +-------------------------------+-----------¦
                ¦February 25, 1885, by check    ¦50 00      ¦
                +-------------------------------+-----------¦
                ¦Interest                       ¦3 18       ¦
                +-------------------------------+-----------¦
                ¦Making a total credit          ¦$ 1,482 97 ¦
                +-------------------------------+-----------¦
                ¦Leaving a total debit          ¦12,656 38“.¦
                +-------------------------------------------+
                

He further found that the assignment was made in good faith, with no intent to hinder, delay, or defraud creditors; and, as a conclusion of law, that the preference in the assignment of the debt of Major was a valid preference to the amount of $12,656.38. It also appears, in the facts found by the referee, that Major brought action against Buckley and Shirley upon his claim for money loaned, etc., and that on the 18th day of March-the day after the assignment-the defendants appeared by M. W. Van Auken, their attorney, and made an offer of judgment, and that such offer was accepted, and thereupon judgment was entered for $13,501.70 damages and $19.39 costs, being for the same items and amount for which he was preferred in the assignment. The...