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1 Handy 46

Moses v. Katzenberger

Ohio Superior Court, Cincinnati

Decided July 1, 1854

Ohio Superior Court, Cincinnati · decided 1854-07-01

The facts in this case, as they appear from the petition, answer, and proof of plaintiff himself, are, that the plaintiff, being indebted to the defendants and other creditors, in the amounts specified in three several judgments, entered into an agreement with the defendants, by which the latter undertook to procure from the other creditors of the plaintiff, a release of their several judgments, on payment of twenty five cents on the dollar; in consideration of which, the…

Decided 1854-07-01

Spencer, J.

¶1Upon a view of the entire Case, the Court is of opinion with the plaintiff, that the contract is void, as being made in fraud of third persons.

¶2Both parties agree, that one shall use' his exertions to procure a release from the other creditors, on a supposition by the latter that all creditors are faring alike; whilst, in fact, the defendants are to receive double the amount that the others receive. But, the agreement is not void for the excess merely ; if at all, it is void in tolo. Where one creditor makes a stipulation for an additional benefit or security to himself, without the knowledge of others, it is a fraud on the latter; and the effect will be to destroy any security which may have been given to him, even for the legal amount of the composition. 11 Adol. & El. 1033, (39 Eng. C. L. 315): Chitty on Con. 592.

¶3If the agreement be void on the one side, it is so also on the other; both parties being equally criminal. The plaintiff occupies the unenviable position of asking to be freed on his part from the obligations of a contract alleged to be a fraud upon others, whilst at the same time he seeks a performance on the part of the defendants. He does not, in the expressive language of the law, come into Court with clean hands. And we cannot imagine a case where the general, if not universal principle of law *48better applies, that‘where an agreement appears to be illegal, immoral, or against public policy, a Court of Justice will leave the parties where [it finds them. 4 Ohio, 419.

¶4Judgment will therefore be entered for the defendant, with costs.

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