Meech v. Bennett

Decided July 1, 1843

New York Supreme Court · decided 1843-07-01

Assumpsit. The first count sets forth that the plaintiffs were accommodation acceptors of a certain draft of 11,200, drawn by one Maynard; that said Maynard, the drawer and for whose accommodation they accepted, became insolvent and unable to pay the draft at maturity, on which account they stood liable to pay the same; that said Maynard was also indebted to them for moneys advanced to and for his use, <fec.; and for the purpose of securing them for the aforesaid liabilities…

Decided 1843-07-01

¶1By the Court,

Nelson, Ch. J.

¶2The contract is illegal and void within established principles; as resulting in a combination to prevent competition at an auction sale, and thus sacrifice the property of the debtor to the prejudice of himself and his other creditors. It is against good morals and sound policy, and can not receive the sanction of a court of justice. The fact that the debtor in this case assented to the agreement does not meet or avoid the evil. The other creditor or creditors, generally, are interested in the question. (Jones v. Caswell, 3 Johns. Cas., 29; Thompson v. Davies, 13 Johns., 112.)

¶3Judgment for the defendant on demurrer.