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63 N.Y. 434

Norton v. . Mallory

New York Court of Appeals

Decided December 14, 1875

New York Court of Appeals · decided 1875-12-14

(Reported below, 1 Hun, 499; 3 T. & 0., 640.) This action was brought by plaintiff as judgment creditor of defendant Russell B. Mallory, to set aside a deed from the latter to his son, the defendant, Fred. E. Mallory, of certain premises in Schuyler county, as fraudulent against creditors of the grantor.

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Decided 1875-12-14

How this case has been cited

Cited by 6 later decisions — most recently February 1913

6 state decisions

2018751880189019001910decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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Church, Ch. J.

¶1 We concur with the General Term, that the title of the defendant Fred. E. Mallory, under the deed of Bussell B. Mallory, is valid as against the plaintiff, who at the time of the conveyance was a creditor at large of Bussell B. Mallory. The findings of facts, that this land descended to Bussell B. Mallory from his mother, in pursuance of an agreement that he would convey it to the defendant, and that she was prevented thereby from making a will devising it to him, in connection with the additional fact that Bussell B. Mallory was paid by his mother the consideration for any interest which he might have or expect as the heir of his mother, constituted him a trustee of the land for the benefit of Fred. B., and enabled the latter to enforce the trust in a court of equity. The payment of the consideration creates the trust by implication. It does not depend solely upon the parol agreement, but rests upon the facts in connection with it. And if the mother was induced to forego making a will in favor of her grandson by the promise of Bussell B., equity would enforce the obligation on the ground of fraud. (Story, Eq., § 768.) Concurring in the views of the General Term, it is not deemed necessary to elaborate them. We think the principle involved is sustained by the authorities. (33 Barb., 9; 29 N. Y., 598; 47 id., 544.)

¶2 But if the trust could not have been enforced, yet Bussell B. Mallory having executed it, the title thus made and supported by the equities in the case is paramount to any equities of general creditors. (Id.)

¶3 The referee has found that the transfer was made in good faith, and without any intention to hinder, delay or defraud creditors; and this furnishes an additional support to the title. Bussell B. was under the highest moral obligation to make this conveyance ; and having made it in pursuance thereof, his creditors, especially before obtaining any lien, *438 cannot maintain any claim against the title thus obtained. His neglect to perform this duty before cannot impair the defendant’s title. This principle was maintained in favor of a conveyance against a prior judgment in 33 Barbour (supra), and affirmed in this court. (29 N. Y., supra.)

¶4 The evidence of Davis was received solely on the question of good faith. That Russell B. was repeatedly urged to fulfill his obligation to convey this land, by a relative of the family, and repeatedly promised to do it, tended to show that the conveyance was made solely for that purpose, and to that extent was admissible; and as I understand the ruling, it was received only to that extent. The source of his information was immaterial. There is no distinction, however, between legal and equitable actions in respect to exceptions to evidence.

¶5 The judgment must be affirmed.

¶6 All concur; Miller, J., not sitting.

¶7 Judgment affirmed.

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