25 N.J. Eq. 491 | New York Court of Chancery | 1875
The complainant’s suit is to impeach a chattel mortgage made by himself to the defendant. The mortgage is for •85000, and covers the furniture and fixtures of the Continental Hotel, in the city of Newark. It was executed in the month of June, 1878, though the money had been advanced by the defendant early in 1871, to help the complainant in the purchase of the furniture and fixtures, and in taking charge of the hotel. In November, 1873, Ballard began proceedings for the collection of the mortgage debt, and Gillette filed his bill for relief, alleging that the loan was
The case presented by the bill is, in brief, that being the proprietor of a hotel in Buffalo, he was induced'by Ballard to give up that business, and become the purchaser of the furniture of the Continental Hotel, in Newark • that not having sufficient capital himself for the purchase, Ballard proposed to lend him $5000, on condition that Gillette would furnish board at the hotel for Ballard, his wife and two children, as a compensation for the use of the money so loaned, Ballard at the same time alleging, that as occasions might require, he would advance such additional sums as might be needed to enable Gillette to carry on the business; that Ballard did, in fact, advance the $5000; that he boarded with the family, as above mentioned, at complainant’s hotel, from the early part of 1871 to the latter part of 1873 ; that although Ballard rendered, from time to time, aid and services in the business, and although Mrs. Ballard officiated more or less as the female head of the house, having the care or supervision of it, yet that the value of such aid and services, together with the lawful interest of the $5000, was not enough to compensate for the board and entertainment which Ballard and his family received. The bill prays that Ballard be decreed to account, that he be credited with the fair value of his own services, and the services of his wife, and charged with the fair price of the entertainment and board. It alleges that upon such accounting, a balance will be due himself, but if due to Ballard, the complainant offers to pay it when ascertained.
The suit can stand, only on the ground that there was a usurious agreement. The evidence does not at all warrant, in my judgment, the conclusion that there was. I think the true nature of the transaction was essentially different, and
In this letter the part to be performed by Ballard’s wife is not specified, but it was understood between the parties, and in view of the evidence and facts of the case, may be regarded as comprehended within the general promise it contains to give aid in every way possible. There can be no doubt that her part was meant to be, as it afterwards became, a material ele
In the summer of 1873, Gillette was married and went to Europe for some weeks with his wife. On his return, the supervision of Mrs..Ballard became less requisite, and the general arrangement was ended. To Ballard’s • call for the principal of the loan, the'charge of usury was for the first time suggested by Gillette. In view of the evidence, I think it would be a gross misconstruction to treat this transaction as a cover or device for the taking of illegal interest. If the transactions were less mutually advantageous than the proofs show it to have been, the inference of a usurious design would be still inadmissible, because such an inference will not in any case be made when the opposite conclusion can be reasonably and fairly arrived at. But the arrangement was highly advantageous to Gillette, indispensable to his undertaking the business, so far as the loan was concerned, and very conducive to its success, so far as the aid and services of the other parties were involved. It was, to some extent, a partnership, calling for friendly and confidential relations. Having derived from it the benefits which it was fitted to give in virtue of that character, the complainant cannot now ask this court to transform it into a relation of another description, and assign market prices to board and to services which were appraised by himself, on á different principle and with a differ-, ent aim. To do so would be in accordance neither with legal principles nor with right.
I will advise a decree as above.