68 N.Y.S. 37 | N.Y. App. Div. | 1901
The plaintiffs in this action were general creditors of Mrs. Caroline Myrus and her husband on the 31st day of March, 1895., to the extent of $118. This claim was reduced to judgment on the 23d day of October, 1897, and an execution issued thereon has been returned unsatisfied. On the 20th day of December, 1895, according to the allegations of the complaint, and after this indebtedness had been incurred, the defendant Caroline Myrus, being seized and possessed of a certain piece or parcel of real estate described in the • complaint, made and executed a deed of the said premises to her • daughter Charlotte A. Myrus, which deed was duly recorded on the 24th day of December, 1895. The complaint further alleges that. “ in order to secure said property for her own use and benefit and to protect it from said claim of the plaintiffs and to prevent the plaintiffs from collecting their said debt, combining and confederating with the said defendant Charlotte A. Myrus, her daughter, and contriving with her to defraud these plaintiffs, did by a deed,” etc., “ convey the premises to the said Charlotte A. Myrus.” The prayer for relief is “ that said deed be adjudged and declared fraudulent and void as to these plaintiffs, and that the same may be set aside and discharged of record; ” and that a receiver be appointed to whom the defendants shall be directed to convey for the purpose of-sale, etc.
The learned court found as a matter of fact that Charlotte A. Myrus had advanced to her mother the sum of $600 toward the purchase of the premises, and that the conveyance, although absolute in form, was intended as a mortgage to secure this sum. It is fair to assume that the learned court intended to say that the claim of the defendants that the conveyance was absolute was intended “ to hinder, delay and defraud the plaintiffs in the collection of * * * said judgment.” However this may be, we are of opinion that under the pffeadings the learned court erred in the -disposition of this case, the questions being raised by the exception to the motion to dismiss the complaint, and by the exceptions to the findings of fact and conclusion of law. At the time this transfer was made the defendant Caroline Myrus was indebted to the defendant Charlotte A. Myrus in the sum of $600 at least.; in the absence of fraudulent intention on her part, and of guilty knowledge on the part of Charlotte A. Myrus, she had a right to pay this debt by the transfer of the farm. The only right of the plaintiffs was to show that the transfer was
The judgment appealed from should be reversed, with costs.
All concurred, except Sewell, J., taking no part.
Judgment reversed and new .trial granted,, costs to abide the final award of costs. . .