Beach v. Ollendorf
New York Court of Common Pleas
Appeal by defendant from a judgment of the Marine Court. This was au action upon a promissory note. The defence was, that the note was given to induce a firm, of which the plaintiff was a member, to sign a compromise agreement, releasing the defendant from his indebtedness to his various creditors; that it was given without the knowledge or consent of the other creditors and was therefore void.
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Appeal by defendant from a judgment of the Marine Court. This was au action upon a promissory note. The defence was, that the note was given to induce a firm, of which the plaintiff was a member, to sign a compromise agreement, releasing the defendant from his indebtedness to his various creditors; that it was given without the knowledge or consent of the other creditors and was therefore void. Upon the trial, the defendant introduced a compromise agreeement under seal, purporting to have been executed by the various creditors of the defendant. lie proved its execution by one of the creditors…
1Opinion of the Court
Beady, J. —
The note in suit was given by defendant to plaintiff, as one of the firm of Beach, Case & Co., in addition to twenty per cent, in cash, which the creditors of the defendant had agreed to accept in full discharge of their debts and as a condition of that firm uniting in the composition deed, which they did. It was also agreed, at the time the note was given, that it was to be kept secret from the other creditors. There can be no doubt that where the creditors of a debtor have signed a composition deed, every agreement securing an advantage to any one of them, withheld from the…
2Cited by1 opinion
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