Majority
Headnote
[ Aff’g 46 State Rep. 668 ; s. c., 19 N. Y. Supp. 220 .]The plaintiff recovered damages for the breach of an agreement, which, on the trial, appeared to be oral. The complaint alleges that the plaintiff, in the month of October, 1887, was in the possession under a lease of a house in the, city of New York, and that she entered into an agreement with the defendant whereby the defendant leased from her, for the term of one year from the first day of November, 1887, the two 'front rooms on the second floor, and the back parlor and extension room, with the use of the front parlor on the first floor, with board and attendance to be furnished during the time by the plaintiff for the defendant and his assistant or associate in business, for the sum of $3,250, payable in equal monthly payments of $270.83 in advance. The defendant •yvas a practicing physician, and the rooms were intended,
The defendant’s answer admits that during the time he was engaged in business as a physician, and that the
In Flora v. Corbean ( 38 N. Y. 111 ), it was held that where testimony tending to establish a material fact, although incompetent in its nature, is received without objection, the party has a right to insist upon the facts shown thereby or based thereon (Sharpe v. Freeman, 45 N. Y. 802 , 808 ; Matter of Yates, 99 Id. 94, 101).
So it was held in Howard v. Sexton ( 4 N. Y. 157 ), that a witness might be convicted of perjury in falsely swearing to a parol promise within the Statute of Frauds, although that mode of proof would have been incompetent if objected to.
Judge Gardner, in the opinion of the court, remarked: “ The evidence was material, for it proved the promise. It was not, perhaps, competent, if the objection had been taken in season. All secondary evidence becomes incompetent if objected to. But if the parties choose to rely upon it, a witness is not thereby absolved in conscience or law from his obligation to speak the truth.” The defendant’s contention upon this appeal cannot be sustained, unless we hold that the plaintiff’s testimony, showing an agreement by parol, amounted to nothing and must now be treated as if not given. The experience of anyone familiar with trials in the first instance is that nothing is more common than to give proof of facts, which is not strictly competent, but which, if not objected to, may be the basis for findings which are beyond the power of this court to review. The defendant’s exception to the refusal to dismiss the complaint raises no question here, except the presence in the record of any evidence whatever for the consideration of the jury upon the issue raised by the answer as to whether the agreement alleged in the complaint was made or not. There were, according to some
These views are confirmed and illustrated by the application of a principle which is settled beyond debate. When the complaint alleges a verbal agreement within the statute, and the defendant, by his answer, admits it without pleading the statute as a defence, he is deemed to have waived its benefits (Cozine v. Graham, 2 Paige Ch. 177 ; Vaupell v. Woodward, 2 Sandf. Ch. 143 ; Harris v. Knickerbacker, 5 Wend. 638 ; Brown on St. of Frauds, §§ 135, 508; Duffy v. O’Donavan, 46 N. Y. 226 ; Marston v. Swett, 66 Id. 206).
Now, all that the defendant admits in such a case is the existence of a verbal agreement, void by the statute. But, nevertheless, the law treats it as valid and binding, since the defendant, by omitting to raise the question at the proper time and in the proper way, is deemed to have waived the necessity of proof such as the statute requires.
If this constitutes a waiver why not hold that any other course equivalent to it is a waiver also ? What real difference can there be in principle between such a case and the one at bar, where the defendant, failing to plead the statute, allowed verbal proof to be given of the agreement alleged in the complaint at the trial without objec
But the important question in the case, and upon which we prefer to let the decision rest, is whether, in the light of the adjudged cases, it is not necessary for a defendant who intends to avail himself of the benefit of the statute, as a defence to an action for damages for breach of a verbal agreement, within the statute, to specifically plead it.
It is safe enough to premise that the authorities are not all in harmony on this question any more than they are upon many other questions with respect to the construction and application of the statute itself. In England, under the rules framed in pursuance of the Judicature Act, and in some of our sister States, it is necessary to plead the statute (Am. & Eng. Ency. of Law, p. 747, vol. 8, note 2 ; Graffam v. Pierce, 143 Mass. 386 ; Lawrence v. Chase, 54 Me. 196 ; Farwell v. Tillson, 76 Id. 227 ; Bird v. Munroe, 66 Id. 337, 346 ; Boston Duck Co. v. Dewey, 6 Gray, 446 ).
In this State cases may be found where the opinion is expressed that the defendant may avail himself at the trial of the benefit of the statute, under the general issue, by objection to verbal proof of the contract. Some of these cases and, perhaps, the principal ones, have already been cited to show when and how the defendant is deemed to have waived the benefit of the statute by admitting the allegations of the complaint. It is proper, I think, to observe that they are cases where the complaint was admitted in some way or the decision was before the Code or founded upon authority antecedent to it. The recent cases in this court sustain the view that it is necessary to plead the statute. In Porter v. Wormser ( 94 N. Y. 450 ), Judge Andrews said : “ The general rule is that the defence of the Statute of Frauds must be pleaded. * * * It cannot be doubted that if the defendants had brought an action to recover a balance claimed
In Hamer v. Sidway ( 124 N. Y. 538 ), the action was against the executors of a deceased person upon a verbal promise to his nephew that he would give him a large sum of money at twenty-one, if, in the meantime, he would abstain from the use of liquor, cigars, billiards, etc. The promise was confirmed by a letter from the uncle after the boy became of age. It was insisted that the promise was within the statute. After stating that the deceased had waived the defence by his letter and statements subsequent to the time of performance, the court, Parker, J., delivering the opinion, said : “ Were it otherwise the statute could not now be invoked in aid of the defendant. It does not appear on the face of the complaint that the = agreement is one prohibited by the Statute of Frauds, and, therefore, such defence cannot be made available unless set up in the answer.” In Wells v. Monihan ( 129 N. Y. 161 ), the action was upon a written promise to pay the debt of another without expressing any consideration, and it was urged upon the argument here that it was void under the statute. Passing upon that point, Judge FINCH said : “ So far as the defence in this case rests upon the Statute of Frauds it must fail for two reasons. No such defence has been pleaded, and it is not raised by the averments of the complaint, and without one or the other of these conditions the defence, if existing, cannot be made available.”
Without referring to other cases in which the precise point does not seem to have been discussed or noticed, sufficient appears to show the tendency of late decisions
The present system of procedure is founded upon the idea that litigants should, when possible, know in advance the precise questions they must meet at the trial. When a contract is set out in the complaint as the cause of action, and the defendant intends to assail it on some special or statutory ground, the general spirit of the system is not complied with unless notice is given of this intention to the opposing party by the pleadings.
In the solution of this question the provisions of the Code should not be overlooked. The statute may be used as a defence to actions on certain agreements. A defence must now be presented, either by demurrer or answer (Code, § 487).
When the defect in the plaintiff’s cause of action appears on the face of the complaint, the defence must be interposed by demurrer (§ 488). When the complaint does not, as in this case, disclose an invalid agreement upon its face, but it is, in fact, invalid for some reason, the defendant must take the objection by answer (§ 498), and if the objection is not taken in either way, the defendant is deemed to have waived it (§ 499). The conclusion is thus reached that the defendant waived the benefit of the statute in this case by omitting to plead it.
It is claimed by the learned counsel for the plaintiff, that the agreement, as pleaded and proven, was not within the statute since it amounted to a renting of apartments in a city house for business purposes, with board and
It is unnecessary to consider this question, as the conclusion reached with reference to the question of pleading is fatal to the appeal.
The judgment should be affirmed.
All the judges concurred, except Earl and PECKHAM, JJ., dissenting.
Judgment affirmed.
Note on Pleading the Statute of Frauds.
Under the decision in the text, some question may be raised as to the proper mode of taking advantage of the statute in an answer under the New Procedure. Different modes prevailed at common law and in equity respectively.
In the language of the Law of Pleading at Common Law,’ “ to plead ” a public and general Statute, means to state the facts which bring the case under the condemnation of the statute. The court took judicial notice of the existence of the statute. In case of a private, local or foreign statute where the court could not take judicial notice, the pleader must also allege the existence of the statute and state either the substance or the words of the provision relied on. In neither case was he at common law required to go beyond this, and add that he intended to take advantage of the statute; his plea sufficiently indicated that purpose.
The following is the form sanctioned at common law:
Because he saith, that the several supposed promises and undertakings in the said (first and second) counts respectively mentioned were special promises, and each of them was a special promise for the debt of another person, to wit, the said A. P., and that no agreement in respect of or relating to the supposed causes of action in the (first and second) counts of the said declaration, or either of ' hem, nor any memorandum or note thereof wherein the consideration or considerations of the said special promises, or either of them, was or were stated or shown, was or is in writing, or was or is signed by
Under the common law practice it has been well held that a plea in these words : “ That the engagement or debt sued on was a promise to assume for the debt, default or miscarriage of another ” is bad on demurrer. The demurrer was thus expressed, that “ said plea is an attempt to plead the statute of frauds without setting out the averments to sustain such a plea.”
Held that the demurrer was properly sustained.
The plea was bad in that it failed to aver further that the contract sued on was not evidenced by a writing signed by the defendant, and expressing the consideration for the promise to answer for the alleged debt, default or miscarriage of another. Hunt v. Johnson (Ala.), 11 So. Rep. 387 .
On the other hand in Hotchkiss v. Ladd, 36 Vt. 593 (Assumpsit), a plea of the statute of frauds alleged that the promises mentioned were special promises to answer for the debt of another, to wit, W. K. W., and that there was no memorandum in writing. And it was held that the plea was good.
In Edelin v. Clarkson’s Executors, 3 B. Monroe (Ky.), 31, 1842, a plea that the note sued on “ was given in consideration of a sale of land not evidenced by writing, ” was held not a plea setting up the statute of frauds in bar of the action, but only a plea of failure of consideration.
In equity the rule was different from that at common law, for the defendant’s plea was a statement intended to excuse his refraining from answering, and unusual strictness was applied by the chancellors, especially to pleas of a technical character like the present,
A plea in equity setting up the statute of frauds alleged the existence and substance of the statute so far as relied on, and also stated the facts relied on as bringing the case under the condemnation of the statute, and it has several times been held that where the making of a verbal contract is admitted by defendant, the intention to claim the benefit of the statute must be also expressly insisted on in the plea.
The following is an approved form in the English Chancery.
“ As to so much of the said bill as seeks to compel this defendant or any persons claiming under him to execute a lease in writing of the several lands and tenements in the said bill mentioned, or of any of them or any part thereof pursuant to the pretended agreement in
The following are the important cases:
Skinner v. M’Douall, 2 De G. &. Sm. 265, specific performance. Defendant alleged that no formal note of agreement charged by the bill was made, and denied that any binding agreement ever existed ; but he did not expressly claim the benefit of the statute of frauds. Held at the hearing, that he was not entitled to any benefit of the statute.
Battell v. Matot, 58 Vt. 271 , 1885. An admission on a bill to restrain the cutting down of trees, that defendant had made a verbal contract with the owner for the sale of the trees is a formal waiver of all benefit derivable from the statute of frauds, unless at
Compare Rhodes v. Rhodes, 3 Sandf. Ch. 279 . Bill for specific performance. The answer denied the contract and alleged that if any agreement was made, it was not in writing, and utterly void in law. Quaere: whether the allegation in the answer could be deemed a sufficient plea of the statute of frauds.
In Schoonmaker v. Plummer [Ill. 1892, 29 N. E. Rep.), 1114 (bill for specific performance of contract to convey title to land), the defendants in their answer, “ assert that there never was any gift of said premises to either of the complainants, and assert that if either or both should testify to such gift, they will, by their statement as they have in their bill, show only such parol gift as is governed by the statute of frauds and perjuries, and of no avail against those defendants, or either of them.”
Held, a sufficient pleading of the statute. “ It is true,” said the court, “ the allegation is not very formal and does not conform to the recognized precedents, but we think it sufficient in substance, especially in view of the fact that the bill on its face alleges the gift or a parol gift. The allegation of the answer seems to show with sufficient certainty that the gift alleged in the bill is a parol gift; that it is obnoxious to the provisions of'the statute of frauds and perjuries, and that said gift is of no avail, that is, is void, as against the defendants.” Decision below affirmed.
Under the Code, all that the answer is required to contain (besides denial) is a statement of any new matter constituting a defense.
The case in the text leaves it perhaps doubtful whether the statute of frauds is new matter constituting a defense, or is merely a special denial required, not by the words of the Code, but by its general policy, as intending that defendant shall give fair notice of the questions to be litigated.
If it be new matter constituting a defense, then the burden of bearing it will be upon the defendant. No case in any jurisdiction seems to have gone so far as that. The recent cases on the point are to the contrary, as follows:
Jonas v. Field, 83 Ala. 445 , opinion by Clopton, J., 1887. Action to recover damages for a breach of a contract of employment alleged in employment as a bookkeeper for 12 months. Plea of the general issue and the statute of frauds. The evidence of both sides being in, the court instructed the jury virtually that notwithstanding the
Held, an erroneous instruction. The court said: “ At common law the defense of the statute of frauds could be made on the general issue; but, under our system of pleading, it must be specially pleaded, when it does not appear from the complaint that the contract declared on is one required to be in writing, and is not in writing, or else the defense is considered as waived. The complaint does not aver whether the agreement was in writing or verbal. In declaring on a promise required by the statute to be in writing, it is not necessary to aver that it was so made. Notwithstanding the general issue was pleaded, had the defendants failed to plead the statute of frauds, it would have been competent for the plaintiff to prove, by parol evidence, a contract made on the first day of August or on an anterior day ; but the statute having been pleaded, parol evidence was inadmissible to prove an agreement required by the statute to be in writing, citing Lecroy v. Wiggins, 31 Ala. 13 .” Decision below reversed.
The court continued:
“ On the plea of the Statute of Frauds, it is incumbent on the plaintiff to establish, either a contract in writing, or a contract not required by the statute to be in writing. The complaint sets out a contract valid in form, and on the pleadings he is required to prove a valid contract. When the statute of limitations is pleaded, the burden rests on the plaintiff to prove a cause of action within the period of the bar. The same rule applies when the Statute of Frauds is pleaded. As to pleas of the statute of limitations and the statute of frauds, the plaintiff is required to show facts which avoid the effect of the plea ; as when he relies on a parol contract, the burden is on him to establish a contract not required by the statute to be in writing.” Citing Marston v. Swett, 66 N. Y. 206 ; Taylor v. Spears, 1 Eng. 381 ; Jones v. Hagler, Ala. 10 So. Rep. 345 .
Opinion by Walker, J„ 1891. Ejectment. Plaintiff claimed title through a sale by a trustee named in a deed of trust. The report does not disclose the language of the pleas, but the court in its opinion refers to them as pleas of the Statute of Frauds. There was no evidence that at the trustee’s sale the auctioneer made any note or memorandum of the sale, nor that the purchase money was ever paid, or that the purchaser was ever put in possession of the premises. Plaintiff joined issue on the pleas. After the evidence was closed, defendant requested a direction of a verdict for him, if the jury believed the evidence.
Held, error to refuse. The court say that in giving issue upon •
If this conclusion be sound, it is true that the required answer is in effect only a special denial of something which may be expressly alleged in the complaint, or, it may be, which is only assumed or implied by the law from a general allegation of contract without words expressly importing a writing, etc.
The case in the text puts the new rule on the ground that plaintiff is entitled to fair notice that the statute is relied on, and the form used in the case on p. 435, which is substantially that used at common law, seems sufficient for the purpose. There seems no reason for requiring as in a plea in equity against an admitted oral agreement, the technical addition of an express insistence on the protection of the statute.
For other comments on rules unaffected by Crane v. Powell, see 1 Univ. Law Rev. 21.
Cases cited
- Milbank v. Jones 127 N. Y. 370 p. 420
- Russell v. Burton 66 Barb. 539 p. 420
- Oscanyan v. Arms Co. 103 U. S. 261 p. 420
- Harris v. Knickerbacker 5 Wend. 638 p. 420, p. 425
- Duffy v. O'Donovan 46 N. Y. 223 at 226 p. 420
- May v. Sloan 101 U. S. 231 at 232 p. 420
- Flora v. Carbean 38 N. Y. 111 p. 424
- Sharpe v. Freeman 45 N. Y. 802 at 808 p. 424
- Howard v. Sexton 4 N. Y. 157 p. 424
- Cozine v. Graham & Bleeker 2 Paige Ch. 177 p. 425
- Hamer v. Sidway 124 N. Y. 538 p. 427
- Wells v. Monihan 129 N. Y. 161 p. 427
- Blumenthal v. Bloomingdale 100 N. Y. 558 p. 429
- Marston v. Swett 66 N. Y. 206 p. 433