Majority
Headnote
1. Injunction (§ 223[1] )—Violation—“Contempt.”On November 17, 1908, defendant was served with an order requiring him to attend on November 21st before a justice of the Supreme Court, and be examined in proceedings supplementary to execution. The order forbade him “to transfer or make any disposition of any property belonging to him or in which he has any interest (except property .exempt by law), or in any manner to interfere therewith, until further order in the premises.” He failed to appear for examination, but by stipulation the default was waived, and he was. examined on the 12th day of June, 1909, and again on the 25th of
When the order was served, defendant was employed by Hayden, Stone & Co. This employment began September 15, 1908. In the first instance it was agreed that he should receive as compensation for his services commissions amounting to one-third of the profits resulting to Hayden, Stone & Co. from the business in “cotton futures” obtained for them by him. About the middle of October, 1908, the agreement was modified, so that said firm were to pay him a salary at the rate of $400 per month from September 15th, and, in addition thereto, he was to be permitted to “draw up all there was in the past.” In pursuance of this modified agreement, he received $400 on November 18th, $400 on December 1st, and $3,800 on December 17th of the same year, all of which he immediately paid over to his wife at a time when the injunction order was in full force and effect. If we deduct from the $4,(j00 which he received the sum of $400 for salary claimed to be due October 15th and the further sum of $400 for salary on November 15th and the sum of $400 for salary on December 15th, it is clear that he received at least the sum of $3,400 for commissions on sales. This must have been earned by him before October 15, 1908, when the new arrangement as to salary went into effect, and was therefore a debt owing to him when the injunction order was made. The excuse which defendant gave while under examination and on the motion to punish him for contempt for paying over this money in apparent violation of the provisions of the injunction order was that in February or March, 1907, he executed an assignment to his wife which he described as an assignment of “everything that I was to earn or came to me until her indebtedness was paid.” If the language here employed were strictly construed, the period covered by the assignment would seem to be limited by the existence of- some indebtedness which defendant’s wife had incurred, and not by any indebtedness of him to her. Subsequently, however, in response to a leading question by his counsel, he testified that he turned the money over to his-wife on account of his indebtedness to her. The assignment, if in writing, was not produced, no evidence of its existence other than the statement of the defendant himself was presented, and no information was given as to the amount or source of the alleged indebtedness from him to his wife.
If we should concede, as claimed by respondent, that, no matter how fraudulent or colorable a transfer may appear, the legal title to the fund or property in dispute cannot be tried in a proceeding to punish for contempt (Matter of Duryea, 17 App. Div. 540 , 45 N. Y. Supp. 703 ; Holmes v. O’Regan, 68 App. Div. 318 , 74 N. Y. Supp. 10 ), we think that this rule is not applicable here. At the time when defendant paid over this money .to his wife the legal title to the same was in him and his wife, at the most, only had an equitable lien upon it. When the alleged assignment was made, not' only was the fund after-wards transferred not in existence, but the contract out of which the fund arose had not been made, nor, so far- as it appears, was it even
The order appealed from should be reversed, with $10 costs and disbursements, and the motion to punish for contempt should be granted, with $10 costs, and the proceeding should be remitted to the Special Term to fix the appropriate punishment therefor. All concur.
Cases cited
- In re Duryea 17 App. Div. 540 p. 372
- Holmes v. O'Regan 68 App. Div. 318 p. 372
- McCaffrey v. Woodin 65 N. Y. 459 p. 373
- Wisner v. Ocumpaugh 71 N. Y. 113 p. 373
- Coats v. Donnell 94 N. Y. 168 p. 373
- Kribbs v. Alford 120 N. Y. 519 p. 373
- Cooper v. Douglass 44 Barb. 409 p. 373
- Hovey v. Elliott 118 N. Y. 124 at 136, 23 p. 373
- Jackson v. Murray 25 App. Div. 140 p. 373