Majority
Headnote
Action—Who May Sub—Persons not Parties to Contract.The court is impressed' with the strong equity of plaintiff’s case, as exhibited, not only by the oral evidence, and the letters of the defendant, but by the very terms of the agreement sued upon. But, conceding this, and, further, that there was a contract' between Dun and the defendant, and between Buchanan and the defendant, upon a sufficient consideration, for the benefit of the plaintiff, the question remains whether she can recover upon such a contract. The respondent, recognizing the difficulty of sustaining such right upon the contract made between Dun and defendant, rests her case upon that made between the defendant and Buchanan, to pay the plaintiff §50,000 in consideration of Buchanan’s services to defendant. In opposition the appellant contended below, as he does here, that the only contract shown was one between Dun and the defendant, relating to loans of money made by Dun to the latter, which were to be, and were, actually repaid to Dun, and not to plaintiff, who, it is insisted, had no interest in the contract claimed to have been made for her benefit; that no consideration was given by plaintiff for any promise made by the defendant; that the letter which was the basis of the action was addressed to Dun, and therefore showed a contract with him, and not with the plaintiff’s husband; and that Dun advanced the only substantial consideration for the alleged promise, and that this has been repaid. There is much force in this construction of the contract between the parties; but, if we take the stronger and more favorable position advanced by the respondent, it remains to be considered, assuming a contract between plaintiff’s husband and defendant for her benefit, whether, upon this theory, she would be entitled to recover. As thus presented, the question is, can a wife enforce payment in her own name, where the husband renders valuable services, and stipulates with the person to whom the same are rendered that compensation therefor shall be made, not to him, but to her?
It is insisted that the promise having been made to the husband of the plaintiff, who owed to her the obligation of support and nlaintenance (an obligation both legal and moral), she, as the designated beneficiary, is entitled to enforce the contract expressly made for her benefit, and on her behalf. In support of this proposition our attention is called to many English cases, and many cases in this state, beginning with that of Lawrence v. Fox, 20 N. Y. 268 , wherein it was held that an action lies on a promise made by the defendant upon valid consideration, to a third person, for the benefit of the plaintiff, although the plaintiff was not privy to the consideration. In Vrooman v. Turner, 69 N. Y. 284 , it is said:
“The courts are not inclined to extend the doctrine of Lawrence v. Fox to cases not clearly within the principle of that decision. Judges have differed as to the principle upon which Lawrence v. Fox and kindred cases rest, but, in every case in which an action has been sustained, there has been a debt or duty owing by the promisee to the party claiming to sue upon the promise. Whether the decisions rest upon the doctrine of agency, the promisee being regarded as the agent for the third party, who, by bringing his action, adopts his acts, or upon the doctrine of a trust, the promisor being regarded as having received money or other thing for the third party, is not material. In
either case there must he a legal right, founded upon some obligation of the promisee, in the third party, to adopt and claim the promise as made for his benefit.”
This and similar cases that might be cited, in which Lawrence v. Fox has been distinguished, will show that that case has been sharply criticised, and its scope materially limited, and that the tendency of the decisions is to adhere to the rule at common law—
“That one cannot acquire rights under a contract to which he is not a party, and hence no right to enforce a contract is given to a person not a party to it, or an assignee of such party.” Lawson, Cont. § 113.
There have been, however, certain exceptions to this general rule recognized in some of the cases, beginning with the English case of Dutton v. Pool, 1 Vent. 318, upon which the learned trial judge relied for his action. This case is the foundation for a distinct class of cases where promises have been made to a father, or other near relative, for the benefit of a child or other dependent relative, in which the person for whose benefit the promise was made has been permitted to maintain an action for the breach of it. The nearness of the relation between the promisee and him for whose benefit the promise was made has been sometimes assigned as the reason for these decisions, and while the principle upon which they have been placed has been variously stated, and in some instances questioned, both in England and America, the decisions have been followed, and must therefore be regarded as settled law. In this state the cases in which reference has been made to Dutton v. Pool are Schemerhorn v. Vanderheyden, 1 Johns. 140 ; Cumberland v. Codrington, 3 Johns. Ch. 229 ; Barker v. Bucklin, 2 Denio, 45 ; Bleeker v. Bingham, 3 Paige, 246; King v. Whitely, 10 Paige, 465; Lawrence v. Fox, 20 N. Y. 268 ; Burr v. Beers, 24 N. Y. 178 ; Knowles v. Erwin, 43 Hun, 150 . In all of these where the promise of the third person has been enforced, it will be found that, as in Dutton v. Pool, the promisee, and the person for whose benefit the promise was made, stood in the relation of parent and child, and in Todd v. Weber, 95 N. Y. 181 , the person to be benefited was an adopted child; and they proceeded upon the fact that the promisor had obtained a consideration from the father, for which he undertook to discharge the duty that such father owed to the child,—of making suitable provision for the child by way of maintenance and support, or by the advancement of a portion,—and it was recognized that the cases were to be supported upon the principle of the duty or obligation that the father owed to the child, and which, for a valuable consideration, the promisor agreed to perform. We do not regard these cases, therefore, as authority for the broad proposition that a near relationship between the promisee and the person who is to be benefited by the contract would give such person a right of action. But it is insisted that the duty which a father owes his child is fio greater or higher than that which a husband owes his wife, and it was assumed by the learned trial judge that the duty and obligation of the husband to the wife is, as a consideration, quite equal to the duty and obligation of the father to the child. But if we concede that the obligation of the father is to support the child, and that the
“But the wife was not a party to the mortgages, and in no way bound to pay them. She had an interest that they should be paid without resort to the land, so that her inchoate right,-of dower might be freed therefrom. The husband, however, owed her no duty, enforceable in law or equity, to pay the mortgages to relieve her dower. The most that can be claimed is that the mortgages having, as is assumed, been executed to secure his debts, and he having procured the wife to join in them and pledge her right for their payment, he owed her a moral duty to pay the mortgages, and thereby restore her to her original situation. But, according to our decisions, no legal or
Concurrence
equitable obligation, of which the law can take cognizance, was created in; favor of the wife, against the husband or his property, by these circumstances. * * * There is lacking in this case the essential relation of debtor and creditor between the grantor and a third person seeking to enforce such, a covenant, or such a relation as makes the performance of the covenant at the instance of such third person a satisfaction of some legal or equitable duty owing by the grantor to such person, which must exist, according to the-cases, in order to entitle a stranger to the covenant to enforce it. It is not sufficient that the performance of the covenant may benefit a third person. It must have been entered into for his benefit, or at least such benefit must be the direct result of performance, and so within the contemplation of the parties, and in addition the grantor must have a legal interest that the covenant be performed in favor of the party claiming performance. The application of the doctrine of Lawrence v. Fox to this case would extend it much further than hitherto, and this cannot be permitted, in view of the repeated declarations of the court that it should be confined to its original limits.”
While, therefore, in view of the strong equities in plaintiff’s favor,, we regret that the action is not sustainable in her behalf, this is,, to some extent, lessened by the view we entertain,—that the husband may have the right in his own name, and on his own behalf,, to secure some of the recompense to which he is entitled, and which,, under the contract, he intended to secure for the benefit of his wife..
The judgment must therefore be reversed, and a new trial ordered, with costs to the appellant to abide the event.
VAN BRUNT, P. J., and WILLIAMS, J., concur.
(concurring). The contract upon which this action' was brought is expressed in a letter signed by the defendant, and addressed to Mr. Robert G. Dun. So much of it as is material to the case is as follows:
“It Is understood between Mr. -R. D. Buchanan and myself that, in the event of the success of the proceedings now pending, or which may be taken, to-practically set aside the thirty-fifth section of the will of my late uncle,. Samuel J. Tilden, in view of the assistance looking to that end which has been and may be rendered by Mr. Buchanan, as well as by yourself, that I. will, and hereby do, become responsible for the payment to Mrs. Adelaide E. Buchanan, or her order, of the sum of fifty thousand dollars.”
The circumstances under which that contract was made were that an action was then pending to set aside the thirty-fifth section of the will of Samuel J. Tilden. The defendant was the principal party having the management and control of that action, and he needed money to enable him to proceed with it. This money could only begot from Dun through the agency of Buchanan, who was the plaintiffs husband. Mrs. Buchanan, the plaintiff, was the adopted daughter of one of Mr. Tilden’s brothers. The result of the action, whatever it might be, would have been, of itself, of no importance to her,, and all that she could get out of the estate, whatever might be the-result of it, was the sum of money which was agreed to be paid, by this letter. It is said, and it must be assumed, that after the-writing of this letter Mr. Buchanan rendered some service; and it is conceded that Mr. Dun advanced to the defendant some $20,000,. which was to -be repaid to him, with interest. The action was brought to compel the payment by the defendant of the $50,000 to Mrs. Bu
“In none of them is there an intimation that the action can be sustained by the third person in the absence of any liability in his favor due, or to grow due, from the one to whom the promise was made.”
Judge Allen lays down the rule that, to enable the third party to bring an action on such a promise, there must be some obligation nr duty owing from the promisee to such third party, which would give him a legal or equitable claim to the benefit of the promise, or an equivalent from him personally. Vrooman v. Turner, 69 N. Y. 280 , 284.
An authority precisely in point in this case is Durnherr v. Rau, 135 N. Y. 219 , 32 N. E. 49 . In that case, Emanuel Durnherr, the husband of the plaintiff, had deeded to the defendant certain lands, in which deed the wife did not join. The defendant, the grantee, covenanted in the deed to pay all the incumbrances on the premises by mortgage or otherwise, and it was expressly declared in the deed that the wife reserved her right of dower in the premises. The defendant, upon being applied to, refused to pay the amount of the wife’s right of dower, and permitted the mortgages in which she had joined to be foreclosed, thus cutting off her dower. An action was brought for the damages, and the court held that there was no right of action in the plaintiff, because there was, on the part of the husband, no legal or equitable obligation, of which the law could take cognizance, in favor of the wife, to protect her right of dower, for the reason that he owed her no duty, enforceable in law or in
There is no case of authority in this state, where this question has. been raised, in which it has been held that the moral obligation under which a husband lies to support his wife is sufficient to enable her to maintain an action upon any such contract as this. It has. been shown by Mr. Justice O’BRIEN that the rule has not been extended in this state so that a contract resting upon that obligation will be enforced. The cases cited by the respondent do not establish ■ the existence of any such rule. They are based upon the case of Dutton v. Poole, 2 Lev. 210. Of that case it may be said, in the first place, that it has been repudiated by the English courts by which it was decided (Tweddle v. Atkinson, 101 E. C. L. 393), and it is no longer authority in that country. The case of Shepard v. Shepard, 7 Johns. Oh. 57, does not sustain the respondent’s contention. The plaintiff in that case was .the widow of Hazel Shepard. Before her marriage she had made a contract with her husband by which he assigned 50 acres of land, out of which her dower should be taken, and she released her dower in all other lands owned by her intended husband, and he covenanted that she should have her dower in that particular land. After the martiage, Hazel Shepard conveyed to her another lot of land, to make provision for her support when she should become a widow. The defendant was the son of Hazel Shepard. After the execution by the husband to the plaintiff of the second conveyance, he released the same premises to his son, which before he had conveyed to the plaintiff, and received from his son, the defendant, a deed by which the son released to the father the same premises during his life, and covenanted with the father that he would pay to the plaintiff, during her widowhood, $60 annually, or $400 in a lump sum, upon condition that she would release to the defendant all her right as widow of Hazel Shepard, or by virtue of any deed made by him to her, to the lands of Hazel Shepard. Hazel Shepard died, leaving the plaintiff, his widow, without any means of support except the covenant of the son, or her right to the dower in the 50 acres of land. She offered to release her right of dower to the son, and demanded payment of the annuity, or the sum of $400, and, upon that being refused, brought her action in the court of chancery to compel the defendant, her son, to pay her the money he had agreed to pay, or to have her dower assigned to her out of the lands of her husband, pursuant to his covenant. The chancellor found as a fact that the son took the release from his father without any consideration, and with notice of the deed previously made to the plaintiff after marriage; and he held that, although that deed was void in law, it was good in equity, and gave to the plaintiff a sufficient interest in the premises to permit her to maintain an action upon the covenant made for her benefit with her husband as a consideration for the transfer and the release of her dower. That was/ the point on which the case turned; but the chancellor, having decided the case on that ground, then goes on to say that, without referring to the deed made after her marriage, the relationship and obligation of the husband, and the fact that the covenant was. made by
Dissent
VAN BRUNT, P. J., and WILLIAMS and O'BRIEN, JJ., concur.
(dissenting). The respondent states the question ■submitted for decision as follows:
“Where a husband renders valuable services, and stipulates with the person to whom the same are rendered that compensation therefor shall be made, mot to him, but to his wife, is the wife entitled to enforce payment?”
This, with the addition that the wife did not join in the agreement, and that there was no promise made directly to her, is an accurate statement of the question presented. The letter which contained the evidence of the promise is one written to Robert G. Dun by the defendant, in which the defendant says:
“It is understood between Mr. B. D. Buchanan and myself that in the event ■of the success of the proceedings now pending, or any which may be taken, to practically set aside the thirty-fifth section of the will of my late uncle, Samuel J. Tilden, in view of the assistance looking to that end which has been and may be rendered by Mr. Buchanan, as well as by yourself, that I will, and hereby do, become responsible for the payment to Mrs. Adelaide E. Bu•chanan, or her order, of the sum of fifty thousand dollars.”
The services that Buchanan rendered to the defendant were in procuring Dun to loan to the defendant certain sums of money to be used in the litigation then pending to set aside the thirty-fifth section of the will of Samuel J. Tilden; the defendant being one of the next of kin of the said Tilden, and being entitled to a share in Tn’s estate in case this clause of the will was held void. This letter was written in pursuance of a, verbal agreement made between the
The right of the plaintiff to sue upon such a promise, made to her husband upon a consideration furnished by the husband, must depend upon the existence of a debt or duty owing by the promisee (the husband) to the party claiming £o sue upon the promise (the wife). “To give a third party, who may derive a benefit from the performance of the promise, an action, there must be—First, an intent by the promisee to secure some benefit to the third party; and, second, some privity between the two,—the promisee and the party to be benefited,—and some obligation or duty owing from the former to the latter which would give him a legal or equitable claim to the benefit of the promise, or an equivalent from him personally. It is true, there need be no privity between the promisor and the party claim
“The relation between the husband and wife was sufficient to entitle the plaintiff to her. action upon the covenant to her husband, and which was made for her benefit. The consideration inured from the husband, and arose from the obligations of that relation.”
This case also holds that the natural affection of a husband for Ms wife, and the desire to make a sure maintenance for the wife in ■case she should survive the husband, is a meritorious consideration for a deed from the husband to the wife, so as to justify a court of ■equity in sustaining, and giving effect to, the deed made directly between the husband and wife. And this case was cited with approval in Hunt v. Johnson, 44 N. Y. 33 ; thus establishing the principle that the obligation of a husband to support his wife is suffi•cient to constitute a valuable consideration in a transaction between them, which a court of equity will enforce, notwithstanding it is void at law. And in the case of Todd v. Weber, 95 N. Y. 181 , it was held that a promise made by the father of an illegitimate child to the child’s relatives, that if they would support and educate the ■child they would get back what money they had spent, because he intended to do well for her in his will, so that “them that do well ■by her will be well paid,” was a contract upon which the child could sue, as it was made for her benefit, as his child; and the court sustained an action to recover from the executors of the father the amount that the child’s relatives had paid out for her support and education. The case of Durnherr v. Rau, 135 N. Y. 219 , 32 N. E. 49 , does not apply. There was no agreement in that case by which the defendant promised to pay to the wife any sum of money due him, but a simple declaration in a deed that the wife of the husband, who was the plaintiff, reserved her right of dower in certain premises that the husband conveyed to the defendant. That right of •dower was lost by a foreclosure of mortgages upon the property,
Cases cited
- Lawrence v. Fox 20 N. Y. 268 p. 228, p. 229, p. 231, p. 234
- Duke of Cumberland v. Codrington 3 Johns. Ch. 229 p. 231
- Burr v. Beers 24 N. Y. 178 p. 231
- Todd v. Weber 95 N. Y. 181 p. 231, p. 240
- Durnherr v. Rau 135 N. Y. 219 p. 232, p. 234, p. 240
- Townsend v. Rackham 143 N. Y. 516 p. 234
- Vrooman v. Turner 69 N. Y. 280 at 284 p. 234
- Mills v. Van Voorhies 20 N. Y. 412 p. 235
- Pardee v. Treat 82 N. Y. 385 p. 235
- Hunt v. Johnson 44 N. Y. 27 p. 237
- People v. Buxton 44 N. Y. 33 p. 240