MacKaye v. Soule

Headnote

Injunction—Pendente lite.

In an action to set aside an alleged fraudulent transfer of stock and for an injunction anda receiver, an injunction pendente lite, restraining the incumbering or disposal of the stock may properly he granted, as such relief is essential to the judgment demanded and necessary to make it effectual.

Appeal from order continuing a temporary injunction restraining the defendant Soule from incumbering or disposing of the stock in question during the pendency of the action.

Action to set aside as fraudulent a transfer of certain shares of stock of the Beal Estate Exchange and Auction Boom, Limited, made by defendant Day to defendant Soule, and for an injunction and a receiver.

The following is the opinion of the court below :

McAdam, J.—The plaintiff has filed a creditors’ bill claiming, among other things, a fraudulent transfer of ten shares of stock by the judgment debtor to one Soule without consideration, and that she holds the same for him in trust. It contains the usual prayer for a decree, declaring the transfer void, for an injunction, the appointment of a receiver, etc. An injunction pedente lite is applied for in aid of the bill, under §§ 1876, 603 of the Code. The temporary relief is essential to the judgment demanded, and necessary to make it effectual. In addition to this, it is a rule that where an answer is interposed the court may grant such relief as the parties are entitled to, whether demanded in the complaint or not. Armitage v. Pulver, 37 H. Y., 494; Jones v. Butler, 20 How. Pr., 189 ; Bell v. Merrifield, 109 H. Y, 202; 14 St. Eep. 796. The facts charged entitle the plaintiff to relief. Motion to continue injunction granted, without costs.