Fallon v. Sockolov

WASTE, P. J.

The plaintiff, as trustee of the estate of Joseph Sockolov, a bankrupt, brought this action to recover of the bankrupt and his wife, the sum of fourteen thousand dollars, alleged to be the bankrupt’s property and an asset of his estate. Trial was had with a jury, which rendered a verdict in favor of plaintiff. From the judgment entered thereon defendants have appealed.

The amount in controversy was received by the defendant Rose Sockolov, the wife, from the C. A. Hooper & Company, a corporation", and was claimed by her as her separate property. The circumstances attending its receipt by her were as follows: Joseph Sockolov, as contractor and builder, constructed the Chancellor Hotel for the owner, the C. A. Hooper Company. Upon completion of the building Sockolov was unable to pay the material men more than seventy-five per cent of their claims. Thereafter he did not conduct or engage in any business, and remained unemployed. Defendant Rose Sockolov, wearying of her husband’s inactivity, concluded that she had better earn something with which to obtain proper subsistence, and meet the house and family obligations, and pay the debts incurred for the household. She talked the matter over with her husband, with the result that in November, 1916, and at a time when Rose Sockolov knew her husband was insolvent, and unable to pay his creditors, with his full knowledge and consent, she borrowed from the C. A. Hooper Company the sum of twenty-five thousand dollars, giving her promissory note for that amount. Simultaneously with the execution of the note, anf at her direction, there were issued by the Chancellor Hotel Company, in the name of C. A. Hooper & Company, pledgee, certain shares of stock in the hotel company, which stock the C. A. Hooper Company took as security for the payment of the note. In other words, C. A. Hooper & Company advanced the money for its purchase and kept the stock as security for the payment of the loan. The hotel was a success, and in October, 1919, C. A. Hooper & Company offered to buy the stock issued by the hotel company to Mrs. Sockolov. It agreed to cancel the note for twenty-five thousand dollars, and pay fourteen thousand

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dollars cash in addition, for the stock. After some negotiations with the Hooper Company, in which Mrs. Sockolov did not appear, but which were carried on by Joseph Sockolov and an attorney, the note was canceled, and three cheeks totaling fourteen thousand dollars were delivered to Joseph Sockolov. He in turn delivered them to his wife. Less than a month thereafter Joseph Sockolov filed his petition in bankruptcy, and in due time the plaintiff brought this action to recover the fourteen thousand dollars paid by the C. A. Hooper Company in the transaction, upon the ground that the money was the property of Joseph Sockolov, and an asset of the insolvent’s estate.