In re Greene: Difference between revisions

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|date=December 6, 1930
|date=December 6, 1930
|subject=Contracts
|subject=Contracts
|other_subjects=Bankruptcy
|other_subjects=Bankruptcy*Family Law
|facts=*Mr. Greene = "Greene" = defendant = a married man
|facts=*Mr. Greene = "Greene" = defendant = a married man
*the claimant = plaintiff = Ms. Trudel = a woman who has an extra-marital affair with Greene
*the claimant = plaintiff = Ms. Trudel = a woman who has an extra-marital affair with Greene

Revision as of 22:04, November 12, 2023

In re Greene
Court Southern District of New York
Citation 45 F.2d 428
Date decided December 6, 1930

Facts

  • Mr. Greene = "Greene" = defendant = a married man
  • the claimant = plaintiff = Ms. Trudel = a woman who has an extra-marital affair with Greene
  • In the course of the romantic extra-marital affair in the 1920s, Greene routinely gave the woman substantial amounts of money including $70,000 for the woman to purchase a house in Long Island, New York.
  • Ms. Trudel was fully aware of Greene's marriage but continued with the affair.
  • Greene & Ms. Trudel ended their affair in April 1926 by signing an agreement which was sealed.
  • In accordance with the aforesaid agreement, Greene promised to pay Ms. Trudel $1,000/month during their joint lives. Moreover, Greene promised to pay more sums under additional provisions.
  • Still more, Greene promised to pay the woman's monthly lease for 4 more years (1926 - 1930).
  • In exchange, the woman promised to release Greene from all claims against him.
April 1926
Greene & Trudel contract
Greene's final payment to Trudel
August 1928
late 1928
Greene becomes bankrupt
Trudel files claim in the bankruptcy hearing
late 1928




Procedural History

Ms. Trudel demanded

  • $250,000 in payment,
  • $99,200 for failing to keep a life insurance policy with the woman as the beneficiary, &
  • $26,500 for rent

In total, Trudel wanted $375,700 from Greene.


Greene lost in the bankruptcy court.

Issues

Is a payment of $1 paid by Greene to Trudel at the time of the signing of the contract & a general statement of value exchanged between parties sufficient consideration to support a promise to pay hundreds of thousands of dollars (100,000s)?


Is $1 sufficient consideration to support a married man's promise to pay his ex-lover more than $375,000 [in the 1930 dollars]?

Arguments

Greene's bankruptcy trustee objected to the woman's claims & filed an appeal.

Holding

No. Nominal payments & vague statements of consideration are insufficient to support a legally enforceable contract between parties.

Judgment

Reversed

Reasons

Judge Woolsey: A promise to pay a person for past co-habitation, or a non-marital sexual relationship, is void for lack of consideration.

Judge Woolsey: Past romance cannot be regarded as consideration. Greene's promise was gratuitous & can't be legally enforced.

Judge Woolsey: The legality of the adulterous affair in the 1920s had no bearing on the judge's opinion.

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