Hamer v. Sidway

1891

Court: Court of Appeals of NY

Facts: William E. Story Sr. promised William E. Story, 2d (his nephew) $5,000 if he would not drink, smoke, swear, or play cards or billiards before he turned 21. He did turn 21, having fully performed. He agreed that the fee should be paid, but held it (like a trust) for the sake of Will Jr.'s good character. Then Will, Sr. died., and the note was unpaid. Looks like the note was then bargained/lost to Ms. Hamer, who sued the estate for performance.

Posture: Claim against the estate is rejected, suit was brought. It failed, and Hamer appealed.

Issue: Did old William really become indebted to young William under the terms of the note when the latter turned 21 after years of clean living?

Holding: Yes. Trial court is reversed.

Rule: This is a trust, even though old William never said that word.

Reasoning: The "lack of consideration" theory fails, because young William truly made a forbearance. Also, the statute of limitations trick fails, because the note acknowledges the debt.

Dicta: