Opinion
April 10, 1933.
Alfred C. Bennett [ Edgar F. Sachs of counsel], for the plaintiff, for the motion.
David Kachman, for defendant Jacob Wishner, opposed.
The exemption provided for in section 55-a Ins. of the Insurance Law is expressly made inapplicable to a case of an assignment in fraud of creditors. Wittman v. Littlefield ( 142 Misc. 916; affd., 235 A.D. 831) is distinguishable. The complaint in that case alleged an assignment in fraud of creditors. As a motion to dismiss defenses for insufficiency searches the record, the dismissal in that case of a number of the defenses indicates that the complaint was deemed sufficient notwithstanding the exemption authorized by section 55-a Ins. of the Insurance Law. All that was decided in the Wittman case was that disability payments are included within the term "proceeds and avails" of the policy. This is confirmed by the statement of the court at Special Term that the only issues before it were " the validity of the assignment and the effect of section 55-a." As the plaintiff, here, has established prima facie that the policy was assigned in fraud of creditors, this motion for a temporary injunction is granted. Settle order.