New York Court of Appeals

The Mutual Life Insurance Company of New York, Respondent v. Camilla Hunt, a Lunatic, Appellants

January 13, 188079 N.Y. 541

Summary

The New York Court of Appeals affirmed the judgment in favor of the plaintiff, holding that a contract executed by a person later adjudged lunatic is enforceable when the lender acted in good faith, without fraud, and without knowledge of the insanity. The court relied on established authority that contracts made in ignorance of lunacy are not voidable.