In re Greene

Greene (defendant), a married man, carried on a long affair with a claimant (plaintiff) who knew of his marriage, paying many of her expenses including $70,000 for a Long Island house held in her name. When their relationship ended, they signed a sealed agreement under which Greene promised monthly payments, a life insurance assignment, rent payments, and to bear no responsibility for the Long Island house, in exchange for the claimant's promise to pay Greene $1 plus "other good and valuable considerations" and to release any claims against him. When Greene later went bankrupt, the claimant filed a $375,000 claim against his estate based on this agreement; a bankruptcy referee upheld the claim, and the trustee sought review.