Alaska Banking & Safe Deposit Co. v. Van Wyck

146 A.D. 5, 130 N.Y.S. 563, 1911 N.Y. App. Div. LEXIS 1816
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 7, 1911
StatusPublished
Cited by2 cases

This text of 146 A.D. 5 (Alaska Banking & Safe Deposit Co. v. Van Wyck) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Banking & Safe Deposit Co. v. Van Wyck, 146 A.D. 5, 130 N.Y.S. 563, 1911 N.Y. App. Div. LEXIS 1816 (N.Y. Ct. App. 1911).

Opinion

McLaughlin, J.:

This action was brought to recover against the defendants, as copartners doing business under the name Chicago Creek Coal Company, upon a promissory note made by the defendant Solomons, and signed by him individually and as manager of such company. Upon the trial evidence was offered showing the formation of a syndicate under the name Chicago Creek Coal Company, of which the defendant Solomons was manager,.and tending to show that at least some of the defendants besides Solomons were liable upon the note. The trial court was of the opinion, however, that the plaintiff had failed to prove the cause of action alleged and dismissed the complaint at the close of plaintiff’s case, except as to the defendant Solomons. Judgment was entered to this effect, from which the plaintiff appeals.

It appears that one Church and one Hart had originally been. members of the syndicate, but had died prior to the commencement of this action. That fact, however, did not appear in the complaint, which contained only a general allegation- that the defendants were partners, but was brought out by the plaintiff’s proof. Their executors were -made parties defendant and it is conceded by the appellant’s counsel that they did not become partners and no cause of action against them was established. It also appeared there were other members of the syndicate who were not mentioned in the complaint or made parties to the action. The answers of the different defendants contained only general denials of the allegations, of the complaint,' and this defect in parties was not disclosed until developed by the evidence. The trial court was of ■ the opinion that the plaintiff could not, in any event, recover against any of the defendants except Solomons without amending the complaint so that it' would show exactly who Were members of the syndicate at the time the note was given. The plaintiff’s counsel declined to amend the complaint, and, in order to avoid prolonging the trial unnecessarily, offered to prove facts which would establish the liability of all the defendants upon the note. The defendants’ counsel objected to the proof of such facts on the ground that such proof would not tend to establish the cause of action set out in the complaint because it appeared that at least two of the defendants were not copartners and two who were had hot [7]*7been made parties. The objection was sustained, ah exception taken, and the complaint was then dismissed, to which an exception was also taken.

For the purposes of this appeal it must be assumed that the plaintiff’s counsel would have been able to prove the facts which he offered to prove, had he been permitted to do so. Upon this assumption, therefore, the complaint included among the alleged partners two defendants who had never been partners and who were concededly not liable. It also failed to mention some of the partners who were Hable, two of whom it appeared had died prior to the commencement of the action. The question presented is whether, upon this complaint, the plaintiff could recover against -the defendants who were liable upon the note. So far as the two executors were concerned, it is obvious that their joinder, under the aHegation .that they were partners, would not have prevented a recovery against the other defendants. The common-law rule that in an. action upon an aHeged joint contract the plaintiff must fail unless he establishes the joint liability of all the defendants has been changed by the Code of Civil Procedure. (Pruyn v. Black, 21 N. Y. 300; McIntosh v. Ensign, 28 id. 169; Stedeker v. Bernard, 102 id. 327; Lawton v. Partridge, 111 App. Div. 8.)

The case of McIntosh v. Ensign (supra), foHowed in the later case, is directly in point. There, the plaintiff had alleged the joint liability of five defendants. The proof established that only two were Hable, and it was held that the plaintiff was-nevertheless entitled to judgment against those two.

It follows that the dismissal of the complaint on this ground was error, for under the offer the plaintiff’s proof might, conceivably, have shown that the other defendants, or some of them, were jointly liable upon the note and were the only members of the syndicate who were liable. In that event, under the authorities cited, the plaintiff would have been entitled to recover against those defendants despite the misjoinder of the' fillers. A fair construction of the offer, however, is that the proof would have shown that aU the members of- the syndicate at the time the note was given, including Church and Hart, were jointly liable, and it remains to be seen whether the failure to allege in the complaint who all those members were [8]*8would have prevented a recovery. As already stated, the fact that the complaint charged too many persons as partners would not have prevented a recovery against the actual partners, and on principle it would seem clear that the fact that the complaint charged too few as partners ought not to prevent a recovery. The variance between the pleading and proof is as great in the one case as in the other. That this is the correct rule a very brief review of the authorities will show. The Code of Civil Procedure provides that where there is a defect of parties, either plaintiff or defendant, appearing on the face of the complaint, the defendant may demur. (§ 488.) If such objection does not appear on the face of the complaint, it may be taken by answer (§ 498); and if not taken by demurrer or answer, defendant is deemed to have waived it. (§ 499*)' Of course, a partner is entitled, as claimed by the respondents, to have his copartners joined in an action upon a partnership liability, but it is established that in such an action this right is waived by failing to raise the objection by demurrer or answer. (Seligman v. Friedlander, 199 N. Y. 373; Hotopp v. Huber, 160 id. 524; Amsterdam Electric Light Co. v. Rayher, 43 App. Div. 602; Strobel & Wilken Co. v. Wiesen, 144 id. 149.)

• There are authorities to the effect that in an action against a single defendant, the complaint not alleging a joint liability, the plaintiff cannot recover upon proof that the defendant was jointly liable with others. (Wildrick v. Heyshem, 96 App. Div. 515; Sparks v. Fogarty, 93 id. 472; New York Fastener Co. v. Wilatus, 65 id. 467; Rich v. Wright, 57 id. 236.) But it by no means follows that where the complaint alleges a joint liability the plaintiff must fail unless all of the persons jointly liable are made parties. If the defendant wishes to rely upon such a defense, then he must’show by his pleading exactly who the omitted parties are. (Mittendorf v. N. Y. & Harlem R. R. Co., 58 App. Div. 260; Wigand v. Sichel, 3 Keyes, 120; Kings-land v. Braisted, 2 Lans. 17.)

In the last case cited it was said: Considering the members as partners, the liability was a joint one and all the defendants should be joined; but where an action is brought against partners and some are omitted, those who are sued can only take advantage of such. omission by pleading it. It is not [9]*9enough to set up, as. is done in this answer, that there are others ' who are liable, but the names must be given, so as, in the language of the old cases, to give the plaintiff a better writ.” This statement of the rule applies exactly in the present case. The same rule has been applied in many cases where a partner was omitted as a party plaintiff;

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Bluebook (online)
146 A.D. 5, 130 N.Y.S. 563, 1911 N.Y. App. Div. LEXIS 1816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-banking-safe-deposit-co-v-van-wyck-nyappdiv-1911.