Albany City Bank v. Schermerhorn

9 Paige Ch. 372, 1842 N.Y. LEXIS 598, 1842 N.Y. Misc. LEXIS 37
CourtNew York Court of Chancery
DecidedJanuary 24, 1842
StatusPublished
Cited by42 cases

This text of 9 Paige Ch. 372 (Albany City Bank v. Schermerhorn) is published on Counsel Stack Legal Research, covering New York Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albany City Bank v. Schermerhorn, 9 Paige Ch. 372, 1842 N.Y. LEXIS 598, 1842 N.Y. Misc. LEXIS 37 (N.Y. 1842).

Opinion

The Chancellor.

The necessary papers are not before me, on this appeal, to enable me to decide the case upon the merits ; nor were all the papers which the law requires before the vice chancellor, upon making the order appealed from, according to the certificate of the clerk. The statute relative to proceedings as for contempts to enforce civil remedies and to protect the rights of parties in civil actions, has prescribed two modes of proceeding, where the misconduct complained of is not committed in the immediate view and presence of the court; except in the two cases, of disobedience to a rule or order for the payment of money, and disobedience to a subpoena. One of the prescribed modes is by an order on the accused party to show cause, at some future time to be specified in the order, why he should not be punished for his alleged misconduct ; and the other is to grant an attachment, to arrest the accused and bring him before the court, to answer for such misconduct. (2 R. S. 535, § 5.) In either mode of proceeding, however, the party complaining of the alleged misconduct must produce proof thereof, by affidavits, or a [375]*375sworn petition, or other legal evidence, as the founds tion of the proceedings. (Idem, § 3.) Where the party proceeds by an order to show cause, copies of the order, and of the affidavits and other papers on which it is founded, and of such other documentary evidence as the prosecutor wishes to use in the case, or so much thereof as is not already in the possession of the accused, must be served on him, or on his solicitor, such length of time, previous to the day appointed for showing cause, as the court shall in such order direct. And then if the party accused does not appear at the day appointed, or at such other day as may be afterwards designated for that purpose, or if he appears and does not deny the alleged misconduct, the court may at once proceed to make a final decision, that the accused has been guilty of the contempt charged, and to award the proper punishment, as directed by the statute. (2 R. S. 538, § 19 to 24.) If the alleged misconduct is denied, the court may discharge the order to show cause ; or may allow interrogatories to be filed and refer it to a master to take the answers of the accused to such interrogatories, and to take such proof as either party may wish to offer, and report the same to the court. But the proofs themselves should be reported to the court, and not merely the master’s opinion thereon. For the statute directs the court to determine upon the original affidavits, the answers of the defendant, and such subsequent proof, whether the accused has been guilty of the alleged misconduct. (Idem, § 19.)

Where the prosecutor proceeds by attachment, if the defendant is brought into court or voluntarily appears thereon, the court is required by the statute to cause interrogatories to be filed, specifying the facts and circumstances of misconduct alleged against the defendant, and requiring his answer thereto. This appears to be absolutely necessary, in a proceeding by attachment, unless the defendant admits the alleged contempt. Upon suchinterrogatories being filed and answered, the court may proceed in a summary manner to decide the question as to the guilt of the accused ; or may refer it to a master to take the an[376]*376swers of the defendants to the interrogatories, and to take and report such other evidence as either party may wish to produce before him relative to the contempt.

In this case the receiver proceeded against the appellants by attachment; and not by an order to show cause why they should not be punished for their alleged misconduct in disturbing him in his right to the property, over which he had been appointed receiver, as the officer of the vice chancellor’s court. He had previously obtained an order for the appellants to show cause why an attachment should not issue, instead of giving them the ordinary notice of a motion for an attachment. The alleged contempt for which that attachment issued, however, was not the neglect of the appellants to restore the property and pay the costs, under the order of the 16th of September, 1840. For that was not an absolute order to restore the property. But it was a conditional order merely ; a compliance with which would have stayed all further proceedings against the defendants for their alleged misconduct in disturbing the possession of the receiver. The interrogatories, therefore, instead of being directed to the question whether the defendants had complied with the conditions of this alternative order, should have been directed to the facts of the contempt as stated in the petition upon which that order was founded: to wit; the time of the commencement of these suits ; the fact of the making of the order for the appointment of a receiver therein; the nature and substance of that order, by a reference to a certified copy thereof or otherwise ; the due appointment of the relator as receiver, under that order ; the seizure of the property, over which he had been appointed receiver, by execution issued subsequent to his appointment; the actual or constructive possession of the property by the receiver, by an attornment of the tenants or otherwise, at the time it was seized by the sheriffs, &c. And these interrogatories should have been answered by the defendants personally, and not by deputy. Where the facts of the alleged contempt are not known to the defendants personally, or are not admitted by them, the prosecutor may use his petition and original [377]*377papers, upon which the order for attachment was granted to prove the facts; or he may introduce other evidence before the master for that purpose. But the defendants are entitled to the benefit of their answers to interrogatories, to disprove the alleged contempt, so far as they will go; subject to be contradicted by the affidavits or other evidence of the prosecutor.

So far as I can understand this case from the master’s report, there is no question as to the equitable right of the receiver to all the personal property of Schermerhorn, in which he had any interest at the time of the commencement of these suits, and to the rents, profits and income of the real estate which accrued after that time; provided such property or rents and income had not been reached by the executions of other creditors before this court made an equitable sequestration thereof by its order for the appointment of a receiver. (Tanfield v. Weston, 2 Sim. & Stu. Rep. 96.) And if Schermerhorn neglected to comply with the order to make an assignment so as to give the receiver the legal title to the property, or if the tenants refused to at-torn to the receiver and to deliver over to him the shares of the crops to which he was entitled as such receiver, this court upon a proper bill filed will protect his rights against the sheriffs or others who have seized upon such crops.

The right to proceed against the appellants as for a contempt, however, depends upon the question whether the receiver, either by himself or his agents or tenants, was in possession of the property at the time it was seized by the appellants, and not upon the mere right of the complainants to reach such property by a creditor’s bill. The court will not let the possession of the receiver, which is that of the court itself, be disturbed by any one without its permission. (Noe v. Gibson, 7 Paige's Rep.

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Bluebook (online)
9 Paige Ch. 372, 1842 N.Y. LEXIS 598, 1842 N.Y. Misc. LEXIS 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albany-city-bank-v-schermerhorn-nychanct-1842.