Allen v. Fink

211 A.D. 411, 207 N.Y.S. 428, 1925 N.Y. App. Div. LEXIS 10638
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 7, 1925
StatusPublished
Cited by31 cases

This text of 211 A.D. 411 (Allen v. Fink) 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
Allen v. Fink, 211 A.D. 411, 207 N.Y.S. 428, 1925 N.Y. App. Div. LEXIS 10638 (N.Y. Ct. App. 1925).

Opinion

Davis, J.:

The three appeal books in these actions and another affiliated action,' contain some twenty separate orders, from ten of which appeals have been taken and were presented at the same time. The orders represent decisions of various motions, and grant or deny relief asked. It will be unnecessary to make further descriptions of many of them, but we will discuss only those we deem important.

These actions were brought about March 26, 1919, by the plaintiff, the trustee of a bankrupt corporation, to recover for the benefit of the estate and the creditors certain unpaid, stock subscriptions. The several defendants answered, denying some allegations in the complaint but chiefly asserting fraud and deceit as an affirmative defense and counterclaim. Issue was finally joined by the service of a reply about September 18, 1919.

The claims against the individual defendants were small, from $50 to $100. There seems to be no reason why at least one or two of the causes could not have been brought speedily to trial and a decision reached, settling the disputed issues. Such a course was not followed. At this time, five years after issue joined, no case has been tried. Indeed, the parties seem farther from a trial than they were at the beginning.

The reason is not far to seek. Instead of pursuing the obviously practical course of trying one or two test cases, the parties began making various legal maneuvers. The defendants’ counsel first obtained an order ex parte requiring plaintiff to give security for costs. Then followed the most unusual and remarkable course of procedure we have ever known. Motion followed motion, made in all parts of the judicial district, and in one adjoining. A large number of appeals have been brought before this court. There. [413]*413have been motions for reargument, to amend orders, to resettle orders, for stays of proceedings here and at Special Term. There have been applications in this court to dismiss appeals and for leave to appeal to the Court of Appeals; and at Special Term motions before one judge to vacate an order made by another judge. At times orders granted were not entered for months, and in some cases it would appear that copies were never served on the opposing attorney. We mention but a few instances which have tended to create great confusion where once there was the simplest proposition, so that it may readily be seen that if there has been error in the courts below, there has been ample reason for it.

In fact, the counsel themselves at times became greatly confused. Motions were made and granted dismissing three complaints for default, where there was no default. Motions were made for judgment on the answers, because no replies had been served and a counter motion was made for leave to serve replies, when in fact the replies had been served more than a year before. A motion was made to amend nunc pro tunc an order vacated a year previously; and in this court a motion was made to dismiss an appeal already dismissed a short time before on. the motion of the same counsel.

The affidavits used on the motions are redundant and contain many misstatements of fact, and are filled with careless and confusing errors. Attorneys are expected to show some coherence in pleadings and motion papers submitted to the court when seeking a decision on a question in dispute. There is a short and summary way of disposing of matters where the papers upon which relief is asked are by acts of counsel permitted to become so redundant and confused that it is practically impossible for the court to understand them. They may be stricken out or dismissed entirely. (Gutta-Percha & Rubber Mfg. Co. v. Holman, 150 App. Div. 678; International Railway Co. v. Jaggard, 204 id. 67.)

In what has been done to create the confusion here described only in part, both counsel have participated. We do not propose to determine their relative delinquencies. We condemn the conduct of both. We have been able, only by the exercise of great patience and industry, to determine, amidst this confusion, what relief was being sought, and what the fundamental rights of the parties are.

It might well be expected that under the circumstances the plaintiff’s attorney would be zealous in relieving, his client from the expense and trouble of being compelled to furnish security for costs to the amount of $250 in an action where judgment was demanded for not more than $100. His efforts were unsuccessful; and not having given security promptly, an order was made dis[414]*414missing the complaints including, as we have said, three where security had been given (in that respect subsequently vacated).

It may be that his efforts to furnish security were not diligent; it may be true, also, that he was privy to the bringing of another action by creditprs, wherein it was sought to restrain prosecution of these actions, and thus obtain the same relief without giving security. The creditors'’ action failed in the purpose of halting proceedings in this action. Then the attorney attempted to vacate the judgments. He was permitted to do so conditionally, provided he gave security in ten days. Here we may say that the legitimate zeal of counsel came to an end. Having asked of the court a favor and obtained it, he appealed from the order granted. Without going into detail, the attorney then obtained different stay orders, some of which contained material omissions; one was vacated and one amended nunc pro tunc. Finally, months later, when the orders conditionally vacating the judgments were affirmed in this court, the attorney attempted to comply with that part of the orders which permitted him to" give security, and served undertakings. These were returned by the opposing attorney, chiefly on the ground that they were served too late.

Since then the efforts of plaintiff’s attorney have been mainly directed toward compelling acceptance of these undertakings. He made a motion for that purpose, claiming the stays had extended his time. Defendants’ counsel moved before the same court for an order directing plaintiff’s attorney personally to pay the costs. The plaintiff’s motion was denied, the learned justice holding that a stay does not of itself enlarge the time given by statute or order in which an act must be done. It may or it may not, depending in part on the language of the stay and the situation of the parties. (See Schermerhorn v. Van Valkenburgh, 7 Cow. 519; McGown v. Leavenworth, 2 E. D. Smith, 24; Georgia Lumber Co. v. Strong, 3 How. Pr. 246.) We do not find it necessary to decide the question here, but will base our decision on broader grounds. It is well known in the profession that the safer practice is to provide in the stay order in definite terms that the time shall not run.

• The defendants’ motion was granted and plaintiff’s attorney was directed to pay the costs forthwith. The amount of these costs in all the actions is from $3,000 to $4,000.

The principal questions here are whether these two orders shall stand.

The imposition of costs on an attorney who is not a party to an action is a disciplinary or punitive act. The statute provides (Civ. Prac. Act, § 1488) that the 'courts may exercise such power in certain cases; and they have inherent authority of punishment [415]*415and discipline of their officers, independent of statute. It is a discretionary power exercised chiefly in cases of misconduct, negligence or contempt. (Cushman v. Brown, 6 Paige, 539;

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Bluebook (online)
211 A.D. 411, 207 N.Y.S. 428, 1925 N.Y. App. Div. LEXIS 10638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-fink-nyappdiv-1925.