American Blue Stone Co. v. Cohn Cut Stone Co.

98 Misc. 439
CourtNew York Supreme Court
DecidedJanuary 15, 1917
StatusPublished
Cited by1 cases

This text of 98 Misc. 439 (American Blue Stone Co. v. Cohn Cut Stone Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Blue Stone Co. v. Cohn Cut Stone Co., 98 Misc. 439 (N.Y. Super. Ct. 1917).

Opinion

Bissell, J.

This action was brought to recover upon a guaranty of the payment of a bond and mortgage caused to be transferred by the defendant to plaintiff to apply upon an indebtedness for stone sold to the defendant.

The complaint alleges that the guaranty was executed by the defendant December 10, 1908, under its corporate seal, and signed by Joseph M. Cohn, president, guaranteeing “ the payment of the full amount of the principal and interest of said bond and mortgage at the time and in the manner provided in and by said bond and mortgage; ” that the bond and mortgage became due in 1911, and that no part has been paid except one year’s interest. The defendant by its amended answer puts in issue every allegation of the complaint and interposes several defenses, one of which is ‘ ‘ that the alleged agreement of guaranty purported to have been made and executed by the defendant, as described * *' * in the complaint, was not executed with the consent of or by the defendant or by any officer thereof duly authorized and empowered to execute or deliver the same; ” and that the act was ultra vires. The plaintiff, in preparing to establish its cause of action served upon the def endant and upon said Joseph M. Cohn, admitted to he its secretary, an order for examination before trial and for the production upon such examination of “ any and all books kept by the secretary of said defendant in the years 1907,1908 and 1909; all books kept by the defendant or its secretary [441]*441during those years showing the election of directors and officers of said corporation defendant; the stock hooks or books of said corporation showing the amount of stock issued by said corporation and the names of the stockholders therein in the years 1907, 1908 and 1909; the books of account of the defendant showing its account with the plaintiff in the years 1908 and 3 909; all letters written by defendant to plaintiff, and from plaintiff to defendant, in the years 1908,1909 and 3910 concerning the bond and mortgage, or either of them, described in the complaint herein and in the possession of defendant; and all letter press or other copies kept by defendant and in its possession of all letters so written by defendant to plaintiff.”

A perusal of the record of the proceedings before the referee pursuant to the order discloses a course of conduct on the part of Joseph M. Cohn, representing the defendant, which must be characterized as evasive, disingenuous and contemptuous, plainly indicating the intention of an unscrupulous mind, guided by a shrewd attorney, to defeat and evade the purpose and object of the order made by the court pursuant to the provisions of the statute providing for an examination before trial, and having the effect to defeat, impede, impair and prejudice the rights and remedies of the plaintiff. The defendant failed to produce a single one of the .books and papers it was ordered to produce, and Joseph M. Cohn, its secretary, gave an explanation of the failure to do so that is wholly unsatisfactory and is unbelievable. He also refused -to subscribe the deposition he had already made unless certain answers to material questions which gave some useful information to the plaintiff were stricken out on the ground that these answers might tend to incriminate him.

It appears from the record that the defendant com[442]*442pany was organized in October, 1907; that the original stockholders were said Joseph M.. Cohn, Minnie B. Cohn, his wife, and one Joseph Jervitz. Asked if he was its first president he answered,1 ‘ I don’t remember unless I have something to refresh my memory. ’ ’ The original guaranty, a copy of which is set forth in the complaint, was then shown to the witness and he was asked if the signature thereto was his. “A. I believe it is, yes. Q. And the words ‘ Cohn Cut Stone Company. Joseph M. Cohn, President ’ are in your handwriting? A. I think so. Q. Now, that you wrote on the 10th of December, 1908, didn’t you? A. I believe so, yes. Q. And at that time you were the president of this company, were you not? A. I cannot answer that without consulting my attorney. Q. You know at the time that you signed your name as president whether you were the president of the company, don’t you? A. I will not answer unless I consult my attorney.”

The record proceeds: ‘ ‘ Witness has consulted his attorney, Mr. Spigolgass, and his attorney advises him that he may decline to answer on the ground that it might tend to incriminate him. A. I refuse to answer the question upon the ground stated by my counsel.”

Throughout the examination he professes not to be able to remember very much of anything without referring to the books; that he could not remember who the stockholders of the company were without the books; that he could not remember when he was president. And being shown certain letters he testified that he could not remember writing them, and could not tell whether they were written from the defendant’s office. He testified that they kept carbon copies of letters, and being asked if the defendant company received letters from the plaintiff in the fall of 1908 he answered that he presumed they did, and when asked where those [443]*443letters were Ms first answer was, destroyed in the fire.” “ Q. You say they were destroyed? A. I believe they were. Q. Can you swear to that? A. No, I cannot swear to that. They are not in the office. Q. Did you look anywhere else? A. No.”

And in reply to his own counsel he testified: Q. Did you have those letters at the time of the fire? A. Yes. Q. Copies of the letters sent by you? A. Yes. Q. Are those the letters that might possibly have been destroyed by the fire? A. They are.”

He testified that he could not say without seeing the books whether the defendant charged up to the plaintiff anything on account of the guaranteed mortgage which was turned over to the plaintiff in payment for stone sold to the defendant. At one time he testified that the office was destroyed by fire, and at another that a part of the office was so destroyed, but that the contents of the safe, which did not include the books and papers ordered to be produced, were not destroyed, and that he did not know whether these books and papers were burned but that they might have been; and, further, that he did not know whether the insurance company took them. It is incredible that all of the books of account, the stock book, the secretary’s book, the stock certificate book, and all the letters and copies of letters of this company should be destroyed by fire or otherwise lost, and that Joseph M. Cohn, who had been its president, and closely interested in its affairs from the time of its incorporation, and who is at the present time its secretary, and has had charge of the company’s office, should not know whether these books and papers were burned or destroyed or where they are. He evades the direct question and places himself in a position where he could afterwards produce the books if he desired to do so.

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In re the Estate of Grube
162 Misc. 228 (New York Surrogate's Court, 1937)

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Bluebook (online)
98 Misc. 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-blue-stone-co-v-cohn-cut-stone-co-nysupct-1917.