Apton v. Barclays Bank, Ltd.

191 Misc. 629, 76 N.Y.S.2d 871, 1948 N.Y. Misc. LEXIS 2114
CourtNew York Supreme Court
DecidedJanuary 19, 1948
StatusPublished
Cited by1 cases

This text of 191 Misc. 629 (Apton v. Barclays Bank, Ltd.) 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
Apton v. Barclays Bank, Ltd., 191 Misc. 629, 76 N.Y.S.2d 871, 1948 N.Y. Misc. LEXIS 2114 (N.Y. Super. Ct. 1948).

Opinion

Froessel, J.

The defendant, in an action to recover the sum of $28,564.68, with interest from April 2, 1938, moves, pursuant to rule 107 of the Buies of Civil Practice, for judgment dismissing the complaint, and each and every cause of action therein alleged, on the ground that said causes did not accrue within the time limited by law for the commencement of an action thereon.

It is undisputed that the plaintiff, in 1935, was an Austrian citizen of the Jewish faith resident in Vienna, at which time he opened a cash account in English currency with the defendant, a British banking corporation, in London, England. The complaint alleges six causes of action founded on breach of contract with respect to, and wrongful conversion of, the funds in said bank account. The seventh cause of action is based on the defendant’s refusal to accept funds offered to it in London in March, 1938, by a third person for deposit in plaintiff’s account

The gravamen of the first six causes of action is that the plain- . tiff, in or about the month of April, 1938, “ * * * was a customer and a depositor in the defendant bank located in the City of London, England”; that the defendant, in or about March of 1938, in breach of its obligation to the plaintiff under English law, and in violation of plaintiff’s instructions, not to disclose any information relating to his said account, did make such disclosure, as a result of which the German invaders apprehended, imprisoned and incarcerated plaintiff, directed and commanded him to instruct defendant to transfer the balance of his said account to the “ Beichsbank ” in Vienna, Austria, threatening him with severe bodily injury and death in the event of noncompliance; that because of such threats, plaintiff signed, and caused to be transmitted to the defendant bank, written instructions to remit said balance immediately to said Beichsbank ”; and that the defendant bank, with knowledge of the circumstances, wrongfully and illegally complied with plaintiff’s said instructions in or about April, 1938, when said balance was con[631]*631verted by the German authorities. The papers before me also show that the plaintiff left Austria for Yugoslavia on October 3, 1938, and thereafter arrived in the city and State of Hew York on October 29,1938, since which time he has remained here.

It appears that a prior similar action was instituted by the plaintiff in January, 1941, by an attempted personal service of process upon the defendant in Hew York. The latter moved to vacate the service of such process upon the ground that it was not doing business in the State of Hew York. The motion was granted (28 N. Y. S. 2d 469), and affirmed in the Appellate Division (265 App. Div. 836), which refused leave to appeal to the Court of Appeals (265 App. Div. 954). The present action was instituted in August, 1947, more than six years after the dismissal of the first, and more than nine years after the acts complained of. This time, jurisdiction was obtained by means of a warrant of attachment, which is what might have been done in the first place, seven years ago.

Defendant’s motion is predicated upon the claim that under the laws of England, where the claim arose (Limitation Act, 1939, 2 & 3 Geo. 6, ch. 21), and if not of England then of Austria (Austrian Civil Code, § 1489 [Dos Allgemeine bfirgerliche Gesetzbuch]) (1) the time for bringing an action on contract or tort had expired before the commencement of the present action, and (2) the periods of limitation were not tolled or suspended in favor of the plaintiff.

Plaintiff’s attorneys, in their brief, submit that “ he should not be compelled to take an' affirmative position on the question as to whether the causes of action arose in England or in Austria, and the further question as to whether English or Austrian, law controls the period of limitation and all other questions relating thereto,” inasmuch as this burden rests upon the defendant. In support of their claim that the present action is not barred, however, they do advance tenuous arguments, a discussion of all of which would unduly or unnecessarily extend the length and scope of this opinion to unreasonable proportions. Very briefly, plaintiff’s several contentions may be summarized as follows: (1) The English Statute of Limitations does not apply, as the claims in question did not arise in England; (2) if the English statute applies then it has been tolled; (3) if the Austrian statute applies, then the thirty-year Austrian statute (Austrian Civil Code, §§ 1478,1479) applies and not the three-year statute (§ 1489); (4) if the three-year Austrian statute applies, then it has been tolled, suspended or revived; and (5) in any event, by reason of the necessity of a demand, the causes of action actually [632]*632accrued in the State of New York, on the commencement of this present action, and the New York Statute of Limitations applies.

I have read with care the. thorough and well-prepared briefs submitted on both sides, and given due consideration to the English, Austrian and American authorities referred to therein, as well as to the statutes submitted and the opinions of counsel with respect thereto. To review them here would serve no useful purpose.

Upon the entire record, I am constrained to conclude that the English Statute of Limitations applies, which outlaws, after the expiration of six years from the date of accrual, “ actions founded on simple contract or on tort ” (2 & 3 Geo. 6, ch. 21, § 2, subd. [1], par. [a]). The first six causes of action are not to recover a bank deposit, but for damages arising out of breach of contract and tort due to defendant’s alleged wrongful payment to the “ Reichsbank ” in March-April, 1938. The bank account in question was opened in defendant’s bank in London. Plaintiff, in his affidavit verified August 21,1947, concedes that the defendant bank had no branch in Austria. Plaintiff’s brief, at page 29, adds: The defendant had no branch in Austria, did not do business in Austria and did not have any property in Austria.” In his said affidavit to secure the warrant of attachment, plaintiff claims that the disclosure as to his bank account was contained in a letter of the defendant bank, which he recognized by the letterhead, the size of the paper, and other characteristics of the stationery; he could read the heavy print of the letterhead: “ BARCLAY’S BANK, LONDON.” If, indeed, there was a breach of either legal duty or contract, it consisted of the writing of the letter in London, the honoring of plaintiff’s instructions in London, the transmission of plaintiff’s money from London to Vienna, the debiting of his account in London, the letter from the defendant bank, dated April 2 or 4, 1938, informing plaintiff of the transfer. Clearly these causes of action accrued in England, and the English Statute of Limitations applies. As to the seventh cause of action, in which plaintiff seeks damages by reason of" defendant’s refusal in London to accept from another bank in London for deposit in plaintiff’s account in London funds offered to it in London by a third person, in April, 1938, it cannot be seriously contended that this claim arose elsewhere than in England.

In Wester v. Casein Co. of America (206 N. Y. 506, 514, 515) the Court of Appeals, after reasserting the rule that the “ * * * place where a cause of action for a breach of contract arises is generally.— almost universally — the place where [633]*633the contract is to be performed.

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Related

Apton v. Barclays Bank, Ltd.
274 A.D. 935 (Appellate Division of the Supreme Court of New York, 1948)

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Bluebook (online)
191 Misc. 629, 76 N.Y.S.2d 871, 1948 N.Y. Misc. LEXIS 2114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apton-v-barclays-bank-ltd-nysupct-1948.