Atkins v. Hosley

3 Thomp. & Cook 322
CourtNew York Supreme Court
DecidedApril 15, 1874
StatusPublished

This text of 3 Thomp. & Cook 322 (Atkins v. Hosley) 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
Atkins v. Hosley, 3 Thomp. & Cook 322 (N.Y. Super. Ct. 1874).

Opinion

Gilbert, J.

The defendants being in the actual possession of the canal boat at the time of the sale thereof to the plaintiff, the law annexed, by implication, a warranty of title thereto by the vendors. Scranton v. Clark, 39 N. Y. 220. It is otherwise when a vendor sells chattels not in his possession. S. C., 39 Barb. 273, and authorities cited. In this case it cannot be disputed that the defendants gave such a warranty, for the answer expressly admits the fact. In the findings of the referee, the warranty is stated to be one against incumbrances only, but the facts found clearly establish a warranty of title also.

Was a breach of this warranty proved ? It appears that one • Swartz, was the original owner of the canal boat; that the title of the defendants was derived from a sale of the boat, made by Swartz to them October 7, 1869, and that the sale to the plaintiff was made nine days afterward, namely, October 16, 1869. Swartz had, before the sale to the defendants, sold the boat to one Halstead, and had taken Halstead’s notes for the price, payable at successive times, together with a chattel mortgage on the boat to secure the payment of the notes. One of these notes became due, and Halstead neglected to pay it. Whereupon Swartz seized the boat, and caused her to be [324]*324sold to one Frank. The referee has found that this sale was made without notice to said Halstead, and without public notice, and that it was fraudulent and inequitable and in derogation of the rights of Halstead, he then being the owner of the boat.

Immediately after the sale to Frank, Swartz bought the boat from him, and then sold her to the defendants. Before the sale by Swartz to the defendants, however, namely, on the 20th of September, 1869, Halstead commenced a suit in equity against Swartz to redeem the boat, and on the 11th of January, 1870, obtained a judgment therein by default, whereby it was, among other things, adjudged and decreed, that Halstead owned and was entitled to the immediate possession-of the boat, and that Swartz deliver her to Halstead free and clear of incumbrances made or suffered by him, or any person claiming by, from or under him since September 10, 1869. Upon this judgment an execution was duly issued to the sheriff of the city and county of New York, under and by virtue of which said sheriff, on the 26th day of October, 1870, seized said boat and took her from the possession of the plaintiff, and the plaintiff has been deprived of her ever since. The judgment was, on motion of Swartz, vacated on the 15th November, 1870, and this suit was not commenced until March, 1871. In the meantime, efforts were made to have the possession of the boat restored to the plaintiff, but they proved fruitless, and the boat has been wholly lost to him.

At the trial the defendants objected to the admission of the judgment recovered by Halstead in evidence, on the ground that neither the defendants nor the plaintiff were parties to it, and that it was not in force when this action was commenced. The referee overruled the objection, and the defendants excepted. We think the evidence was properly admitted.

An eviction under a paramount title, with which the plaintiff was not connected, was all the proof necessary to entitle him to recover for a breach of the warranty. Sweetman v. Prince, 26 N. Y. 224; Burt v. Dewey, 40 id. 283; Bordwell v. Collie, 45 id. 494; Rawle on Cov., ch. 5, 7. The judgment was clearly competent to prove the fact that such an adjudication had been made, and that the eviction under it was legal; in other words, that the sheriff was not a naked trespasser whom the plaintiff was bound to resist. It was also admissible upon another ground, namely, that upon which papers or documents executed by Swartz and Halstead, and constituting muniments of title, would have been competent to prove [325]*325the interest of either of them. In this point of view, neither kind of evidence is obnoxious to the objection, that it is res inter alios acta. The effect to be given to the judgment after its admission is another question. We think it was at least prima facie evidence of the facts established by it. 1 Greenl. Ev., §§ 189, 523; Candee v. Lord, 2 N. Y. 269; Voorhees v. Seymour, 26 Barb. 569, 585; Jarvis v. Sewall, 40 id. 464; Hall v. Stryker, 27 N. Y. 596; Rinchey v. Stryker, 28 id. 45; Barney v. Patterson, 6 Har. & J. 182, 203. It is true that a judgment or decree binds only the parties and their privies in representation or estate. But the authorities cited on this subject show that the defendants were privies of Swartz, within the meaning of the rule. Greenleaf says, “ the term ‘privity’ denotes mutual or successive relationship to the same rights of property;” and in Candee v. Lord, it was held that a judgment recovered by a creditor against his debtor, without fraud or collusion, whether rendered upon default, confession, or after contestation is, upon all questions affecting the title to his property, conclusive evidence against his creditors to establish, 1st, the relation of creditor and debtor between the parties to the record; and 3d, the amount of the indebtedness, because it is conclusive between the parties to the record, and because the claims of other creditors upon the debtor’s property are through him. The other cases cited are to the same effect. So here the defendants claim through Swartz. He could convey no greater interest than he owned, and his transfer was necessarily subject to the rights legal, or equitable, of Halstead.

If it had appeared that the complaint in the suit in which the judgment was recovered had been filed before the sale to the defendants, a lis pendens would have been created, and on this ground the judgment would have been conclusive. A purchase of property actually in litigation, pendente lite, is subject to the judgment or decree that may be made in the suit. Story says (Eq. Jur., § 406:) “ He who purchases during the pendency of a suit, is held bound by the decree that may be made against the person from whom he derives title.” The reason is, that “ otherwise alienation made during a suit might defeat its whole purpose, and there would be no end to litigation.” Hence public policy, irrespective of the rights of the parties, requires that the judgment should have that effect. But the commencement of an action, by the service of a summons, does not create a lis pendens affecting third persons not parties to the [326]*326action. To bind a purchaser pendente lite by the judgnient, there must be a complaint on file at. the time of his purchase in which the claim upon the property is set forth. Leitch v. Wells, 48 N. Y. 585, and cases cited. As the case does not show this prerequisite to an effectual lis pendens, the judgment had not a conclusive effect upon the defendants •, in other words, the suit did not affect them with notice. But as they took subject to ail the equities of the parties, no notice was necessary in order to invalidate their purchase, or to let in those equities. In all other respects, except as to notice, the judgment bound them.

We think also, that giving to the judgment this limited effect, and taking the facts proved dehors the record, an eviction by paramount title was shown. The judgment established the rights of Halstead and Swartz, as between themselves.

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Related

Leitch v. . Wells
48 N.Y. 585 (New York Court of Appeals, 1872)
Mack v. . Patchin
42 N.Y. 167 (New York Court of Appeals, 1870)
Sweetman v. . Prince
26 N.Y. 224 (New York Court of Appeals, 1863)
Hall v. . Stryker
27 N.Y. 596 (New York Court of Appeals, 1863)
Scranton v. . Clark
39 N.Y. 220 (New York Court of Appeals, 1868)
Candee v. . Lord
2 N.Y. 269 (New York Court of Appeals, 1849)
Voorhees v. Seymour
26 Barb. 569 (New York Supreme Court, 1857)
Scranton v. Clark
39 Barb. 273 (New York Supreme Court, 1863)
Chamberlain v. Martin
43 Barb. 607 (New York Supreme Court, 1865)
Staats v. Executors of Ten Eyck
3 Cai. Cas. 111 (New York Supreme Court, 1805)
Charter v. Stevens
3 Denio 33 (New York Supreme Court, 1846)
Peters v. McKeon
4 Denio 546 (New York Supreme Court, 1847)
Barney v. Patterson's Lessee
6 H. & J. 182 (Court of Appeals of Maryland, 1824)

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Bluebook (online)
3 Thomp. & Cook 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atkins-v-hosley-nysupct-1874.