Blake v. Barnes

26 Abb. N. Cas. 208
New York Supreme Court·Decided December 15, 1890·Published·Cited by 1 cases

Opinion

Barrett, J.

The only question upon which I reserved my judgment was as to the appropriation of the firm name. The other claims upon which we are asked to pass by the surrogate’s court, and to assume general jurisdiction of an ordinary accounting by executors, are entirely unsubstantial. Some of them are plainly frivolous, and all of them have been put forward seemingly for the purpose of evading the general rule that a court of equity will not take cognizance of an action for the settlement of an estate disconnected with the enforcement of a trust, unless special reasons [212]*212are assigned and facts stated to show that complete justice cannot be done in the surrogate’s court (Chipman v. Montgomery, 63 N. Y. 222; Hard v. Ashley, 117 N. Y. 606).

In her complaint the plaintiff does not directly attack the assignment to A. S. Barnes & Co. of her legacy. She proceeds as though that assignment had not been made, and when the defendants set it up in their answer, she replies, attacking it upon the ground of fraud, and asking for still other reasons that it be treated as inoperative. Without considering the question whether the complaint should not have affirmatively shown the special reasons and facts which would prevent the surrogate from doing complete justice in this, particular, I am bound to find that the plaintiff has failed to establish the facts upon which she seeks to-avoid the assignment, and that the issue on that head, made up by the answer and reply, must be decided adversely to her contentions.

Nor is it necessary to consider the question of the jurisdiction of the surrogate with regard to the special-facts set up in the complaint, upon which our powers as a court of equity are invoked, for the reason that the plaintiff has wholly failed to establish the claims made by these allegations. It is not enough to allege special facts which would oust the surrogate and justify resort to our jurisdiction. Such facts must be true and should be established by competent testimony. The rule cannot be evaded by mere assertion. These observations, apply to the charges with regard to the insufficiency of the rents of 111 and 113 William street, and of the factory in Brooklyn ; also as to the engines, boilers, etc., in the Brooklyn factory; also as to the claim against, the firm of Knight, Loomis & Co., the charge of usury in the $70,000 note, and of fraud in the request of June-. 19, 1888, to pay certain notes of F. D. Blake & Co.

It is urged that these matters should not now be [213]*213passed upon, but that an accounting should be directed before a referee, and all claims reserved until the final hearing upon the referee’s report. This argument overlooks the rule that an accounting should not be ordered until the special facts which justify the passing by of the surrogate’s court are established. If any such fact is established, then the court, as a court of equity, will assume jurisdiction of the estate and of the general accounting. It will not limit the relief to the single fact which appropriately brought the case within its jurisdiction. Having commenced, it will proceed to the end, and do all that justice requires. As was said in Wager v. Wager (89 N. Y. 168): “If the court has obtained jurisdiction for the purpose of establishing the equitable right of the next of kin to the personal estate, that carries with it jurisdiction to adjust the whole controversy.” If, however, not a single fact is established which calls for the exercise of our jurisdiction, the court should dismiss the complaint. It will not, after finding every such fact adversely to the plaintiff, direct the ordinarv accounting which the surrogate is competent to supervise.

This brings me to the consideration of the question as to the appropriation of the old firm name. If this name was properly an asset of the estate in which the plaintiff was entitled to share, and she has been deprived of such share, then the claim of the executors and of the members of the new firm would bring the case within the principle enunciated in Wager v. Wager (supra). It was there held that any person claiming an interest in the personalty as legatee under the will, may, when the executor claims such interest in his own right, bring suit against him to settle the construction and ascertain the validity of the provisions of the will so far as the plaintiff’s interest is concerned, and to enable him to obtain from the executor such portions of the estate as he is legally or equitably entitled to. [214]*214This proceeds upon the jurisdiction of equity over trusts, and upon the theory that an executor is always a trustee of personal estate although no express trusts-are created by the will.

1 have therefore examined the question thus presented, and I am of opinion that upon the special facts of this case, the firm name passed to the surviving members of the old firm as part of the good will of the business under the Settlement contemplated by the articles of co-partnership.

This, too, would have been the result, apart from the articles of co-partnership. Upon this question the language of Ruger, C. J., in Caswell v. Hazard (121 N. Y. 484), is unmistakable. The learned Chief Judge observed: “ We are also of the opinion that the present defendants have, as the legitimate successors of the firm of Caswell, Hazard & Co., lawfully acquired its right to use that name as a firm name. At common law it was undoubtedly the right of such members of a dissolved firm, having an established reputation for the character and quality of the goods manufactured by them, who desired to continue such business, to continue the former firm name and transact business thereunder, álthough none of such parties bore the names contained in the original firm (L. C. Co. v. A. C. Co., 4 DeG., J. & S., 143 ; 11 H. L. Cas. 534).”

This is in accordance with the views of the text writers and with the English authorities. Mr. Story says that the right to use the name of a known and celebrated firm does not fall within the true character and nature of good-will, but that it belongs to the surviving partner {Story on Partnership, 5 th ed. § 100, and note). ' So in Lewis v. Langdon (7 Sim., 421), the Vice-Chancellor said : I cannot but think, where two partners carry on a business in partnership together under a given name, that during the partnership it is the joint right of them both to carry on the [215]*215business under that name, and that, upon the death of one of them, the right, which they before had jointly, becomes the separate right of the survivor.” (See also Collyer on Partnership, 8th Am. ed. §§ 162, 163, and note; Hammond v. Douglass, 5 Ves., 539; Crawshay v. Collins, 15 Ves. 227 ; Webster v. Webster, 3 Swanst. 490).

The cases where a different view may seem, upon a cursory examination, to have been taken are not really in point. They were cases either of trademarks or of good-will arising between vendor and vendee or between the living survivors of a dissolved firm (Dougherty v. Van Nostrand, Hoffm. 68; Howe v. Searing, 6 Bosw. 354; Bininger v. Clark, 10 Abb. Pr. N. S. 264). There can be no doubt that trademarks and good-will are important parts of the property of a firm, and that upon a dissolution each of the members is entitled to share therein the same as in other assets.

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Blake v. Barnes, 26 Abb. N. Cas. 208 (N.Y. Super. Ct. 1890).

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