Board of Supervisors v. Deyoe

57 How. Pr. 134
CourtNew York Court of Appeals
DecidedMay 15, 1878
StatusPublished

This text of 57 How. Pr. 134 (Board of Supervisors v. Deyoe) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Supervisors v. Deyoe, 57 How. Pr. 134 (N.Y. 1878).

Opinion

Andrews, J.

This is an appeal from the judgment of the general term affirming the judgment of the special term, sustaining the demurrer of the defendant, Ella Deyoe, to the plaintiff’s complaint.

The complaint shows that each one of the fifty-three defendants is the holder of one or more notes, purporting to be the notes of the county of Saratoga, issued by Henry A. Mann, county treasurer, in 1875, and signed by him in his official character, and which amount in the aggregate, to $138,631.

The notes on their face refer to a resolution of the hoard of supervisors passed in Hovember, 1874, as the authority under which they were issued. The hoard of supervisors in that month, by resolution, directed the county treasurer to procure an extension of a county debt of $12,800.44, maturing on or before February 12,1875, and by another resolution authorized the treasurer to borrow on the credit of the county the sum of $8,000, payable in one year with interest.

The resolution last referred to was the only authority given by the supervisors to the treasurer to borrow any money on the credit of the county. The treasurer, pretending to act under the authority of this resolution, on the 15th day of February, 1875, issued notes dated on that day to an amount exceeding $50,000, and from time to time during that year issued other notes, making seventy-three in all of the aggregate amount before stated.

[144]*144. From the avails of these notes the treasurer paid the debt of $12,800.44.

The complaint charges and the defendant, by her demurrer, admits that the notes are not valid or legal debts against the county, except to the extent of $20,800.44, and to this extent the complaint concedes that the county is liable thereon. Prior to the commencement of this action thirty-one of the defendants had brought separate suits against the county, to recover on the notes held by them respectively, and the complaint charges that the other defendants in like manner intend to commence suits on their claims.

In addition to the facts above stated the complaint alleges that the plaintiff is uncertain and with due diligence has been unable to ascertain who are the rightful owners of the debts, owing by the county, or how much of the same is due to either of the defendants, and that it cannot with safety determine the question; that the county is ready and willing to pay the $20,800.44, as soon as it can be ascertained who are rightfully entitled thereto, and that a litigation with each defendant in a separate suit, upon his claim, will subject the plaintiff to great and unnecessary .expense and trouble and will be oppressive and vexatious.

The relief demanded is that the defendants and each of them may be enjoined and restrained from further prosecuting the actions commenced against the plaintiff, or from commencing other actions upon the claims mentioned, and that it may be adjudged which of the notbs held by the defendants are valid debts against the county and which are invalid, and that the invalid notes be surrendered and canceled. The plaintiff also asks that the defendants may interplead and for general relief.

The question presented is whether upon the facts stated in the complaint a case is made which, upon principles of equity, entitle the plaintiff to implead the fifty-three holders of the notes for the purpose of having their respective" rights and the liability of the county determined and settled in a sin[145]*145gle action. It is plain that the authority of the treasurer to issue the obligations of the county was limited to issuing notes to the amount specified in the resolution of the supervisors. The issue of notes beyond that amount was a palpable breach of duty and a transgression of the limits of the authority conferred.

The question whether, notwithstanding the limitation of the authority, persons dealing with the treasurer and advancing money in good faith upon his assurance that the particular transaction was a part of the authorized dealing, does not, we think, arise upon the case as now presented. The demurrer admits that the actual authority was that conferred by the resolution of the supervisors, and that the county is not liable beyond the sum alleged in the complaint.

The defendants may, by answer, set up the facts upon which they rely to establish the liability of the county for their respective demands, although the power of the treasurer under the resolution had been in fact exhausted when the particular dealing took place.

We shall assume, in disposing of the case before us, that the county is only liable to the extent of $8,000 and the additional sum received on the notes which was applied to the use of the county, and leave the determination of the question whether it is liable beyond these amounts, to be determined when the facts shall be fully presented.

The case then is briefly this: The county owes a debt of $20,800.44, which it is ready and willing to pay. This debt is represented by notes of the county treasurer which are admitted to be valid. The treasurer, under an authority to issue notes for money advanced to the county to the amount of this debt, had fraudulently issued notes amounting in the aggregate to many times this debt. These notes, seventy-three in number and of various amounts, are held by fifty-three different individuals who are the defendants in this action.

The county is not liable upon the notes beyond the sum [146]*146above stated. The valid and invalid notes are of the same form and all refer on their face to the same resolution of the supervisors as the authority under which they were issued.

The subject has become so complicated and entangled by the acts of the treasurer that the county cannot distinguish the valid from the invalid notes. Thirty-one of the fifty-three defendants have commenced separate suits upon the notes held by them, and the other defendants are about to commence similar actions.

It is to be observed that the claims of the several defendants are of the same general nature; that is to say, they all' ■arise upon notes issued by the county treasurer and which purport to have been issued under the same specific authority. Each defendant claims, by virtue of a contract with the county, through the treasurer. Each defendant also claims that the notes held by him are valid obligations of the county. But upon the averment in the complaint, admitted by the demurrer, that the whole liability of the county does not ■exceed $20,800.44, this claim, in substance, is equivalent to a ■claim by each defendant — that the note held by him represents a part of that sum. It is very obvious that upon the fact stated in the complaint the prosecution of separate actions by each defendant will involve the county in great perplexity and embarrassment. It cannot voluntarily pay the claims of any of the defendants because it cannot distinguish between them. It will be compelled to litigate the several actions and in such separate litigations it will encounter the further difficulty that a judgment in one action will not determine the rights of the claimant in any other' action.

If judgments against the county to the extent of the conceded debt shall be obtained, it will not prevent a recovery by the other claimants in a subsequent trial and before another jury, where the facts may be changed or more fully disclosed, •or different inferences be deduced from them.

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Bluebook (online)
57 How. Pr. 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-v-deyoe-ny-1878.