Bowen v. Delaware, L. & W. Railroad

31 N.Y.S. 286, 82 Hun 39, 89 N.Y. Sup. Ct. 39, 63 N.Y. St. Rep. 632
CourtNew York Supreme Court
DecidedDecember 7, 1894
StatusPublished

This text of 31 N.Y.S. 286 (Bowen v. Delaware, L. & W. Railroad) 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
Bowen v. Delaware, L. & W. Railroad, 31 N.Y.S. 286, 82 Hun 39, 89 N.Y. Sup. Ct. 39, 63 N.Y. St. Rep. 632 (N.Y. Super. Ct. 1894).

Opinion

MASTIN, J.

This action was brought to recover the possession of certain real property described in the complaint. Among other matters set up in the answer, the defendant alleged as a defense that the cause of action herein accrued more than two years prior to the commencement of the suit, and that it was barred by section 5057 of the United States Bevised Statutes, which declares:

“No suit, either at law or in equity, shall be maintainable in any court between an assignee in bankruptcy and a person claiming an adverse interest, touching any property or rights of property transferable to or vested in such assignee, unless brought within two years from the time when the cause of action accrued for or against such assignee.”

Whether this statute was a bar to the plaintiff’s action is the only question we need consider on this appeal. The language of the statute is broad, and seems to be sufficiently comprehensive to constitute a defense to this action. Whatever interests Anna N. Dwight, the bankrupt, had in the premises in question, passed to the plaintiff as her assignee on the 10th of December, 1878. In September, 1880, the New York, Lackawanna & Western Bailway Company claimed to have acquired title and entered into the possession of the premises, and during that month commenced the work of erecting a bridge and embankment thereon. On the 2d of October, 1882, the defendant leased the New York, Lackawanna & Western Eailroad, and since that time has been in possession thereof, claiming a right to the premises in question. At the request of the plaintiff, the court, among other things, found:

“That in the year 1880 the New York, Lackawanna & Western Railway Company, unlawfully and without the permission of the plaintiff, entered into the possession of the premises described in the complaint, and constructed a high railroad embankment and built railroad abutments and piers thereon, and upon said embankment and piers placed their railroad tracks; that on or about the 2d day of October, 1882, the above-named defendants, without the permission of the plaintiff, took possession of the premises described in the complaint, since which time they have been in the actual possession of the said premises, claiming title thereto.”

As a conclusion of law the court held that the plaintiff’s cause of action accrued to him in September, 1880, and as this action was commenced July 23,1888, it was barred by section 5057. The plaintiff contends that that statute is not applicable to this case, because the cause of action for which it was brought never vested in the bankrupt, but arose out of a wrong to the plaintiff as assignee, or to the property vested in him. To sustain this contention he cites the case of Stevens v. Hauser, 39 N. Y. 302. The question in that case arose under the bankrupt law of 1841, which provided:

“No suit at law or in equity shall, in any case, be maintainable by or against such assignee or by or against any person claiming an adverse interest touching the property and rights of property aforesaid, in any court whatsoever, unless the same shall be brought within two years after the declaration and decree of bankruptcy, or after the cause of suit shall first have accrued.”

[288]*288That was an action of ejectment brought by the plaintiff, who obtained his title through a conveyance from an assignee in bankruptcy. The defendant set up the foregoing statute as a bar. His possession did not commence until four years after the title was vested in the assignee. In that case it was said, following the opinion of Mr. Justice Nelson in Re Conant, 5 Blatchf. 54, Fed. Cas. No. 3,086, that the act of congress (Laws 1841) limiting the assignee in bankruptcy to two years within which to bring the action had no application to a cause of action arising in his own favor for. injury to property, or a disseisin of lands vested in him by the proceeding. In the Stevens Case it appears in the opinion of Mason, J., that the case failed to show that the defendant or any one else claimed to hold the premises adversely, or under a title adverse to that of the assignee or the plaintiff, to whom the title was transferred. The judge, in delivering the opinion, said:

“This eighth section of the bankrupt act, prescribing this two-years statute ■of limitations, never was to bar the right of entry as against a purchaser from the assignee in bankruptcy, where the bankrupt actually had the title, .and the assignee sold and conveyed it by order of the court. It was never intended to limit this action of ejectment, in such a case, to two years.”

It will be perceived that the Stevens Case is unlike the one at bar, in that the action was there brought by a purchaser from the assignee in bankruptcy under a sale and conveyance made by an order of court. While it may be that congress had authority and intended to provide that no action should be brought by or against an assignee unless commenced within two years, yet it might not have power or have intended to provide that a purchaser of the property of a bankrupt should not maintain an action after two years where the bankrupt had actual title, and the assignee sold and conveyed it by an ■order of court. In Banks v. Ogden, 2 Wall. 69, 70, it was doubted if the limitation of that statute could be applied to sales of real estate made by an assignee under the order of the district court having general jurisdiction of proceedings in bankruptcy. The appellant, as sustaining his contention, also cites the cases of Davis v. Anderson, 6 N. B. R. 145, Fed. Cas. No. 3,623; Sedgwick v. Casey, 4 N. B. R. 496, Fed. Cas. No. 12,610; Smith v. Crawford, 9 N. B. R. 38, Fed Cas. No. 13,030; In re Krogman, 5 N. B. R. 116, Fed. Cas. No. 7,936; and Bachman v. Packard, 7 N. B. R. 353, Fed. Cas. No. 709. In the Davis Case it was held that the limitation of two years in section 2 of the bankrupt act of 1867 applied only to property held adversely to the bankrupt and his assignee, and that, where the bankrupt fraudulently ■conveyed his lands to avoid a judgment, a purchaser under the judgment and a sale made under execution after proceedings in bankruptcy could not defend on the ground that the assignee did not commence suit to set aside the execution, sale, and deed within two years after the assignment, as no cause of action accrued to the assignee against the purchaser until he acquired his title under the judgment and execution sale. The Sedgwick Case, in effect, held that the statute of limitations contained in section 2 of the bankrupt law of 1867 was not applicable to a suit to collect a debt or to enforce the payment of money due upon a contract. The Smith Case was to the [289]*289same effect, holding that section 2 did not apply to the collection of ordinary debts due the bankrupt prior to the adjudication. In Be Krogman, where the defendant simply disputed the amount of the assignee’s claim, and not the assignee’s interest and rights touching the property, it was held that section 2 did not apply. The decision in the Bachman Case was to the effect that the concurrent jurisdiction conferred upon the circuit court by section 2 of the bankrupt act of 1867 was limited to cases where there was a controversy concerning the right to, or some interest in, some specific thing between the assignee and a third person, and did not include an action to collect a debt. These cases do not, we think, aid the appellant; and the only ones to which our attention has been called which even tend to uphold his contention are the Conant and Stevens Cases, to which we have already referred.

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Related

Banks v. Ogden
69 U.S. 57 (Supreme Court, 1865)
Bailey v. Glover
88 U.S. 342 (Supreme Court, 1875)
Gifford v. Helms
98 U.S. 248 (Supreme Court, 1878)
Jenkins v. International Bank
106 U.S. 571 (Supreme Court, 1883)
Avery v. Cleary
132 U.S. 604 (Supreme Court, 1890)
Stevens v. . Hauser
39 N.Y. 302 (New York Court of Appeals, 1868)
Cleveland v. . Boerum
24 N.Y. 613 (New York Court of Appeals, 1862)
Harvey v. Gage
31 F. 275 (U.S. Circuit Court, 1887)
Bachman v. Packard
2 F. Cas. 314 (U.S. Circuit Court, 1872)
Phelan v. O'Brien
13 F. 656 (U.S. Circuit Court for the District of Eastern Missouri, 1882)
In re Conant
6 F. Cas. 257 (U.S. Circuit Court for the District of Southern New York, 1862)
Sedgwick v. Casey
21 F. Cas. 976 (S.D. New York, 1871)
Davis v. Anderson
7 F. Cas. 103 (E.D. Missouri, 1872)

Cite This Page — Counsel Stack

Bluebook (online)
31 N.Y.S. 286, 82 Hun 39, 89 N.Y. Sup. Ct. 39, 63 N.Y. St. Rep. 632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowen-v-delaware-l-w-railroad-nysupct-1894.