Card v. . Groesbeck

97 N.E. 728, 204 N.Y. 301, 1912 N.Y. LEXIS 768
CourtNew York Court of Appeals
DecidedJanuary 30, 1912
StatusPublished
Cited by8 cases

This text of 97 N.E. 728 (Card v. . Groesbeck) 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
Card v. . Groesbeck, 97 N.E. 728, 204 N.Y. 301, 1912 N.Y. LEXIS 768 (N.Y. 1912).

Opinion

Haight, J.

This action was brought against the defendant as a stockholder of the Prospect Park Company, a corporation, to recover the amount due and owing to the plaintiff by the corporation for his personal services and for services of his brother George, whose claim had been assigned to him. The defendant admits that he was a stockholder of the corporation, but puts in issue in his answer all of the questions which we shall hereafter consider.

Section 57 of the Stock Corporation Law (Cons. Laws, ch. 59) provides that “The stockholders of every stock corporation shall jointly and severally be personally liable for all debts due and owing to any of its laborers, servants or employees other than contractors, for services performed by them for such corporation. Before such laborer, servant or employee shall charge such stockholder for such services, he shall give him notice in writing, within thirty days after the termination of such services, that he intends to hold him liable, and shall commence an action therefor within thirty days after the return of an execution unsatisfied against the corporation upon a judgment recovered against it for services.” And section 59, so far as material, provides that “No action shall be brought against a stockholder for any debt of the corporation until judgment therefor has been recovered against the corporation, and an execution thereon has been returned unsatisfied in whole or in part, and the amount due on such execution shall be the amount recoverable, with costs, against the stockholder.”

In an attempt to comply with the .provisions of section 59 the plaintiff did bring an action against the corporation, in which he alleged for his first cause of action the performance of work, labor and services by himself for *305 the Corporation of the agreed value and price of $135, and demanded judgment for that sum, with interest, etc. For his second cause of action he alleged that George E. Card had performed work, labor and services for the corporation at its request of an agreed price and value of $379.01, and that he had also furnished materials, paid and laid out and expended money for the corporation amounting to $88, all of which the corporation had promised to pay him, and that before the commencement of the action George had duly assigned his claim to the plaintiff, and thereupon judgment was demanded for this cause of action in the sum of $467.01, with interest. The third cause of action was for damages which George had suffered by reason of a breach of an agreement made by the corporation for which he demanded judgment to the amount of $1,245, which cause of action was also assigned to the plaintiff, and he demanded judgment for that amount upon that cause of action, with interest, etc., concluding his complaint with a demand for judgment of $1,847.01, with interest. The corporation interposed an answer, in which it denied any knowledge or information sufficient to form a belief as to each and every of the allegations contained in the complaint.

Upon the trial the jury rendered a verdict in favor of the plaintiff for the sum of $653.03, and returned answers to the questions submitted to them by the court that Lewis H. Card, the plaintiff herein, was entitled to $115, and that George E. Card, except for his assignment, was entitled on account of his services in superintending, making blocks and for his advancements of money, $469.99, and that George E. Card, except for his assignment, was entitled by reason of the breach of the contract $50. Thereupon judgment was entered in favor of the plaintiff against the corporation for $653.03 damages and $167.44 as costs, and execution was subsequently issued thereon, and, as appears from the record, returned by the sheriff nulla bona. Thereupon this action was *306 brought, in which the plaintiff seeks to recover $115 for his own services, $231.87 for the services of George and $147.44 costs in the action against the corporation, making a total of $494.31, with interest thereon from February 29th, 1908, the date upon which judgment was rendered in the action against the corporation.

As to the questions raised with reference to the right of an authorized attorney to sign the thirty-day notice required by the statute and as to the form of the return on the execution, we approve of the determination made by the Appellate Division. We also approve of its determination with reference to the personal claim of the plaintiff for $115, the amount of which was established by the special verdict of the jury in the action against the corporation. We, however, are of the opinion that the $147.44, being the costs taxed in the action against the corporation, which were subsequently adjusted at $167.44, cannot be recovered in this action. It is true that, under the provisions of the statute, the laborer is given the right to recover costs of obtaining his judgment against the corporation, but that provision has reference to the costs of the action to recover for his services only. In this case he included in his action for services an action for materials furnished and money expended, with a claim for damages upon a breach of contract, amounting to $1,245; It is apparent from the record and the course of the trial that the controversy with reference to the amount of services rendered was slight, involving but a few dollars in amount, and that the substantial controversy pertained to the breach of contract for which a large sum was demanded as damages. Had the plaintiff limited his action against the corporation to his claim for work, labor and service, it is quite possible that no defense would have been interposed in that action. The defendant in this action was not a party to the action against the corporation. Neither is he liable for damages for breach of contract by the corporation, nor is he liable for *307 the materials purchased or money borrowed by it. He is only hable for the services rendered by laborers, servants or employees. We do not, therefore, think that he can be charged with costs incurred in the defense of an action prosecuted against the corporation for damages upon causes of action other than that embraced in the statute.

In the second cause of action alleged by the plaintiff in his action against the corporation, he has, as we have seen, demanded judgment for $467.01, $379.01 being for the work, labor and services performed by George E. Card, and the balance for materials furnished and money paid out, amounting to $88. The special verdict rendered upon this cause of action by the jury was for $469.99. The variance in amount between the demand and the recovery is trivial, but the fact remains that a portion of the amount so found consists of material furnished and money expended for the corporation, and there is no verdict of the jury specifically fixing’ the amount due for services rendered. It is contended, however, that that amount can be figured out and ascertained from a paper attached to the judgment roll in the former action, known as Exhibit No. 2. The exhibit contains statements similar to the following: “March 23, to 6 days labor, $6 per day, $36.00.” And then follow various similar statements, giving dates and amounts, from which we have a charge of $231.87.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pope v. Halloran
76 A.D.2d 770 (Appellate Division of the Supreme Court of New York, 1980)
H. D. S. Mercantile Corp. v. Monet Fashions, Inc.
37 Misc. 2d 82 (New York Supreme Court, 1962)
Arenwald v. Douglas Machinery Co.
183 Misc. 627 (New York Supreme Court, 1944)
McDowell v. C. H. Boley Co.
34 Pa. D. & C. 307 (Philadelphia County Court of Common Pleas, 1938)
Cook v. Superior Court
55 P.2d 1227 (California Court of Appeal, 1936)
In re the Estate of Cohen
149 Misc. 765 (New York Surrogate's Court, 1933)
Horowitz v. Winter
129 Misc. 814 (City of New York Municipal Court, 1927)
Bottlers Seal Co. v. Rainey
153 N.E. 437 (New York Court of Appeals, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
97 N.E. 728, 204 N.Y. 301, 1912 N.Y. LEXIS 768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/card-v-groesbeck-ny-1912.