Cedar Rapids Engineering Co. v. Haenelt

68 Misc. 2d 206, 326 N.Y.S.2d 653, 1971 N.Y. Misc. LEXIS 1102
CourtNew York Supreme Court
DecidedNovember 24, 1971
StatusPublished
Cited by4 cases

This text of 68 Misc. 2d 206 (Cedar Rapids Engineering Co. v. Haenelt) 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
Cedar Rapids Engineering Co. v. Haenelt, 68 Misc. 2d 206, 326 N.Y.S.2d 653, 1971 N.Y. Misc. LEXIS 1102 (N.Y. Super. Ct. 1971).

Opinion

John T. Casey, J.

The defendant requests an order vacating or modifying an order of replevin. The plaintiff obtained the order incident to its action to recover certain chattels from the defendant. The venue of the action was fixed in the Supreme Court of Sullivan1 County. The order was signed by the County [207]*207Judge of Sullivan County as an Acting Supreme Court Justice.2 The replevin order was obtained ex parte, i.e., the defendant was not notified of plaintiff’s application for the order of replevin.

The defendant’s motion to vacate or modify the order was returnable at a Special Term of the Supreme Court in Sullivan County. This court has jurisdiction to entertain the motion (CPLft 2221; cf. Matter of Willmark Serv. System, 21 A D 2d 478).

In connection with his business, which he operated in Sullivan County, the defendant purchased certain machinery, small tools, equipment, parts and other articles from the plaintiff. The consideration for the purchase of the chattels consisted, in part, of two promissory notes executed by the defendant and payable to the plaintiff, which were to be paid off in regular installments. As security for the notes the defendant signed a security agreement where by title to the chattels remained with the plaintiff until the notes had been paid in full; upon default the plaintiff could declare the entire balance due; upon default the plaintiff without notice or demand could, by process of law or otherwise, take possession of all or any part of the chattels.

During the course of their relationship the plaintiff applied for and obtained the replevin order, which is the subject of the present motion. In its application for that order plaintiff presented the County Judge with (1) the summons and complaint in the underlying action; (2) an affidavit of a regional manager; (3) an affidavit of its attorney. The manager affirmed that plaintiff had a security interest in certain chattels in defendant’s possession; that defendant had defaulted; that plaintiff elected to declare the entire balance due; that plaintiff demanded payment and defendant refused; that under security agreement plaintiff was entitled to immediate possession of the chattels. Plaintiff’s attorney stated he had been advised by the regional [208]*208manager that many of the chattels were small and of considerable value; that if notice of the application for the replevin were given to the defendant, some, if not all, of those chattels could be removed by the defendant; that the larger items were subject to possible damage by the defendant.

Based upon the papers, the replevin order was signed and the Sheriff was directed to seize the chattels and, if necessary, to enter defendant’s premises and buildings. The order also dispensed with giving defendant notice of the application for the replevin order. Subsequently, the Sheriff entered defendant’s premises, seized the chattels and shortly thereafter transferred them to plaintiff.

The defendant has raised, inter alia, two arguments concerning the validity of the replevin order; the sections of the CPLR which authorized the replevin are unconstitutional on their face; the sections were unconstitutionally applied. Significantly, in support of this motion the defendant has submitted affidavits wherein he claims he was not in default. (See Brunswick Corp. v. J. & P., Inc., 424 F. 2d 100; Laprease v. Raymours Furniture Corp., 315 F. Supp. 716.)

Defendant’s first argument concerning the constitutionality of the sections authorized replevin hinges upon whether a debtor has a constitutional right to notice and an opportunity to be heard prior to the issuance of a replevin order. Stated another way, defendant claims ex parte replevin orders are unconstitutional. Several recent cases dealing with prejudgment remedies of a plaintiff must be considered. Two are especially important (Sniadach v. Family Finance Corp., 395 U. S. 337; Laprease v. Raymours Furniture Co., supra).

In Sniadach, the seminal case in the judicial inquiry concerning the constitutionality of provisional remedies, the Supreme Court of the United States held that the prejudgment garnishment of an alleged debtor’s wages without notice and an opportunity for a hearing violated the procedural due process guarantee of the Fourteenth Amendment to the United States Constitution. According to the majority, wages were a specialized type of property presenting distinct problems in our economic system. The prejudgment attachment of wages could as a practical matter drive a wage-earning family to the wall. (Sniadach v. Family Finance Corp., supra at pp. 341-342.) As a result the creditor obtained tremendous leverage and the debtor may have been forced to capitulate and forego his defense in the action. The majority recognized that such a summary-procedure might well meet the due process requirements in extraordinary situations requiring special protection to a State [209]*209or creditor interest. The wage garnishment statute, however, was not narrowly drawn to meet such situations and, therefore, was unconstitutional.

In Laprease, a three Judge Federal court declared certain former sections of CPLR article 71, which dealt with replevin, unconstitutional on their face. Those sections authorized replevin upon delivering to a Sheriff an affidavit, a requisition and an undertaking. The court held the procedure prescribed by those sections deprived debtor of his constitutional guarantee of freedom from unreasonable searches and seizures contained in the Fourth Amendment to the United States Constitution, and his constitutional guarantee of procedural due process contained in the Fourteenth Amendment to the United States Constitution. Like the majority in Sniadach, the three Judges agreed that replevin without a hearing would be constitutional where there was an overriding governmental or creditor interest. The subject provisions of CPLR article 71 were unconstitutional, however, because they were not narrowly drawn to meet the special situations.

After Laprease the Legislature amended portions of article 71. The Legislature left the determination of whether to afford the debtor notice and an opportunity to be heard prior to issuing a replevin order to the discretion of the Trial Judge to whom the application for the replevin order was made.3 ****8

Notice and an opportunity to be heard need not be afforded the debtor prior to every replevin order. (E.g., Sniadach v. Family Finance Corp., supra; Laprease v. Raymours Furniture Corp., supra; Wheeler v. Adams Co., 322 F. Supp. 645, 657; but, see, The Supreme Court, 1968 Term, 83 Harv. L. Rev. 60, 117; contra: Note, 35 Albany L. Rev. 370, 378.) The procedures required by due process in replevin situations change in relation to several variables, some of which are the type of property, the character and extent of any creditor or governmental interest, the effect upon the debtor of the deprivation of the use of the property pending the outcome of the lawsuit. Obviously, the Legislature could not outline the due process requirements for each replevin case. Viewed in this light, defendant’s claim [210]*210that article 71 is unconstitutional on its face is untenable. (Seagram & Sons v.

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Cedar Rapids Engineering Co. v. Haenelt
39 A.D.2d 275 (Appellate Division of the Supreme Court of New York, 1972)

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Bluebook (online)
68 Misc. 2d 206, 326 N.Y.S.2d 653, 1971 N.Y. Misc. LEXIS 1102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedar-rapids-engineering-co-v-haenelt-nysupct-1971.