Central Hanover Bank & Trust Co. v. Vernon Estates, Inc.

238 A.D. 565, 265 N.Y.S. 527, 1933 N.Y. App. Div. LEXIS 9550
Appellate Division of the Supreme Court of the State of New York·Decided June 20, 1933·Published·Cited by 1 cases

Opinion

Merrell, J.

Plaintiff brings this action to foreclose a first mortgage on real property in the borough of Manhattan, New York city. Plaintiff asks a deficiency judgment against the defendants Julius Blauner, Isidor Blauner, Louis Blauner and Samuel A. Blauner, individually and as executors and trustees aforesaid, mder an extension agreement executed.by the mortgagee and said Blauners, as such executors and trustees, as mortgagors, extending the time of payment of the principal sum evidenced by the bond and secured by the mortgage sought to be foreclosed in this action. The answer of the defendants, respondents, denied certain allegations of the amended complaint, and sets forth two separate and distinct defenses. Plaintiff moved at Special Term to strike out the second separate and distinct defense contained in the answer of the respondents, pursuant to the provisions of rule 109 of the Rules of Civil Practice, on the ground that said defense was insufficient in law. The court at Special Term, by the order appealed from, denied plaintiff’s motion.

For said second separate and distinct defense the said defendants allege that the extension agreement set forth in the amended complaint was executed by the answering defendants and one Isidor Blauner, as executors of and trustees under the last will and testament of Jacob Blauner, deceased; that after the commencement of the present action, and before service of any process upon him, the said Isidor Blauner departed this life, a resident of the State of New York, leaving a last will and testament, which has been duly admitted to probate. The defendants then allege that if any liability exists against the defendants answering herein, it is a joint liability with the said Isidor Blauner, and that the plaintiff has failed to bring in, as defendants in this action, the legal representatives of said Isidor Blauner, deceased, and that there is, therefore, a defect of parties defendant.

The court at Special Term correctly held that the extension agreement was a joint obligation. The court held that inasmuch as it did not appear on the face of the complaint that Isidor Blauner was dead, the defect in parties upon the plaintiff’s failure to join [567] the personal representatives of the deceased must be raised by answer.

We are of the opinion that the failure of the plaintiff to join in the action the legal representatives of the deceased executor or to allege his death is of no consequence so far as the present action is concerned. We are, furthermore, of the opinion that the legal representatives of Isidor Blauner are not proper parties and cannot be joined as parties defendant in the present action. The plaintiff concedes that the obligation upon which the defendants are sought to be held is a joint one, and that the death of Isidor Blauner occurred subsequent to the commencement of the present action. We do not think the failure to allege in the complaint the death of Isidor Blauner constitutes any defense in the present action against the surviving executors and trustees. In the amended complaint a deficiency judgment is demanded against Julius Blauner, Louis Blauner, Samuel A. Blauner and Isidor Blauner, individually and as executors of and trustees under the last will and testament of Jacob Blauner, deceased. The joint obligation of said executors and trustees arose out of the said extension agreement. At the time the agreement was made, upon the death of one joint obligor, his legal representatives did not become liable on the joint obligation unless and until all remedies to recover any deficiency had been exhausted against the surviving joint obligors. In Potts v. Dounce (173 N. Y. 335) the plaintiff sued on a promissory note made by four joint obligors. One of said joint obligors died before the action was commenced. The plaintiff brought suit against the three surviving obligors, joining the executor of the deceased obligor as party defendant. The complaint was dismissed as against the executor at the trial, and the Court of Appeals affirmed such dismissal. Judge Gray, in an opinion in which all of the judges of the Court of Appeals concurred, stated (at p. 337): “ The question which comes here is whether the executor of one of the deceased makers of the note was properly joined as a defendant. The theory of the decision below, and, in my opinion, it is correct, was that, as this was a joint note of the makers, it was necessary to the sufficiency of the plaintiff’s cause of action against the executor that she should allege in her complaint and prove upon the trial the insolvency of the survivors, or the inability to recover against them.” The answer here contains no allegation of insolvency or inability to pay of the surviving joint obligors. Manifestly, the plaintiff cannot allege or prove that judgments against the answering defendants, who are the surviving joint obligors, are uncollectible until the plaintiff shall have prosecuted the present action to [568] judgment against the remaining joint obligors and made an unsuccessful attempt to collect the judgment from them.

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Central Hanover Bank & Trust Co. v. Vernon Estates, Inc., 238 A.D. 565, 265 N.Y.S. 527, 1933 N.Y. App. Div. LEXIS 9550 (N.Y. Ct. App. 1933).

238 A.D. 565 (Central Hanover Bank & Trust Co. v. Vernon Estates, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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