City Trust, Safe Deposit & Surety Co. of Philadelphia v. American Brewing Co.

74 N.E. 848, 182 N.Y. 285, 3 Liquor Tax Rep. 588, 20 Bedell 285, 1905 N.Y. LEXIS 926
CourtNew York Court of Appeals
DecidedJune 13, 1905
StatusPublished
Cited by7 cases

This text of 74 N.E. 848 (City Trust, Safe Deposit & Surety Co. of Philadelphia v. American Brewing Co.) 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
City Trust, Safe Deposit & Surety Co. of Philadelphia v. American Brewing Co., 74 N.E. 848, 182 N.Y. 285, 3 Liquor Tax Rep. 588, 20 Bedell 285, 1905 N.Y. LEXIS 926 (N.Y. 1905).

Opinions

Haight, J.

The first question raised is as to -whether this order is appealable. Yo appeal lies from such, an order to this court as a matter of right. (Bassett v. French, 155 *291 N. Y. 46.) Neither does an appeal lie even though certified by the Appellate Division where the assessment of the damages involved a discretion on the part of the court or jury making the assessment. (Lewin v. Lehigh V. R. R. Co., 169 N. Y. 336.) But in the case now before us the items of damages disallowed are definitely fixed and determined and the court making the assessment has certified that they were rejected “as a matter of law and not as a matter of discretion,” and the Appellate Division has certified that a question of law has arisen which ought to be determined by this court as to the three items disallowed, thus raising three separate and distinct questions of law as to the items rejected. This conforms to the requirements of the second subdivision of section 190 of the Code of Civil Procedure, which provides for an appeal to this court from a determination of the Appellate Division “ where the Appellate Division allows the same and certifies that one or more questions of law have arisen, which in its opinion ought to be' reviewed by the Court of Appeals.” We, consequently, conclude that the appeal is well taken.

The Appellate Division appears to have been of the opinion that the Supreme Court, in assessing the damages under the order of this court awarding judgment absolute in favor of the plaintiff, had the right to try the question'and determine whether tlie plaintiff was entitled to recover under the allegations of its complaint. Had the action been brought to trial upon the issue raised by the answer interposed it is quite possible that it would have been determined that the plaintiff was not entitled to recover, upon its claim for damages in the Appellate Division and Court of Appeals or for its counsel fee and expenses in conducting such appeal. Whether or not the plaintiff would have been entitled to recover those items, or any one of them, would depend upon the facts determined upon such trial. It could not increase the damages of the defendant by interposing a frivolous or unsound defense and then prosecute an appeal from the judgment rendered, unless it was authorized so to do, either expressly *292 or impliedly, by the defendant, its agents or attorneys. But the defendant did not see fit to bring the action to trial upon its answer. It moved for judgment upon the complaint, claiming that it failed to state a cause of action. Upon this it succeeded in the trial court but was defeated in the Appellate Division, and then instead of taking a new'trial under the order of that court it took an appeal to this court, stipulating that in case of an affirmance judgment absolute should go against it. This court did affirm the order and awarded judgment absolute against the defendant. The effect of this was to award to the plaintiff the judgment which it was entitled to upon its complaint without regard to any defense that had been interposed by the answer, and in assessing the damages thereunder the allegations of the complaint were required to be treated as true and the same as if no answer had been interposed.

In the case of Bossout v. Rome, W. & O. R. R. Co. (131 N. Y. 37) Peckham, J., says: “The judgment entered upon the filing of the remittitur from this court was an absolute and final one, which fixed, irrevocably, the liability of the defendant to pay the damages sustained by the plaintiff "" *. The effect of the affirmance of the order- granting a new' trial and the entry of judgment absolute thereon in the Supreme Court was the same as if the voliolo of the plaintiff’s action had been admitted and a default had occurred, and the sole question left was as to the amount of the damages sustained by the plaintiff.”

Upon awarding judgment absolute in this court against the defendant upon its stipulation, the judgment was remitted to the court below and the assessment of damages had pursuant to the, provisions of section MU- of the Code, which provides that in such a case an assessment of damages or any other proceeding requisite to render the judgment effectual may he had in the latter court.”

We are of the opinion that the cause of action set forth in the complaint is a breach of contract. The plaintiff, at the request of Kurtz, had executed a bond to the People of *293 the State, as surety, in order to enable him to procure a certificate permitting him to engage in the business of trafficking in liquors. Kurtz thereby is deemed to have agreed with the plaintiff that he would conduct the business in accordance with the requirements of the statute and that he would thereby save the plaintiff from-any liability" on the bond. Kurtz, however, was but an employee of the defendant, who owned the ¡dace and conducted the business of trafficking in liquors therein. His application to the plaintiff to become surety upon the bond ivas on behalf of the defendant, who was the real hut undisclosed principal upon the bond. It is true that Parker, Oh. J., in delivering the opinion of this court, in which the order of the Appellate Division granting a now trial was affirmed (174 N. Y. 486), called certain acts torts and the violators wrongdoers. But in these expressions he had reference to the acts complained of, of maintaining a gambling device upon the premisos in violation of the statute, which was not only a tort but an offense punishable under our penal statute. The very object of the bond required by the People of the State ivas to prevent such acts and to enforce a compliance with its provisions, and the agreement which the principal is deemed to have made with his surety is to the effect that such acts will not he committed and the surety made liable by reason thereof. As avc understand, the rule is elementary that Avhere an undisclosed principal is aftenvards discovered he may he held liable by the plaintiff, at his election, upon the contract of his agent Avhich Avas made Avitli his authority and consent.

In the case of Briggs v. Partridge (64 N. Y. 357, 362) Asdrkavs, <T., says: “A principal may he charged upon a Avritton or parol executory contract entered into by an agent in his own name, Avithin his authority, although the name of the principal docs not appear in the instrument, and Avas not disclosed, and the party dealing with the agent supposed that he Avas acting for himself, and this doctrine obtains as well in respect to contracts Avhich are required to be in Avriting, as to those Avhere a Avriting is not essential to their validity.”

*294 In the case of Brady v. Nally (151 N. Y. 258, 262) Vann, J., in considering a contract to furnish plumbing material for a schoolhouse, quotes the opinion of Andrews, J., with approval and determines that case in accordance therewith. (See, also, Tew v. Wolfsohn, 174 N. Y. 272; Meeker v. Claghorn, 44 N. Y. 349, and Mechem on Agency, § 695, and' authorities cited in cases referred to.)

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Bluebook (online)
74 N.E. 848, 182 N.Y. 285, 3 Liquor Tax Rep. 588, 20 Bedell 285, 1905 N.Y. LEXIS 926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-trust-safe-deposit-surety-co-of-philadelphia-v-american-brewing-ny-1905.