Crocker-Wheeler Co. v. Genesee Recreation Co.

134 N.Y.S. 61
CourtNew York Supreme Court
DecidedDecember 29, 1911
StatusPublished

This text of 134 N.Y.S. 61 (Crocker-Wheeler Co. v. Genesee Recreation Co.) 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
Crocker-Wheeler Co. v. Genesee Recreation Co., 134 N.Y.S. 61 (N.Y. Super. Ct. 1911).

Opinion

SUTHERLAND, J.

This case when first tried resulted in a non-suit. The Appellate Division ordered a new trial. 140 App. Div. 726, 125 N. Y. Supp. 721. On the second trial a verdict was rendered by the jury in favor of the plaintiff for the return to the plaintiff of three electric generators, and the value of plaintiff’s interest therein was fixed at $1,328 and interest. I am now convinced, after reviewing [63]*63the second trial, that the case was not submitted to the jury upon the proper theory, and that a third trial should be ordered.

The McDonell Company contracted with the Genesee Amusement Company to construct certain parts of a building to be erected on the real estate owned by said Amusement Company on South avenue in Rochester, and to furnish the materials needed for that part of the work. Among other things, the McDonell Company agreed to install the electrical generators for lighting the building, which were to be attached to engines in such manner as to make them permanent fixtures. The plaintiff contracted to sell the generators to the Mc-Donell Company by conditional sale for $1,990, reserving title in the plaintiff until the purchase price should be fully paid. One-third of the price was paid by the McDonell Company, and the balance remains unpaid. The contract was not filed as required by the statute (Personal Property Law [Consol. Laws 1909, c. 41] ,§ 62), in order to protect it as against a subsequent bona fide purchaser or mortgagee. It ■was not shown that the Amusement Company had notice of the reservation of title until a year after the generators were installed in its building.

In the contract between the McDonell Company and the Genesee Amusement Company, the contract price for doing the entire work was about $20,000. No separate figure was agreed to be paid for the furnishing and installing of the electrical generators. After the generators were installed, they failed to work satisfactorily, and negotiations were had between the Amusement Company, the McDonell Company, and the plaintiff looking toward the replacing of the generators or the remedying of the defects. As between the McDonell Company and the Amusement Company, it was finally stipulated that $1,500 should be retained by the Amusement Company out of the $20,000 total contract price for the entire work, pending the result of the attempts to remedy the defects in the generators. Then the Amusement Company went into bankruptcy. The premises were sold by the trustee to Wesp, Schlegel & Fredericks, who were among the organizers of the Genesee Recreation Company, a new corporation w Inch later took title to the premises by conveyance from Wesp, Schlegel & Fredericks. Afterward a mortgage for $36,000, which had been given to Harold C. Kimball prior to the installation of the electric generators and assumed by the Amusement Company when it purchased the premises in the first instance, was foreclosed, and the premises were bid in at the sale for the benefit of the Genesee Recreation Company, the defendant in this action. Then this action was commenced to recover possession of the generators after demand therefor had been refused.

There was evidence that notice had been given to Mr. Wesp a year after the installation of the generators, but before the sale by the trustee in bankruptcy to Wtesp, Schlegel & Fredericks of the reservation of title in the generators by the plaintiff in its contract of sale to the Mc-Donell Company. Wesp denied that he had any such notice, but the jury found in favor of the plaintiff upon that point, and that at the time of the foreclosure sale the Recreation Company had notice of plaintiff’s claim. Practically this was all that the jury had to decide, [64]*64under the charge of the court, in order to render a verdict for the plaintiff.

[1, 2] But there was another feature, of the case which should either have resulted in a dismissal of the complaint or have been left to the jury. As stated above, there was no evidence that the Genesee Amusement Company, in October andl November, 1907, when the generators were affixed to the building by the McDonell Company had consented that the title to the generators might be reserved by the plaintiff, nor that the Amusement Company had been notified of any such attempted reservation; and no such notice was shown until December, 1908, payments being made on the general contract meantime.

An endeavor was made to prove such notice by showing that in a conversation between the architect employed, by the Amusement Company to supervise the construction of the building, and a representative of the plaintiff and a representative of the McDonell Company, prior to the signing of the contract between the McDonell Company and the plaintiff, the architect was notified that the Crocker-Wheeler Company was to reserve title in itself until the McDonell Company should pay for said generators.

This evidence was not received, the court being of the opinion that there was no adequate proof that the architect sustained such relation of agency toward the Genesee Amusement Company as to constitute notice to the architect notice to the Amusement Company of the proposed reservation of title in the plaintiff. But there is enough evidence in the case to show that the plaintiff knew that the McDonell Company was negotiating with the Amusement Company to attach the machines to its building as permanent fixtures.

Under those circumstances, the plaintiff could- not expect to enforce its reservation of title in the generators as against the Amusement Company or a prior mortgagee of the premises, without notifying the Amusement Company of such reservation of title before they were annexed to the realty as a permanent adjunct and portion thereof, and before general payments were ‘made upon the entire contract by the Amusement Company in ignorance of such reservation.' This must be so, whether we place the disability, of the plaintiff upon the ground of estoppel for standing by and permitting the contractor to install material in the building, the owner being thereby misled, or that by annexation the- generators have become realty'and riot subject to replevin, or that the owner is to be regarded as a bona fide purchaser of the generators from the McDonell Company, and as such protected by the statute. Milicie v. Pearson, 110 App. Div. 770, 97 N. Y. Supp. 431; Jermyn v. Hunter, 93 App. Div. 175, 87 N. Y. Supp. 546; Fitz Gibbons Boiler Co. v. Manhasset Realty Co., 125 App. Div. 764, 110 N. Y. Supp. 225; (dissenting opinión by Scott, J., adopted by Court of Appeals, 198 N. Y. 517, 92 N. E. 1084). 19 Cyc. p. 1052, title “Fixtures.”

[3] The determining fact is the consent of or notice to the owner of the land. Prior mortgagees (and, in the absence of statute, subse¿¡uent mortgagees) stand or fall with respect to the character of the affixed chattels', according to' the rights therein of the owner of the land, notwithstanding obiter dicta to the contrary effect in McFadden

[65]*65v. Allen, 134 N. Y. 489, 32 N. E. 21, 19 L. R. A. 446, and Mechanics’ & Traders’ Bank v. Bergen Heights Realty Corp., 137 App. Div. 45, 122 N. Y. Supp. 33. In the opinion of Mr. Justice Scott in the Eitz Gibbons Boiler Co. Case there seems to be approval of the holding in Jermyn v.

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Related

Davis v. . Bliss
79 N.E. 851 (New York Court of Appeals, 1907)
Best v. . Staple
61 N.Y. 71 (New York Court of Appeals, 1874)
McFadden v. . Allen
32 N.E. 21 (New York Court of Appeals, 1892)
Jermyn v. Hunter
93 A.D. 175 (Appellate Division of the Supreme Court of New York, 1904)
Milicie v. Pearson
110 A.D. 770 (Appellate Division of the Supreme Court of New York, 1906)
Fitzgibbons Boiler Co. v. Manhasset Realty Corp.
125 A.D. 764 (Appellate Division of the Supreme Court of New York, 1908)
Mechanics & Traders' Bank v. Bergen Heights Realty Corp.
137 A.D. 45 (Appellate Division of the Supreme Court of New York, 1910)
Crocker-Wheeler Co. v. Genesee Recreation Co.
140 A.D. 726 (Appellate Division of the Supreme Court of New York, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
134 N.Y.S. 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crocker-wheeler-co-v-genesee-recreation-co-nysupct-1911.