Crooked Lake Navigation Co. v. Keuka Navigation Co.

44 N.Y. Sup. Ct. 9
CourtNew York Supreme Court
DecidedJune 15, 1885
StatusPublished

This text of 44 N.Y. Sup. Ct. 9 (Crooked Lake Navigation Co. v. Keuka Navigation 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
Crooked Lake Navigation Co. v. Keuka Navigation Co., 44 N.Y. Sup. Ct. 9 (N.Y. Super. Ct. 1885).

Opinion

Beadley, J.:

The plaintiff claims the right to the possession of the premises as lessee, for years, under the assignment to it of the Holmes lease,, which vests in the plaintiff that right unless its operation as a lease to Holmes has been in some manner defeated. The counsel for the defendant contends that plaintiff’s action is not supported because, first, Holmes, by reason of his relation to the Lake Keuka Steam Navigation Company at the time he took the lease and afterward, was disabled from taking and retaining any rights under it; that the beneficial interest was in that company and that the defendant in the manner hereafter mentioned acquired the rights of that company. Second. That at the time the assignment of the lease was made to the plaintiff, the premises were in the possession of the defendant claiming under a title adverse to that of the assignor of the lease and that the assignment was therefore void.

When he took the lease from Conklin, Holmes was a stockholder,, director and president of the Lake Keuka Steam Navigation Company, and was the owner of most of the capital stock of the company, and the premises were used by the company in operating steamboats on the lake until it ceased to do business. And the-rent from time to time due on the lease was paid by the treasurer of the company, who says he should not have paid it if Holmes-had not been the chief stockholder of the company.”

The Lake Keuka Steam Navigation Company became insolvent and in January, 1881, its property, including its interest in these-premises, was sold by virtue of an execution issued upon a judgment against it. And upon that sale that interest in the premises was purchased for the defendant and a bill of sale to that effect was-made by the sheriff to it. And in an action afterwards brought by a judgment creditor of that company against it a judgment was-[11]*11recoyered appointing a receiver of its property and directing him to sell it at public sale. The receiver sold at private sale. all the right, claim,- property and demand,” which the Lake "Keuka Steam Navigation Company had in the premises, to the defendant in December, 1882, and gave to it a bill of sale to that effect. The defendant went into possession shortly after the execution sale in January, 1881, and has since continued to occupy the premises.

The evidence did not require the conclusion that the Lake Keuka Steam Navigation Company had any interest in the premises. The lease was taken by Holmes individually, and he was under no disability arising out of his relation to the company which defeated his right to become such lessee. He was its president and a managing agent or trustee and could legally do nothing affecting the company inconsistent with such relation which was that of trust and confidence. He could not deal with its property for his personal advantage nor deal witlr it for such purpose. He could not sell and become the purchaser of its property and retain it as his own. This property was not that of the company, and nothing appears tending to prove that he obtained the lease under circumstances which required him to assume the relation of trustee for his company in respect to it, or which would permit the retention of it by him as his property to impute to him any bad faith or breach of confidence or duty. The manner which the rent was paid did not require the inference that he had taken it for, or surrendered it to, the company. (Twin, Lick. O. Co. v. Marbury, 91 U. S., 587.) It is said that he owned $49,000 of the $50,000 of capital stock. The company had the use of the premises, and no significance is necessarily imputed against Holmes’ title by the payment from the funds of the company of the actual expense of the retention of the use of the property, as it does not appear to be unreasonable in amount. The question at the trial was treated as one of law, and it is not necessary now to inquire whether its determination involved any question of fact. (Barnes v. Perine, 12 N. Y., 18.) It follows that the insolvent corporation had no interest in the premises, and that the defendant acquired none by its purchases at the execution sale and from the receiver.

The question arises whether the plaintiff took anything by the assignment to it of the lease, for the plaintiff must stand on the [12]*12strength of its own title. And. if the defendant was in possession, claiming, the premises under a title adverse to that afforded by the lease, the plaintiff acquired no right as assignee to support the action. (1 R. S., 739, § 147.)

To bring the defense -within this statute, the claim must be under some specific title. It is not necessary that such title be valid, but the color of title must purport to convey a freehold estate, and adverse to that under which the plaintiff asserts its right to the possession. (Crary v. Goodmam, 22 N. Y,, 170; Higinbotham v. Stoddard, 72 id., 94; Dawley v. Brown, 79 id., 390 ; Fish v. Fish, 39 Barb., 513; Chalmers v. Wright, 5 Robt., 713; Stoddard v. Whiting, 46 N. Y., 627; Gross v. Welwood, 90 id., 638.) The sale by the sheriff on the execution does not purport to have been of any estate or interest in the land. And if it had, no advei'se possession could have been taken under it until the time for redemption had expired and the sheriff’s deed had been taken. The bill of sale made by the ■receiver to the defendant does not purport to convey the fee or any freehold estate. He could not transfer to the defendant any greater interest than the company of whose property he was receiver had, and the defendant can claim no other right than that of holding under that company. (Hetzel v. Barber, 69 N. Y., 9, 10.) And if it held in subordination to the legal title no right was given by the sale in hostility to that title. The evidence tends to prove that the company was in under Holmes either as tenant or by license, and it could not by any conveyance create a color of title in another adverse to the title under which Holmes and the plaintiff through him held. (Jackson v. Davis, 5 Cow., 123; Learned v. Tallmadge, 26 Barb., 444, 454; Whiting v. Edmunds, 94 N. Y., 309, 314.) The relation of a lessee for a term of years does not permit him or any one holding under him, or by virtue of such right, to create color of title in another adverse to that under which he holds (Bedell v. Shaw, 59 N. Y., 46), nor can a grantee of a life estate do so in'such wise as to give his conveyance the character required to produce adverse possession during the term. Although in such case it may afford the right to claim adverse possession after the termination of the life estate, in support of such right in the grantee, which would be effectual on the expiration of twenty years after that time, for reasons applicable to the grant of a life estate which do not apply to a [13]*13lease for years, (Sands v. Hughes, 53 N. Y., 287; Christie v. Gage, 71 id., 189.)

There seems to have been no possession of the defendant under claim of title adverse to that under which the plaintiff’s assignor held, or adverse to the interest he held at the time of the assignment of the lease to it, within the meaning of the statute.

The case of Mosher v. Yost (33 Barb., 277), cited by the defendant’s counsel, does not support his contention. There was a grant of a life estate goer autre vie. The lessee died during the life of the

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Related

Twin-Lick Oil Co. v. Marbury
91 U.S. 587 (Supreme Court, 1876)
Barnes v. . Perine
12 N.Y. 18 (New York Court of Appeals, 1854)
Sands v. . Hughes
53 N.Y. 287 (New York Court of Appeals, 1873)
Hetzel v. . Barber
69 N.Y. 1 (New York Court of Appeals, 1877)
Averill v. . Taylor
8 N.Y. 44 (New York Court of Appeals, 1853)
Bedell v. . Shaw
59 N.Y. 46 (New York Court of Appeals, 1874)
Whiting v. . Edmunds
94 N.Y. 309 (New York Court of Appeals, 1884)
Stoddard v. . Whiting
46 N.Y. 627 (New York Court of Appeals, 1871)
Mosher v. Yost
33 Barb. 277 (New York Supreme Court, 1861)
Fish v. Fish
39 Barb. 513 (New York Supreme Court, 1863)
Jackson ex dem. Schaick v. Davis
5 Cow. 123 (New York Supreme Court, 1825)
Gillis v. Brown
5 Cow. 388 (New York Supreme Court, 1826)

Cite This Page — Counsel Stack

Bluebook (online)
44 N.Y. Sup. Ct. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crooked-lake-navigation-co-v-keuka-navigation-co-nysupct-1885.