De Baun v. Mayor

16 Barb. 392, 1853 N.Y. App. Div. LEXIS 177
CourtNew York Supreme Court
DecidedOctober 3, 1853
StatusPublished
Cited by9 cases

This text of 16 Barb. 392 (De Baun v. Mayor) 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
De Baun v. Mayor, 16 Barb. 392, 1853 N.Y. App. Div. LEXIS 177 (N.Y. Super. Ct. 1853).

Opinion

Mitchell, J.

The first question is, can a person owning real estate in the city of New-York and paying taxes on it, prosecute an action against the corporation, on behalf of himself and other tax-paying citizens, to enjoin them from expending the money to be raised by taxation, in repairing or paving a street in a manner contrary to an express law, and to add to the taxes of the citizens ?

In Adriance v. The Mayor, &c. of New- York, (1 Barb. S. C. R. 19,) a suit by a tax-payer was instituted, in a case where the corporation was about to appropriate the moneys of the city contrary to law. In Kirby and others v. The Mayor, épc. of New- York, and Berrien, a suit was also sustained by tax-payers, the corporation being about to purchase ground for purposes of burial, out of the city. In Christopher v. The Mayor, &c. of New-York, (13 Barb. 567,) the question was raised and ably argued at general term, and decided in favor of the right of the tax-payer to sue, (see p. 571.) The judge who gave a dissenting opinion in that case, said nothing on this question ; but he regards the decision of the court as authority until reversed. In Milhau v. Sharp—the Broadway railroad case—(15 Barb. 193,) and in Stuyvesant v. Pearsall—the second avenue railroad case—(Id. 244) the same question was again presented at the general term, and with the same result.

The counsel for the defendants in this case argued this question in Christopher's case, and then with as much ability and [394]*394ingenuity and as much at length as in this case; and his distinguished associate made that question one of the main points of his argument. The question had therefore been fairly argued, and maturely considered and passed upon, before it ivas discussed in this case. The previous decisions should therefore bo adopted as conclusive, until reversed.

It is supposed that the court, in' the above cases, overlooked the provisions in the revised statutes as to “ proceedings against corporations in equity.” (2 R. S. 462.) Before that statute was passed, Chancellor Kent had decided that an injunction did not lie, at the suit of the attorney general, to prevent an insurance company from doing banking business; that this attempt to exceed its chartered powers was a public offense over which chancery had no jurisdiction, and was to be met by the remedy provided in the courts of law by quo warranto or an information. (Attorney General v. Utica Insurance Co. 2 John. Ch. 380.) But the chancellor there made a broad distinction between that case and the case of a private injury. He said “ if the directors of the Utica Insurance Company were to appropriate the funds or capital of the company to their own private emolument, or if, disregarding the business of insurance, they were to divert the funds to the destruction of that object, by making roads, and canals, or building theaters or churches, I have no doubt'this court would have a right, and would be bound, to interfere and check the abuse. But when the question is, whether a corporation has forfeited its charter, or has usurped a franchise,,-or has broken a penal law, the case is widely different. This court is not the proper tribunal to sustain the prosecution, .or-: to inflict the punishment.” “ There is no complaint on the part of the stockholders of misconduct, nor is the information founded on any thing of that kind.” Did not the chancellor mean by this ‘ that if there were any violation of the charter injurious to the corporation, they were the proper parties to complain, and might proceed by injunction ; but that if the act complained of was one affecting injuriously only the people in their sovereignty—as by usurpation of a franchise not granted ■ by the people—then the attorney general was of course the [395]*395proper complainant, but his remedy was ample at law and was therefore there only 1 The legislature after this, deeming the remedy at law too tedious, and the more summary proceeding by injunction necessary, gave by the revised statutes power to the attorney general, even in the case of a usurpation of a franchise, a right to sue in chancery. The' giving of this additional right to the attorney general,'was not intended to take away any rights which private individuals had before enjoyed. Accordingly, a private individual may still obtain an injunction •to prevent a company in which he is a corporator from using its funds for purposes unauthorized by its charter. That is an injury to his private rights. If he has this right in case of a private corporation, then the part of the revised statutes referred to, did not, in any case which it provided for, confer the exclusive right to sue, on the attorney general; but left all corporators, (whether of public or private corporations,) who before had a right to sue, the same right in full force. Without the act the attorney general could not sue in chancery, and the act was passed simply to cure that defect. This court having repeatedly held that a tax payer has such an interest in the money raised and to be raised by the city, that he may prosecute such an action where the corporation is committing such a violation of its charter as will add to the burthen of the tax payers, and the statute not taking away any individual rights, but merely giving an additional remedy, the right of the tax payers to sue must be sustained. The injury done in by excessive taxation unauthorized by law, is in which the tax payers of the city are the inewi^^ sufferers, rather than the public. The people out of ttie cihn b@aiCij^()1u part of the burthen, and the people within the Sljfy^except the tax payers, also bear no part of it. It is then [fore anoi^&r:^-- * peculiar to one body of men—the tax payers of miy

The second question was, whether the corporation! a contract without advertising for proposals, and giving it to the lowest bidder. This was decided in the negative, in the case of Christopher ; and the judge who dissented from his brethren [396]*396on that point feels bound by the decision of the court, whatever may have been his individual opinion.

These two points being against the defendants, the injunction should be sustained, and the order appealed from reversed without costs.

Roosevelt, J.

The plaintiffs in this case,'as owners of real estate and tax payers in the city of New York, on behalf of themselves and all others similarly situated, claim relief by injunction against the corporation of the city, on the ground of an alleged attempt wrongfully to appropriate the public moneys and property, and thereby to incumber the plaintiffs’ real estate with undue taxation, by entering into an alleged unlawful contract with Messrs. Russ and Reid for paving the Bowery and other streets, at an expense of nearly three-quarters of a million of dollars.

In December, 1852, it appears, Messrs. Russ and Reid presented their memorial to the common council, stating that the materials for the completion of Broadway, would all be prepared in a short time, and that the Bowery, Chatham-street and Park Row, as the next important thoroughfare, were next entitled to the Russ pavement. A few days afterwards the board of assistants passed a resolution directing a contract to be made accordingly, at an expense of six dollars and fifty cents per square yard, besides the old materials valued at some sixty or seventy thousand dollars more.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Davenport v. Buffington
97 F. 234 (Eighth Circuit, 1899)
Berry v. American Central Insurance Co. of St. Louis
30 N.E. 254 (New York Court of Appeals, 1892)
Williams v. County Court of Grant Co.
26 W. Va. 488 (West Virginia Supreme Court, 1885)
Newmeyer v. Mo. & Miss. R. R.
52 Mo. 81 (Supreme Court of Missouri, 1873)
McEwen v. Gilker
38 Ind. 233 (Indiana Supreme Court, 1871)
Mayor of Baltimore v. Gill
31 Md. 375 (Court of Appeals of Maryland, 1869)
Roosevelt v. Draper
7 Abb. Pr. 108 (New York Supreme Court, 1858)
Wood v. Draper
4 Abb. Pr. 322 (New York Supreme Court, 1857)
Small v. Wheaton
2 Abb. Pr. 175 (New York Court of Common Pleas, 1855)

Cite This Page — Counsel Stack

Bluebook (online)
16 Barb. 392, 1853 N.Y. App. Div. LEXIS 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-baun-v-mayor-nysupct-1853.