Ditomasso v. Loverro

242 A.D. 190, 273 N.Y.S. 76, 1934 N.Y. App. Div. LEXIS 6025
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 12, 1934
StatusPublished
Cited by9 cases

This text of 242 A.D. 190 (Ditomasso v. Loverro) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ditomasso v. Loverro, 242 A.D. 190, 273 N.Y.S. 76, 1934 N.Y. App. Div. LEXIS 6025 (N.Y. Ct. App. 1934).

Opinion

Hagarty, J.

This action was brought by the plaintiff as a stockholder, director and voting trustee under a voting trust agreement affecting the stock of the Paramount Ice Corporation, on behalf of himself and others similarly situated, and on behalf of the corporation, to restrain certain claimed illegal acts of waste on the part of the defendants. After the joinder of issue, plaintiff served notice that he would examine defendant Rubel Corporation, by its president, Samuel Rubel, with respect to matters specifically set forth in the notice of examination, and served a subpoena to testify directed to the corporation, by Samuel Rubel, president. On defendants’ motion, the Supreme Court, at a Special Term thereof, modified the notice by striking out some of the items therein contained. This court, on appeal by the plaintiff, reversed the order in so far as it involved the items struck from the notice and ordered that the examination proceed on five days’ notice. (240 App. Div. 1001).

The - proof is that the defendants applied for and succeeded in obtaining several adjournments of the examination pursuant to the notice, up to and including the 19th day of April, 1934. One adjournment, during the period, was had on behalf of the plaintiff, due to a death in the family of one of plaintiff’s counsel. In any event a stipulation was entered into on the day last mentioned, as follows:

“ It is hereby stipulated and agreed by and between the attorney for the plaintiff and the attorney for the defendant, Rubel Corporation, that the examination of the defendant, Rubel Corporation, by Samuel Rubel, as president, now set for April 19th, 1934, at 2 p. m., be and hereby is adjourned to April 24th, 1934, at 2 p. m., at the Supreme Court, Kings County, Special Term, Part II.

“ It is further stated and conceded between the said attorneys that the adjournment to April 19th, 1934, was had at the request of the attorney for the aforesaid defendant, after a number of previous adjournments, upon the express agreement that the examination would proceed on that day without further requests for adjournments and that notwithstanding such agreement, the attorney for the said defendant has now asked for the adjournment to April 24th, 1934. This adjournment is consented to by the attorney for the plaintiff upon the unequivocal agreement that the [192]*192said defendant is to require no further adjournment and that the said examination is to proceed peremptorily as against the said defendant on April 24th, 1934, at 2 p. bi., as above provided.”

On the 24th of April, 1934, the adjournment date fixed by the parties in the stipulation for the examination, Samuel Rubel did not appear, but, as stated in bis affidavit filed in opposition to the motion, he had an engagement in the afternoon of that day, which was of paramount importance to himself and that the plaintiff could not be inconvenienced by so short a postponement,” and that he requested that the examination be held at a later hour on the same day. His default was noted at two-forty p. bi., and he states that he appeared sometime after three p. bi., but counsel for the plaintiff refused to proceed with the examination.

We find no reason for disturbing the finding of the learned Special Term that the conduct of the defendant was contumacious, that The papers show a most flagrant disregard for the lawful mandates of this court,” as expressed in the opinion. The further questions presented are whether the court had jurisdiction of the parties and granted appropriate relief.

The proceeding was instituted by order to show cause, the sufficiency of which is brought into question, which provides: Ordered that the defendant Rubel Corporation, by Samuel Rubel, its president, show cause * * * why an order should not be made herein adjudging the defendant Rubel Corporation guilty of a contempt of this Court and fining the said defendant for such contempt, and striking out the answer interposed herein by the said defendant, by reason of such contempt, and granting to the plaintiff such other and further relief as may be proper.” The order to show cause was based, on an affidavit made by one of the attorneys for the plaintiff, setting forth the facts in detail constituting the contempt, the subpoena to testify directed to Rubel Corporation by Samuel Rubel, president, the notice of examination before trial and the further notice of examination after the disposition of the appeal involving the original notice, and the order of this court, bearing date the 29th day of December, 1933, directing that the examination proceed on five days’ notice. Samuel Rubel,, by affidavit, appeared in the proceeding alleging that he was one of the defendants and the president of defendant Rubel Corporation. He made no claim in his affidavit that the order was insufficient as to him, nor could any such claim consistently be made on the facts. The acts of omission, constituting the contempt, were the acts of Rubel, since it was through him that the corporation was to be examined. The tenor of his affidavit was excusatory of his conduct on the day set for the examination.

[193]*193The resulting order holding the defendants in contempt, following the essential recitals, provides:

Ordered, adjudged and decreed that the defendant Rubel Corporation, by Samuel Rubel, its president, is guilty of an act of misconduct and contempt of this court, by reason of the failure and refusal of the defendant Rubel Corporation, by Samuel Rubel, its president, to appear for examination before trial herein, on April 24th, 1934, at 2 p. ivl, at the Supreme Court, Kings County, Special Term, Part II thereof, and it is further
“ Ordered, adjudged and decreed that the said misconduct and refusal and failure on the part of the defendant Rubel Corporation, by Samuel Rubel, its president, to appear for such examination, was calculated to and did actually impede, impair, defeat and prejudice the rights and remedies of the plaintiff herein, to his damage, and it is further
Ordered, adjudged and decreed that for such misconduct and for such contempt of this Court, the defendant be and it hereby is fined in the sum of $250.00, to be paid to the attorney for the plaintiff, and that in addition thereto, Samuel Rubel, as president of the defendant Rubel Corporation, be committed to the County Jail for a period of ten days, and it is further
Ordered, adjudged and decreed that upon a certified copy of this order and the payment of the Sheriff’s legal fees and without further process and notice, the said Samuel Rubel be committed by the Sheriff of any County of this State, wherein he may be found and to whom a certified copy of this order shall be delivered, to the Common Jail of the said County, there to be kept and detained in close custody for a period of ten days and until the defendant Rubel Corporation shall also pay the sum of $250.00, together with the Sheriff’s legal fees, or until he is discharged, according to law.”

The power of the court to punish for a contempt is to be found in the Judiciary Law. Sections 750, 751 and 752 of that law deal exclusively with criminal contempt. Section 750 provides that a court has power to punish for a criminal contempt a person guilty of the acts therein enumerated, and section 751 provides for punishment by a fine not exceeding $250 or by imprisonment not exceeding thirty days. Section 753 provides for contempt punishable civilly

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Bluebook (online)
242 A.D. 190, 273 N.Y.S. 76, 1934 N.Y. App. Div. LEXIS 6025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ditomasso-v-loverro-nyappdiv-1934.