Ducas v. Federal Union Surety Co.

168 A.D. 24, 153 N.Y.S. 803, 1915 N.Y. App. Div. LEXIS 8335
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 4, 1915
StatusPublished
Cited by1 cases

This text of 168 A.D. 24 (Ducas v. Federal Union Surety Co.) 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
Ducas v. Federal Union Surety Co., 168 A.D. 24, 153 N.Y.S. 803, 1915 N.Y. App. Div. LEXIS 8335 (N.Y. Ct. App. 1915).

Opinion

Clarke, J.:

December 20, 1910, in an action brought by the plaintiff against one Robert Loonen for conversion, an order of arrest was granted and Loonen was taken into custody. On said day, [25]*25as bail, the defendant executed a written undertaking pursuant to section 575 of the Code of Civil Procedure and undertook in the sum of $1,000 that the said Loonen should at all times render himself amenable to any mandate which might be issued to enforce a final judgment against him in the said action.

Loonen was discharged from arrest on said bond. On December 5, 1913, judgment in said action was duly given against Loonen for $1,842. Thereafter executions against his property and person were returned unsatisfied. This action is on said undertaking.

The claim made by the appellant is that Loonen being indebted to plaintiff in the sum of about $18,000 in addition to the amount involved in the action in which the order of arrest was issued, plaintiff consented and induced Loonen to leave New York and go to Paris for the purpose of raising money to settle this indebtedness. Loonen testified, upon- deposition, that he left New York after the issuance of the order of arrest between the 20th and 25th of January, 1911; that he had talked over matters with plaintiff, in reference to leaving New York, a number of times, everywhere they met during January, 1911. It was conceded that Mr. Guggenheimer was plaintiff’s attorney and was fully authorized to act for him in his business relations with Loonen. Loonen further testified that he had seen Mr. Guggenheimer pretty often, in his office, and they talked very freely, perhaps ten to twenty times of his intended departure to Europe; that on one or more occasions either Mr. Manning or Mr. Buchler or Mr. Levy was there; that as they were all interested in a syndicate they met so often, every day, that he could not remember details for certain; that prior to his departure for Europe he stated to Mr. Guggenheimer that he was anxious to go to Paris to raise funds for the payment of moneys due to plaintiff and others, but inasmuch as he had been arrested once he was unwilling to leave the United States unless assured that no affirmative objection would be interposed by Mr. Guggenheimer; that between the 9th of January, 1914, and the 28th of January, 1914, when the execution against his person was returned, he was in France.

Mr. Levy testified that he was one of the attorneys representing Loonen. The attorney of record was William P. [26]*26"Buchler, his partner. On the 17th or 18th or 19th of January, 1911, he ’phoned Mr. Guggenheimer and told him that Mr. Loonen had informed him that he had been negotiating with Mr. Guggenheimer to settle the financial difficulties between Mr. Loonen and plaintiff, and that Mr. Loonen had informed him that the • terms had been arranged and that before the matter was closed he would like to speak to Mr. Guggenheimer personally. On the nineteenth of January witness called at Mr. Guggenheimer’s office and told him “ that we would all be very much pleased to see these’difficulties settled, that we had had considerable trouble with Mr. Loonen and his affairs and we would do everything we possibly could to assist in a settlement, but that Mr. Buchler, my partner, had signed an indemnity agreement with the Federal Union Surety Company in order to procure this bond of $1,000 for Mr. Loonen and that Mr. Loonen had informed me and I knew, that in order to raise the funds to make the settlement he would have to go to Paris, where he resided, where his father who is reputed to be a wealthy man resided, and his brother. * * * That we did not like the idea of Mr. Loonen leaving New York being on that bond and really being his attorneys — to assume that responsibility for the purpose of effecting this settlement, unless we could feel secured that we would be released from any question that might arise on the bond' if Mr. Loonen saw fit not to return. He said: What do you want to do about it?’ Mr. Guggenheimer said: I am writing letters which you will receive, written letters addressed to Mr. Loonen. These terms will cover all of the negotiations that we have had. ’ I said: Well, will you in addition to that give us some writing which will warrant us in consenting to Mr. Loonen going to Paris because if we thought there was going to be any question about it we would not permit him to go.’ He said: What do you want ? ’ I suggested then writing a letter. Mr. Guggenheimer said: All right, I will write a letter consenting to Mr. Loonen’s departure, so that you need not he concerned about it. ’ ” He further testified that after this conversation with Mr. Guggenheimer he received from Loonen three letters from Mr. Guggenheimer. These were offered in evidence and excluded. It was after the receipt of these letters that Mr. Loonen left [27]*27New York and never thereafter returned within the jurisdiction of the court. The first letter, defendant’s exhibit “A” for identification, dated January 19, 1911, addressed to Mr. Loonen, states: My dear Sir: I am authorized by Mr. Ducas to say that he has no objection to your proceeding to Paris, it being understood that your visit is for the purpose of arranging your affairs in such shape as to enable you to finally adjust such differences as exist between you and Mr. Ducas on or before February 15th, 1911.”

The second letter, defendant’s exhibit “ B ” for identification, is dated on the same day and also addressed to Mr. Loonen: My dear Sir: I beg to advise you that the total amount due by you to Mr. Ducas is $18,354. Upon payment of this amount on or before February 15, 1911, with interest to date of payment on $12,354, Mr. Ducas will discontinue any proceedings pending, and cancel all claims upon any collateral held by him. Mr. Ducas will also deliver to you a general release. The above is intended to include the delivery by Mr. Ducas of a release of any claim which he may have upon the Simplicia patents which were heretofore assigned to him as collateral security.”

The third letter, defendant’s exhibit 0 ” for identification, is of the same date, referred to the letter bearing even date, and by way of explanation thereof proceeded to state in detail the arrangement agreed upon for a general settlement between the plaintiff and Mr. Loonen, and generally recounted their business arrangements.

Defendant also attempted to prove that prior to the receipt of said letter Mr. Buchler had refused to permit Mr. Loonen to leave the jurisdiction and had threatened to surrender him, and that after their receipt had withdrawn his objection. This was excluded.

We think it was error to exclude the letters offered in evidence.

Exhibits “B ” and “ G ” tend to show that Loonen was indebted to the plaintiff in large sums, outside of that represented by the action on which the order of arrest had been issued, and are apparently the culmination of negotiations had for the purpose of a general settlement, and so corroborate the testimony that there were such moneys owing and that such [28]*28negotiations had been had. Exhibit “ A ” corroborates testimony both of Mr. Loonen and Mr. Levy in regard to the knowledge that the plaintiff and his attorney had, and support the claim that Mr. Loonen’s departure from this country was not only consented to by the plaintiff, but induced, in order that he might raise the funds necessary for a full and final settlement of all the business affairs between them.

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Related

Ducas v. Federal Union Surety Co.
170 A.D. 696 (Appellate Division of the Supreme Court of New York, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
168 A.D. 24, 153 N.Y.S. 803, 1915 N.Y. App. Div. LEXIS 8335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ducas-v-federal-union-surety-co-nyappdiv-1915.