Dunlop v. Sweet Bros. Paper Manufacturing Co.

211 A.D. 363, 208 N.Y.S. 54, 1925 N.Y. App. Div. LEXIS 10631
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 7, 1925
StatusPublished
Cited by1 cases

This text of 211 A.D. 363 (Dunlop v. Sweet Bros. Paper Manufacturing 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
Dunlop v. Sweet Bros. Paper Manufacturing Co., 211 A.D. 363, 208 N.Y.S. 54, 1925 N.Y. App. Div. LEXIS 10631 (N.Y. Ct. App. 1925).

Opinion

Taylor, J.:

The original plaintiffs and defendants owned valuable water rights on the east bank of the Oswego river at the village of Phoenix, N. Y„ The defendant Sweet Brothers Paper Manufacturing Company, Inc. (hereinafter referred to as Sweet Brothers), was about to undertake an increased development of its water power. The plaintiffs commenced this action to restrain said defendant from carrying out such proposed development and the complaint also demands judgment that the water rights of the various parties to the action be fixed, adjudged and determined. The complaint does not demand money damages. The answer of each defendant also demands judgment that the water rights of the various parties be finally determined and adjusted.

The action was referred to an official referee, who, after a long trial, filed his report and findings, also a supplemental report and findings. Thereafter a judgment was entered upon such reports. The original plaintiffs, George M. Dunlop, John D. Dunlop and Beveridge C. Dunlop, constituted a copartnership doing business [365]*365undez1 the firm name of Jno. Dunlop’s Sons. Dining the pendency of the action, without the knowledge of the plaintiffs’ attorneys, said plaintiffs deeded and transferred without reservation their title to the water rights and z’eal estate, which they owned at the commencement of this action, to a corporation fomied by them and known as Jno. Dunlop’s Sons, Inc. The corporation thei'eafter gave a mortgage upon said real estate and water rights to the Seaboard National Bank of the city of New York, as trustee to secure the payment of $1,000,000 in bonds. Thereafter the defendant Sweet Brothers made a motion to set aside the judgment entered upon the report of the official referee. The motion was granted and the case was referred back to the official referee to take further evidence and to make findings upon three specific questions. Thereafter the said defendant, Sweet Brothers, moved at Special Term for permission to serve an “ addition ” to its amended answer and set up the transfer from the Dunlops to the corporation and the mortgage to the Seaboai’d National Bank, and to allege that said Dunlops were no longer interested in the subject of the action. Said motion was granted. The plaintiffs moved at the same time for pei’mission to amend the summons and complaint and bring in as parties plaintiff Jno. Dunlop’s Sons, Inc., the Seaboard National Bank and Lillian M. Dunlop, as executrix of the last will and testament of George M. Dunlop, deceased, he having died during the pendency of the action. The motion was granted. The order provided: This order is granted without prejudice to proceedings already had in this action, and that all pleadings and proceedings had in this action be amended accordingly.” Vazious other proceedings were had which it is unnecessary to recite. The action now stands referred back to the official referee to take further evidence and make new' findings upon three specific questions: Jno. Dunlop’s Sons, Inc., the Seaboard National Bank and Lillian M. Dunlop, as executrix of the last will and testament of George M. Dunlop, deceased, are now new parties plaintiff; and John D. Dunlop and Beveridge C. Dunlop are retained as pai’ties plaintiff, although they have sold their interest in the property in question.

This appeal is from the order permitting said new parties plaintiff to be brought in and amending the summons and pleadings accordingly without prejudice to the proceedings already had.

It is urged with great earnestness by the learned counsel for the appellant that such order was not justified under the facts in the case. The motion was joined in by Senoso Paper Company, Inc., one of the original plaintiffs. . It has not transferred any part of its property involved in this action. It is urged that the [366]*366moving party, the Senoso Paper Company, Inc., was guilty of laches and for that reason the motion should have been denied.

It appears that said plaintiff did not know that its said coplaintiffs had transferred their interest in the subject of the action until the defendant Sweet Brothers made the motion for permission to serve an addition ” to its amended answer setting up such fact. Under such circumstances it cannot be held as a matter of law that the moving plaintiff, Senoso Paper Company, Inc., was barred by its laches.

This is an action in equity and the complaint in addition to the demand for an adjudication of the water rights of the various parties, demands injunctive relief against the defendant Sweet Brothers.

It is urged by the appellant that the plaintiffs, who sold and transferred without reservations their interest in the real estate and water rights in question, are not necessary or proper parties to this action, no money damages being demanded in the complaint. It was stated in Stokes v. Manhattan Railway Co. (47 App. Div. 58): The owner of the premises, as long as he retains the title, has an interest in restraining the trespass which affects the value of his property. He has also a right to bring an action for the damages he has sustained by reason of these trespasses. The right of action for an injunction is an incident of the ownership of the property. The right of action for damages is personal to the owner and still remains with him after he has disposed of the property; and when he has ceased to be the owner it is all there is left of his cause of action, for as he has no further interest in the premises he has no right to ask for an injunction.”

It is urged that this case falls within that principle and that said plaintiffs, by their own acts, deprived themselves of the right to injunctive relief; that they no longer have any interest in the premises and water rights in question; that they now have no rights in the property which the defendants can injure and that there are, therefore, no rights which an injunction can protect. Many cases are cited which state the principle relied upon by the appellant. (McCean v. Metropolitan E. R. Co., 133 N. Y. 9; Pegram v. Elevated R. Co., 147 id. 135; Drucker v. Manhattan R. Co., 213 id. 543.)

The rule has been often laid down in the exercise of discretion at Special Term in elevated railway cases that a plaintiff cannot successfully continue an equitable action for an injunction after he has conveyed the premises without reservation; furthermore, that under such circumstances, the grantee of the premises should not be brought in as a party plaintiff on motion. And this -exercise of discretion has been affirmed on appeal. (Pope v. Manhattan Railway [367]*367Company, 79 App. Div. 583; Welde v. N. Y. C. & H. R. R. R. Co., 108 id. 286; Israel v. Metropolitan Elev. R. Co., 58 id. 266.)

There are, however, statements in opinions to the effect that in such a case it is proper to bring in the grantee as a party plaintiff upon motion. (Mooney v. N. Y. Elev. R. R. Co., 163 N. Y. 242; Koehler v. N. Y. El. R. R. Co., 159 id. 218; Pegram v. Elevated R. Co., 147 id. 135.) It is a matter resting in the discretion of the court.

In all of the cases called to our attention upon this question, it appears that the entire interest of all the plaintiffs in the property in question had been transferred.

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

Related

Slote v. Cascade Holding Corp.
249 A.D. 332 (Appellate Division of the Supreme Court of New York, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
211 A.D. 363, 208 N.Y.S. 54, 1925 N.Y. App. Div. LEXIS 10631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunlop-v-sweet-bros-paper-manufacturing-co-nyappdiv-1925.