Excelsior Needle Co. v. Globe Cycle Works

48 A.D. 304, 62 N.Y.S. 538
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 15, 1900
StatusPublished
Cited by6 cases

This text of 48 A.D. 304 (Excelsior Needle Co. v. Globe Cycle Works) 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
Excelsior Needle Co. v. Globe Cycle Works, 48 A.D. 304, 62 N.Y.S. 538 (N.Y. Ct. App. 1900).

Opinion

Spring, J.:

A. motion was made by the plaintiff in this action, after the public auction, to compel the sheriff to pay the plaintiff’s executions from ¡the avails of the sale. Notice of this motion was served upon the mine judgment creditors, under whose directions the sheriff had ¡relinquished the possession of the property to the defendant, and ¡some of these judgment creditors appeared, asserting their right to the proceeds of the auction sale. There is very little contradiction in the affidavits. The interference which it is alleged destroyed the lien of their levy is based upon the two directions to the sheriff quoted above, supplemented as they were by the surrender of ¡possession and apparent ownership to the defendant and the withdrawal of the sheriff’s force, which was in custody of the property. [309]*309The very obvious purpose was to permit the defendant to continue unmolested its manufacturing industry. While this was based upon the promise of the attorney for the defendant to pay these judgments, and the statement that he had sufficient money to make this payment, they afforded no justification for directing the sheriff, in effect, to release his levy unless they were willing to trust to the ability of the defendant to meet its obligations, or upon the promise of its attorney to pay them. The fact that their purpose was praiseworthy does not lessen its effect.

The law is quite clear that the object of the execution is to enforce payment of the judgment debt, and not to convert such execution into a security upon the property and still allow the judgment debtor to prosecute his business regardless of the lien of the execution. As was said in Freeman on Executions (§ 206): In other words it is not the mere issuing or delivery of the writ which creates a lien ;; but an issuing and delivery, for the purpose of execution. The execution of a writ for the purpose of making or keeping it effective-as a lien cannot stop with a mere levy upon the property. If the officer is instructed by the plaintiff not to sell till further orders, the lien of - the execution and levy becomes subordinate to that of any subsequent writ placed in the officer’s hands for service.”

In Storm v. Woods (11 Johns. 110) the property, after the- levy by execution, was allowed to remain in the hands of the judgment debtor for nearly a year, with the acquiescence of the owners of the-judgment. The debtor used 'the property in all respects as before, the levy, and this unrestricted dominion over it continued until a. levy was made by virtue of the second execution. There was no-suggestion of intentional fraud in the conduct of the owners of the-judgment. They were actuated by the laudable object of giving-the debtor time to meet the judgment, and believed there was no-interruption in the lien of their levy. The court, however, held that: their execution had become dormant by this remissness on their-part, and that the second execution was the prior lien.

In Sage v. Woodin (66 N. Y. 578) the plaintiff had obtained! a judgment by default against one Qase. Execution was issued and: a levy made. December 24,1866. In January, following, the plaintiff’s attorney, at the request of the attorney for Case, opened the» default, permitted an answer to be served, and, in accordance with. [310]*310the stipulation of the parties, “ directed -the sheriff to suspend all further action or proceedings upon the execution until -otherwise ordered.” The plaintiff, a year later, .obtained a judgment in the action and the sheriff was directed to collect the execution on the original judgment. During the pendency of the action, after the opening of the default, the judgment debtors had handled the property, which comprised a stock of goods, as if they were the absolute owners. The court held that this intervention of the execution creditor destroyed the life of the execution, saying (at p. 584): “ The plaintiff put himself in a position where he could not enforce the writ for an indefinite period, and whether it could ever be enforced was uncertain, depending on the contingency of his obtaining, a second judgment in his favor. Meanwhile, the firm was allowed to go on selling the goods levied on and dealing with the public and each ■other as if no execution had been issued. To hold, under these ciroumstances, that the execution remained in life so as to defeat the title of an intermediate bona fide purchaser of the property would operate as a fraud. It is not necessary that the execution creditor should have acted in bad .faith or with an intention to defraud in ■delaying the execution of the writ to make it dormant as to third persons. An unreasonable delay directed by the plaintiff in the ■execution, although from motives of humanity, will let in and give precedence to a subsequent execution.” Smith v. Erwin (77 N. Y. 466); Everingham v. Nat. City Bank of Ottawa (124 Ill. 527); Benjamin v. Smith (12 Wend. 404), and Kimball v. Munger (2 Hill, 364), are all along the same line.

The law, therefore, seems to be settled that any direction by the ■execution creditor to the sheriff, which suspends the1 lien or delays the enforcement of the levy, renders the execution dormant against ■subsequent creditors or bona fide purchasers. However veiled may be the direction; however much it may be founded on a humane desire to protect the debtor; if it is tantamount to a mandate or instruction to the sheriff to withhold the execution of his process during the interim that he accedes to this 'demand, the levy ceases to be effective. That doctrine rests on public policy and is necessary to prevent fraud and it should receive a fairly rigorous enforcement.

At the time of the direction to the sheriff the personal property under levy comprised the various parts of a large number. [311]*311of bicycles in process of manufacture, which it was believed if manufactured would be adequate to meet all unsecured claims against said defendant. The purpose of this direction was to release the levy upon all the property of the defendant except the machin,ery and fixtures. The expectation probably was that the defendant could work up these uncompleted wheels and possibly pay its debts. The direction, in order to consummate its object, inhibited the sheriff from interfering with the defendant in its “ possession of their premises for the use of the machinery and fixtures.” The occupation of the real estate by the defendant was undisturbed, and the only construction that can be given to this ingenious phraseology is that the defendant was to have the exclusive use and control of the machinery and fixtures, and the levies were to be suspended until the execution creditors saw fit to revive them. JSTot satisfied with this.intervention, these creditors, a week later, united in a further direction to the sheriff requiring him to withdraw his deputies, and relieving him from any responsibility for the safe-keeping of the machinery and fixtures, still seeking, however, to cure- this unrestricted committal of the property to the custody of the judgment debtor by cautioning the sheriff to retain his levy upon the machinery and fixtures. The sheriff is the public official whose peculiar duty it is to dispose of proj)erty by execution, and whose levy thereunder results in the absorption of the property levied upon by the judgment creditor.

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Bluebook (online)
48 A.D. 304, 62 N.Y.S. 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/excelsior-needle-co-v-globe-cycle-works-nyappdiv-1900.