Flack v. Thaxter

17 N.Y.S. 359, 44 N.Y. St. Rep. 107, 1892 N.Y. Misc. LEXIS 305
New York Court of Common Pleas·Decided February 1, 1892·Published·Cited by 2 cases

Opinion

Bookstaver, J.'

Action on a bond of indemnity. In May, 1889, Stickney, Conyngham & Co. began an action in the city court against Henry Steinbrouek, Sr., to recover $200, wherein a warrant of attachment was issued against the property of Steinbrouck, and directed and delivered to the plaintiff, as sheriff, for execution. By the direction of the attaching creditors two levies were made under the warrant on horses, trucks, harness, shovels, etc. This property was claimed by Steinbrouck, Jr., and one ICemler. Notice of the claim was given to the creditors. They requested the plaintiff, as sheriff, to retain and sell the property levied on, and the defendants in this action indemnified him against that claim. On receiving the indemnity bond the sheriff refused to return the property. For these levies and this refusal to return the property the claimants brought two actions in conversion in this court for the two separate levies directed by the creditors, which were subsequently consolidated, and, after trial of the consolidated action, obtained a verdict for the value of the property levied on under the creditors’ direction, and for nothing else, as appears by the finding of the jury contained in the judgment roll in that action. This action was brought in the city court to recover from the indemnitors the amount of that judgment and counsel fees in defending the action. The bond sued on was given, among other things, to save the sheriff harmless from just such a judgment as that obtained against him. The judgment was not for any negligence, oppression, or fraudulent act committed by him, nor for any malfeasance or misfeasance in office, but simply for the value of the goods taken by him under the creditors’ direction. This would seem to be conclusive of the plaintiff’s right to a recovery in this action, and to bring it squarely within Conner v. Reeves, 103 N. Y. 527, 9 N. E. Rep. 439, where Andrews, J., said (page 529, 103 N. Y., and page 440, 9 N. E. Rep.:) “The undertaking was not against damage merely, but was an indemnity against liability by judgment as well. By the general rule of the law a covenant of indemnity against a future judgment, charge, or liability is broken by the recovery of a judgment or the fixing of a charge or liability in the matter to which the covenant relates. When the covenant is one of indemnity against the recovery of a judgment, the cause of action is complete [360] the moment the judgment is recovered, and an action for damages may be immediately maintained thereon, measured by the amount of the judgment, and this although the judgment has not been paid by the covenantee, and although the covenantor was not a party, or had no notice of the former action. The covenantor in the action on a covenant of general indemnity against judgments is concluded by the judgment recovered against the covenantee from questioning the existence or extent of the covenantee’s liability in the action in which it was rendered. The recovery of a judgment is the event against which he covenanted, and it would contravene'the manifest intention and purpose of the indemnity to make the right of the covenantee to depend upon the result of the retrial of an issue which, as against the covenantee, had been conclusively determined in the former action; always, however, saving the right, as the law must in every case where the suit is between third persons, to contest the proceedings on the ground of fraudulent collusion, for the purpose of charging the surety. ” In this case there is no question of fraud or collusion raised, and, indeed, it would have been strange if there had been, for the same attorneys appeared on the trial of that action against the sheriff, who appear for the defendants in this action.

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Flack v. Thaxter, 17 N.Y.S. 359, 44 N.Y. St. Rep. 107, 1892 N.Y. Misc. LEXIS 305 (N.Y. Super. Ct. 1892).

17 N.Y.S. 359 (Flack v. Thaxter) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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