Flynn v. White

122 A.D. 780, 107 N.Y.S. 860, 122 A.D. 576, 1907 N.Y. App. Div. LEXIS 2552
Appellate Division of the Supreme Court of the State of New York·Decided December 20, 1907·Published·Cited by 5 cases

Opinion

Clarke, J.:

Plaintiffs, who are residents of the city of Yew York, brought this action against William F. White, a resident of Yew York, and the White Silver Company, Limited, a foreign corporation organized under the laws of the Province of Ontario, Dominion of Canada, to recover $37,500 as commissions alleged to have been earned by them in bringing about the sale of certain lands in. Canada to Thomas A. Yevins for $375,000. Yevins is a resident of the State of Yew Jersey, although he now has and for a long time past has had an office for the transaction of business as a banker in the city of Yew York. The contract sued upon and the contract alleged to have been brought about by the plaintiffs’ efforts were made in the city of Yew York, and payment for the lands sold was provided to be made in the city of Yew York, and $330,000 of said purchase price was actually delivered in the city of Yew York. The greater part of the money so paid was from funds deposited in said city.

A warrant of attachment against the property of the White Silver Company, Limited, was issued and was served upon Yevins, and he has withheld, by reason of said service, from the last payment due by him $45,000. It is to vacate the levy upon that debt that the motion was made.

[782] The validity of the attachment depends upon the fact that the White Silver Company, Limited, is a foreign corporation. The motion to vacate the levy thereunder is based upon the contention that the debt levied upon, the res, has no situs within the State of blew York; that' a debt due by a non-resident to a non-resident is not attachable in this State.

The appellant places great reliance upon the decision of this court in Bridges v. Wade (113 App. Div. 350). That ease is an authority for two propositions: First, that a motion to set aside a levy under a warrant of attachment will lie under proper circumstances ; second, that in an action brought by a foreign plaintiff against a foreign defendant to recover the agreed price of goods sold in a foreign State said foreign" plaintiff is riot entitled, under a warrant of attachment, to levy upon an indebtedness due the foreign defendant from a foreign corporation. Arguendo, the rule laid down by the Supreme Court of the United States, which'is not in harmony with that of the Court of Appeals, was ¡examined, and it was held that even under that rule the levy was bad. The rule referred to was based upon' the proposition that an attachment will lie only when the creditor of the garnishee could himself sue. In Bridges v. Wade the garnishee was a non-resident corporation and the defendant, the creditor of said foreign corporation, was a nonresident. Section 1780 of the Code of Civil Procedure provided that an action against a foreign corporation might be .maintained by a non-resident in certain specified cases only, under none of which, under the circumstances there disclosed, could the defendant Wade have sued the foreign corporation. If the contract out of which the debt grew in that case had. been made within this State or the cause of action had arisen within this State a different question would have been presented.

In the case at bar the contract out of which the debt from bTevins to the White Silver Company, Limited, grew was made within this State and the money was to be paid within this Statea large portion due thereunder had actually been paid in this State from money here on deposit, and, therefore, if there had been a breach of the contract to pay, the cause of action would have, arisen within this State. The case at bar is further differentiated from Bridges v. Wade (supra) by the fact that the creditor, instead of the debtor, [783] is the foreign corporation, and, therefore, if an action were to he brought upon the debt the foreign corporation would be the plaintiff and not the defendant. The restriction in the statute is against a non-resident bringing an action against a foreign corporation, but there, is no restriction in the statute against a foreign corporation bringing an action in this State against a non-resident. On the contrary, section 1779 of the Code of Civil Procedure provides that an action may be maintained by a foreign corporation in like manner, and subject to the same regulations, as where an action is brought by a domestic corporation, except as otherwise specially prescribed by law.

Therefore, as Kevins has an office for the transaction of business in the city of Kew York, the White Silver Company, Limited, would have no difficulty in serving him with process in this State, and there would be no legal objection to maintaining its action upon the debt. In most of the cases where the attachment or the levy has been set aside, there was an attempt made to serve' process upon non-residents incidentally or temporarily within the State, and to levy or attach debts contracted in foreign jurisdictions. It is true that under the rule as laid down by the Supreme Court of the United States in the cases noted in Bridges v. Wade (supra), that, court has held such service good, that the debt was migratory in character and followed the person. The rule, however, as laid down by the Court,of Appeals, as indicated in National Broadway Bank v. Sampson (179 N. Y. 213), is otherwise, and we are bound to follow the Court of Appeals. ‘

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Flynn v. White, 122 A.D. 780, 107 N.Y.S. 860, 122 A.D. 576, 1907 N.Y. App. Div. LEXIS 2552 (N.Y. Ct. App. 1907).

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