Franklin E. Tyrell, Inc. v. Vahlsing

193 Misc. 454, 69 N.Y.S.2d 602, 1947 N.Y. Misc. LEXIS 2275
CourtNew York Supreme Court
DecidedMarch 1, 1947
StatusPublished
Cited by6 cases

This text of 193 Misc. 454 (Franklin E. Tyrell, Inc. v. Vahlsing) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin E. Tyrell, Inc. v. Vahlsing, 193 Misc. 454, 69 N.Y.S.2d 602, 1947 N.Y. Misc. LEXIS 2275 (N.Y. Super. Ct. 1947).

Opinion

Cuff, J.

In this action by a real estate broker to recover commissions from the owner of certain realty for whom he claims he produced a buyer, the owner has impleaded the alleged buyer by serving on him a third party summons and complaint, pursuant to section 193-a of the Civil Practice Act (added by L. 1946, ch. 971), which is a drastic amendment (eff. Sept. 1,1946) of section 193 of the Civil Practice Act. The buyer (third party) has moved to dismiss the claim alleged against him on the ground that the new enactment is not applicable to him in the circumstances; the defendants oppose the motion while plaintiff takes no action.

The facts are: In its ordinary real estate commissions complaint, plaintiff inter alla alleges the procuring of I. Herbert Scheffer (the third party) as the willing and able buyer and demands judgment for $1,185 against defendants. The defendants’ answer admits listing the property with plaintiff for sale; admits receiving the contract signed by the alleged buyer Scheffer, but denies that any commissions became due to plaintiff. For a first separate defense, defendants allege that the buyer whom plaintiff produced, refused to perform the contract; that plaintiff knew that the buyer had repudiated the contract before he submitted it to defendants for signing but that he concealed that fact from defendants, with the intention of deceiving them; and for a second defense, defendants allege that plain[456]*456tiff secured the signature of the buyer to the contract by making false representations to him about the property, the subject of the sale, and they demand that the complaint be dismissed. The Third Party Complaint ” which was served by defendant on the alleged buyer, Scheffer, recites that the broker (plaintiff) commenced this suit for commissions against them because they had contracted to sell the property to the buyer (third party) whom plaintiff had produced; that the buyer (third party) breached that contract; that if plaintiff establishes the existence of that contract, defendants will be damaged by reason of the said breach to the extent, if any, that plaintiff recovers against them and they demand judgment against the third party in the amount, if any, of plaintiff’s judgment against them, plus costs and expenses.

The moving and answering affidavits merely echo the pleadings except that both the defendants and the third party agree that plaintiff’s suit not only lacks merit but that he committed a fraud upon both of the contracting parties in having them sign the contract; they contend that plaintiff did that for the sole purpose of “ building up ” this claim for commissions which he is now advancing. That defendants sold the property at a slight loss plays no part in this application.

There is now a three-cornered controversy among the broker, the seller and the buyer — principals in this attempted sale of property which failed. It presents a typical case — one that is repeated over and over again in the business world. The question is: may these claims be litigated together before a jury?

The new provision of law reads in part: “ § 193-a. Third-party practice. 1. After the service of his answer, a defendant may bring in a person not a party to the action, who is or may be liable to him for all or part of the plaintiff’s claim against him, by serving as a third-party plaintiff upon such person a summons and copy of a verified complaint. The claim against such person, hereinafter called the third-party defendant, must be related to the main action by a question of law or fact common to both controversies, but need not rest upon the same cause of action or the same ground as the claim asserted against the third-party plaintiff.” (Civ. Prac. Act, § 193-a, subd. 1.)

That amendment to section 193 was intended to liberalize our “ Third-party practice ” (See Twelfth Annual Report of N. Y. Judicial Council, pp. 197-217), which heretofore rigidly required that in impleading there should be definite “ liability over ”, as well as “ identity of claims ”. (May Co. v. Mott Ave. Corp., 121 Misc. 398; Kromback v. Killian, 215 App. Div. 19.) [457]*457Under those restrictions, the claims in this suit could not he entertained in one action. Defendants rely upon the amendment above set forth.

Considering this recent enactment (§ 193-a), it should be noted that a third party complaint may be served at any time after defendant answers. He may implead any person not a party who is or may be liable to him for all or part of the claim plaintiff is pressing. The person who is ” liable to him is in the position of an indemnitor. That provision is the same in old section 193 of the Civil Practice Act. As there is no change with respect to that feature, the guiding decisions of the past are still applicable. The expression may be liable ” should not be read alone. It is linked with the next sentence wherein the law requires that.the claim against the impleaded person “ must be related to the main action ” and then it defines the nature of that relationship. It is: there must be at least one question of law or one question of fact common to both the main action and the third party claim. In order to remove the old restriction whereby the impleaded claim was required to be the same or based upon the same grounds as the main action (Nichols v. Clark MacMullen & Riley, Inc., 261 N. Y. 118) the new statute affirmatively provides that the third party claim need not be based upon the same cause of action, or grounds as the main action. Thus it will be seen that the amendment to section 193 discards the “ identity ” of claim and liability over ” rule. The only restrictions on impleader left are (1) that the third party may be liable ” over, (2) that the claim and the main action must be related by a question of law or fact common to both, and (3) that Special Term, exercising discretion, shall be satisfied that the joinder will neither work an injustice, unduly delay the main action, nor inconvenience the plaintiff. The expression may be liable ” means that if the impleaded one is definitely not “ liable over ” to the defendant, then there should be no joinder. If there is doubt as to such liability, other conditions having been met, there should be joinder. This will be referred to again.

“ For all or part of the plaintiff’s claim against him ” must refer to the amount of money only. In other words, if plaintiff recovers a sum of money from defendant, defendant may not have that money to satisfy the obligation unless he obtains it from the third party from whom he claims it is due. His impleader is built upon that theory. If large amounts are considered there is logic with justice in the requirement. The expression “ related to the main action by a question of law or [458]*458fact common to both ” will give no trouble as to the question of law That will be recognized at once. For instance, in the application at bar there is no question of law common to both claims. Further discussion is unnecessary. "Whether there is a common question of fact bears directly upon this motion and will be discussed later.

But what does the amendment to section 193 seek to accomplish? That should be the main guide in interpreting it. It will be discovered by examining the other subdivisions of the amendment (I have discussed subdivision 1). Defendant instigates all impleading by serving his third-party summons and complaint ” (Rules Civ. Prac., rule 54), on the one to be impleaded (subd.

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Bluebook (online)
193 Misc. 454, 69 N.Y.S.2d 602, 1947 N.Y. Misc. LEXIS 2275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-e-tyrell-inc-v-vahlsing-nysupct-1947.