Galt v. Provident Savings Bank

18 Abb. N. Cas. 431
CourtNew York Supreme Court
DecidedSeptember 15, 1886
StatusPublished
Cited by2 cases

This text of 18 Abb. N. Cas. 431 (Galt v. Provident Savings Bank) 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
Galt v. Provident Savings Bank, 18 Abb. N. Cas. 431 (N.Y. Super. Ct. 1886).

Opinion

Andrews, J.

I do not see how the defendant could withdraw the notice of apparance originally seiwed without leave of the court first obtained, and for the purposes of this motion it must be regarded as having appeared generally in the action. It was he.d in McCormick v. Penn. Cent. R. R. Co. (49 N. Y. 303, 308), and in Brooks v. N. Y. and Greenwood Lake R. R. Co. (30 Hun, 47), which were cases arising under section 427 of the old Code, that a voluntary general appearance by a foreign corporation gave the court jurisdiction of the action, although the plaintiff Ayas not a resident of this State, and the cause of action did not arise herein. The provisions of section 1780 of the present Code are similar to those of section 427 of the old Code, and it does not seem to me that the use of the word “ only,” in said section 1780, has changed the meaning of those provisions, or has rendered the above mentioned cases inapplicable. If, therefore, the question now presented came before meas an original one, I should be inclined to consider those decisions controlling, and to uphold the attachment. It appears, however, that in Ervin v. Oregon Railway and Nav. Co. (28 Hun, 269), and in Brooks v. Mexican Construction Co. (49 Super. Ct. [J. & S.] 234), which were cases arising under section 1780 of the present Code, the general terms of the supreme court in this department and of the superior court, have held that a voluntary general appearance of a foreign corporation does not give the court jurisdiction of an action brought by a non-resident, unless the case is one of those enumerated in said section 1780. It is conceded in [435]*435the present case that the plaintiff is a non resident, and that the case is not one of those mentioned in said section ; and-as it is my duty to follow those decisions, I must vacate the1 attachment. Inasmuch, however, as the question of the construction of said section 1780 does not appear to have been passed upon by the court of appeals, and the matter is doubtless of great importance to the plaintiff, I shall feel it my duty to grant a stay of proceedings if he desires to appeal, provided he will give, if he has not already done so, an iindertaking which will fully protect the defendant in case the order is affirmed. The order to be entered will be settled on notice.

Note on Jurisdiction op Foreign Corporation.

In considering the subject of the jurisdiction of the courts of this State of actions against foreign corporations, it is important to bear in mind the distinction between the question of jurisdiction of the subject-matter, and that of jurisdiction of the person of the defendant, and to note that by reason of the limits of territorial jurisdiction of particular courts, what in one court would raise a question of jurisdiction of the person merely, in another becomes a question of jurisdiction of the. subject-matter (See the plaintiff’s brief in the case in the text, where1 this point is very clearly brought out).

Where jurisdiction of the person only is in question, the decision., turns upon service of process, voluntary appearance, waiver of objection to jurisdiction by answering on the merits, etc., while, if the court, is found to have no jurisdiction of the subject-matter of the action, , questions as to process, appearance', etc., are immaterial, because such jurisdiction cannot be conferred by consent. (But, query, under Code Civ. Pro. § 266.)

Statutes.] “It may be conceded,” says Folger, J., in Gibbs v. Queen Ins. Co., 63 N. Y. 114, 116, “that, before the Revised,Statutes, a foreign corporation could not be sued at law in imiturn, in our courts,” citing McQueen v. Middletown M’f’g Co., 16 Johns. 5. The earliest provision was that made by the Revised Statutes (2 R. S. 340, §§ 15-30) providing that suits in the supreme court against a foreign corporation “may be commenced by attachment.” The Code of Procedure of 1848. (§ 290) embodied the provision of the Revised Statutes, as to suits against foreign corporations, and subsequently the act of 1849 (c. 107, p. 142) was passed, providing (§ 15) that “suits may be brought (in the supreme court, in the superior court of the city of New , [436]*436York, and in the court of common pleas in and for the city and county of New York,) against any corporation, created by or under the laws of any other State government or country, for the recovery of any debt or damages, whether liquidated or not, arising upon contract made, executed or delivered, within this State, or upon any cause of action arising therein. Such suits may be commenced by complaint and summons together with an attachment, as now provided by law, and such complaint and summons may be served as provided by ” sections 113, 114, of the Code of Procedure.

The same legislature, later in the session, added section 427 to the Code of Procedure, providing as follows :

“ An action against a corporation, created by or under the laws of any other State government or country, may be brought in the supreme court, the superior court of the city of New York, or the court of common pleas forthe city and county of New York, in the following cases:

1. By a resident of this State, for any cause of action.

2. By a plaintiff not a resident of this State, when the cause of action shall have arisen, or the subject of the action shall be situated within this State.”

Whether this repealed cb. 107 of the acts of that year, or both remained in force, was a matter of conflicting opinion. Burns v. Provincial Ins. Co., 35 Barb. 525; Jones v. Norwich Trans. Co., 50 Barb. 194; Carpentier v. Minturn, 65 Barb. 293 ; Gibbs v. Queen Ins. Co., 63 N. Y. 114, 120.

These statutes were reviewed at length, by Folger, J., in Gibbs v. Queen Ins. Co. (supra), and the conclusion reached that it was not necessary to give the court jurisdiction, that the service of the summons upon an officer of a foreign corporation should be accompanied by the levy of an attachment upon its property.

Whether the decisions made under the Revised Statutes, or the Code of Procedure, are entirely applicable under the modified language of the Code of Civil Procedure, § 1780, giving jurisdiction in specified cases “ only,” is a matter of some doubt.

Section 1780, Code. Civ. Pro., provides: “ An action against a foreign corporation may be maintained by a resident of the State, or by a domestic corporation, for any cause of action. An action against a foreign corporation may be maintained by another foreign corporation, or by a non-resident, in one of the following cases only :

“1. Where the action is brought to recover dameges for the breach of a contract, made within the State, or relating to property situated within the State, at the time of the making thereof.
“2. Where it is brought to recover real property situated within the State, or a chattel, which .is replevied within the State. ,
[437]*437“3. Where the cause of action arose within the State, except where the object of the action is to affect the title to real property situated without the State.”

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Cite This Page — Counsel Stack

Bluebook (online)
18 Abb. N. Cas. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galt-v-provident-savings-bank-nysupct-1886.