Garibaldi v. City of Yonkers

198 Misc. 1100
CourtNew York Supreme Court
DecidedApril 13, 1949
StatusPublished
Cited by2 cases

This text of 198 Misc. 1100 (Garibaldi v. City of Yonkers) 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
Garibaldi v. City of Yonkers, 198 Misc. 1100 (N.Y. Super. Ct. 1949).

Opinion

Flannery, J.

Of plaintiff’s five points, two have no relevance here because any alleged default or delay of the defendant in the preparation or execution of the executory contract of sale was waived by plaintiff’s and his assignor’s action thereon and if any of the alleged public acts or remarks of the officials, employees or agents of defendant did harm to plaintiff they were acts and remarks within their and defendant’s legal right, done and made without malice, and no cause of action in tort accrued to plaintiff from said acts, remarks and harm, if any. On those two plaintiff can have no relief. Nor can plaintiff succeed on the three exceptions to title that he made. The title company’s exception No. 5 had been obviated over four months before the adjourned closing date, July 11, 1947, by the satisfaction of record, on March 3, 1947, of the two judgments and plaintiff should have informed himself of the state of the record before he appeared for the closing. The title company’s exception No. 8 was not well taken because only a permanent receiver in dissolution has title (General Corporation Law, § 168) but a temporary receiver is merely a custodian and agent of the court to take and hold possession without title (General Corporation Law, § 162; Matter of French, 181 App. Div. 719, 731, affd. 224 N. Y. 555; Markham v. Taylor, 70 F. Supp. 202, appeal dismissed 163 F. 2d 940). Here, the temporary [1103]*1103receiver had not even filed a certified copy of the order appointing him in the county where was situated the realty mortgaged to the McGolrick Bond & Mortgage Corp. He had no title, even if he had possession of the bond and mortgage. He was not a necessary party defendant in the tax lien foreclosure (Herring v. New York, Lake Erie & Western R. R. Co., 105 N. Y. 340, 371-373; Bate v. Brenack Stevedoring Co., 197 App. Div. 194; Decker v. Gardner, 124 N. Y. 334; Pringle v. Woolworth, 90 N. Y. 502, 510; Kincaid v. Dwinelle, 59 N. Y. 548). The title company’s exception No. 9 was not well taken because there was no defect in service apparent on the record and neither the title company nor the plaintiff produced anything to contradict or even cast doubt on the record (Greenblatt v. Hermann, 144 N. Y. 13, 18; Title Guar. & Trust Co. v. Fallon, 101 App. Div. 187; Bardes v. Herman, 144 App. Div. 772, affd. 207 N. Y. 745; Reynolds v. White, 134 App. Div. 248). Mere suspicion is not enough (Carroll v. McKaharay, 35 App. Div. 582; Todd v. Union Dime Sav. Inst., 128 N. Y. 636; Hagan v. Drucker, 90 App. Div. 28). It is apparent then that, plaintiff has defaulted without excuse and defendant is entitled to retain the part payment made on account of the purchase price at the acceptance of the bid as recited in the contract. Accordingly, the motion of plaintiff will be denied and the cross motion of defendant granted and the complaint dismissed, with costs and $10 costs of the cross motion. Submit order.

(On. reargument, April 13, 1949.)

Subparagraph (a) of subdivision 1 of point I of plaintiff’s brief is no more than a statement that the voluntary petition of the directors for an order dissolving the corporation and appointing a receiver to take possession of all corporate books, records and assets, operated to terminate all prior delegations of 1 general powers involving the exercise of judgment and discretion ’ in the conduct of corporate affairs, — the minimum requirement for a ‘ Managing Agent.’ ” There is nothing in the provisions of section 101 of the General Corporation Law that suggests the petition has this effect and the court has been unable to find any case in which this was held. Presumably, the plaintiff has also been unable to find a case of that kind, for he cites none. If his argument were sound it would be difficult to understand the meaning of section 111 of the General Corporation Law which allows a temporary receiver to obtain an injunction against actions by creditors of the corporation. If

[1104]*1104all officers and managing agents were stripped of power by the mere filing; of a petition or the appointment of a temporary receiver section 111 would be wholly unnecessary for a receiver can only be sued with permission of the court anyway and the only purpose of section 111 was to permit the restraint of actions brought directly against the corporation by service upon its officers and managing agents. Also, if the plaintiff’s theory were correct there would be an interregnum of many weeks between the presentation of the petition and the' final order of dissolution when no person would be authorized to receive service of process for the corporation or do any other act for it. It is true that in some proceedings a court might appoint a temporary receiver and specially endow him with the powers of a permanent receiver (General Corporation Law, § 162), but even the court could not appoint a temporary receiver where the corporation was solvent (General Corporation Law, § 110; Matter of Greenwald, 248 App. Div. 590). Of course, upon the entry of the order of dissolution section 29 of the General Corporation Law would become effective and, if the corporation were insolvent, the order making the final dissolution would probably appoint a permanent receiver who could act for the corporation, but in the meanwhile, on plaintiff’s theory, the corporate affairs would drift without management or control. Plaintiff is wholly mistaken about the effect of the presentation of a petition for voluntary dissolution.

Subparagraph (b) of the first subdivision of point I rests merely on the apparent denial by the former temporary receiver of any knowledge of a Managing Agent.” The attorney for the plaintiff called the former temporary receiver on the telephone and in his affidavit verified March 26, 1949, states that he “ was advised by him that, as temporary receiver of McGolrick Bond & Mortgage Corp., he not only did not continue the authority of any person previously acting as Managing Agent for said corporation, but that he Tcnew of no such person having such authority, and had never even heard of a ‘ Miss Glass ’ being connected with said corporation, either as a Managing Agent or even as an employee in any capacity whatsoever ” In a supporting affidavit made by the former temporary receiver and verified April 1, 1949, he says that the statements contained in the last six (6) lines of page 2 and the first three (3) lines of page 3 of said affidavit, relating to the conversation had by deponent with said Jerome Beaudrias, Esq., are in all respects true,” It is not entirely clear whether the former temporary [1105]*1105receiver means merely that Mr. Beaudrias correctly reported what he had said, or that it was not only correctly reported but that what he was reported to have said was true. However, even if it be assumed that the effect of the two affidavits is the same as if the former temporary receiver had repeated in the first person what Mr. Beaudrias says he said, the furthest reach of all the language is that the former temporary receiver really knows nothing about the subject of discussion.

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Related

Meltzer v. Grazi
10 A.D.2d 869 (Appellate Division of the Supreme Court of New York, 1960)
In re the Voluntary Dissolution of Hy-Lite Plastics, Inc.
8 Misc. 2d 101 (New York Supreme Court, 1957)

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Bluebook (online)
198 Misc. 1100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garibaldi-v-city-of-yonkers-nysupct-1949.