Gordon v. Krellman

217 A.D. 477, 216 N.Y.S. 778, 1926 N.Y. App. Div. LEXIS 7836
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 6, 1926
StatusPublished
Cited by5 cases

This text of 217 A.D. 477 (Gordon v. Krellman) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Krellman, 217 A.D. 477, 216 N.Y.S. 778, 1926 N.Y. App. Div. LEXIS 7836 (N.Y. Ct. App. 1926).

Opinion

Finch, J.

The question to be determined upon this appeal is the “ event ” which will carry the costs of appeal when they are awarded by the appellate court to the defendant, appellant, to abide the event. The respondent argues that it is the award of costs upon a second trial which constitutes the event, while the appellant urges that it is the success in recovering a judgment for any amount, irrespective of the award of costs, which determines the event.

The action was brought by the plaintiff, as a mortgagee in possession of mortgaged property, for leave to account for her collections and disbursements in the management thereof, for the determination of the amount due to her and for a foreclosure. Defendant counterclaimed, charging the plaintiff with having negligently managed the property, failing to rent it for the reasonable rental value thereof, and that except for these acts of plaintiff the profits would have been more than sufficient to satisfy fully the mortgage indebtedness and award a judgment to the defendant, [478]*478and the defendant prayed for an affirmative judgment on the counterclaim against the plaintiff for $15,000. On motion of the plaintiff, interlocutory judgment was entered on the pleadings granting- the plaintiff’s application for leave to account and referring the matter to a referee to take the account and to determine the counterclaim. The accounting was had and final judgment was entered for an amount due the plaintiff under her mortgage, and dismissing the counterclaim on the merits. On appeal to this court the interlocutory judgment was modified, but the final judgment was reversed and a new trial of the accounting and of the counterclaim directed to be had before a justice at Special Term and not before a referee, with costs of the appeal to the defendant, appellant, to abide the event. (Gordon v. Krellman, 207 App. Div. 773; Civ. Prac. Act, § 1490.) Upon the retrial the court at Special Term found against the defendant on the counterclaim, namely, that the plaintiff did not negligently manage said property and did not negligently fail to rent the same for the reasonable rental thereof; that the rents and profits which would have been derived from the property would not have been sufficient to satisfy the indebtedness which was due by the defendant to the plaintiff, and that the defendant had not sustained damages in any amount and dismissed the counterclaim. The plaintiff upon the retrial recovered very much less than she sought by her complaint or had recovered upon the first trial where she had judgment for some $21,000. The decree, however, found due to the.plaintiff $6,000 and directed a sale of the property unless the respondent paid this amount and took over the property. Because of this material reduction in .the amount sought by the plaintiff, the trial justice awarded the costs of the action to the defendant. The defendant’s proposed bill of costs contained not only the costs of the retrial at Special Term, but also the costs of appeal which had been awarded to him to abide the event. Upon the taxation before the clerk, the plaintiff objected to the costs of appeal and the same were stricken out. On a motion for retaxation, the justice at Special Term overruled the clerk, on the ground that the award of the court costs constituted the defendant the successful party, and ordered a restoration of the costs of appeal to the defendant. The awarding of the costs on the retrial at Special Term to the defendant was within the discretion of the trial justice. (Civ. Prac. Act, § 1477.) None of the sections of the Civil Practice Act, however, awarding costs affect the recovery of costs upon an appeal. (Civ. Prac. Act, § 1489.) Where the costs are awarded by an appellate court to abide the event, the party who finally recovers in the action is the party entitled to tax them. In First [479]*479National Bank v. Fourth National Bank (84 N. Y. 469) the court, by Andrews, J., said: “ The plaintiff is entitled to tax the costs of the appeal to this court. The first judgment was reversed, with costs to abide the event. The event of the new trial was the circumstance which was to determine which party should recover the costs of the appeal. The order did not limit the recovery of costs to the prevailing party on the appeal, in case he should finally succeed in the action. * * * We have often limited the recovery of costs on appeal to one of the parties, but where the order reversing a judgment and granting a new trial is made with costs to abide the event, without other limitation, we understand that the party finally succeeding in the action is entitled to tax them.”

In the above case the costs were awarded generally to abide the event, and in the case at bar the costs were awarded to the defendant, appellant, to abide the event. The above authority is decisive, since the event in each case is the same, namely, the success on the retrial. Whether either party could recover the costs or whether they were recoverable only by the defendant had no bearing on the event which should determine whether or not the costs would be awarded.

The respondent relies on three cases (People ex rel. Shiels v. Greene, 114 App. Div. 168; Miller v. City of Buffalo, 129 id. 833; Crown v. Goldstein Co., Inc., 186 id. 86) as sustaining the right of the respondent to tax the costs on appeal, for the reason that respondent was entitled to tax the costs of the second trial through the award of costs to the defendant in the discretion of the justice at Special Term. Crown v. Goldstein Co., Inc. (182 App. Div. 730; 186 id. 86) was an action at law for damages for wrongful discharge, and the complaint set forth in three separate counts three causes of action, the first of which was to recover damages for a wrongful discharge after performing services for thirteen weeks under a contract of employment for one year; the second was for salary earned, due and unpaid at the time of the discharge; and the third was to recover a sum for extra work, labor and services performed for the defendant during the time of plaintiff’s employment under the contract, but for which the jury were instructed that the plaintiff was not entitled to recover unless they found that the defendant had specially' agreed to pay for said extra work. The defendant admitted the second cause of action, and pleaded tender of payment and refusal to accept. Issue was joined on the first and third causes of action. On the first trial the plaintiff recovered on all the counts litigated. ’ Upon appeal the judgment was reversed and a new trial ordered, with costs to the defendant, appellant, [480]*480to abide the result of the final judgment. On the retrial plaintiff, respondent, won on the first cause of action and the defendant, appellant, won on the third cause of action. Under the Code of Civil Procedure, as the causes of action were not substahtially the same on each issue, both parties became entitled to tax costs. The court held that as the plaintiff had been successful on one count on the merits and the defendant had been successful on the third count on the merits, therefore, the defendant was entitled to tax the costs of the appeal, which disposition was correct. In Miller v. City of Buffalo (supra) the court was careful to point out that the new trial had not yet been had, and hence the contingency would not happen upon which the plaintiff was entitled to costs until the new trial should occur. The result here, therefore, was also a correct disposition. In People ex rel. Shiels v. Greene (supra)

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Bluebook (online)
217 A.D. 477, 216 N.Y.S. 778, 1926 N.Y. App. Div. LEXIS 7836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-krellman-nyappdiv-1926.