Grant v. Tefft

7 N.Y.S. 129, 26 N.Y. St. Rep. 102, 1889 N.Y. Misc. LEXIS 962
CourtCity of New York Municipal Court
DecidedOctober 3, 1889
StatusPublished
Cited by2 cases

This text of 7 N.Y.S. 129 (Grant v. Tefft) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grant v. Tefft, 7 N.Y.S. 129, 26 N.Y. St. Rep. 102, 1889 N.Y. Misc. LEXIS 962 (N.Y. Super. Ct. 1889).

Opinion

MoAdam, C. J.

The relevancy of the testimony ruled out must be determined by reference to the answer of the defendants, for, if relevant, it must have been offered to sustain its allegations. They allege that a levy had been made on the property of Yon Der Linden under attachments issued in the two suits brought by Weinberg and Claflin; that they (the attaching creditors) had indemnified the sheriff in those actions immediately upon the making of the levy; and that the sheriff’s attorneys had represented to Mr. Schell, the attorney for Tefft, Weller & Co., that the sheriff was about to sell the property levied on, and that, if they (the defendants) would give the sheriff a bond of indemnity, he would pay the amount of their execution out of the proceeds of the sale about to be made; whereupon they executed and delivered the bond sued upon. The matter pleaded constitutes no defense. The bond was delivered to the obligee, and paroi evidence of conditions qualifying the delivery was inadmissible. Cocks v. Barker, 49 N. Y. 110. A bond of indemnity given to the sheriff applies as well to a levy made before the bond was given as to one made afterwards, and the obligors in a suit upon the bond are chargeable with knowledge of the prior levy. Reilly v. Coleman, 1 City Ct. R. 476. The levy made by the sheriff under the prior writs inured to the benefit of the Tefft, Weller & Co. judgment, (Crock. Sher. §§ 413, 442;) so that the admission in the answer that a levy had been made under the writs in the cases of Weinberg and Olafiin sufficiently proves a levy under the execution issued on the Tefft, Weller & Co. judgment.

The next defense is that immediately after the commencement of the action by Byrne against the sheriff the defendants notified the sheriff’s attorneys that they did not wish that action defended. Assuming, as we do, that ordinarily an indemnifying creditor may give such a direction in order to save the expense of a useless litigation, the rule cannot be extended to a case like the present, where other creditors have an interest in the defense of such action, and do not consent to its discontinuance. .The sheriff was sued for the consequences of his levy and sale under all process in his hands, and was obliged to justify under all such writs for the joint protection of all the judgment creditors interested. True, if the sheriff had become satisfied that the action against him was well founded, and that he had no legal defense to it, he might have allowed judgment to go against him by default, or even by consent. But such a judgment would not have concluded the judgment creditors, who did not consent to that course, from proving that the alleged cause of action on which the judgment was permitted to go pro confessa was without foundation; and in that case the sheriff would have been obliged to pay the judgment himself, and have no remedy over on the indemnity bonds given by the objecting creditors. That the defense interposed by the sheriff to that action was meritorious is proven by the result. Two trials were had, at both of which the jury disagreed, and the plaintiff therein as a consequence finally abandoned and discontinued the prosecution. If the action had been allowed to go undefended, as the defendants seem to have desired it to have gone, the recovery against the sheriff could not have been less than the sums collected and paid over, which aggregate $6,232.86, and this without considering the expense connected with the levy and sale. In consequence of the defense by the sheriff, the indemnitors, instead of being called upon to pay their proportionate amount of the damages and costs that might have been recovered in the Byrne action, are now called upon to pay only their proportionate share of the $1,000 fee paid for conducting such defense. When the defendants executed the bond of indemnity they knew that other creditors had issued process against [131]*131the same debtor; they knew that a levy had been made under these prior writs, and that the creditors issuing them had indemnified the sheriff; and with this knowledge they executed the bond in suit, and became a party to the act of levy and sale, jointly with the other obligors, to such an extent that Byrne could have prosecuted the indemnitors jointly, either with or without the presence of the sheriff as a party defendant. Barb. Parties, 203, 204; 1 Cow. Treat. § 765; Herring v. Hoppock, 15 N. Y. 409. If such an action had been brought, Tefft, Weller & Co. could have allowed it to have gone by default, so far as they were concerned; but they could not have prevented Weinberg and Clafiin from defending the action, nor could they have escaped the entry of a joint judgment against all for damages and costs if Byrne had ultimately succeeded. Delatour v. Bricker, 2 City Ct. R. 22. On principle, Tefft, Weller & Co. stand in no better position now. They must, so far as that suit is concerned, be considered jointtort-feasors with Weinberg and Claflin. They were, in effect, sued as such, and their liabilities must be determined with reference to the nature of that action and its legal consequences. The defendants assumed this position by their bond of indemnity, and could not change the nature of their liability by the giving of a notice in which the other creditors and indemnitors jointly liable with them neither joined nor approved. The evidence as to such notice was therefore properly excluded.

The only other question to be considered is the exception to the refusal to dismiss the complaint on the ground that there was no evidence that the fee paid by the plaintiff to his counsel, $1,000, was a fair and reasonable charge. In an action against indemnitors the practical question will always be what the plaintiff was obliged or authorized to pay, both in respect to the principal and incidental costs or expenses. 1 Suth. Dam. 135. The plaintiff was authorized, for he was under legal obligation to pay his counsel a reasonable fee, and this they agreed upon and fixed at $1,000, and the payment of this sum created a legal presumption that it was a fair and reasonable charge. If the plaintiff’s counsel had sued him to recover $1,000, and he had suffered .a recovery by default, or even consented to judgment therefor, such a presumption would certainly have attached. The court of appeals, in Conner v. Reeves, 103 N. Y. 527, 9 N. E. Rep. 439, committed itself to this principle, which in the opinion of the court, Judge Andrews says, “presents a feature not found in any of our Reports.” In the case cited the court says: “The bond was given to indemnify the sheriff against suits and judgments to which he should be a party, growing out of that proceeding. The appellants did not make it a condition of their liability that they should have notice. They were satisfied that the sheriff should conduct litigations founded upon his seizure •of the property, without reserving any right of intervention. They committed the matter to his discretion, not, indeed, by express words, but by necessary implication. It is true that the sheriff was not in a legal sense the agent of the sureties to manage suits brought against him, but the sureties agreed that no judgments should be recovered against him therein. They did not limit the indemnity to judgments obtained upon an actual trial, or after a contest in court, and they did not undertake to divest the’sheriff of the power incident to his position as a party to settle and adjust litigations instituted .against him in view of the exigencies of the situation.

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Related

Platt v. Kohler
29 Abb. N. Cas. 366 (New York Supreme Court, 1892)
Grant v. Tefft
8 N.Y.S. 465 (New York Court of Common Pleas, 1890)

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Bluebook (online)
7 N.Y.S. 129, 26 N.Y. St. Rep. 102, 1889 N.Y. Misc. LEXIS 962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grant-v-tefft-nynyccityct-1889.