Gray v. Rothschild

1 N.Y.S. 299, 55 N.Y. Sup. Ct. 596, 16 N.Y. St. Rep. 221, 48 Hun 596, 1888 N.Y. Misc. LEXIS 1305
CourtNew York Supreme Court
DecidedMay 18, 1888
StatusPublished
Cited by4 cases

This text of 1 N.Y.S. 299 (Gray v. Rothschild) 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
Gray v. Rothschild, 1 N.Y.S. 299, 55 N.Y. Sup. Ct. 596, 16 N.Y. St. Rep. 221, 48 Hun 596, 1888 N.Y. Misc. LEXIS 1305 (N.Y. Super. Ct. 1888).

Opinion

Daniels, J.

The plaintiffs consist of seven different firms, who sold goods, at different times, to the defendants Charles M. Rothschild and Jacob M. Rothschild, who were copartners, carrying on business in the city of Yew York, under the name of Charles M. Rothschild & Co. It was alleged, in support of their right to maintain a joint action against the purchasers of the goods, together with Jacob M. Rothschild and Abraham Rothschild, that the goods had been obtained by means of false representations, and that the purchasers, together with the two other defendants, had entered into a conspiracy under which these goods and others were to be purchased on credit, and the firm of Charles M. Rothschild & Co. were to defraud the vendors out of the purchase prices, by removing, secreting, and disposing of the goods, and that this conspiracy had been carried into execution. The action was not for the recovery of the goods themselves, or a rescission of the sales made, but for the recovery of damages amounting to the aggregate sum owing to the several firms joined as plaintiffs for the sale of their goods and merchandise. The defendants demurred to the complaint, alleging, in support of the demurrer, a misjoinder of plaintiffs, that causes of action had been improperly united, and that the complaint did not state facts sufficient to constitute a cause of action; and the court, at the trial, sustained the demurrer on the ground of a misjoinder of parties, and that several causes of action were improperly united in the complaint.

The accuracy of this decision has been resisted by the plaintiffs chiefly under the authority of section 446 of the Code of Civil Procedure. This section has provided that all persons having an interest in the subject of the action, and in obtaining the judgment demanded, may be joined as plaintiffs, subject to exceptions not required now to be noticed. But this section of the Code does not support the ease, as the plaintiffs disclose it by their complaint; for each one of the firms, in selling their goods, if the facts have been correctly set forth in the complaint, is entitled to maintain a separate action for damages against the purchasers and the other two persons implicated in the conspiracy; and that is all the relief, as the’facts have been presented, which either one of the firms would be entitled to obtain. There is no joint subject of action in this case; neither can any joint judgment be recovered in the action under the authority of this section; but each one of the firms have a separate and distinct cause of action against the defendants, upon which, in case of a recovery, a separate judgment would necessarily be entered. The subject of the action is the recovery of the damages sustained by each one of the firms in the sale of their own goods. Each sale was distinct from all the others, and made upon fraudulent representations inducing such sale. There was no concurrent or joint action by the several firms whose members have been joined as plaintiffs in the sales of their respectó ve goods, but each firm proceeded and transacted the business for itself; and for the value or price of its goods, if the facts are truthfully alleged in the complaint, each firm is entitled to a separate and distinct recovery. And no facts are alleged in the case, in any form, which would secure to the plaintiffs joint relief by way of a joint judgment. Tiie case, by no construction which can be placed upon this section of the Code, is in such a condition as to be maintained by these several firms, as the plaintiffs, in one action; and no other provision of the Code has gone so far as to permit actions for damages to be prosecuted and sustained in this form. Authorities have been assiduously collected and cited which are relied upon as sustaining so broad a rule of practice as to permit this action to be sustained, in its present form, in behalf of all these different firms. They are cases which have arisen in courts of equity, allowing actions to be maintained [301]*301by persons severally interested in the subject-matter of the action, and affecting ail alike. In that class of cases an action is allowed to be maintained by all parties interested in obtaining the same relief; but they have no application to this action, for these different firms are not entitled to any joint or final relief, by way of a single judgment. What they are entitled to, if they can maintain their actions at all, is the damages which each firm has sustained by means of the sale of its own goods, induced by fraudulent representations made to it. There is no joint subject-matter to be either set aside or maintained, as there was in the cases cited on the argument, and no joint interest in the action. It is not proposed either to set aside or restrain the effect or progress of the alleged conspiracy; but all that is proposed is the recovery of damages, to be apportioned to the goods sold by each one of these distinct and separate firms. The general principle, so far as it has been extended by courts of equity, allows separate plaintiffs, having separate interests, to join in an action for relief only where a common object is to be secured by the prosecution of the action. Where that is not the case, persons having distinct and independent claims against the defendant cannot join in a suit for the separate relief ot each. This was held in Murray v. Hay, 1 Barb. Ch. 59, 62; and the same principle was acknowledged in Ballou v. Inhabitants of Hopkinton, 4 Gray, 324, where it was declared by the court that, if damages were claimed, each party must prosecute his suit separately; and no broader rule was either intimated or sanctioned in Cadigan v. Brown, 120 Mass. 493. In Marselis v. Canal Co., 1 N. J. Eq. 31, these principles were very fully considered, and the court concluded that the authorities permitted no greater extension of the rule than has already been mentioned. In Ireland v. City of Rochester, 51 Barb. 415, Scofield v. City of Lansing, 17 Mich. 437, and Kennedy v. City of Troy, 14 Hun, 308, the actions were for relief affecting a subject-matter in which all the plaintiffs were interested in obtaining a single preventive judgment; and to avoid a multiplicity of suits, as but one object was to be attained, they were allowed to join in securing the relief necessary for the protection of their several interests. The subject-matter was entirely distinct and separate from such an action as this, in which only damages are claimed by each of the firms. In Smith v. Schulting, 14 Hun, 52, the complaint was sustained against a demurrer, upon the ground that it was to be inferred, not only that the plaintiffs were severally entitled to the same common relief against the same instrument, but that the release itself had been obtained from them by joint false representations; and there the suit was maintained only so far as to avoid the release. And in Loomis v. Brown, 16 Barb. 325, the undertaking on which the action was brought had been jointly entered into with and for the benefit of the persons who had joined as plaintiffs in the action; while in Brinkerhoff v. Broum, 6 Johns. Ch. 139, the decision proceeded no further than to permit several judgment creditors, who were alike interested in setting aside a fraudulent disposition of property by their common debtor, to join in an action for that relief. The case is entirely distinguishable from the present suit, for the reason, already mentioned, that damages only are what these different firms claim to recover, and those damages are strictly limited to their own separate transactions. The case of Goodnight v. Goar, 30 Ind.

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Bluebook (online)
1 N.Y.S. 299, 55 N.Y. Sup. Ct. 596, 16 N.Y. St. Rep. 221, 48 Hun 596, 1888 N.Y. Misc. LEXIS 1305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gray-v-rothschild-nysupct-1888.