Great Northern Telegraph Co. v. Yokohama Specie Bank, Ltd.

76 N.E.2d 117, 297 N.Y. 135
CourtNew York Court of Appeals
DecidedNovember 20, 1947
StatusPublished
Cited by16 cases

This text of 76 N.E.2d 117 (Great Northern Telegraph Co. v. Yokohama Specie Bank, Ltd.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Northern Telegraph Co. v. Yokohama Specie Bank, Ltd., 76 N.E.2d 117, 297 N.Y. 135 (N.Y. 1947).

Opinion

Thacher, J.

The Appellate Division has affirmed, as a matter of law and not in the exercise of discretion, an order which denied a motion by the plaintiff to join The Chartered Bank of India, Australia and China as an additional party defendant in the action against whom plaintiff’s right to relief is alleged to exist in the alternative and in allowing this appeal has certified the following questions:

1. Had the Supreme Court the power to grant plaintiff’s motion to join The Chartered Bank of India, Australia and China as an additional party herein against whom plaintiff seeks relief in the alternative?

“ 2. Did the Appellate Division err in holding that plaintiff’s application should be denied as a matter of law? ”

The Yokohama Specie Bank, Limited, is a Japanese hanking corporation. It was licensed by the Superintendent of Banks to maintain a banking business in New York referred to as the New York Agency. Prior to December 8, 1941, the Yokohama Specie Bank in Japan, for good consideration and at the request of the plaintiff, agreed to make payments in dollars to plaintiff’s order at its New York Agency and The Chartered Bank agreed with plaintiff to. collect 'and hold these payments for plaintiff’s account. On the outbreak of the war between Japan and the United States on December 8, 1941, the superintendent took possession of the New York Agency for purposes of liquidation, and, pursuant to section 620 of the Banking Law, notified, by mail or by publication as prescribed therein, all persons whose names appeared on the books of the agency as creditors or depositors to file claims with him on or before November 23, 1942. Thereafter The Chartered Bank filed with the superintendent three claims against the New York Agency for plaintiff’s account for $57,219.22 and $25,637.20 and $29,296.87 respectively, but failed to file a fourth claim for another $29,296.87 and also failed to institute any action for the collection of any of these claims before the expiration of the time fixed by section 625 of the Banking Law for the commencement of such actions.

*140 The plaintiff during German occupation of Denmark was under disability resulting from its status as a Danish corporation, and received no notice, by publication or otherwise, of the requirements for filing claims or instituting suit against the New York Agency, nor was any action taken in its behalf by the Alien Property Custodian. German occupation of Denmark having ended, plaintiff brought this action against the Superintendent of Banks and the Yokohama Specie Bank, Limited, in liquidation, and, being confronted by the defense that the action was not commenced within the time specified by subdivision 4 of section 625 of the Banking Law, made this motion to join The Chartered Bank as an additional defendant against whom relief is sought in the alternative. Plaintiff contends that its time to institute the action prescribed by section 625 of the Banking Law was extended during its disability to file claims and to institute actions, but asserts in the alternative that if barred by these provisions of the Banking Law from recovery against the fund in the hands of the superintendent it may nevertheless recover against The Chartered Bank for its failure to file claims and bring actions thereon within the times limited (cf. Carr v. Yokohama Specie Bank, 272 App. Div. 64, affd. 297 N. Y. 674).

We are concerned with sections of the Civil Practice Act having to do with the joinder of defendants (Civ. Prac. Act, §§ 211, 212, 213). These sections are closely related' both in origin and function to those sections of the Civil Practice Act which deal with the joinder of plaintiffs (§ 209) and the joinder of causes of action (§ 258). In their present form all of these sections were designed to conform the practice relating to parties with rules 1, 4, 5 and 7 of - order XVI of the Supreme Court of Judicature in England. Section 209 of the Civil Practice Act finds its source in rule 1 of that order; section 211 in rule 4; section 212 in rule 5, and section 213 in rule 7. Section 258 in its original form had no counterpart in the English rules. It was amended in 1935 (L. 1935, ch. 339) to overcome the decision of this court in Ader v. Blau (241 N. Y. 7) where it was held that before its amendment this section prevented the joinder of a cause of action against one defendant, for causing death through negligently maintaining a fence, in the same complaint *141 with a cause of action against the physician, who took care of the injured intestate, for causing death through malpractice. In its First Annual Report the New York Judicial Council (1935) said of this amendment (p. 44): The Court of Appeals in Ader vs. Blau (1925) 241 N. Y. 7 held that section 258 limited the sections with respect to parties.

Complete freedom should be allowed in the joinder of causes of action as in the joinder of parties, and it is submitted that the correct approach to the joinder both of parties and of causes of action is the English one: May the matters conveniently be tried together? ”

In construing these provisions of the Civil Practice Act we should give great weight to the construction placed upon similar provisions in the English practice order by the English courts (Akely v. Kinnicutt, 238 N. Y. 466, 477). The language of rule 4 of the English practice order (section 211 of our Civil Practice Act), although differing from the language of rule 1 of the practice order (section 209 of our Civil Practice Act), was construed as if it read the same, the English courts holding that joinder of defendants liable to plaintiff on different causes of action would be allowed if the claims arose out of the same transaction or series of transactions and if separate trials of the causes of action would involve common questions of law or of fact (Oesterreichische Export A. G. v. British Indemnity Ins. Co., [1914] 2 K. B. 747; Thomas v. Moore, [1918] 1 K. B. 555; Compania Sansinena de Carnes Congeladas v. Houlder Bros. & Co., [1910] 2 K. B. 354). Such was the construction of the English rules at the time they were written into the Civil Practise Act of 1920. Shortly thereafter it was held in Payne v. British Time Recorder Co. ([1921] 2 K. B. 1) that a plaintiff who agreed to furnish supplies to the defendant British Time Recorder Company according to a specimen furnished by it, and who procured the supplies from another who agreed to furnish them in accordance with the same specimen, could join the purchaser and the supplier as defendants in the same action, suing the purchaser for the price and the supplier in the alternative for breach of contract if it" appeared that the supplies did not conform to the specimen. Holding the joinder proper, the Master of the Rolls observed that there was a common question *142 as to whether the cards conformed to the specimen, and further observed that to sustain the joinder it was not necessary that there be any link between the two defendants or that liability for damage be common to both.

In Bailey v. Marchioness Curson of Kedleston ([1932] 2 K. B.

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Bluebook (online)
76 N.E.2d 117, 297 N.Y. 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-northern-telegraph-co-v-yokohama-specie-bank-ltd-ny-1947.