Groshon v. Lyon

16 Barb. 461, 1853 N.Y. App. Div. LEXIS 155
CourtNew York Supreme Court
DecidedOctober 3, 1853
StatusPublished
Cited by35 cases

This text of 16 Barb. 461 (Groshon v. Lyon) 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
Groshon v. Lyon, 16 Barb. 461, 1853 N.Y. App. Div. LEXIS 155 (N.Y. Super. Ct. 1853).

Opinion

By the Court, Mitchell, J.

Augustus Van Cortlandt, the elder, died in 1823, leaving a last will and codicils. In the last codicil, Augustus Van Cortlandt the younger was appointed trustee for Mrs. Meyer and her children. He died, leaving those trusts unexecuted, the fund amounting to about $23,500. In November, 1840, on the petition of Mrs. Meyer, Mr. Lyon was appointed trustee under the last codicil. The property of Augustus Van Cortlandt the younger, and of his brother Henry, consisted principally of real estate, and proceedings were had in chancery for its partition and for the payment of debts. In that [463]*463partition suit Mr. Lyon as such trustee made application to the court for leave to purchase part of the real estate on behalf of the cestuis que trust, and he was authorized by the court on the 19th of September, 1842, to purchase five houses and lots on Franklin street, provided the purchase should not be made at a price beyond the valuation made by Stephen Whitney and J. Phillips Phoenix. He made the purchase accordingly, and thus invested so much of the trust moneys as was equal to the purchase money, in this real estate. On the petition of Francena Meyer, the mother, Mr. Lyon was appointed trustee in other respects, and was authorized to buy in like manner, as trustee, an amount not exceeding one-fifth of the real estate in the partition suit, and to hold the part declared by the decree to belong to the infant children of Mrs. Meyer, in trust for the children, subject to her life estate therein. In February, 1848, Mr. Lyon presented his petition, setting forth substantially the above facts; that Mr. Meyer was dead, and two of the children then of age, and praying that he might be permitted to render an account of his acts and doings as such trustee, and have the same passed upon and settled; and. that he might be discharged from the trusts, and that another person might be appointed trustee in his place.

On the 5th of February, 1848, an order was made on that petition, referring it to Philo T. Buggies Esq. to take proof of the facts, &c. stated in the petition, and directing due notice of the reference to be given to Mrs. Meyer and the adult children, and appointing a guardian ad litem for the infants, in that proceeding ; and ordering Mr. Lyon to render before the referee an account of all /its acts and doings as trustee, under the above mentioned orders, together with an account of all his receipts and disbursements as such trustee. And the referee was to report whether it would be proper to appoint a new triistee.

The plaintiffs are the'infant children of Mrs. Meyer, and they filed their complaint in March, 1849, against the defendant. In his answer the defendant set up the above mentioned proceedings on his petition to account, and the order thereon, as a bar to this action. To ascertain whether the two proceedings -are for the [464]*464sapie cause of action, it is proper to look at the prayer in each, and see if the same relief can be given in each.

The. complaint sets forth the appointment, of Mr. Lyon as trustee, and states the amount of money due by Augustus VanCortlandt, the younger, as trustee; that $28,108 were paid into court as due to,that trust fund, and that Lyon alleges that he had invested this .money in the five houses, at $30,000. ° The complaint insists that Mr. Lyon had no legal authority so to invest it; and that the' valuation of the real estate made in the. petition for leave to invest in real estate, was exaggerated. And then the complaint demands that the defendant may be, removed and another trustee appointed in his place; that he may account for all the trust property received by him, or which he might have received if he had performed his trust according to the directions concerning the management thereof, and may pay over the same to such person as the court may direct; and "z that he render compensation in damages for the breaches of trust committed by him; and for further relief.

These plaintiffs .were necessary parties to be brought in on the accounting ordered upon Mr. Lyon’s petition; and although Mrs. Meyer was also such a party, that in no wise put them to any disadvantage in proceeding under that order, nor limited their rights,. When a trustee, on his own petition or otherwise, is ordered to render an account of his, actings ■ and doings, and to have the samp passed.upon and settled, and that another trustee be appointed in his place, (as is ordered.here, on Mr. Lyon’s petition,) the questions necessarily to be passed upon, among others, are, whether the investments of the .trust fund, made by him, were .legally authorized, and then , that, he .account for all. ■ the trust property received by him, or.which he.might have received if he had performed his trust according to, the ..directions concerning .the., management thereof, and that he pay over, the . same, to such persons.as the court may direct,, and render compensation . in- damages for the breaches. of trust. These, last, ■ constitute, the relief, sought,by the complaint. The same-relief., therefore is;sought by the complaint that is -ordered, - expressly, or implieclly in if la e.order,, made pp, M^t Lyon’s petition) ;andvcaj>.4[465]*465be obtained on that order. In the proceedings on the petition, the petitioner merely states his case, and that in such general terms merely as may suffice to show that he is entitled to an account, and the opposite parties can then, without any formal pleading, set up any objection to his accounts and show any illegality in them. It makes no difference, therefore, that the plaintiff alleges certain illegalities ; as they could be proved in the proceedings on the petition also. There are then two proceedings pending, for the same cause of action, and in both of which the same relief is sought and obtainable, and in one of which there is an order equivalent .to the judgment to account, in an action for an account, namely, in the first proceeding; and in that, as the evidence shows, these plaintiffs have also been present by.their .counsel and guardian ad litem before the referee, contesting the account. It certainly would not be for the interest of infants or cestuis que trust generally to have a formal action commenced and running on pari passu with a prior order on their trustee to account, obtained on his own petition. The trustee should not be subjected to two litigations; nor the infants to the double expense of these proceedings. Notwithstanding this, the plaintiffs insist that the prior proceeding was no bar to their subsequent action.

Section 144 of the code specifies, among other causes of demurrer, that there is another action pending between the same parties, for the same causeand section 147 allows the same objection to be taken by answer, when it does not appear upon the face of the complaint. ■ It was contended by the plaintiff that this objection could only be raised when the previous proceeding was an action, as defined by the code, and when the same person was plaintiff in both proceedings. As to the last parti of the objection, the language used in section 144, shows that such was not the intention. It is not “ an action pending by the same plaintiff against the same defendants,” as it should have been, to sustain the objection; but “ an action pending between the same parties.” It is between the same parties, although those who are actors in one action are the defendants in the other. Such also was the rule,.in some cases at least, ' [466]*466before the code.

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Bluebook (online)
16 Barb. 461, 1853 N.Y. App. Div. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/groshon-v-lyon-nysupct-1853.