Haberle-Crystal Spring Brewing Co. v. Handrahan

100 Misc. 163
CourtNew York Supreme Court
DecidedMay 15, 1917
StatusPublished
Cited by3 cases

This text of 100 Misc. 163 (Haberle-Crystal Spring Brewing Co. v. Handrahan) 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
Haberle-Crystal Spring Brewing Co. v. Handrahan, 100 Misc. 163 (N.Y. Super. Ct. 1917).

Opinion

Ross, J.

This action is brought under the provisions of section 1837 of the Code of Civil Procedure (which permits an action against the next of kin or legatees of a testator to recover a debt due from the latter), and is based upon the following facts: A short time prior to November, 1914, one John F. Mahar, a. resident of Onondaga county, died, leaving a last will and testament which was duly admitted to probate, in which one F. J. G. was named as executor, and the defendant, Catherine Handrahan, a sister of the said deceased, was the sole legatee named in said will. The said executor duly advertised for creditors and has heretofore had a final accounting as such executor, and upon said accounting turned over to the defendant, Catherine Handrahan, pursuant to the terms of said will, certain real estate described in the complaint and personal property in excess of the value of $8,000, but said executor has not been discharged.

The action is based, first, upon a promissory note made on September 25, 1913, by John F. Mahar, deceased, which was payable in four months from its [165]*165date, on which the plaintiff claims is due substantially five hundred dollars, and upon a claim against the said John F. Mahar for rent for a portion of the month of April, 1912, amounting to seventeen dollars and fifty cents, together with interest, and also upon a claim for moneys advanced in May, 1912, twenty-three dollars, together with interest.

The plaintiff further alleges in its complaint that the aforesaid executor accounted and turned over the whole of the estate of said John F. Mahar, both real and personal, to the defendant.

The defendant, with other defenses, pleads a counterclaim, and it is to the sufficiency of said counterclaim that this decision is addressed. The counterclaim in question alleges that on or about the 23d of February, 1914, the said John F. Mahar sold through the medium of Walter Welch, the attorney and agent for the defendant, certain real property belonging to the said John F. Mahar for the sum of $9,000, payable according to the terms of a contract referred to’ in the aforesaid counterclaim, and said counterclaim contains the following allegation in relation thereto: Defendant further alleges upon information and belief that on the 5th day of March, 1914, the plaintiff herein did obtain the signature of the said John F. Mahar to the alleged deed of said premises conveying the premises to plaintiff and did deliver to the said John F. Mahar a sum of money purporting to be the balance due upon the purchase price of said premises, and did fraudulently deduct from the said balance of the said purchase price and did fraudulently retain from the said balance of the said purchase price of the said premises the sum of $500, and that it did so fraudulently deduct and retain said sum out of said balance without the consent or by acquiescence of the said John F. Mahar,” and con[166]*166tains further allegations essential to a proper amplification of said counterclaim.

The plaintiff demurred to the counterclaim set up in the defendant’s answer upon several grounds, but more particularly (2) that the defendant has not legal capacity to recover upon the cause of action set up in the counterclaim, but that such right of action, if it exists at all, exists in favor of the executor of the last will and testament of John F. Mahar, deceased, and (3) that the counterclaim is, not of the character permitted by section 501 of the Code of Civil Procedure.

Capacity to sue. In disposing .of the plaintiff’s second ground of demurrer, while not free from difficulty, as will appear by a comparison of the prevailing opinion of Follett, Ch. J., and the dissenting opinion of Bradley, J., in the case of Blood v. Kane, hereafter cited, in my opinion, if the counterclaim pleaded was one that John F. Mahar, deceased, could have pleaded in answer to the cause of action stated in the complaint herein, it would be available to the defendant. It seems to me that this contention is sustained by the case of Blood v. Kane, 130 N. Y. 514. The case at bar is a stronger case in favor of the right of a sole legatee and devisee to plead a counterclaim than the case of Blood v. Kane, because in the Blood case there had been, unlike the case at bar, no order directing the publication of notice to creditors, and also there was in the former case a question as to the time when the qualified title of the defendant as executrix merged into an absolute title as sole beneficiary which is not involved in the case at bar.

The case of Armstrong v. McKelvey, 39 Hun, 213; affd., 104 N. Y. 179, cited by the plaintiff’s counsel, seems to me to be distinguishable upon the facts. In the Armstrong case, the principal point involved was the sufficiency of the proof relied upon to establish [167]*167a reconversion, of the personal estate into land. See opinion of Finch, J., 104 N. Y. 183, at top of page. In the decision referred to, the referee, to whom the matter of counterclaim had been resubmitted, found against its validity on the facts, and I am somewhat at a loss to understand why the courts spent so much time upon that branch of the case.

Not proper subject of counterclaim. The counterclaim defined in section 501 of the Code of Civil Procedure is a claim which tends in some way to diminish or defeat the plaintiff’s recovery, and must be “ 1. A cause of action arising out of the contract or transaction, set forth in the complaint as the foundation of the plaintiff’s claim, or connected with the subject of the action. 2. In an action on contract, any other cause of action on contract, existing at the commencement of the action.”

A test is given in some of the authorities to determine whether a counterclaim is properly pleaded, that the rights of the parties in regard to presenting their respective contentions in the same action are reciprocal; that where a counterclaim is properly pleaded the cause of action to which it is pleaded might be pleaded as a counterclaim if the defendant had brought the action. Adams v. Schwartz, 137 App. Div. 230, 235; Stevenson v. Devins, 158 id. 616, 619; Fulton Co. G. & E. Co. v. Hudson River T. Co., 200 N. Y. 287, 291.

Applying this test, the defendant (as plaintiff) alleges against the plaintiff herein (as defendant) that in February, 1914, the defendant (plaintiff herein) by false and fraudulent representations induced plaintiff’s (defendant herein) testator to accept $500 upon settlement for the sale of testator’s real property less than the amount actually due plaintiff’s. (defendant herein) testator; and in answer to [168]*168this the defendant (plaintiff herein) alleges as a counterclaim the promissory note executed by the testator in 1913, and the money advanced and balance on rent due in April, 1912. It could hardly be claimed that such alleged counterclaim was a cause of action growing out of the transaction set forth in the supposed complaint as the foundation of plaintiff’s (defendant herein) claim, or that it was connected with the subject of the action. In whatever language we may define the "

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Bluebook (online)
100 Misc. 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haberle-crystal-spring-brewing-co-v-handrahan-nysupct-1917.