Hoag v. Lamont

16 Abb. Pr. 369
Procedural entryThis page is a short order in Hoag v. Lamont. Read the opinion of the Court — 60 N.Y. 96
New York Court of Appeals·Decided July 1, 1875·Published

Opinion

By the Court.

Allen, J.

The judgment against the defendants other than Walbridge, can not be sustained without substantially overruling Landers v. Staten Island R. R. Co. (53 N. Y., 450). The cause of action did not arise within the city of Brooklyn or the county of Kings, and there was no claim upon the trial that either of the defendants except Walbridge had [370]*370any time resided, or that they had been served with process within that city or county. The jurisdiction of the court was made to rest, and was sustained by the city court upon the fact that Walbridge, one of the defendants, at the time of the commencement of the action, resided in the city of Brooklyn. The trial judge submitted the case to the jury upon the theory, that when two or more are jointly liable on a contract, and one of them resided within the city, the others could be served with process at any place within the state, but if none resided within the city they were not amenable to the jurisdiction of the court, unless served with process within its jurisdiction. The verdict passed against all the defendants, and the judgment was given following the verdict, upon the sole ground that the residence of one of the defendants within the city of Brooklyn gave jurisdiction to the court over all, and that process could be served in any part of the state upon the other defendants. This is entirely inconsistent with Lander’s case. The jurisdiction of a strictly local court, as the city court of Brooklyn is, can not be extended to persons and subjects without the jurisdiction by the mere circumstance that some one or more of those jointly liable chance to reside or be within the jurisdiction. Vitality and effect can not be given to the process of the court beyond the territorial limits of the jurisdiction, merely because there are some of the joint obligors or parties liable within those limits, and subject to its process. There is no legal efficacy in the joint liability of several debtors which can give an actual or constructive jurisdiction over the persons of those without the jurisdiction, or make the court one of general jurisdiction, when these circumstances, to wit, a joint liability of several, and the residence of some within, and of others without the jurisdiction concur. It would no longer be a local court if its jurisdiction could be enlarged by such a coincidence of circum[371]*371stances. The court in Landers v. Staten Island R. R. Co., supra, decided that the legislature could not change the character of the city court of Brooklyn from that of a local court of limited territorial jurisdiction to one of general jurisdiction with power to summon to its bar and subject to its judicial authority those not resident or served with process within the limits of its jurisdiction as a local court. The constitution does not permit an enlargement of its jurisdiction as to persons, so as to give it power to send its process for the commencement of actions beyond the county of Kings. So far as the act of 1871 (ch. 282), which is relied upon to uphold the judgment, attempts to extend the jurisdiction to parties residing without the county of Kings by reason of the residence of other parties, or the service of process upon some of the defendants within the county of Kings, it is unauthorized by the constitution. The question was so fully considered in the Lander case that it is not deemed necessary to review or extend the discussion at this time. In case of a joint debt or obligation, if one of the joint debtors should reside or-be served with process within the jurisdiction of the court, it may well be that the action might proceed to judgment under the joint debtor act, and a recovery be had in form against all, but which should affect only the individual property of the defendant served with process and the property owned jointly by all (Oode, § 136, sub. 1).

That question is not before us. The judgment did proceed upon that ground, and was not in the form authorized by that statute. The liability sought to be established was not joint. It was either joint or several, as the plaintiff might elect to sue one or all, or as one or all might be served with process. The trustees of a manufacturing corporation are made jointly and severally liable for the debts of the company, by the omission to make the annual report required by statute [372]*372{Laws of 1848, ch. 40, §, 12). As the defendants were severally as well as jointly liable, it was a proper case for a several judgment against Walbridge if a case was made for a recovery against him, but the judgment must be reversed as to the others for want of jurisdiction, and the error in the charge upon that question {Oode> § 136, sub. 2; Id. § 12). It does not detract from the usefulness of the court or its character to confine it in the exercise of its jurisdiction within the constitutional limits. It is an important and efficient tribunal in the city of Brooklyn, and by its ability and despatch attracts to it much of the important and difficult litigation of that city, and the importance of the questions or the amounts litigated before it are not second to those which come before any court of the state. Its creation was the result of the necessity of a local court of a high character.

It only remains to consider the liability of Walbridge upon the merits. As the jury have found that he was a resident of the city of Brooklyn, and he did not in his answer make any question as to the jurisdiction, the judgment must be affirmed as to him, unless error was committed to his prejudice upon the trial. The action is brought for the recovery of moneys claimed to be due upon an agreement alleged to have been made with the American and European Crystallized Egg Company in August, 1870, by which the company employed Crandal and Pryer as agents to sell certain quantities of the egg prepared by the corporation, and agreed to furnish them with certain quantities during the three months beginning with October, 1870, for sale on a commission of two and a half cents per pound, and in case of a failure to deliver the egg, to pay the commission as upon a sale. The plaintiff avers a failure of the company to deliver the egg, and an assignment of the claim for the commission to him. Upon the trial it was proved that the corporation was [373]*373formed on August 5, 1870, for the manufacture or preparation of crystallized egg, under a patent to the defendant Lamont, and that the defendants were trustees named in the articles of association, and that no report had been made and filed by the corporation, as required by statute. It was also proved that prior to the incorporation of the company, and in April, 1870, a written agreement was made between Lamont, professing to act for himself, the defendant Andrews, and one Hiram Walbridge, afterwards the president of the company and since deceased, and Orandal and Fryer, by which Lamont agreed that Orandal and Fryer should be the sole authorized agents of any firm, association, or company then formed, and thereafter to be formed for the purpose of manufactuing and selling crystallized or dessicated egg under his patent, for the sale of such egg so manufactured and sold within the states of New York and New Jersey, to the amount of two hundred and seventy-five thousand pounds ; Crandal and Fryer to receive a commission of two and a half cents per pound ón the first one hundred thousand pounds, and one per cent, on the next one hundred and seventy-five thousand pounds sold by them.

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Hoag v. Lamont, 16 Abb. Pr. 369 (N.Y. 1875).

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Related

Landers v. . Staten Island R.R. Co.
53 N.Y. 450 (New York Court of Appeals, 1873)