Holloway v. Stephens

2 Thomp. & Cook 562
CourtNew York Supreme Court
DecidedJanuary 15, 1874
DocketNo. 2
StatusPublished

This text of 2 Thomp. & Cook 562 (Holloway v. Stephens) 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
Holloway v. Stephens, 2 Thomp. & Cook 562 (N.Y. Super. Ct. 1874).

Opinion

Daniels, J.

The motion for a re-argument of the appeal taken in this cause proceeded chiefly on the ground that by omitting to serve a reply the plaintiff should be held to have admitted what is relied upon as a counter-claim, as set forth in the defendant’s answer. The answer, in this respect, alleges a claim for expenses and [564]*564disbursements in the partial performance of the contracts referred to in the complaint, and also damages sustained by the defendant Stephens, arising out of the plaintiff’s refusal to fully perform such contracts. The claims set forth are wholly unliquidated, and in no way described or determined by the contracts themselves. And for that reason it may very well be doubted whether the failure to reply would in any view admit their existence as they are set forth in the answer. Where the contract set forth, by its own terms, determines the nature and extent of the demand claimed, there a failure to answer or reply as the case may require could be very well held to admit the existence and extent of the demand relied upon "as a .cause of action or counter-claim. But that is not the ordinary effect of a default in answering or replying, where the demand is unliquidated and unadjusted, as those set forth by the defendant most clearly are. Another reason also appears in the case why the omission to reply should not be held to produce an admission of the defendant’s demands on this appeal, and that is, that no such point was made upon the trial before the referee; on the contrary, the trial proceeded before him precisely the same as though a complete issue had been formed by the pleadings controverting the defense alleged in the defendant’s answer. And where an action- is tried in that manner, the defect in the pleadings is, at least for the time being, waived. The party who could raise the objection and fails to do so, practically admits the sufficiency of his adversary’s pleadings. And that admission must continue to be effectual throughout the proceedings afterward taken by way of appeal from the judgment. Any other rule would be productive of great injustice, for it would allow a party to be ensnared into a final defeat through an oversight, which could readily be supplied by motion, if its existence were made the subject of objection during the progress of the trial involving the examination and determination of the issues in the action. The rule is a familiar one, which requires objections, that the party may be able to remove by proof or the amendment of his papers or proceedings, to be made while it may be in his power to correct and supply the defect; if he fails to do that, he cannot afterward urge the omission as a ground of error, and this rule has been applied directly to defects and omissions in the pleadings, as wpll as other proceedings in legal or equitable actions. It operates in the nature of an estoppel arising out of the circumstance that the, party having a defective pleading is [565]*565allowed to proceed with his case the same as though no defect whatever existed.

After such a proceeding, it would be inexcusably harsh to allow the defect to be made use of as a means of defeating the party permitted to rely upon the conviction that his pleadings were sufficient within the judgment of his adversary. The rule of practice governing these subjects will be found to sanction no such injustice. In the case of Williams v. Hayes, 20 N. Y. 58, it was held by Johnson, C. J., that When a party wishes to avail himself of an implied admission of the pleadings, it should affirmatively appear that the attention of the court, or other tribunal, has been called to it. In point of fact, causes are tried and disposed of, under the present ^system, with little or no reference to the pleadings, unless some question is made upon them at the trial. And when no such question is there made, none ought to be allowed to be afterward raised. Any other rule would throw the duty of vigilance upon the wrong party.” And to the same effect, in substance, are the cases of McDonald v. Christie, 42 Barb. 36; Barnes v. Perine, 12 N. Y. 18; Bumstead v. Dividend Mutual Insurance Company, id. 81. This is a wise and salutary rule, which ought to be uniformly observed. Important rights are often waived and lost by not presenting them at the proper time for do bag so. Vose v. Cockcroft, 44 N. Y. 415. And no reason exists for creating any exception in favor of those presented upon the pleadings. The failure to object conceded, in effect, that the pleadings in the action were in proper form for its complete trial upon the evidence. And after that it became the duty of the court to dispose of the points made upon the appeal as that presented them.

By the terms of the contract made on the 25th day of July, 1865, and which included the principal portion of the advertising to be done, the notices to be published were to be inserted in newspapers of twelve months’ existence, and not at the time having the plaintiff’s advertisements in them. Under that restriction the defendant Stephens could- only demand payment for the advertisements published in conformity to it, and, to entitle himself to the compensation agreed to be paid, he was bound to show that he had conformed to that restriction. It was for the advertisements in the papers having the qualifications mentioned that he was to be paid, and he was bound to prove that to be their character before the stipulated payments could be claimed. That was not done, and for [566]*566that reason he was erroneously allowed payment for advertisements inserted in these papers. Besides that, the proof did not show that the advertisements were continued for such periods of time as would entitle the defendant to a judgment for the large amount of compensation awarded to him by the referee. Merely showing the publication in the papers, combined with the circumstance that the publishers demanded a certain sum of money for what they had done, was not sufficient for that purpose. Both together did not prove that the advertisements had been inserted in the papers for such a period of time as would entitle the defendant to the compensation claimed and allowed as due to him. That could only be properly established by showing the continuance of the advertisement for such periods as would equal the amount claimed to be due.

The proof as to the large amount of damages claimed was still more unsatisfactory. It depended upon a simple estimate made by the defendant, depending, to a considerable extent, upon his success in preceding similar enterprises. Before such an allowance could be claimed, the evidence should have proved, to a reasonable degree of certainty, what expenses would have been required to perform the defendant’s undertaking, the risks and value of the labor attending it, and the amount of the contract price that would then have remained unexpended, and that should be done by satisfactory evidence. To warrant the recovery of damages to the amount of $130,000, something more than general statements and estimates should be required.

The business in which the agent was engaged, who entered into the contract for advertising with the defendant Stephens, was car* ried on at the city of New York. Its annual sales did not exceed about $50,000, and there is good reason for believing that they fell very much short of that amount. The business consisted In manufacturing, advertising and selling patent medicines compounded by the plaintiff.

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Related

Barnes v. . Perine
12 N.Y. 18 (New York Court of Appeals, 1854)
Williams v. . Hayes
20 N.Y. 58 (New York Court of Appeals, 1859)
Vose v. . Cockcroft
44 N.Y. 415 (New York Court of Appeals, 1871)
McDonald v. Christie
42 Barb. 36 (New York Supreme Court, 1863)
Witbeck v. Schuyler
44 Barb. 469 (New York Supreme Court, 1865)
Munn v. President & Directors of Commission Co.
15 Johns. 44 (New York Supreme Court, 1818)
Lightbody v. North American Insurance
23 Wend. 18 (New York Supreme Court, 1840)

Cite This Page — Counsel Stack

Bluebook (online)
2 Thomp. & Cook 562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holloway-v-stephens-nysupct-1874.