Hudson v. Spaulding

6 N.Y.S. 877, 3 Silv. Sup. 434, 25 N.Y. St. Rep. 256, 53 Hun 638, 1889 N.Y. Misc. LEXIS 825
New York Supreme Court·Decided July 20, 1889·Published·Cited by 5 cases

Opinion

Merwin, J.

This action is brought against a large number of defendants upon the theory that they were the members of a joint-stock association organized in the spring of 1886 for the purpose of carrying on the business of base-ball playing. One of their number, Samuel Hodge, in the summer of 1886, at the request, as it is claimed by plaintiff, of the directors of the association, furnished board to two of the employés of the association to the amount of $110.57, of which $24 was paid in June, 1886, and the balance of the claim was assigned by Hodge to plaintiff on September 1,1887. Soon after that this action was commenced; only six of the defendants being served with process. Those are Prank W. Rogers, Harrison Clark, George W. Nagle, W. Porter Chapman, David B. Pitch, and Andrew J. Phelps. They all answered, and the case was referred to a referee, who found that board had been furnished as alleged, and that the defendants were copartners, and ordered judgment accordingly. Judgment was entered against all the defendants, but to be enforced only against the joint property of all the defendants and the separate property of the defendants served. The defendants served appeal. The referee found that the association had a president and treasurer. It was therefore within the provision of section 1919 of the Code, which permitted an action to be brought against the president or treasurer as such. No such action had ever been commenced by the plaintiff. The referee held that it was not necessary in order to the maintenance of the present action. In this it is claimed by the defendants that the referee erred, and the case of Flagg v. Swift, 25 Hun, 624, is cited as in point. In that case it was held that an action must first be brought against the president or treasurer. That was so under the act of 1849, c. 258, as amended by chapter 153 of 1853. But these acts were repealed in 1880, and now section 1923 of the Code1 applies, which expressly provides that the other provisions of the article (which would include section 1919) should not prevent an action being brought against all the members of an association, except in a case where an action had already been brought against the president or treasurer. The provisions of section 1923 were not considered in the Flagg Case. We think it was not necessary to first bring an action against the president or treasurer. Humbert v. Abeel, 7 Civil Proc. R. 417.

It is further claimed by the defendants that, if the defendants were partners as found by the referee, then this action is not maintainable upon the ground that a law action cannot be brought by one partner or his assignee on a claim the partner had against the firm. The case of McMahan v. Rauhr, 47 N. Y. 68, is claimed to be in point, and it seems to be that way, and the same principle is recognized in Arnold v. Arnold, 90 N. Y. 583. There are some exceptions to the rule, but it seems to be at least doubtful whether the [879] plaintiff has brought himself within any recognized exception. But aside from this there is a view of the case that looks to be somewhat serious for the position of the plaintiff. It seems that in the fall of 1885 a paper called a '“subscription paper” was prepared, and at that time, or in the spring of 1886, was signed by divers parties, among others by the defendants Rogers, Nagle, and Chapman. There is no evidence showing that the defendants Clark, Fitch, and Phelps signed this paper, except certain admissions hereinafter referred to. The heading of this paper was as follows: “ We, the undersigned, ■citizens of the United States and of the state of New York, being desirous of associating ourselves for athletic and batting purposes, under chapter 368 of the Laws of the state of New York, passed in 1865, and the various acts supplementary thereto and amendatory thereof, do so associate ourselves under the name and style of the ‘Norwich Base-Ball Association,’ of Norwich, N. Y., for the object and purpose of playing the game commonly called 1 baseball,’ with five trustees or managers to manage the same, and the following persons shall be such trustees or managers for the first year of its existence: * * * The capital stock of the association shall be $1,000, divided into 100 shares of $10 each; and for the said purpose, and in consideration of the same, and of our mutual subscriptions, we, the undersigned, do hereby take and subscribe for the number of shares in said stock set opposite to our respective names, and agree to pay therefor at the times and in the amounts that may be determined upon by the said trustees, no subscriptions to be binding unless the entire amount is raised. Dated Norwich, N. Y., Oct. 24, 1885.”

It will be observed that the names of the trustees or managers for the first year were not stated. In the spring of 1886 there was a meeting, purporting to be of the association. No record was kept of this meeting, and no written •evidence of the action then taken. Upon motion, a president and a secretary and treasurer were elected, and also five directors. A committee was appointed to get in the subscriptions, and the directors were authorized to draw a constitution and by-laws, and select a manager, who would engage players. It also appears from the testimony of the president, Mr. Church, which is not denied, that at this meeting the subject of incorporation was discussed, and a motion was made and carried that nothing further be done towards incorporating, and that the money which had been subscribed should be paid over to the directors, who were to have the sole management of matters, and that when the money had been spent they should stop, and that no money should be called for, except such as should be subscribed. At this meeting the defendants Rogers and Nagle were present, and were named two of the directors. The other defendants defending were not present. Samuel Hodge was present. No constitution or by-laws were prepared, and no corporation was formed. The parties to whom Hodge furnished board were afterwards engaged as players by the directors, or some of them, and games were played during the season of 1886, fees for admission being charged. There is no evidence that the defendants Clark, Chapman, Fitch, or Phelps participated in the business, or had anything to do with Hodge, in the matter of board. There are in the case admissions from the defendants to the effect that they subscribed in different amounts, to the sum of about $1,000, for the purpose of maintaining a ball club, which sum was paid to five of their number, termed directors, upon the express understanding and agreement that said sum was to be all that the subscribers, or any of them, should pay, or become liable to pay, in consequence of the club, or any matter connected therewith; of which understanding and agreement Hodge, plaintiff’s assignor, had knowledge, and was a party thereto before furnishing the board in question.

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Hudson v. Spaulding, 6 N.Y.S. 877, 3 Silv. Sup. 434, 25 N.Y. St. Rep. 256, 53 Hun 638, 1889 N.Y. Misc. LEXIS 825 (N.Y. Super. Ct. 1889).

6 N.Y.S. 877 (Hudson v. Spaulding) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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