In re Clay

256 A.D. 528, 11 N.Y.S.2d 96, 1939 N.Y. App. Div. LEXIS 4771
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 15, 1939
StatusPublished
Cited by5 cases

This text of 256 A.D. 528 (In re Clay) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Clay, 256 A.D. 528, 11 N.Y.S.2d 96, 1939 N.Y. App. Div. LEXIS 4771 (N.Y. Ct. App. 1939).

Opinion

Dowling, J.

This is a disciplinary proceeding brought by the petitioners as representatives of the International Hod Carriers, Building and Common Laborers Union of America, Local Union No. 435, against William L. Clay, a member of the bar of thisjEState, practicing his profession at Rochester. The matter was referred to an official referee whose report is before us.

A review of the facts is necessary to an understanding of the issue. Local Union No. 435 was a member of the International Hod Carriers, Building and Common Laborers Union of America, a Massachusetts corporation, with headquarters at Quincy. On November 24, 1932, Local No. 435 elected a full set of officers and appointed a business agent for a term of five years. The validity of this election was discussed from time to time among the members of the local union. On June 14, 1935, at a meeting called for the purpose, a resolution was adopted declaring the said election to be null and void. On June 28, 1935, at a regularly called meeting, Local No. 435 elected an entire new set of officers and appointed a new business agent. The deposed officials brought the matter to the attention of the International organization. The International undertook to champion their cause and so notified the local union. On July 5, 1935, at a meeting of the local union, a resolution was adopted authorizing the executive board of the union to retain counsel to advise the local union as to the course to be pursued. The executive board retained the respondent on July 9, 1935. The executive board familiarized Mr. Clay with the situation and informed him that the newly-elected officers had demanded of John Bruce, former business agent, and Vincent Mistretta, former financial secretary of the local, that they deliver to them the books, records and property of the local then in their possession and that their demand had been refused. The board also informed Mr. Clay that the International was determined to set aside the election of June 28, 1935, and that it had threatened to interfere with the loyal members of the local union in their respective employments. The board directed Mr. Clay to procure an injunction restraining the International from interfering with the men on the jobs and to take proceedings to recover the books, ■ records and property of the local and to secure to the local a bank account of about $1,000 which it had on deposit with the Rochester Trust and Safe Deposit [530]*530Company. The board furnished to Mr. Clay the necessary data for the purpose, which included the records of the proceedings of the local union relative to the election of June 28, 1935. Mr. Clay informed the board that his fee for the injunction action would be $150 and that it would take a week to prepare the necessary papers therein. The $150 was promptly paid to Mr. Clay.

Between July 5 and 13, 1935, the International ordered the local union to rescind all previous actions and to reinstate the old officers, including the former business agent. The local union called a meeting .for July 19,1935, to take action upon these demands. Mr. Clay was instructed to await the result of that meeting. At the meeting on July 19, 1935, a resolution to rescind the action taken on the 14th and 28th of June, 1935, was defeated by a substantial majority. Mr. Clay was then instructed to proceed as directed.

On July 24, 1935, the International notified the local union it had taken over the affairs and property of the local union and had directed a Mr. Schiro to proceed accordingly. The International also served notice on all the members of the local union who were loyal to the faction represented by the new officers, to pay their dues to the International or be suspended. On July 25, 1935, Mr. Clay and the executive board discussed the situation fully and Mr. Clay advised the board that the election of June 28, 1935, was legal, and that the local union had a good case for an injunction. Mr. Clay also advised the local union that it had no further appeal under the rules of the International organization. He informed the board that he would proceed immediately to obtain an injunction.

On August 2, 1935, Mr. Clyde, the newly-appointed business agent of the local union, informed Mr. Clay that the International was interfering with the members of the local union on the Rundel Library job, stating that the men had informed him that they were being coerced and threatened. Mr. Clay informed Mr. Clyde that the injunction papers were being prepared as rapidly as circumstances would permit.

On August 14, 1935, Mr. Clay informed the executive board that he had not prepared the papers for an injunction but was preparing papers to replevin the property of the local. He advised the board that a replevin action would fully protect their interests. On the 16th of July, 1935, Mr. Clay instituted, in the name of the local union, an action in replevin against John Bruce, Vincent Mistretta and Benjamin Schiro. On motion of the defendants this action was dismissed on the ground that the plaintiff, being an unincorporated association, had no capacity to sue. In September, 1935, Mr. Clay instituted, in the names of the president and treasurer of the local union, a second replevin action against the same [531]*531parties. Motion to dismiss this action was denied and it was placed upon the trial calendar for October, 1935.

On October 10, 1935, Mr. Clay instituted an action against the Rochester Trust and Safe Deposit Company to recover on a check for $910 which had been certified by the trust company and on which it had refused payment pursuant to notice forbidding withdrawals on the local’s account which it had received from the International. The trust company appeared and moved to pay the deposit into court and to interplead John J. Moreschi as president and Benjamin Schiro as general organizer of the International, Clemente Stellone as alleged president and Canio Parrini as alleged treasurer and Vincent Mistretta as alleged secretary of Local No. 435. The motion was granted and an order was entered December 28, 1935, permitting the payment of the deposit into court and interpleading said persons as defendants. This order directed the plaintiffs to serve a summons and complaint on the interpleaded parties within twenty days after entry and service of a copy of said order. Instead of complying with the order Mr. Clay appealed. The order was affirmed in May, 1936. Mr. Clay never served a summons and complaint on any of the interpleaded parties although they were available for service within the State of New York. Mr. Clay, however, on various occasions assured his clients that service had been made as directed by said order.

On August 28, 1935, Mr. Stout, president of the local union, through the efforts of the International, lost his job at the Rundel Library and the other members of the union employed on that job were given the choice of recognizing Bruce and Schiro or losing their jobs. They yielded in order to maintain their employment. This situation was called to the attention of Mr. Clay, but he did nothing.

In July, 1936, the petitioners supplied Mr. Clay with affidavits and information to the effect that the International was interfering with the members of the local in their employment and requested him to procure an injunction to prevent such interference. He agreed to obtain an injunction upon payment of an additional fee of fifty dollars. Petitioners paid twenty-eight dollars on account and set about raising the balance. Mr. Clay turned the preparation of the necessary papers for an injunction over to a law student in his office and departed on a two weeks’ vacation.

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Bluebook (online)
256 A.D. 528, 11 N.Y.S.2d 96, 1939 N.Y. App. Div. LEXIS 4771, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-clay-nyappdiv-1939.