In re Great Northern Construction Co.

50 Misc. 467, 100 N.Y.S. 564
CourtNew York Supreme Court
DecidedMay 15, 1906
StatusPublished
Cited by2 cases

This text of 50 Misc. 467 (In re Great Northern Construction Co.) 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
In re Great Northern Construction Co., 50 Misc. 467, 100 N.Y.S. 564 (N.Y. Super. Ct. 1906).

Opinion

Fitzgerald, J.

In this proceeding two motions, arising from the same facts, involving the same issues and treated together by counsel, are presented to the court. One, under sections 914 and 915 of the Code, by a commissioner, under a commission from the Superior Court for Lower Canada, issued at the instance of the above-named liquidator, and in aid of which a subpcena duces tecum was issued by this court, to compel a witness, an officer of said company, to answer certain questions propounded to him, and to produce certain books and documents of said company, which he has refused to answer and produce respectively; and the other by the said company and witness to vacate the said subpcena duces tecum issued out of this court. The said company is a West Virginia corporation, with its principal office in New York city. The said liquidator was appointed by an order of the said Canadian court, under the provisions of the Canadian “Winding-up Act,” upon the petition of certain alleged creditors of the company, who have also instituted in the [469]*469Canadian courts an action against the company, which, being defended, is still pending; and his application is made primarily upon the allegation that it is impossible for him to properly perform the duties imposed upon him by said act without possession and inspection of the said books and documents, and that the production of said books and documents, and the testimony of said witness, are necessary to ascertain and make an accounting of the affairs of the company. Assuming, for the purposes of argument, that, as required by the said sections of the Code, there is pending in the Canadian Court a civil suit or special proceeding, to which the said liquidator is a party, and in which the said testimony and books and papers are to be used, we are confronted at the outset with the serious doubt as to the jurisdiction of that court to make the winding-up order, the authority of the moving party and the validity of the commission and subpoena issued. This question of jurisdiction, as to foreign judgments, is always open (Thompson v. Whitman, 18 Wall. 457, 461; Pennoyer v. Neff, 95 U. S. 714; St. Clair v. Cox, 106 id. 359), and a subpoena issued under the commission of a foreign court to take testimony in this State must be vacated for jurisdictional defects. Matter of Canter, 82 App. Div. 103, 106. The court should have jurisdiction of the subject-matter and of the person; want of jurisdiction over either may always be set up against a judgment when sought to be enforced or any benefit- is claimed under it. Borden v. Fitch, 15 Johns, 121; Ferguson v. Crawford, 70 N. Y. 256, 257. The original provisions of section 3 of the Canadian Winding-up Act (R. S. of Can., chap. 129, as amd. by the statute 52 Viet., chap. 32, §3), limit its application to all corporations “ incorporated by or under the authority of the Parliament of Canada,” or of various other Canadian legislative bodies, “and whose incorporation and the affairs whereof are subject to the legislative authority of the Parliament of Canada,” in which class the above named corporation is not included. The dissolution and winding up of the affairs of a domestic corporation cannot be decreed by a court of equity, on the suit of an individual, unless expressly authorized by statute [470]*470(Kincaid v. Dwindle, 59 N. Y. 548) ; “ much less can. those powers be exercised with respect to a foreign corporation.” Mining Co. v. Field, 64 Md. 151. An English corporation cannot be dissolved and its business wound up by an American court. Berford v. N. Y. Iron Mine, 4 N. Y. Supp. 836; Fisher v. Charter Oak Life Ins. Co., 52 N. Y. Super. Ct. 179; Redmond v. Enfield Man. Co., 13 Abb. Pr. (N. S.) 332. And the courts of Canada have themselves (Merchants’ Bank v. Gillespie, 10 Can. Sup. Ct. 325; In re Scottish Asbestos Co., 18 id. 667) declared that, unless the proceedings were ancillary to others already pending in the courts of the domicile of the corporation, (which is not the ease here) such dissolution and winding up can be judicially obtained only in the forum of the corporation’s domicile, i. e., within the limits of the sovereignty creating it (Chicago & N. W. R. R. Co. v. Whitton, 80 U. S. 270; Mueller v. Dows, 94 id. 444), and for which, in this case, the Code of West Virginia has made appropriate and adequate provision. Furthermore, the provisional and final orders in the winding-up proceeding were not obtained after or upon personal service of any process upon' any officer of the corporation, but after publication of notice to appear in a Canadian newspaper; and it is alleged that neither then nor since did the company have any office, officer, agent, representative or property in the Dominion of Canada or transact any business therein. Thé courts of one State cannot render a valid judgment in personam against a foreign corporation where it received no notice other than by. publication, and where it does not appear in the action (6 Thomp. Corp., § 8050) ; or even where one of its officers temporarily traveling in that State was served. Goldie v. Morning News, 156 U. S. 518. It is true that the record of the proceedings in which the order appointing the final liquidator herein was made does show its appearance by its Canadian counsel, and its participation therein by the cross-examination of the one witness called; but the affidavits show that appearance and participation to have been entirely unauthorized, and due to a rather natural mistake of that counsel — facts which may always be proved to defeat a foreign judgment or an action based thereon. Nordlinger v. [471]*471De Mier, 7 N. Y. Supp. 463; Kerr v. Kerr, 41 N. Y. 272; Hoffman v. Hoffman, 46 id. 30; Sperry v. Reynolds, 65 id. 181; Ferguson v. Crawford, supra. Indeed, apart from mere denials of the allegations of the petition that appearance and participation were, consistently with the position now taken hy the company, limited to the assertion of the objection of the court’s lack of jurisdiction. Again, it is asserted by the company, and not denied by the liquidator or commissioner, that the winding-up order was made without notice to creditors, contributors, shareholders, or members of the company, as required by section 24 of said act, an omission which requires a renewal of the proceedings. Shoolbred v. Union Fire Ins. Co., 15 Can. Sup. Ct. 624. The order recites such notice; but if facts necessary to give a foreign court jurisdiction do not exist the record will be a nullity, notwithstanding its recital of their existence. Finally, it is contended and, so far as the papers submitted to me disclose, it is not denied, that the commission herein was issued without notice to the corporation, contrary to rule 47 of the Rules of Practice of the Superior Court of Canada.

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Bluebook (online)
50 Misc. 467, 100 N.Y.S. 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-great-northern-construction-co-nysupct-1906.