In re the Application for a Subpœna Directed to Roberts

214 A.D. 271, 212 N.Y.S. 183, 1925 N.Y. App. Div. LEXIS 10497
CourtAppellate Division of the Supreme Court of the State of New York
DecidedOctober 30, 1925
StatusPublished
Cited by9 cases

This text of 214 A.D. 271 (In re the Application for a Subpœna Directed to Roberts) 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 the Application for a Subpœna Directed to Roberts, 214 A.D. 271, 212 N.Y.S. 183, 1925 N.Y. App. Div. LEXIS 10497 (N.Y. Ct. App. 1925).

Opinion

Burr, J.:

Petitioner claims that prior to April, 1924, Walter S. Roberts, one of the respondent witnesses, and a New York corporation which it is claimed he had caused to be formed, known as the Aracoma Textile Co., Inc., were and still are indebted to the Commercial Credit Company, petitioner, appellant, a Delaware corporation, in an amount in excess of $22,000; that in April, 1924, the petitioner, becoming possessed of information which led it to believe that Roberts and the Aracoma Company had property in the State of Rhode Island sufficient to respond to its $22,000 claim, caused an action to be commenced against them as nonresidents and a foreign corporation in the courts of that State by the issuance of a warrant of attachment. The warrant of attachment was, on April 20, 1924, served upon two Rhode Island corporations, claimed to be affiliated with Roberts and the Aracoma Textile Company of New York, as garnishees. The garnisheed' Rhode Island corporations bore the names of Aracoma Textile Company of Rhode Island, and the Kenton Company. The Kenton Company it is claimed took its name from E. C. Kenton, president of the Aracoma Textile Company of New York.

On or about May fifth the garnishees filed returns of nulla [273]*273bona in the Rhode Island action. For the purpose of establishing the jurisdiction of the Rhode Island court, and for the further purpose of procuring the disclosure of assets in that State sufficient to respond to the amount specified in the warrant of attachment, the petitioner, as plaintiff in the Rhode Island action, immediately thereafter caused a dedimus potestatem to .be issued out of the courts of that State, directed to Roberts and the secretary and treasurer of the New York Aracoma Company, one Reginald B. Hamilton, both residents of New York, to have their testimony taken as witnesses within this State for the mentioned purposes. Upon this dedimus potestatem and the petition of the petitioner’s attorney, a subpoena was duly issued by a justice of the Supreme Court, directing the examination of Roberts and Hamilton pursuant to sections 310 to 312 of the Civil Practice Act, and ordering the production of certain books and papers therein specified.

After some difficulty and delay the subpoena was finally served on the respective witnesses on September 22 and October 1, 1924. The date of examination fixed in the subpoena so served was October 16, 1924. On October 14, 1924, the witnesses applied to the Supreme Court for the vacatur of the subpoena. The motion was denied by an order entered on October twenty-seventh, which order also directed the examination to proceed on November 6, 1924, before a commissioner designated therein. The examination was commenced before said commissioner on November 20, 1924.

Upon the question of the amount of Rhode Island attachable property belonging to the defendants in the action pending in the courts of that State, the most that can be said to have been definitely admitted by the witnesses in the examination before the commissioner was that the Aracoma Company of New York had a $7,000 claim against the Aracoma Company of Rhode Island, and that various other equities, which the witnesses either could not or would not define, existed between the two companies.

At the conclusion of the examination on November 20, 1924, the record shows no application of any sort was made by the witnesses to the commissioner to terminate it. On the contrary, to quote from the record, “ the commissioner instructed both witnesses to appear for further examination on December 4, 1924, at 11:00 a. m.”

On November 28, 1924, without making any prior application to the commissioner, the witnesses noticed a motion to the Supreme Court, returnable December 3, 1924, to terminate the said examination on the ground that the examination developed from the testimony of Walter S. Roberts that the Aracoma Textile Co., Inc., [274]*274of New York has a claim against the Aracoma Textile Company of Rhode Island, a Rhode Island corporation, whose principal place of business is in the State of Rhode Island, of upwards of $7,000,” and that this, in itself, is sufficient to confer jurisdiction of the Rhode Island court on the defendant Aracoma Textile Co., Inc.,” and that “ since the entry of the order [entered October 27, 1924], Walter S. Roberts has been personally served in Rhode Island by the attorneys for the Commercial Credit Company in that State, as was Edwin C. Kenton, president of the Aracoma Textile Co., Inc., of New York.”

The court below, by an order entered January 15, 1925, without opinion, granted the motion to terminate the examination “ upon condition that within ten days Walter S. Roberts and the Aracoma Textile Co., Inc., enter into a written stipulation with the Rhode Island attorneys for the Commercial Credit Company, that they will plead to the declaration and file such pleas without any plea or objection to the jurisdiction of the Rhode Island court.”

From this latter order, granting the witnesses’ application to terminate their examination, this appeal is taken.

The examination is for the purpose of discovering property applicable to the levying of plaintiff’s attachment in Rhode Island and in this way the dual purpose is sought to be served of establishing the jurisdiction of the Rhode Island court and of disclosing assets in that State sufficient to respond to the amount specified in the said warrant of attachment which is in excess of $22,000.

All that the examination has discovered up to the present time is the existence of a claim of $7,000 for merchandise delivered to the Rhode Island company and not accounted for. The appellant contends that a further examination of Roberts is necessary and will disclose that there is actual property in addition to this claim within the State of Rhode Island belonging to Roberts and the Aracoma Textile Company of New York, who are both defendants in the Rhode Island action.

If the witnesses desired to have their examination terminated they should have applied in the first instance to the commissioner for that relief. The minutes of the examination do not disclose any such application and that the examination was deemed incomplete by the commissioner is evidenced by the concluding entry: The commissioner instructed both witnesses to appear for further examination on December 4, 1924.” A prior application to vacate the subpoena and thus prevent the examination altogether had been denied by the court. From that denial the witnesses took no appeal, and when the present application was made the examination was unfinished.

[275]*275Matter of Randall (90 App. Div. 192) represents a situation quite similar. There, as here, a motion had been originally made to the court by the witness to vacate the subpoena, the motion was denied, and no appeal was taken. When the witness appeared for examination, he refused to obey the commissioner’s direction to answer certain propounded questions, just as here the witnesses seek to avoid compliance with the commissioner’s order to reappear for examination. In ordering the witness to answer the directed questions, Mr. Justice Hatch, speaking for this court, sustained the regulatory control of commissioners in proceedings of this character. He said (p. 196): It was said in Matter of Searls (155 N. Y.

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Bluebook (online)
214 A.D. 271, 212 N.Y.S. 183, 1925 N.Y. App. Div. LEXIS 10497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-application-for-a-subpna-directed-to-roberts-nyappdiv-1925.