Jacobs v. Steinbrink

242 A.D. 197, 273 N.Y.S. 498, 1934 N.Y. App. Div. LEXIS 6027
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 10, 1934
StatusPublished
Cited by8 cases

This text of 242 A.D. 197 (Jacobs v. Steinbrink) 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
Jacobs v. Steinbrink, 242 A.D. 197, 273 N.Y.S. 498, 1934 N.Y. App. Div. LEXIS 6027 (N.Y. Ct. App. 1934).

Opinion

Hagarty, J.

This is a motion for an alternative order of prohibition in the form annexed to the moving papers. The form of the order submitted is that Mr. Justice Steinbrink and the defendants desist from further proceeding in the action in connection with which this application is made, on the ground that the said justice is not a properly constituted court and does not have jurisdiction of the subject-matter, and in any event is exercising or about to exercise a power not within his jurisdiction or that of the court which he purports to constitute.

The relief demanded in the action, among other things, according to the petition, is a receivership of the corporate defendants, a cancellation of an agreement theretofore executed by the plaintiff under which he released the defendants, and an accounting. The action is predicated upon the claimed fraud of the defendants and the diversion of the assets of the corporations by the defendants to their own use.

The action was commenced by the service of a summons and complaint on the 7th day of July, 1933, and issue was joined five days later. Concurrently with, the service of process, a motion was made by the plaintiff for temporary relief, including, among other things, the appointment of a receiver, returnable on the 10th day of July, 1933, at a Special Term for motions, presided over by Mr. Justice Steinbrink. On the argument the justice presiding suggested that in view of the possible delay in the trial he would be willing to make a meritorious decision,” which would dispose of the case. Thereupon an order was signed •— in form a court order — which provided, among other things, that the parties appear before the undersigned on September 11, 1933, at 10 A. M., at Chambers, in the County Courthouse, Borough of Brooklyn, City and State of New York (unless another date be fixed by stipulation between the attorneys) then and there to agree on a date for the trial and final disposition of the issues herein.”

On the 23d day of August, 1933, this petitioner, as the plaintiff in the action, served a notice of trial for a Special Term of the Supreme Court, appointed to be held in and for the County of [199]*199Kings at the County Courthouse in Brooklyn, New York City, on the 11th day of September, 1933, at 10 o’clock in the forenoon of that day, or as soon thereafter as counsel can be heard, pursuant to the order of Mr. Justice Steinbrink,” and a note of issue for the date so specified was filed with the county clerk on the 24th day of August, 1933, although Mr. Justice Steinbrink had not been designated by this court to hold any such term. On the 26th day of September following a stipulation in the action was signed by the parties, not by the attorneys, which read: “An action having heretofore been begun by the plaintiff against the above named defendants for an accounting in connection with the matters and things set forth in the complaint herein, and a motion having subsequently been made for a receiver, which motion was by agreement of the parties disposed of by the court, and the parties to the above entitled action being desirous of avoiding a trial of the issues herein and of conciliating their differences in the matters and things in issue between them;

“ It is stipulated and agreed by and between all of the parties hereto, that a formal trial of the issues herein presented be and the same hereby is waived, and the parties hereto agree to appear voluntarily and whenever required before Mr. Justice Meier Steinbrink, who was the justice hearing the motion for a receiver herein, and to submit to said justice, either by formal oral testimony or in such other manner as he may require such evidence as any of the parties care to submit, or as may be required by said justice, and at the conclusion thereof, the justice sitting as the court, shall make a ruling or decision on all of the matters and things in issue, which ruling or decision shall, if any one of the parties hereto desire, be embodied in a formal judgment to be signed by said justice and entered, and which said judgment shall be final, each of the parties hereto waiving any or all rights that he may have to appeal from said judgment.”

Thereafter hearings were conducted by Mr. Justice Steinbrink on the fifth and sixth days of October, at which time the petitioner says he submitted himself to questions “ at the hands ” of Mr. Justice Steinbrink, as did his brothers, who are the individual defendants in the action. He says that thereafter there were no further hearings in connection with the charges of fraud against his brothers, involved in the action. He complains that after the 6th day of October, 1933, he was unable to procure a hearing of his charges by Mr. Justice Steinbrink, that Mr. Justice Stein-brink refused to see him, refused to take further proof, and refused to hear witnesses whose testimony he deemed essential to the proper presentation of his case. Defendants submit proof that [200]*200interviews were denied because of the refusal of the attorney of record for the defendants to participate in any such interview or to take part in any hearings, on the ground that that was the understanding at the time the stipulation was signed by the parties, that is, that the lawyers were to take no further part in the proceedings. Defendants’ position here is that the matter was out of the hands of the lawyers and that from the signing of the stipulation they, the lawyers, had nothing more to do with the matter and that it was then exclusively in the hands of the justice. Although there was nothing in the stipulation to that effect, counsel for the defendants adhered to that policy, refused to accompany plaintiff’s counsel to the justice, and the justice refused to receive plaintiff’s counsel in the absence of defendants’ legal representative. Mr. Justice Steinbrink’s version of that feature of the proceeding, as expressed in a communication to this court after these proceedings were instituted, is as follows: I then [after the stipulation was signed] sent for all of the books and records of the companies that I required. I had before me the defendants Harry Jacobs and Maurice I. Jacobs and Henry W. Fried, and the plaintiff Joseph Jacobs. I took their statements stenographically; likewise, I took the statements of others for whom I sent. I had before me the reports of the company’s accountant, as well as that of the plaintiff’s accountant, and from time to time I had reports from the court’s appointee on the Board of Directors. When I desired a balance sheet as of November 1, 1933, at a time when I believed the matter could be disposed of, I engaged an independent accountant. Shortly thereafter, I learned that the plaintiff’s attorney bad spoken to this accountant and when Mr. Nemerov called at my office to talk with me about the pending litigation, I declined to discuss it with him without the presence of Mr. Steuer. I telephoned to Mr. Steuer and told him that Mr. Nemerov was at my chambers and that he desired to speak with me. Mr. Steuer replied by saying that while he would not have done such a thing, be was agreeable that I should listen to what Mr. Nemerov had to say. It was in that conversation that I told Mr. Nemerov that, under the stipulation, he had no right to discuss this matter with the accountant designated by me, and that his action compelled me to discard the services of that accountant and necessitated the appointment of another accountant, to whom instructions would be given that under no circumstances was he to discuss the matter with any of the parties or their attorneys without first obtaining my approval.

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Cite This Page — Counsel Stack

Bluebook (online)
242 A.D. 197, 273 N.Y.S. 498, 1934 N.Y. App. Div. LEXIS 6027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-v-steinbrink-nyappdiv-1934.