Jewett v. Albany City Bank

1 Cl. Ch. 179
CourtNew York Court of Chancery
DecidedFebruary 15, 1840
StatusPublished

This text of 1 Cl. Ch. 179 (Jewett v. Albany City Bank) is published on Counsel Stack Legal Research, covering New York Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jewett v. Albany City Bank, 1 Cl. Ch. 179 (N.Y. 1840).

Opinion

The Vice Chancellor.

By the Revised Statutes, the court of Chancery is one court, and its powers are vested in the Chancellor, (2 R. S. p, 97, Sec. 1.) The Vice Chancellors are subordinate officers of the court, vested with certain equity powers by the legislature, but subject, under the constitution, to the appellate jurisdiction of the Chancellor. (Const. Art 5, Sec. 5.) The legal theory in relation to our equity system, is that now they are all vested in one court, the court of Chancery, and in one officer, the Chancellor, all other officers of the court, from the Vice Chancellors down are but subordinate members [181]*181of the same court, and only perform functions which the Chancllor, from want of time, is not presumed to be able to perform. Hence all bills, petitions and other proceedings of that nature are addressed to the Chancellor, though under the statute and rules, the subject matter of them may be first acted upon by a Vice Chancellor; but in all such action of the Vice Chancellor, he acts only in aid of, and as a subordinate officer to the Chancellor. The Chancellor has appellate jurisdiction over the decisions of the Vice Chancellors both by the article of the constitution above cited and by express legislative provision. (2 R. S. p. 97, Sec. 2.) And the 6th section of the same article, (2 R. S. p. 98,) further declares that “ the Vice Chancellors shall not have power to discharge, reverse or alter any decree, order or act, made or done by the Chancellor.”

So far the system is harmonious, and the powers and relative functions of each of the officers is clearly defined. How then is a person to obtain redress in the court of Chancery in a case where the Chancellor is a party or interested? The 10th section of the article last above cited, provides for even this case, (2 R. S. p. 98, Sec. 10,) and declares that “ where the Chancellor shall be a party to a suit in Chancery, or interested in the event of such suit, the bill shall be addressed to, and filed before some jone of the Vice Chancellors, who shall proceed thereon as a court of Chancery, and shall possess all the powers of that court in relation to the subject matter of such bill; and appeals from any order or decree of such Vice Chancellor, shall be made immediately to the court for the correction of errors, in the same manner as if such order or decree had been made by the [182]*182Chancellor.” This section evidently contemplates that where the Chancellor is a party or interested, the bill instead of being addressed to the Chancellor *n usual form, it shall be addressed to one of the Vice Chancellors, and it would evidently be proper, ag a reason for such an address, to suggest in the bill itself, that the Chancellor was either a party or interested. In such suit it is clear too that the Vice Chancellor to whom such bill was addressed would pro hac vice sit as Chancellor, and notwithstanding the provision of the constitution, the legislature have, in such case, taken away the appellate jurisdiction of the Chancellor. This is done upon clear and plain common law grounds, that no judge should ever be permitted to decide in his own cause. It is a case of necessity, and is well explained by Chancellor Sanford, in 1 Hopkins’, page 1, &c. See also ¿he revisers’ notes, 3 R. S. page 667.

If in this case, then, the bill had been addressed to one of the Vice Chancellors, after suggesting the interest of the Chancellor, there would have been no doubt. It would have been conceded, that the appeal from the Vice Chancellor to the Chancellor, would have been irregular, and his order upon such appeal entirely null and inoperative.

But the bill was not so addressed. It was addressed in the usual way, “ To the Chancellor of the State of New-York and prayed process returnable before the Vice Chancellor of the eighth circuit, before whom the bill was actually filed ; and it is to be assumed, too, that the process issued under such bill, was, as it naturally would have been, tested in the name of the Chancellor. This might have been done, and, indeed, in this case was done, in ignorance [183]*183that the Chancellor was interested as a party defendant. And farther, the bill might have been filed, and, so far as it appears from this case, was filed, before the Chancellor became a stockholder in the Albany City Bank. The proof of the Chancellor’s interest as a stockholder, only exhibits his interest during and since the month of August last; whereas it was admitted that this bill was filed long before August last.

As the case presents itself from the papers, we must therefore assume that the Chancellor was not a stockholder when the bill was filed—that the bill was addressed to the Chancellor in the usual mode— and that, after it was filed, the Chancellor became interested by becoming a stockholder, in which case the proceedings would really be before the Chancellor as the principal officer of the court, though filed before a Vice Chancellor. The next question which is presented will then be, can there be an appeal in such case, from the Vice Chancellor directly to the court for the correction of errors, without passing before the Chancellor first for review1? This question is important, because if no appeal in such case can be taken directly from the order of the Vice Chancellor to the court for the correction of errors, it may be a matter of necessity to have it pass, pro forma, in review before the Chancellor, as a conduit to the ultimate tribunal for final decision. If the law should, in such cases, cut off all appeal from the Vice Chancellor to the court for the correction of errors, it may be a lesser evil to have the cause pass before the Chancellor, though interested, for decision, than to foreclose the other party entirely from any opportunity of having the errors of the Vice Chan[184]*184cellor corrected. In the one case, the party must tif submit to the error of the Vice Chancellor, without any chance of appeal: in the other casé, there would be an appeal from the interested Chancellor to the higher court, which would most clearly iesser evil, tenacious as our citizens very properly are of the right of appeal. If, then, I could see in the case put, that there is no appeal from the Vice-Chancellor directly to the higher court, it would fully reconcile me to this appeal to the Chancellor, interested though he may be, as a lesser evil, and as being a case of necessity, to conduct the causé" in its-accustomed channel to the court of the last resort.

But I apprehend our laws neither compel a party to resort to an interested judge for decision, nor de-‘ prive him of his legitimate right' of appeal.

Another section of the chaptér in relation to the Court of Chancery, is as follows. (2 Rev. Stat. 107, Sec. 70.) “ An appeal shall not be made from any6 order or decree made by a Vice Chancellor, to the court for the correction of errors, until such order or decree shall have been brought before the Chancellor for review, and shall have been by him revised, modified, or affirmed, except in cases where the Chancellor is a party, or interested ”

This section, in words, covers the case when a! bill is-addressed to the Cháhcellér'ánd filed before a Vice Chancellor, and the Chancellor becomes interested in the suit, after the filing of the bill.' It may be urged that the last clause of this section contemplates only the case provided for in the 10th section above cited, where the bill is directly addressed to the Vice Chancellor. But there is nothing in the language of the 70th section, which gives counte[185]

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Bluebook (online)
1 Cl. Ch. 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jewett-v-albany-city-bank-nychanct-1840.