Jones v. Armenia Insurance Co. of Pittsburg

136 A.D. 453, 121 N.Y.S. 126, 1910 N.Y. App. Div. LEXIS 54
Appellate Division of the Supreme Court of the State of New York·Decided February 4, 1910·Published·Cited by 7 cases

Opinion

Ingraham, P. J.:

The action is brought to relieve the plaintiff from liability under a certain contract winch she entered into f.or the sole benefit, ad van[454] tage and profit of the Armenia Insurance Company, and without any consideration to her, wherein she agreed to pay the sum of $10,000, and also agreed to purchase a certain building located at Ho. 80 William street, in the city of Hew York, and to pay therefor $65,000 in cash, and to give her mortgage covering the property accompanied by her. bond, and take title thereto subject to two prior existing mortgages aggregating $161,000. In pursuance of that contract the plaintiff purchased the said premises; various sums of. money which she had obligated herself to pay were paid by money furnished by the insurance company; she received a deed of the real property, -and gave her bond, by which she covenanted to pay the grantors the sum of $161,000, and executed a mortgage to secure the said bond, which was delivered to the grantors; plaintiff subsequently, at the request of the insurance company, conveyed the property tó a corporation, organized as a holding company, in which the insurance company owned all the stock; and all of the consideration received by the plaintiff for such conveyance was transferred to the insurance company. The plaintiff has demanded from the insurance company that it execute proper and sufficient instruments and obligations, assuming payment of this mortgage, and that it secure from the holders of the obligations of the plaintiff the bond, instruments and documents signed by the plaintiff and return the same to her; the Armenia Insurance Company is alleged to be in a precarious financial condition, and the only adequate and reasonable protection which- can be given the plaintiff is that said defendant pay the obligation of $161,000, or deposit a sufficient sum of at least $100,000 in court, to be applied upon -such mortgage as the installments therefor mature, and that if at any time the said defendant default in paying interest, taxes, etc., on said property, a receiver be at once, appointed to receive the rents, income and profits thereof, and use the same as .this court shall direct. It is alleged that plaintiff has no adequate remedy at law for the reason that her damage- has not been liquidated, and that by the time such damage is ascertained the said insurance company will become wholly insolvent and unless the plaintiff has early and speedy relief the condition of the Armenia Insurance’Company may become so involved that no relief can-be granted this plaintiff. Upon these facts -the judgment that, the [455] plaintiff asks for is': First. That the Armenia Insurance Company be required to obligate itself by sufficient instruments in writing holding the plaintiff harmless on account of the said bond and mortgage of $161,000. Second. That the Armenia Insurance Company be required to pay into court the sum of $161,000 or such sum as may be found necessary to protect the plaintiff and to enable her to meet her obligations to the defendant executors who are the holders of the bond and mortgage. Third. For the appointment of a receiver of the mortgaged premises and the receiver to be especially required to keep said building insured against loss or damage by fire. Fourth. That a decree may be entered declaring the defendant the Armenia Insurance Company and the holding company severally liable for the payment of the said mortgage of $161,000, and that the plaintiff be decreed to be only secondarily liable on said mortgage, and for such other and further relief as may be just and equitable.

When this complaint was filed the plaintiff filed a notice of pendency of the action. In such notice it is stated that the action was for the purpose of having it decreed that the defendant is a corporation and is primarily liable for this mortgage and requiring the insurance company to pay into court $161,000, to be applied upon such mortgage as the same shall mature, and for the appointment of a receiver of said premises to operate and maintain the said building thereupon. It is then alleged that “ the mortgaged premises affected by the said foreclosure were, at the time of the commencement of this action, and at the time of the filing of this notice, situated in the Borough of Manhattan, County of New York,” and are described by metes and bounds. Since the commencement of this action the Armenia Insurance Company has consolidated with another company under the name of the Guardian Fire Insurance Company. The appellants are ancillary receivers of the consolidated company and moved to vacate this lis pendens, which motion was granted, but upon terms which virtually amounted .to a denial, and the receivers appeal.

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Jones v. Armenia Insurance Co. of Pittsburg, 136 A.D. 453, 121 N.Y.S. 126, 1910 N.Y. App. Div. LEXIS 54 (N.Y. Ct. App. 1910).

136 A.D. 453 (Jones v. Armenia Insurance Co. of Pittsburg) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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