Jones v. Ramsey

127 A.D. 704, 111 N.Y.S. 993, 1908 N.Y. App. Div. LEXIS 4082
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 8, 1908
DocketNo. 1
StatusPublished
Cited by2 cases

This text of 127 A.D. 704 (Jones v. Ramsey) 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
Jones v. Ramsey, 127 A.D. 704, 111 N.Y.S. 993, 1908 N.Y. App. Div. LEXIS 4082 (N.Y. Ct. App. 1908).

Opinions

Laughlin, J.:

This action is brought to recover of the defendants the sum of $370,000, alleged to have been paid out by the plaintiff, at their special instance and request, in the purchase, of lands for them in the State of Ohio, in the latter part of the year 1902 and the first half of 1903, and plaintiff seeks to recover $90,000 in addition thereto for moneys paid out by him at the special instance and request of the defendants in examining, prospecting and-drilling the lands so purchased for coal, and for commissions for his services, aggregating the sum of $460,000, for which he demands judgment, together with interest thereon from the 1st day of January, 1903, besides costs. .

It appeared upon the trial that the defendants were constituted the managers of a syndicate known as “ Little Kanawha Syndicate,” to which others, including plaintiff, were subscribers. The syndicate agreement was dated the 2d day of December, 1901, and by virtue of its provisions the subscribers became such, as of that date. The object of the syndicate, as stated in the agreement, was to purchase a line of railroad extending from Parkersburg,- W. Ya., up the Little Kanawha river, about thirty miles, known as the Little Kan[706]*706awha Eailroad, as then constructed and owned, and to extend- the same eastwardly and to purchase or build a railway from Parkersburg to Zanesville, Ohio, and to purchase coal lands in West Virginia. The syndicate agreement recited that the defendants and the subscribers thereto wished to form a syndicate to advance the necessary money to-- the amount of $6,000,000 for- the purposes specified. It does not appear whether the operations of the syndicate with respect to purchasing coal lands were extended to' Ohio, in writing or verbally,- but according to the testimony of the plaintiff he purchased the lands and paid out his own money therefor, at the instance of the defendant Eamsey, but on the understanding that the lands were acquired for this syndicate, and that he was “ to finance the deal until such a time as the Little Kanawha Syndicate would and could refund ” the money “ by making an assessment oh the syndicate.” He further testified that Eamsey indicated to him on a map the lands that wére desired, and stated, in effect, that it would be unwise to have it known that the syndicate-was buying the lands, and that it was advisable to have the plaintiff purchase the lands and advance his own money therefor, if he would be able to do so; that he agreed to this and asked Eamsey in whom title should be taken, to which Eamsey replied “that I could take it in any way that I saw fit, and hold it until" such a time as thé arrangement which he proposed with the syndicate could be carried out — that is, that the syndicate would pay back the money that I paid out, by an assessment that he would make upon the Little Kanawha syndicate;” that the question arose and was discussed between him and Eamsey as to whether he should take title in his own name or in the name of a corporation which he was desirous of organizing under the name of “ National Hocking Coal Company,” as the holding company, to take title to the" lands, as he deemed that ■ course better, and that “ Hr. Eamsey said he did not cane how I handled the matter, so I handled it and furnished the money necessary to purchase the lands.” The lands were purchased by the plaintiff with his own funds and title was taken in the name of the corporation which he organized under" the name already "stated. There is. no evidence that either of the other defendants had any negotiations or correspondence with the plaintiff which would render them liable to him. His theory was that the defendant Eamsey, [707]*707with whom he had negotiations, acted for and represented the other defendants, fellow-managers of the syndicate with him, and that on account of the relation existing between the defendants by virtue of the syndicate agreement, they were all liable to him.

At the close of the plaintiff’s case, on motion of counsel for Gould and Guy, the court dismissed the complaint as to them, but denied the motion to dismiss it as to the appellant. It is doubtful whether the recovery could be sustained on the merits, on the complaint and evidence. The complaint shows that the lands were purchased at the request of the defendants and that the defendants promised and agreed to reimburse the plaintiff therefor. If there be any evidence to sustain that theory, the verdict in favor of the plaintiff thereon is against the weight of the evidence, for certainly the preponderance of the evidence shows that the plaintiff purchased the lands, investing his own. funds therein, and made the disbursements and rendered his services upon the express understanding that he was to be reimbursed therefor, not by the appellant, but by the syndicate, and there is no allegation or proof, that the appellant was not authorized by the syndicate to make the arrangement which was made with the plaintiff, nor is there any allegation that the appellant failed to make an assessment or take the necessary steps after demand, to obtain the funds from the syndicate' to reimburse the plaintiff. It would be our duty, therefore, to set aside the verdict as against the weight of evidence, for clearly appellant was not to be liable in the first instance without proof of neglect to carry out his' agreement to levy an assessment on the syndicate or of want of authority to represent the members thereof who were known to plaintiff; but if this were not so, there are errors which require a new trial.

It appears that the plaintiff brought another action against the same defendants, to recover upon the same cause of action, but upon a different theory. The material facts being the same a recovery in the other action if not warranted on the theory chimed could have been had on the theory here asserted if they gave rise to individual liability on any theory. (See Brackett v. Griswold, 112 N. Y. 454.) In the complaint in the other action he predicates their liability upon the ground that they were acting as managers of the syndicate, but the items for which recovery was sought are [708]*708the same and judgment was there, as here, demanded against them individually. The plaintiff obtained a verdict in that action for the amount he seeks to recover in this and on substantially the same facts, and judgment was entered upon the verdict from which the defendants appealed. The judgment was reversed by this court (Jones v. Gould, No. 2, 123 App. Div. 236), upon the ground,, among others, that the defendants were acting as agents of disclosed principals, namely, the members of the syndicate, and were not personally liable. The evidence in that record is not materially different from that in the record now before the court.

When this ■ action was tried counsel for the plaintiff discovered that the complaint erroneously alleged that the plaintiff purchased all the lands in the latter part of the year 1902, whereas some of the lands were purchased during the fore part of 1903.

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Related

Jones v. Gould
145 A.D. 271 (Appellate Division of the Supreme Court of New York, 1911)

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Bluebook (online)
127 A.D. 704, 111 N.Y.S. 993, 1908 N.Y. App. Div. LEXIS 4082, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-ramsey-nyappdiv-1908.