Ladenburg v. Commercial Bank

33 N.Y.S. 821, 94 N.Y. Sup. Ct. 269, 67 N.Y. St. Rep. 466, 87 Hun 269
New York Supreme Court·Decided May 17, 1895·Published·Cited by 34 cases

Opinion

VAN BRUNT, P. J.

This is an appeal from an order made upon a motion by a subsequent attaching creditor to set aside a prior attachment upon the papers upon which it was granted. No question is presented as to the status of the moving party; and the only points brought up for review are those arising on the papers upon which the first attachment was granted, and the right of the court, after the making of the motion, to set the same aside upon the papers upon which it was granted, to allow the introduction of amendatory affidavits. The attachment sought to be set aside was granted upon the affidavit of one of the plaintiffs, which alleged that the defendant was a foreign corporation, organized and existing under the laws of the dominion of Canada, doing business at St. Johns, Newfoundland ; that a cause of action existed in favor of the plaintiffs against the defendant to recover a sum of money, of the character mentioned in the act authorizing attachment; that the plaintiffs were bankers-in the city of New York, and the defendant was a banking corporation; and that on the 19th of November, 1894, at St. Johns, Newfoundland, the defendant made certain bills of exchange, dated on that day, and directed the same to the London & Westminster Bank of London, and by said draft required said London & Westminster Bank to pay to the order of themselves (evidently meaning the drawers of the drafts), 60 days after sight, a certain sum of money. The affidavit further stated that thereupon the said defendant indorsed and delivered said bills of exchange to the National Bank of the Republic of the City of New York, who sold the same to the plaintiffs. The affidavit then alleges, upon information and belief, that said bills of exchange were thereupon presented to the London & Westminster Bank at London for acceptance on or about the 7th day of December, 1894, but the same were not accepted, and were thereupon duly protested for nonacceptance, of all of which due [823]*823notice was given to the defendant, and payment of the defendant was thereupon demanded. The affidavit further alleges that the source of the deponent’s information and belief was a cable received from the correspondent of deponent’s firm in London; and that no part of said acceptance had been paid, and there was then due from the defendant to the plaintiffs a certain sum over and above all counterclaims.

The ground which was insisted upon in the court below for the vacation of the attachment was that it appearing that the defendant was a foreign corporation, and that the cause of action arose out of this state, and it not appearing that the plaintiffs, or either of them, were residents of this state, this court had no jurisdiction to entertain the action. It has been held repeatedly in this department that, unless the jurisdictional facts appear in the papers upon which an attachment is granted against a foreign corporation, the attachment must be set aside, and that the plain meaning of the Code is that it must appear by affidavit that a cause of action of which the court has jurisdiction exists, to the satisfaction of the judge granting the warrant. It is undoubtedly true that, ordinarily, jurisdiction in a court of general jurisdiction need not be alleged. But, where the provisions of the law are that a court shall have jurisdiction of a certain class of cases only, where certain facts exist, it is necessary to allege, in order to show that a cause of action exists against such a defendant, that the facts essential to jurisdiction are present. It would be idle to require the establishment by affidavit of the existence of a cause of action of which the court had no jurisdiction as a prerequisite to the issuing of this extreme remedy. As has already been shown, it was the intention of the Code, before the issuing of the writ, to require that the judge called upon to issue the same should be satisfied that there was a right of recovery; and in an action against a foreign corporation no right of recovery exists unless the jurisdictional facts are shown.

It has been suggested that the legislature had no power to limit the jurisdiction of the supreme court by the alleged restrictions which it has placed upon it by the provisions of the Code. An examination of the law, however, seems to establish the fact that every provision of the statute, instead of being a restriction of jurisdiction, has been an extension thereof. The supreme court, prior to the provisions contained in the Revised Statutes (volume 2, p. 459, § 15), had no jurisdiction against foreign corporations, unless it could obtain jurisdiction of the persons of such corporations. Then this jurisdiction was enlarged by the enactment in question, which provided that suits brought in the supreme court by a resident of this state against any corporation created by or under the laws of any other state, government, or country, for the recovery of any debt, claim, or demand, might be commenced by attachment. This seems to have been the first legislation authorizing a proceeding in rem against a foreign corporation, and then such proceedings could only be instituted by a resident of the state.

In 1849, by chapter 107, the fifteenth section of the Revised Statutes was amended as follows:

[824]*824“Suits may be brought in the supreme court, in the superior court, of the city of New York, and in the court of common pleas in and for the city and county of New York against any corporation created by or under the laws of any other state, government or country for the recovery of any debt or damages, whether liquidated or not arising upon contract made, executed or delivered within the state, or upon any cause of action arising therein. Such suits may be commented by complaint and summons, together with an attachment as provided by law,” etc.

By this legislation the jurisdiction of the supreme court was extended to all causes of action arising within this state. In the same year, section 427 was added to the Code of Procedure, which gave the courts above mentioned jurisdiction in actions against foreign corporations in cases where such action was brought by a resident of this state for any cause of action, and in cases where such action was brought by a nonresident of this state when the cause of action should have arisen or the subject of the action should be situated within the state; again increasing the jurisdiction of the courts in actions against foreign corporations. This jurisdiction remained in this condition until the enactment of section 1780 of the Code of Civil Procedure, where it was provided that an action against foreign corporations might be maintained by a resident of the state or by a domestic corporation for any cause of action, and that an action against a foreign corporation might be maintained by another foreign corporation or by a nonresident in one of the following cases only: (1) Where the action is brought to recover damages for the breach of a contract made within the state, or relating to property situated within the state at the time of the making thereof. (2) Where it is brought to recover real property situated within the state, or a chattel which is replevied within the state. (3) Where the cause of action arose within the state, except where the object of the action is to affect the title to real property situated without the state.

It will thus be seen that by the legislation which has taken place there has been no restriction of jurisdiction, but rather an enlargement thereof.

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Ladenburg v. Commercial Bank, 33 N.Y.S. 821, 94 N.Y. Sup. Ct. 269, 67 N.Y. St. Rep. 466, 87 Hun 269 (N.Y. Super. Ct. 1895).

33 N.Y.S. 821 (Ladenburg v. Commercial Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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