Lewinsohn v. Kent & Stanley Co.

33 N.Y.S. 826, 94 N.Y. Sup. Ct. 257, 67 N.Y. St. Rep. 471, 87 Hun 257
CourtNew York Supreme Court
DecidedMay 17, 1895
StatusPublished
Cited by8 cases

This text of 33 N.Y.S. 826 (Lewinsohn v. Kent & Stanley Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewinsohn v. Kent & Stanley Co., 33 N.Y.S. 826, 94 N.Y. Sup. Ct. 257, 67 N.Y. St. Rep. 471, 87 Hun 257 (N.Y. Super. Ct. 1895).

Opinion

O’BRIEN, J.

A motion was made by a subsequent lienor and junior attaching creditor to vacate, upon the papers on which it was granted, a warrant of attachment issued in plaintiff’s favor against defendant. The plaintiff, against objection, was permitted to read in opposition the judgment roll, showing that his attachment had merged into a judgment. The two grounds urged upon this appeal for reversal are that it was error to permit the plaintiff, in opposition to'the motion to vacate, to read and present the judgment roll in this action; and, second, that the affidavit upon which the warrant of attachment was granted was insuffi[827]*827dent, as not setting forth facts to establish a cause of action) against the defendant

In considering this second objection it is necessary to refer at length to the affidavit upon which the attachment attacked was based. After reciting the residence of the plaintiff and the non-residence of the defendant, and that the latter was indebted in a certain sum over and above all counterclaims, it reads as follows:

“The said indebtedness arose as follows: In the city of Pawtucket, Rhode Island, on or about the 12th day of May, 1894, the defendant, for value received, made its certain promissory note in writing, dated on said day, wherein and whereby the defendant promised to pay, four months after the date thereof, to the order of estate of D. G. Littlefield, the sum of ten thousand dollars, at First National Bank of Pawtucket, Rhode Island, and thereafter, before maturity, for a valuable consideration, duly delivered the said note to the said estate of D. G. Littlefield, which said estate thereafter duly indorsed the same, but without recourse as against the said estate of D. G. Littlefield, and for a valuable consideration delivered the same to James O. McCoy, who thereafter duly indorsed the same, but without recourse as against the said James O. McCoy, and for a valuable consideration delivered the same to the plaintiff herein, who is still the lawful owner and holder thereof.”

Then, omitting a statement as to where the second instrument was made, it in similar language states that defendant made its certain other promissory note. It will thus be seen that the plaintiff bases his right to recover the sums specified from the defendant upon two alleged promissory notes made by the defendant to the order of the estate of D. G-. Littlefield, and delivered to the said estate, which said estate thereafter duly indorsed the same, and delivered them to James C. McCoy, who thereafter duly indorsed and delivered the same to the plaintiff. It is insisted that, as there is no such legal entity as the estate of D. Q-. Little-field, the alleged notes could not have been delivered to it, or indorsed or delivered by it, and that for this reason the instruments set forth are not promissory notes, they could not have been “indorsed,” and such a statement without other facts is not an allegation of assignment of them to the plaintiff, nor would the title so pass to him as to enable him to recover upon them against the maker, upon the facts alleged.

There is undoubted conflict in the authorities as to whether an instrument such as is here described is or is not a promissory note. Thus, in Daniel on ¡Negotiable Instruments (section 100) it is said:

“Where the writing ran, T owe the estate of A. B. $190,’ it was held that no payee was sufficiently designated, and it was inferred under the circumstances to be a mere memorandum of a balance due. But it has been held that a note regular in form, payable ‘to the estate of T. A. Thornton,’ might be sued on by Thornton’s personal representative. The contrary view, however, has been taken.”

But it is unnecessary for us to determine this conflict, because there are other considerations which we deem controlling as to the sufficiency of the affidavit. The plaintiff was not bound to show that he had a cause of action upon the promissory note, but he was obliged to show that he had an action upon a contract; and in [828]*828this connection it is immaterial whether an instrument is described in the affidavit as a promissory note, if sufficient facts are otherwise presented to justify the conclusion that the plaintiff had a good cause of action; and therefore it is unnecessary to determine whether the instrument is a promissory note, or an evidence of indebtedness, or an assignment of a contract to pay, the question being, is there furnished evidence of a prima facie right in the plaintiff to recover as against the defendant? If the instrument described is a promissory note, then there is no question but that a good cause of action is set forth. If, however, we take the view most favorable to the appellant, that there is no such legal entity as the estate of D. G-. Littlefield, it being alleged that the defendant, ás the maker of the instrument described, for a valuable consideration, duly delivered said note to the said estate of D. G-. Littlefield, which said estate thereafter duly indorsed the same, then we think it was a promissory note with a fictitious payee.

The question then presented is, what is the binding nature of such an instrument? ■ Under our Revised Statutes, it is provided that notes made payable “to the order of a fictitious person shall, if negotiated by the maker, have the same effect * * * as against the maker * * * ' as if payable to bearer.” 4 Rev. St. (8th Ed.) p. 2499, § 5. It appearing, however, that this was an instrument made in Rhode Island and payable there, it is to be construed under the Rhode Island law; and, in the absence of proof to that effect, it will not be presumed that the statute law in that state and this is the same, though there is a presumption that the common law is the same in both states. An examination of the common law of this state on the subject prior to the enactment of the provisions of the Revised Statutes quoted will show that the statute but expresses such common law, and, in accordance with the presumption that may be indulged in as to the similarity of the common law of both states, we think that thereunder a note payable to the order of a fictitious person, if negotiated by the maker, as against him, is equally as binding as though payable to bearer. That such is the construction to be given to such an instrument as the one under consideration, we think, is sustained not only by decisions, but also by the best text writers. Thus, it is said in Daniel on Negotiable Instruments (section 93):

“By executing a promissory note, the maker engages to pay the amount therein named to the bearer, if it be payable to bearer; to the payee or order, if it be payable to a particular person or order. By the very act of engaging to pay to a particular payee, he acknowledges his capacity to receive the money, and also his capacity to order it to be paid to another. And therefore, if the maker is sued by an indorsee of the payee, he cannot defend himself on the ground that the payee had no capacity to indorse it by reason of being an infant, a married woman, a bankrupt, a fictitious person, a Corporation without legal existence,” etc.

See, also, Scott v. Parker (City Ct. N. Y.) 5 N. Y. Supp. 753.

We think, therefore, that the instrument was a promissory note, payable to a fictitious payee, and, having been negotiated by the maker, was payable to bearer; and there being an allegation that it was delivered to the plaintiff, and that he is the owner and [829]*829holder thereof, we think there was a sufficient statement of a cause of action.

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Cite This Page — Counsel Stack

Bluebook (online)
33 N.Y.S. 826, 94 N.Y. Sup. Ct. 257, 67 N.Y. St. Rep. 471, 87 Hun 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewinsohn-v-kent-stanley-co-nysupct-1895.