Lightolier Co. v. Del Mar Club Holding Co.

237 A.D. 432, 262 N.Y.S. 32
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 13, 1933
StatusPublished
Cited by5 cases

This text of 237 A.D. 432 (Lightolier Co. v. Del Mar Club Holding Co.) 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
Lightolier Co. v. Del Mar Club Holding Co., 237 A.D. 432, 262 N.Y.S. 32 (N.Y. Ct. App. 1933).

Opinions

Finch, P. J.

Every conveyancer and every person whose rights are to be affected looks to find all instruments affecting real property duly recorded or filed in the county in which the real property is situated. This was done in the case at bar but has been held of no avail.

This appeal relates to the proper place of filing of a contract of conditional sale of electric lighting fixtures with intent to attach (which is not denied and for which purpose they were expressly purchased by written contract) and thereafter in fact attached to the realty. More specifically, the question presented is whether [433]*433a contract of this nature should be filed in the office of the register of the county where the real property is situate, pursuant to section 67 of the Personal Property Law, or in the office of the town clerk of the town where the purchaser of the fixtures has its principal place of business, pursuant to section 66 of the Personal Property Law.

The facts out of which the controversy arises are as follows: On March 31, 1931, a contract of conditional sale was entered into between the plaintiff, as conditional vendor, and Atlantic Beach Apartments Corporation, the then owner of the realty, as conditional vendee. Said contract provided that title to the goods was to remain in the vendor until fully paid for. It required delivery of the fixtures to the premises of the vendee to be used in the building operation of the latter, and in a schedule attached to the contract was specified the rooms in the building to which each particular fixture was to be furnished and attached.

On May 2, 1931, prior to the delivery of the fixtures, a duplicate original of the contract was duly filed in the office of the clerk of the county of Nassau, that being the county in which the realty was situate and the office in which deeds to such realty were required to be recorded, pursuant to section 67 of the Personal Property Law. Subsequently the fixtures were delivered to the building and affixed, and have since been in continuous use. On June 29, 1931, the conditional vendee mortgaged the premises to Island Park Associates, Inc., by an instrument which purported to mortgage the realty, together with all fixtures and articles of personal property now or hereafter attached to or used in connection with the premises.” This mortgage was subsequently consolidated with another mortgage, the consolidated mortgage foreclosed, a referee’s deed delivered to the Island Park Associates, Inc., and the realty conveyed by the latter to the defendant.

There remained unpaid under the aforesaid contract of conditional sale the sum of $3,850, and the plaintiff brought this action to replevin the fixtures delivered as aforesaid.

The defendant alleged in defense that the contract for the sale of the chattels should have been filed in the office of the register of the county of Queens, where the purchaser had its principal place of business, pursuant to section 66 of the Personal Property Law, and that by reason of such failure the mortgagee was without knowledge of the conditional sale. By way of counterclaim, defendant demands a foreclosure of its mortgage in respect to the aforesaid chattels.

Section 66 of the Personal Property Law, in so far as material, [434]*434provides as follows: “ Every other conditional sale contract or a copy thereof, except contracts for the conditional sale of goods specified in section sixty-seven of this article must be filed in the office of the city or town clerk in the city or town in which the buyer resides.”

It remains only to determine, therefore, whether the conditional sale contract in the case at bar is included within the provisions of section 67. Said section reads as follows:

“ § 67. Fixtures. If the goods are so affixed to realty at the time of a conditional sale or subsequently as to become a part thereof and not to be severable wholly or in any portion without material injury to the freehold, the reservation of property as to any portion not so severable shall be void after the goods are so affixed as against any person who has not expressly assented to the reservation. If the goods are so affixed to realty at the time of a conditional sale or subsequently as to become part thereof but to be severable without material injury to the freehold, the reservation of property shall be void after the goods are so affixed as against subsequent purchasers of the realty for value and without notice of the conditional seller’s title, unless the conditional sale contract, or a copy thereof, together with a statement signed by the seller briefly describing the realty and containing the name of the owner thereof and stating that the goods are or are to be affixed thereto, shall be filed before such purchase in the office where a deed of the realty would be recorded or registered to affect such realty. As against the owner of realty who is not the buyer of the goods the reservation of the property in goods by a conditional seller shall be void when such goods are to be so affixed to the realty as to become part thereof but to be severable without material injury to the freehold, unless the conditional sale contract, or a copy thereof, together with a statement signed by the seller briefly describing the realty and containing the name of the owner thereof and stating that the goods are to be affixed thereto, shall be filed before they are affixed, in the office where a deed would be recorded or registered to affect such realty.”

Upon its face this section would seem unequivocally to apply to a conditional sale of goods expressly sold to be attached to specific realty and thereafter so attached as in the case at bar. In fact, it is difficult to see how there can reasonably be any argument to the contrary.

It is the contention of the respondent, nevertheless, that under the decision of the Court of Appeals in Madfes v. Beverly Development Corp. (251 N. Y. 12), the fixtures covered by the contract [435]*435of conditional sale continued to be personalty irrespective of the manner of their attachment to the realty, or of any agreement between the vendor and vendee, and hence are not affected by the provisions of section 67.

The case above cited would seem limited to the particular subject-matter thereof, namely, gas ranges, and not to lay down a general rule as to fixtures or appliances subject to attachment to real property. The court appeared to recognize in that case a rule of property in respect to the particular property, namely, gas ranges, and to consider itself bound by its prior decision in the case of Central Union Gas Co. v. Browning (210 N. Y. 10). The court, by majority opinion, said: “ We do not feel it to be the province of the court now to alter a rule of property so well established. If relief be needed, the Legislature may provide it.

The case of Central Union Gas Co. v. Browning (supra) is conclusive upon this issue and requires us to hold that the gas ranges in question are not subject to the lien of the mortgage held by the plaintiff.”

Moreover, the court in Madfes v. Beverly Development Corp. (supra) was not considering the question of the proper place of fifing of the contract of conditional sale.

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Cite This Page — Counsel Stack

Bluebook (online)
237 A.D. 432, 262 N.Y.S. 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lightolier-co-v-del-mar-club-holding-co-nyappdiv-1933.