Lorillard Fire Insurance v. Meshural

7 Rob. 308
CourtThe Superior Court of New York City
DecidedFebruary 15, 1868
StatusPublished
Cited by4 cases

This text of 7 Rob. 308 (Lorillard Fire Insurance v. Meshural) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorillard Fire Insurance v. Meshural, 7 Rob. 308 (N.Y. Super. Ct. 1868).

Opinion

Jones, J,

The cause of action as stated in the complaint is clearly for money received by an agent in a fiduciary capacity, which the agent neglects to pay over. It will therefore be perceived that the self same facts which con-' etitute this cause of action, also authorize an arrest under subdivision 2 of section 179 of the Code, and in fact are the foundation upon which the order of arrest is predicated. In such cases it is the law of this court, settled by repeated general term adjudications, that the order of arrest will not be discharged unless the affidavits clearly show such a state of facts as would, if shown at the trial, call either for a dismissal of the complaint by the court, or a direction to the jury to find for the defendant. The grounds upon which the defendant seeks to have the order of arrest discharged# are,

1st. That the moneys in question came into his hands in the course of the prosecution of a joint adventure carried on by him and the plaintiffs upon joint account, and that consequently he is entitled to have the mutual accounts settled, either amicably or by-the aid of a court# and the balance due from him ascertained, before he can be called on to pay over.

2d. That he can only be called on to pay over at the end of the official year mentioned in the agreement between him and the company, to wit, July 31st in each year. That the moneys in question were received subsequent to July 31,1867, and as he cannot be called on to pay over until July 31, 1868, this suit is premature,

[312]*3123d. That the plaintiff's have broken their contract with him, by discharging him prior to July 31, 1868, and his damages for such breach, and his salary, exceed the moneys in his hands.

4th. That previous to the commencement of this suit and his arrest herein, the plaintiffs commenced an action against him in the Circuit Court of the United States for the northern district of Illinois for the same cause of action, and had him arrested and held to bail therein. That by reason thereof he is entitled, under the rule “Nemo debet bis vexari pro una et eadem causa,” to be discharged from arrest in this action.

Upon examination of the affidavits, I find none of these grounds to be so clearly established as that the court, on the trial of the action, would be called on either to dismiss the complaint, or direct a verdict for the defendant. Under the agreement entered into between the parties, the defendant was the mere employee of the plaintiffs at a stipulated salary, in no way liable for any losses or expenses. True, inasmuch as in addition to his fixed salary of $2000 per annum, he was also entitled to a certain per centage on the profits arising from the business done in the section of the country over which he had the superintendence, his compensation would be more or less according as those profits were increased through his exertions. This per centage is, however, merely a mode adopted for the ascertainment of what sum in addition to the $2000, should be paid to the defendant as further compensation for his increasing the business and profits of the company by his vigilance and exertions, if he succeeded in increasing them. It did not give the defendant any share or interest in the property, effects or moneys of the plaintiffs, or in their business, or in the profits arising therefrom. All such profits, effects and moneys he held as the mere servant of the plaintiffs, and as such was [313]*313bound to pay and transfer the same to the plaintiffs when requested. The whole tenor of the agreement shows' this to be the relation between the parties. The defendant was not authorized to use the remittances made to him by the local agents, or the premiums received by him, for the payment of losses or of the expenses of the business. The losses were to be paid by drafts from the home office, and the expenses by moneys remitted to the defendant from the home office for that especial purpose.

With respect to the second ground, the remarks above made lead inevitably to the conclusion that the defendant, on the receipt of the moneys (other than those sent him for expenses) by him, was bound immediately to remit them to the home office, and if he did not do so then, after demand made, and perhaps without demand, an action would lie therefor. There is nothing in the agreement which justifies his keeping the plaintiffs’ money in his own possession, without paying it over, for the space of a year.

As to the money sent to pay expenses, the company, if it chose to pay its indebtedness direct to the creditors, instead of through their agent, had the right to dó so, and if they had previously sent money to their agent for such purpose, to demand its return.

With respect to the third ground, there is sufficient evidence to call for a submission to the jury of the question of fact, whether the agreement between the parties was ever, by mutual consent, so modified as to make the fiscal year terminate on the 31st of December, instead of, as mentioned in the agreement, the 31st of July in each year, and subsequently acted upon in reference to such modification by both parties. If the jury should find it urns so modified and acted on, that finding would substantially dispose of these grounds, since, in such event, all that the defendant could claim would be so much of the salary for the year ending December 31, 1867,' as remains unpaid, and [314]*314the per centage for that year. The plaintiffs claim that the defendant has forfeited his compensation by his misconduct. But it is so questionable, whether the alleged misconduct, to wit, the non-payment of moneys, under legal advice, and the peculiar circumstances of the case,, is sufficient to deprive the defendant of compensation for his services theretofore rendered, although not then payable,-that it seems to me proper to reduce the bail by the amount of such compensation.

The remaining ground is as to the effect of the action and arrest in the United States Circuit Court. It is said that, under the principle contained in the maxim, “ nemo débet lis vexari pro uno et eadem oausa,” this order should be vacated. Translating this Latin maxim into English, it reads: “ Ho one ought to be twice vexed for one and the same cause.” The origin of the expression is to be found in the language used by the éarlier judges in deciding cases before them. The impression which it makes on the memory, by its force and terseness, has caused it to pass into a maxim. But, as with all maxims, so with this, it is necessary, for the purpose of ascertaining its precise meaning, and judging whether it is applicable to any particular case, to look at the adjudged cases where the maxim has been either relied on by the court, or ineffectually urged by counsel. It is well settled, in England, that this maxim only applies where both suits are within the same jurisdiction. And, following" this principle, it is equally well settled that the bringing and prosecuting an action in one of the states of the Union does not, by force of this maxim, prevent the bringing and prosecuting, at the same time, an action in any one or more of the othei states for the same cause. The fact that the first action if brought in a United States court, does not interfere with the bringing of another action in a state court of a state not within the jurisdiction of the United States Court, or [315]*315perhaps, even, in a state court of a state within such jurisdiction.

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Bluebook (online)
7 Rob. 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lorillard-fire-insurance-v-meshural-nysuperctnyc-1868.