Lyman v. Rochester Title Insurance

37 A.D. 234, 2 Liquor Tax Rep. 4, 55 N.Y.S. 770
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 15, 1899
StatusPublished
Cited by13 cases

This text of 37 A.D. 234 (Lyman v. Rochester Title Insurance) 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
Lyman v. Rochester Title Insurance, 37 A.D. 234, 2 Liquor Tax Rep. 4, 55 N.Y.S. 770 (N.Y. Ct. App. 1899).

Opinion

McLennan, J.:

The bond in question was given, and all the alleged breaches of its conditions occurred, during the year 1896, and, therefore, the liability of the defendant must be determined by the bond itself and by the statute as it existed at that time.

It is elementary that where a bond is given, in pursuance of a statute, the provisions of the statute are, in effect, a part of the bond. (McCluskey v. Cromwell, 11 N. Y. 593; People v. Chalmers, 60 id. 154.)

The statute constitutes a part of the contract of the surety. (People v. Pennock, 60 N. Y. 421, 425.)

Section 11 of chapter 112 of the Laws of 1896 specifies the amount of tax which must be paid for a liquor tax certificate. The defendants Schenck were lawfully required to pay, and did pay, the sum of §300, and a liquor tax certificate in due form was issued to them.

Section 18 of the act provides, in substance, that the applicant for a liquor tax certificate must execute a bond to the People of the State of New York, with sureties, in double the amount of the sum paid for the liquor tax certificate, containing, among others, the provision that if such certificate is given, he, the applicant, will not violate any of the provisions of the Liquor Tax Law while engaged in the business of trafficking in liquors under such certificate. And the section further provides that the bond so executed must contain, in substance, the agreement that if a liquor tax certificate is issued to such applicant, and he violates any of the provisions of said Liquor Tax Law, the penalty of such bond shall become due and payable to the People of the State, and that the principals and sureties upon said bond shall be jointly and severally liable for the payment of the same.

The bond in this case follows substantially the language of the section.

Section 31 of the act provides, among other things, that it shall be unlawful for any person holding a liquor tax certificate of the kind issued to the defendants Schenck to sell liquor on Sunday. It is clear that if the language of the bond and of section 18 of the act, under which it is given, is only considered, the liability of the defendant insurance company would be established upon proving [237]*237that the defendants Schenek sold liquor on Sunday as alleged in the complaint.

The contention of the defendant insurance company, stated broadly, is that no liability can exist against it upon the bond which it executed as surety until the liability of its principals has been established as provided by section 36 "of the Liquor Tax Law. That section provides, in substance, as follows: Upon the conviction and sentence of any person * * * for a violation of the provisions of this act * * * the court * ' * * imposing the sentence, or the clerk of the court, if there be a clerk, shall forthwith make and file in the office of the clerk of the county in which such conviction shall have been had a certified statement of such conviction and sentence, and the clerk of said county shall immediately thereupon enter in the docket book kept by said clerk for the docketing of judgments in said office, the amount of the penalty or fine and costs imposed, as a judgment against the person or persons * * * so convicted and sentenced, and in favor of the State Commissioner of Excise. * * * If said judgment shall not be paid within "five days after such conviction and sentence the clerk of said county shall issue an execution against the property of said judgment debtor or debtors, against whom said judgment is docketed, directed to the sheriff of the county, who shall forthwith proceed to collect the amount due on said judgment, together with his legal fees and costs, by levy and sale in the manner now provided by law. * * * In case such judgment debtor or debtors shall have given the bond provided for in section eighteen of this act, such county treasurer or special deputy commissioner may proceed to collect the amount of such judgment, together with the costs of collection, from the sureties on such bond by due process of law.”

Section 34 of the statute specifies the penalty which may be imposed for a violation of the provisions of the Liquor Tax Law. In substance it provides that any violation of the law by the holder of a liquor tax certificate shall be a misdemeanor, and that upon conviction therefor he may be punished by fine or imprisonment, or both, in the discretion of the court before whom such conviction is had, and in addition, in most cases, upon such conviction, the liquor tax certificate is required to be canceled by the judg[238]*238ment of. the court, and the holder thereof disqualified from again engaging in the business of trafficking in liquors for a period of five years.

' If the defendants Schenck are guilty of violating one of the provisions of section 31, as alleged in the complaint, to wit, guilty of selling liquor upon Sunday, upon conviction for such offense they may be punished by fine or imprisonment, or both, in the discretion of the court before whom such conviction may be had, and the ■sureties upon the bond, if given, are liable to the amount of the fine imposed.

But if this is the entire liability of the obligors upon a bond like the one in question, no force or effect is given to the express agreement contained in said bond. That agreement, which is in accordance with the provisions of section 18 under which it is given, is that if a person holding a liquor tax certificate violates any of the provisions of the Liquor Tax Law, the obligors upon the bond will forfeit to the People of the State double the amount of the tax paid by the holder of such certificate.

The meaning of the agreement cannot be uncertain if the words are given their ordinary significance. It is that the obligors upon the bond will pay to the People of the State of New York the sum ■of $600 in case the principals in the bond violate any of the provisions of the Liquor Tax Law.

It is urged that such is not the true meaning of the bond, by reason of the provisions of the other sections of the statute which have been referred to. If such was not the agreement intended, but, instead, it was intended that the liability of the sureties should be limited to such fine as might be imposed upon the holder of- the liquor tax certificate, in case of conviction for such violation by him, hardly less appropriate language could have been used by the Legislature to express such intention..

We think that the scope and purpose of the statute in question is plain; that when the language of the bond, of section 18 under which it is given, and of the other provisions of the act are all considered, and the words used are given their ordinary meaning, the different provisions of ,the statute will be- found to be in entire harmony, and to express clearly a reasonable purpose and intent on the part of the Legislature.

[239]*239By the statute as a whole two methods are provided for compelling the observance of the Liquor Tax Law by those engaged in the business of trafficking in liquors:

First. In case of any violation of the law by a holder of a liquor tax certificate, who has given a bond as provided for in section IS of the act, a civil action may be maintained against the obligors upon said bond to recover the penalty of such bond.

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Cite This Page — Counsel Stack

Bluebook (online)
37 A.D. 234, 2 Liquor Tax Rep. 4, 55 N.Y.S. 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyman-v-rochester-title-insurance-nyappdiv-1899.