Montague v. Wanamaker

67 Misc. 650, 124 N.Y.S. 805
New York Supreme Court·Decided May 15, 1910·Published·Cited by 2 cases

Opinion

Erlanger, J.

On October 6, 1906, the Pierrepont Hotel Company, a domestic corporation, desiring to obtain certain household goods to equip its hotel, entered into an agreement with the defendant wherein and whereby it was covenanted that, if the defendant would deliver such goods to said hotel company, the latter would pay for the same in installments as therein stated; and it was agreed that, if the hotel company defaulted in any of the payments, the [651] defendant could retake the goods without resort to legal proceedings. In the event of such retaking, all rights under section 116 of chapter 418 of the Laws of 1897, commonly known as the Lien Law, were expressly waived, and the privilege was conferred upon the defendant of selling the goods at either private or public sale, upon such terms and conditions as to it seemed fit, without notice of any kind. On December 20, 1906, a supplemental agreement was made between said parties, wherein it was acknowledged that $1,526.61 had been paid on account of the chattels purchased and that the balance of $3,883.06 should be paid in notes to mature at fixed periods; and, except the condition as to the times of payment, which was altered, none of the conditions of the original agreement of October sixth was to be changed or in any way affected. Both of these documents were recorded as required by law. The two last notes under the supplemental agreement were not paid; one for $500, matured on June 5, 1907, and the other for $833.06, 'became due on July 5, 1907. Interest was to be paid at the rate of six per cent, on each note from the date of the agreement. It was admitted on the trial that both notes were presented at maturity for payment and were not paid. On July 1, 1907, in a proceeding, entitled “ In the Matter of the Voluntary Dissolution of the Pierrepont Hotel Company, a corporation,” the plaintiff was appointed temporary receiver of the assets of said company. The defendant demanded from both the hotel company and its receiver the return of the articles sold, which demand was refused; and, in order to recover possession, it did, on August 9, 1907, on leave granted by this court, institute an action in replevin, and all papers in said action were served upon the receiver, who was made a party thereto. Annexed to the papers were copies of the agreements above referred to. The sheriff, on said August ninth, replevied the chattels and held them for the statutory period; and the receiver failing to rebond they were delivered to the defendant in this action and stored. On August 10, 1907, the day following the commencement of the replevin suit, the receiver sent a letter to the defendant Wanamaker in which he [652] wrote, “I desire to tender to you the balance owing upon the furniture recently recovered from the Hotel under a replevin process. * * * I am unaware of the amount claimed to be owing upon said goods. Kindly inform me as soon as possible the amount now owing and unpaid, in order that I may make tender of the payment thereof.” Both prior to and at the time of the sending of this letter, the receiver did not have on hand $1,383.06, the -amount due on the goods; but, subsequently to September 16, 1907, he had in his possession a sum exceeding $2,000. The plaintiff testified that, from the beginning of the replevin action, he was in frequent consultation with the defendant Wanamaker and his attorneys, with a view to either, selling the goods which had been retaken, so that out of the proceeds there might be enough to pay the balance, or to holding them until he might get enough funds in hand to pay the balance which was then owing; that he had negotiations with the defendant looking to a redemption, or a payment of the unpaid balance, and thereby getting back the goods; and that these negotiations continued until September, 1907, when the defendant Wanamaker and his counsel suggested the possibility of the sale of the goods, so that out of the proceeds the amount owing thereon could be paid and the. balance, if any, paid over to the receiver; that this seemed to be satisfactory to him, plaintiff, provided an upset price was fixed which would leave something for him. In. December, 1907, a stipulation for a sale for the sum of $2,000 was entered into, but it was not approved by the court until January 28, 1908. It seems that, while these negotiations were being conducted, a purchaser was in fact found by the defendant who was willing to pay $2,000 for the chattels; but, on account of the delay, he withdrew his offer and refused to complete his purchase. On February 15, 1908, the receiver was informed that all negotiations were off and that the goods would be sold at public auction, but the time and the place of the sale were not mentioned. Thereafter, notice of the sale was published in three newspapers in Manhattan, and the sale took place on February 26, 1908. Hot an article so sold was bid in by the defendant, and the [653] amount realized after deducting expenses was less than the balance owing to it. The sale not having been made' within the sixty days as required by the Lien Law, and no notice, except as stated, having been given to the receiver, this action was brought by him.to recover the amount which had been paid by the hotel company on account of the goods sold to it. Upon the trial, the foregoing facts, in addition to others not deemed necessary to detail, were established; and each party, at the close thereof, moved for a direction of a verdict in his favor.

By section 116 of chapter 418 of the Laws of 1897, the vendor of a conditional sale is required, if the property is retaken, to retain it for a period of thirty days, during which time the vendee is given the right to redeem. After that period, if the vendee has not redeemed by complying with the terms of the contract, the vendor is permitted to sell at public auction. In 1900 that section was amended by adding the following at the end thereof: “ Unless such articles are so sold within thirty days after the expiration of such period, the vendee, or his successor in interest, may recover of the vendor the amount paid on such articles by such vendee, or his successor in interest, under the contract for the conditional sale thereof.”

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Montague v. Wanamaker, 67 Misc. 650, 124 N.Y.S. 805 (N.Y. Super. Ct. 1910).

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