National Bank v. Scriven

18 N.Y.S. 277, 70 N.Y. Sup. Ct. 375, 44 N.Y. St. Rep. 331, 63 Hun 375
New York Supreme Court·Decided March 15, 1892·Published·Cited by 3 cases

Opinion

Herrick, J.

Prior to August 1, 1885, Marshall W. Scriven and Elisha W. Hydorn were copartners in trade, doing business under the copartnership name of M. W. Scriven & Co., at Troy, N. Y. On that day a general assignment was made in the name of the copartnership to J. B. Hydorn for the benefit of creditors. Such assignment was executed for the copartnership by Elisha W. Hydorn, he claiming that he had authority from Scriven to make the assignment. At the time of the assignment the firm of M. W. Scriven & Co. was indebted to the plaintiff to the amount of about $14,000, and in such assignment the plaintiff was made a preferred creditor of the first class by itself. J. B. Hydorn took possession under this assignment, but never filed a bond. On the 7tli of August, 1885, the said Scriven and Hydorn made a second general assignment for the benefit of creditors, executed by each partner personally, to the defendant Henry W, Smith. Smith filed a bond and took possession under this second assignment. The assignee under the first assignment giving the property up to him, Smith converted the property into money, and is now ready to distribute it. In their second assignment the plaintiff is placed in the second class of creditors with a number of others, and will apparently, if the second assignment stands, receive very little upon its claim. The plaintiff did not know of or consent to the second assignment, and has not in any way waived its rights under the first assignment. It requested the first assignee, J. B. Hydorn, to take proceedings to enforce his title as such assignee, to discharge the duties of his trust, and to protect the rights of the plaintiff under such assignment. This he failed and refused to do, and the plaintiff, having in the mean time procured judgment upon its , claim, and the execution thereon being returned unsatisfied, commenced this action in its own behalf to enforce said first assignment, asking, among other things, “that said assignment of August 1st be declared valid, and be carried out so far as to pay plaintiff’s claim in full.”

It is claimed upon the part of the defendants and respondents that the first-assignment was not legally executed. That a general assignment for the benefit of creditors may be legally executed by one of the members of a co-partnership, of all the partnership assets, when he is fully authorized to do so by the remaining copartner or copartners, is too well settled to require discussion. Hooper v. Baillie, 118 N. Y. 413, 23 N. E. Rep. 569. In this case the assignment recites that it is an indenture made by and between Marshall W. Scriven and Elisha W. Hydorn, copartners doing business under the firm name and style of “M. W. Scriven & Co.,” and it is signed, “Marshall W. Scriven. Elisha W. Hydorn, by Elisha W. Hydorn.”

The certificate of acknowledgment recites that Elisha W. Hydorn and J. Bartlett Hydorn (the assignee) came before the justice taking the acknowledgment; that the justice knew them to be the same persons mentioned and [279] described in the foregoing instrument; and that they severally acknowledged before him that they executed the same. The sufficiency of this certificate is challenged because there is no statement in the certificate that Elisha W. Hydorn was authorized to sign Scriven’s name. This I do not think necessary. If he was authorized by the firm, it was sufficient. Hooper v. Baillie, 118 N. Y. 413-416, 23 N. E. Rep. 569. If he had authority to execute the assignment of the firm property, he had authority to execute it in the name of the firm, and by himself, and to acknowledge it as such. Klumpp v. Gardner, 114 N. Y. 153, 160, 21 N. E. Rep. 99. It appears from the testimony of the justice of the peace who took the acknowledgment that Elisha W. Hydorn stated that he acknowledged it for the copartnership. That was a sufficient acknowledgment, within the case of Hooper v. Baillie; and, if the officer omitted to embody it in his certificate, that defect, if it is one, may be cured by evidence as to what did take place, and as to what the acknowledgment really was. The policy of the law is to uphold the certificate when the substance is in it. See Claflin v. Smith, 15 Abb. N. C. 241, and cases cited; Kelly v. Calhoun, 95 U. S. 710. The officer taking the acknowledgment would be compelled to correct a mistake in the certificate, and make it conform to the facts. 1 Amer. & Eng. Enc. Law, 149, and cases cited. His testimony as to what took place before him is uncontradicted. That, as we have seen, was a sufficient acknowledgment in behalf of the copartnership. If it was a necessary part of the certificate, he could be compelled to insert it, and, it now appearing in the case, it seems to me that the instrument was sufficiently acknowledged within the statute, and properly executed, if in fact Elisha W. Hydorn was authorized by his copartner to make an assignment for the benefit of creditors. That question was sharply contested, and is the most important question in the case.

Free access — add to your briefcase to read the full text and ask questions with AI

National Bank v. Scriven, 18 N.Y.S. 277, 70 N.Y. Sup. Ct. 375, 44 N.Y. St. Rep. 331, 63 Hun 375 (N.Y. Super. Ct. 1892).

18 N.Y.S. 277 (National Bank v. Scriven) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Sturmwald v. Schreiber
69 A.D. 476 (Appellate Division of the Supreme Court of New York, 1902)
People v. Seldner
62 A.D. 357 (Appellate Division of the Supreme Court of New York, 1901)