National League of Commission Merchants of United States v. Hornung

148 A.D. 355, 132 N.Y.S. 871, 1911 N.Y. App. Div. LEXIS 209
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 29, 1911
StatusPublished
Cited by10 cases

This text of 148 A.D. 355 (National League of Commission Merchants of United States v. Hornung) 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
National League of Commission Merchants of United States v. Hornung, 148 A.D. 355, 132 N.Y.S. 871, 1911 N.Y. App. Div. LEXIS 209 (N.Y. Ct. App. 1911).

Opinion

Spring, J.:

The plaintiff, a membership corporation, was incorporated in the State of Illinois in March, 1893. It consists of commission merchants, about 380 in number, and its purpose is set forth in its certificate of incorporation as follows: “The object for which it is formed is mutual aid in business, promotion of the best interests of shippers and receivers, and to promote good feeling among all its members with a special outlook for their welfare, and to foster and encourage by all lawful and proper means and in a fraternal and friendly spirit by organized effort their welfare.”

Branch leagues of the plaintiff were formed in several cities and one in the city of Buffalo early in 1908. The defendant became a member of' the plaintiff in 1894 and of the Buffalo branch when it was established.

[357]*357'In 1898 the plaintiff adopted an emblem or trade mark, which was duly registered, and was designed for the exclusive use of its members, and it was extensively used by them on their stationery in their correspondence and was regarded as a valuable right or privilege.

Article 18, section 4, of the constitution and by-laws of the . plaintiff provides: “In the event of any dispute, or difference, arising between a party not a member of the League and a member of any Branch League, the party not a member may demand a trial of the case before the Arbitration Committee of the Branch of which the other party is a member, and it shall be the duty of said Arbitration Committee within thirty days to take up the matter and within ninety days report their decision to both of the parties-interested.”

In case either party is dissatisfied an appeal may be taken to the branch league, where a new trial is to be had, and a further appeal is permitted by the aggrieved party to the national executive committee, which is a committee of the parent organization and is composed of one member elected by each branch league. The party not a member must declare, however, in writing his willingness to abide by the decision of this final tribunal, and a retrial does not seem to be required on this final appeal. By section 5 of article 18 of the constitution refusal of a member to submit a disputed account to the arbitrament of the branch league is to be followed by his expulsion from the plaintiff.

In 1908 a claim against the defendant was presented by Loomis & Son, of Victor, N. Y., to the Buffalo branch league for a sum alleged to be due to them for a quantity of potatoes sold to him. The gist of the demand was that the sale had been made and the defendant refused without cause to accept the potatoes, and the claimants sold them at a loss, for which they sought to hold the defendant liable. The matter was submitted to the arbitration committee, consisting of three members of the branch league, and a trial was had, the defendant being represented by counsel, and a decision in writing signed by the three members of the committee was rendered in favor of Loomis & Son for seventy dollars and thirty-one cents damages, and ten dollars fees of the stenographer who took and [358]*358transcribed the minutes of trial. The decision recited succinctly the grounds for the conclusion reached, and they appear to be reasonable and to justify the determination arrived at. The defendant appealed to the branch league, where a retrial was had, the defendant again giving testimony in his behalf, his counsel participating, arid the decision! was again in favor of the claimants for the full amount claimed, with twenty dollars stenographer’s expenses, which, by the written stipulation of both parties, were to be paid by the defeated party. The defendant thereupon appealed to the national executive committee, which body considered the appeal; and the proof shows that during the consideration there was a division among the members "of this tribunal and eventually by ballot it was decided in January, 1909, to allow one-hálf of the sum claimed, each party to pay one-half of the stenographer’s charges. The claimants had in writing consented to accept and abide by the decision of this executive committee, and did so. The defendant refused to accept the decision or pay the sum awarded to the claimants. Notice of the decision was transmitted to the branch league, of which the defendant had notice, and also of the proceeding for his expulsion, and he appeared before the local body and was heard when the matter of his expulsion was up for consideration. He- was finally expelled from the plaintiff. He continued, however, to use the emblem of the plaintiff in his business arid threatened to persist- in such use, and this action was commenced to restrain him from making use of this emblem or trademark. The defendant in his.answer impugned the integrity of the decision against him, the legality of the alleged expulsion and asked that his name be replaced on the roll of - membership and his rights as a member of the plaintiff be recognized and continued; and the relief he asked for was granted by the judgment appealed from and the complaint was dismissed.

At the outset, it is contended by the respondent that the plaintiff had no authority to consider and pass upon the claim of Loomis & Son, as they were not members of the plaintiff. The.constitution and by-laws of the plaintiff distinctly provide for the determination of such a claim. It is not important whether the defendant could be compelled to comply with this [359]*359provision, for he voluntarily submitted his case to the arbitration committee and by two appeals he has brought himself within the jurisdiction of the plaintiff and assented to its authority to adjudicate upon the claim against him, and the, objection is not now available to him. (People ex rel. Brewster v. “ Old Guard,” 87 App. Div. 478, 484 et seq.; Bath Gas Light Co. v. Claffy, 151 N. Y. 24.)

He claims that he was not given a fair trial and that the branch league and the national executive committee were composed in part of members who were biased and prejudiced against him. A man named Paine was one of the arbitration committee who decided adversely to the defendant. He was, of course, a member of the branch league, and when the new trial was heard by that body he was present and may have participated. The defendant objected to him acting when the retrial was on, and also to the participation of other members who were present. There was no charge that any one of these men had any bias or animosity against the defendant, or that he was interested in the litigation or even friendly to the claimants. The objection to Paine was that he had been a member of the arbitration committee and, consequently, had united in the determination against the defendant. The objection was not a valid one. A judge who tries an action may, by statute, be prohibited from participating in the decision of the case on appeal if he is then a member of the appellate court. The prohibition is wholly statutory. It may be that a man who is open to conviction and impartial may be the better qualified to reach a just determination of the action or proceeding upon the review by the appellate tribunal.

Paine was a member of the executive committee, the ultimate tribunal, and the defendant again objected to him taking part in the decision or being present at the hearing. The chairman of the committee replied that he had no authority to exclude Paine from attending or participating, as he was regularly a member of the appellate body. The defendant asked to be represented by counsel, and when this was refused, then in his own behalf, which was also denied.

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Bluebook (online)
148 A.D. 355, 132 N.Y.S. 871, 1911 N.Y. App. Div. LEXIS 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-league-of-commission-merchants-of-united-states-v-hornung-nyappdiv-1911.