National Park Bank v. Goddard

16 N.Y.S. 343, 69 N.Y. Sup. Ct. 31, 41 N.Y. St. Rep. 439, 62 Hun 31, 1891 N.Y. Misc. LEXIS 436
CourtNew York Supreme Court
DecidedNovember 13, 1891
StatusPublished
Cited by2 cases

This text of 16 N.Y.S. 343 (National Park Bank v. Goddard) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Park Bank v. Goddard, 16 N.Y.S. 343, 69 N.Y. Sup. Ct. 31, 41 N.Y. St. Rep. 439, 62 Hun 31, 1891 N.Y. Misc. LEXIS 436 (N.Y. Super. Ct. 1891).

Opinion

Van Brunt, P. J.

Levy Bros. & Co. were a limited partnership, engaged in the manufacture and sale of clothing in New York, and, being indebted to the plaintiff in a large sum of money, their property was attached at the suit of the plaintiff by the sheriff, who took into his possession their stock of goods and some other property. At that time the defendants herein, other than the Levys and the coroner, claimed to be creditors of the insolvent firm for goods sold and delivered, but their claims had not matured. As soon as the sheriff had-levied upon and taken possession of the firm’s property, these creditors, claiming that the goods sold by them to the Levys were obtained from them by fraud, assumed to rescind the sales, and commenced actions in replevin to [344]*344recover the goods they had respectively sold. The coroner thereupon took the goods out of the sheriff.’s- possession. Some 40 or 50 different actions of this nature were thus commenced. The goods sought to be replevied were cloth, linings, trimmings, and other materials which had been sold by the plaintiffs in the replevin suits to the Levys, and which had to á great extent been made up by the Levys into clothing; the cloth bought from one merchant being combined with the linings bought from another, and the trimmings furnished by another, to form the garment as it existed at the time of the levy of the attachment by the sheriff. Each plaintiff in the replevin suits claimed • certain goods, in whatever shape he could find them, whether in the piece or made up into garments. Entire garments were claimed by the merchant who sold the buttons or lining, or who sold the cloth or furnished other parts of the material, and at the time that this action was commenced were in the act of seizing upon and taking away property, some.of which had formerly belonged to them, and some of which they had never owned; the claim of the plaintiffs in the replevin suits being that, these goods having been obtained by fraud, they had the right to follow them in any form that they might assume through the interference of others. The respondent thereupon commenced this action for the protection of its lien under its attachment, and to procure in one suit a determination of all the adverse and conflicting claims "upon the attached property, and for an injunction and a receiver; averring that it was necessary for the protection of its lien that the attached property be held or sold for the benefit of all the lienors or claimants thereof. An order to show cause why a receiver should not be appointed having been made, an order was made temporarily enjoining the defendants from pursuing their actions in replevin, and the court appointed a receiver, two orders having been entered in respect thereto, and from these orders these appeals are taken.

It is urged upon the part of the appellants that the complaint does not disclose equity sufficient to authorize the relief granted by the order; and that multiplicity of suits is not alone a sufficient ground for the interposition of a court of equity, but that there must be some additional equity, of which the plaintiff is unable to avail itself at law, or which is a distinct ground of equitable cognizance, such as accident, mistake, fraud, or discovery; and that in any event it must be shown that there is a common right at stake among the defendants, or a common property involved in dispute. Undoubtedly, a part of this proposition is well founded, but the limitation of the interference of equity to cases of accident, mistake, fraud, or discovery would seem to deprive that branch of jurisprudence of the most important part of its jurisdiction; and, in the consideration of the questions presented upon this appeal, it may be proper to call attention to the manner in which equitable interference has-been called into existence by the necessities of the case, the cardinal principle being that the party had no adequate remedy at law, which is the foundation of all equitable interference.

In order to obviate many defects in proceedings at law, the remedy by interpleader was introduced into equity; but, as it left many cases of hardship unprovided for, bills quia timet obtained, which wire essentially in their nature writs of prevention, and therefore instituted before the wrong has been, or is actually being, suffered. But, as these did not afford relief, in many cases -where injury was being suffered for which the law afforded no adequate protection, as where courts of equity interposed to prevent waste or destruction or deterioration of property pendente lite, or to prevent irreparable mischief,—bills of peace and writs of injunction were resorted to. The grounds upon which the jurisdiction of courts of equity in proceedings of this character was founded, arose from their ability to give á more complete and perfect remedy than is obtainable at law, in order to prevent irreparable mischief, or to suppress oppressive and vexatious litigation. In fact, equity has always intervened where the law cannot afford adequate relief.

[345]*345The question arises in the case at bar whether the plaintiff has brought itself within the jurisdiction of a court of equity by the facts developed upon the hearing of these motions. It is urged that the plaintiff has no standing in court, as against these parties seizing these goods under their replevin writs. But it was held in the case of Bank v. Bunn, 97 N. Y. 149, that an execution creditor, if he meets with an obstruction to his levy, may, because of his general lien, proceed in equity, making all the rival claimants parties, and prevent, if need be, the transfer of the property by the plaintiff in replevin, avoid a multiplicity of suits, and so determine in one action the whole controversy. In the case at bar, the plaintiff had an actual lien upon the property, having levied thereon, and being in possession of it. Its levy is obstructed by the various claimants of this property as represented in the replevin suits, and in some cases different claimants, claiming different portions of the same piece of property. If these defendants are allowed to go on, a large portion of this property upon which the plaintiff has obtained its lien •will be absolutely destroyed, and, if it should finally succeed in the replevin actions, it will have but a barren victory. Therefore it has brought this action in equity, making all the rival claimants parties, and claiming the right to prevent the transfer of the property by the plaintiffs in replevin, and also claiming to avoid a multiplicity of suits, precisely within the principle of the case cited. In this action the rights of all the parties can be protected, and the property or its proceeds preserved for the party who shall finally be decided to be entitled to the same. Without elaborating the propositions heretofore referred to, it seems, from the facts disclosed by these papers, that if there was ever a case in which a court of equity should intervene to prevent irreparable injury, it was under circumstances such as are disclosed in the case at, bar.

The point made that the parties in the replevin suits are by this means deprived of their rights to a trial by jury cannot have any force, because, if they are entitled as matter of right to a trial by jury, issues may be framed by which they may be able to have the benefit of that right. But we do not intend to intimate any opinion upon that subject, because it has become familiar law that even a replevin suit may become an action in equity by an order of interpleader.

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Bluebook (online)
16 N.Y.S. 343, 69 N.Y. Sup. Ct. 31, 41 N.Y. St. Rep. 439, 62 Hun 31, 1891 N.Y. Misc. LEXIS 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-park-bank-v-goddard-nysupct-1891.