Onondaga County Savings Bank v. Love

166 Misc. 697, 3 N.Y.S.2d 428, 1938 N.Y. Misc. LEXIS 1446
CourtNew York Supreme Court
DecidedFebruary 19, 1938
StatusPublished
Cited by1 cases

This text of 166 Misc. 697 (Onondaga County Savings Bank v. Love) 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
Onondaga County Savings Bank v. Love, 166 Misc. 697, 3 N.Y.S.2d 428, 1938 N.Y. Misc. LEXIS 1446 (N.Y. Super. Ct. 1938).

Opinion

Cross, J.

This is a motion made by the Attorney-General to strike from the complaint paragraphs 14 ” and 15 ” in a mortgage foreclosure action, and to dismiss the complaint against the defendant, The People of the State of New York, for failure to comply with section 259 of the Civil Practice Act.

The moving affidavit of the Assistant Attorney-General seeks to have paragraph 14 ” stricken from the complaint. On the argument of the motion and in the briefs the same relief is demanded in respect to paragraph “ 15 ” of the complaint.

The People of the State of New York, by the Attorney-General, contend that section 259 of the Civil Practice Act should be strictly construed and that pleading the detailed facts in this section specified is a condition precedent to the right to make the People a party to the action, and that upon failure so to plead, the section makes mandatory the dismissal of the complaint.

The plaintiff contends that this is not a suit against the State and that the reason for making the People a party defendant is to enable them to come in and protect their rights, which are admittedly subordinate to plaintiff’s mortgage, and by the same process provide to the purchaser, under the decree of foreclosure, perfect title to the premises, discharged of the lien of the State.

As far back as the year 1845, in Garr v. Bright (1 Barb. 157, at p. 164), the Chancellor said: “ It is also the ordinary practice to make the Attorney-General a party to a foreclosure suit, where the People of this State have a subsequent lien upon the mortgaged premises, by judgment or otherwise; so as to give to the purchaser, under the decree of foreclosure, a perfect title to the premises; discharged of the lien of the State.”

In Kiersted v. People (1 Abb. Pr. 385) the court said (at pp. 386, 387): For nearly eighty years, the People of the State of New York have been independent, and if hable to be sued in their own courts, might have been sued within that time. Yet no other instance is known in which a suit was ever before commenced against them in their own tribunals, unless when they had specially authorized the suit, or they or their Attorney-General were made parties in an equity suit with other defendants on account of some lien or claim held by the State avowedly subject to the prior claim [699]*699of another. Then they were made co-defendants, not to defeat their claim, or to compel them to do justice, but to give them the opportunity (if they chose) to come in and protect their rights.”

In Kitching v. Shear, Supreme Court, New York Special Term, 1899 (26 Misc. 436) the court said that statutory authority was essential to make the State a party defendant in a foreclosure action wherein the lien of the State upon an unpaid transfer tax was sought to be cut off. The opinion does not refer to the Kiersted case (supra), and no doubt it was not called to the court’s attention. This inference is logical and convincing, for, as was said by the publishers of the volume reporting the Kiersted case (1 Abb. Pr. p. v): “ It may be well to add, that a decision described as the decision of the Special Term of any court, means the decision of a single judge holding that court. The General Term is holden by several judges — usually three — and sits generally for the purpose of hearing appeals from decisions made at the Special Term. It is from the decision of the court at General Term that appeal is taken to the Court of Appeals. The decisions at General Term are of course entitled to the most weight.”

In Seitz v. Messerschmitt ([1907] 117 App. Div. 401; affd., without opinion, 188 N. Y. 587) the lower court said (at p. 403): “ The cases in which courts of equity have allowed a State or the Attorney-General of a State to be made a party defendant have been cases in which there had been a lien upon real or personal property, which apparently was owned by the State and the Attorney-General was made a party, not for the purpose of affecting the rights of the State but to notify him of the existence of the controversy, so as to give him an opportunity to appear and protect the interests of the State if he so desired. But in no case that I can find has it ever been held that where real property had vested in a State, making either the State or the Attorney-General a party to an action affecting such real property without legislative sanction, could divest the State of the property that had vested in it.”

It will be observed that the Chancellor in Garr v. Bright (supra) declared the purpose of making the Attorney-General a party was to give the purchaser, under the foreclosure decree, a perfect title discharged of the lien of the State.

In Kiersted v. People (supra) and in Seitz v. Messerschmitt (supra) the court referred to such practice without special authority in making the State a party as resting upon the purpose of giving the State an opportunity to protect its rights and not upon the ground of defeating its claim.

Following the decision in Kitching v. Shear, the Legislature enacted chapter 528 of the Laws of 1899 which provided, inter alia, [700]*700that “ The People of the State of New York may be made a party defendant to an action for the foreclosure of a mortgage on real property, where the People of the State of New York have a lien on the said real property subsequent to the lien of the mortgage sought to be foreclosed in said action, in the same manner as a private person. In such a case, the summons must be served upon the Attorney-General, who must appear in behalf of the People,” and chapter 609 of the Laws of 1901: “ In any action brought, affecting real estate upon which the People of the State of New York have or claim to have a lien, under the Transfer Tax Act, the said People of the State of New York may be made a party defendant, in the same manner as a private person. In such a case the summons must be served on the Attorney-General, who may appear in behalf of the People.”

Section 214 of Civil Practice Act provides: “In any action brought affecting real property upon which the People of the State of New York have or claim to have a lien under articles nine, nine-a, nine-b, nine-c, ten, ten-a, ten-b, ten-c, sixteen or sixteen-a of the Tax Law, or section five hundred fifty-six-b and five hundred fifty-six-c of the Code of Criminal Procedure, the People of the State of New York may be made a party defendant in the same manner as a private person.”

Section 259 of Civil Practice Act provides: “ Where the People of the State of New York are made a party defendant in an action affecting real property, the complaint shall set forth detailed facts showing the particular nature of the interest in or lien on the real property and the reason for making the People a party defendant, and where the lien is one under articles ten, ten-a, ten-b or ten-c of the Tax Law, the name or names of the decedent or decedents against whose estate there is an unpaid transfer or estate tax, the date of the death of each such decedent, the place of residence of decedent at the time of death, the heirs at law and next of kin of decedent and if decedent left none that fact shall be stated, whether decedent died testate or intestate, and whether the estate of decedent has been administered, and if so where; and if not administered, such fact shall be stated; * * *.

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112 F.2d 587 (Second Circuit, 1940)

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Bluebook (online)
166 Misc. 697, 3 N.Y.S.2d 428, 1938 N.Y. Misc. LEXIS 1446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/onondaga-county-savings-bank-v-love-nysupct-1938.