Patti v. United Surety Co.

61 Misc. 445, 115 N.Y.S. 844
CourtCity of New York Municipal Court
DecidedDecember 15, 1908
StatusPublished
Cited by1 cases

This text of 61 Misc. 445 (Patti v. United Surety Co.) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patti v. United Surety Co., 61 Misc. 445, 115 N.Y.S. 844 (N.Y. Super. Ct. 1908).

Opinion

Green, J.

This action is brought by the plaintiff against the defendant, a surety company, upon a bond given by the said defendant as surety for one Antonio Crisafi, who conducted a steamship ticket agency in the city of New York. The action is brought to recover damages sustained by the plaintiff by reason of his having deposited certain money with Antonio Crisafi for transmission to foreign countries and which he failed to do. The defendant gave a bond as surety for said Antonio Crisafi in the sum of $15,000 to the People of the State of New York, conditioned that Antonio Crisafi should faithfully and diligently hold and transmit any and all moneys or the equivalent thereof which should be delivered to him for transmission to foreign countries. The law requiring Antonio Crisafi to give such a bond was chapter 185 of the Laws of 1907, and that act provided that an action might be brought upon said bond by any person aggrieved. The defendant answered the complaint and alleged that the law under which the bond was executed and delivered is unconstitutional, and thus rendering the said bond void and of no effect. The answer also alleged two separate defenses: first, that the plaintiff’s complaint does not state facts sufficient to constitute a cause of action, and, second, that the bond is void by reason of the unconstitutionality of the statute in question which provided for the bond. The plaintiff demurred to the separate defenses and to the new matter alleged in paragraph two of the answer on the ground that they are insufficient in law upon the face thereof, and the questions are now presented, arising upon the demurrer, as to the sufficiency of the answer, the sufficiency of the complaint, the constitutionality of the act under which the bond was given, and also the right of the defendant to set up the unconstitutionality of the act as a bar to the action upon the bond. About [447]*447the same time that these questions were presented to this court for its consideration similar questions as involved upon this demurrer were presented to one of the learned justices of the Supreme Court. The pleadings, counsel and questions of law were identical with the case at har, and the only difference was that the plaintiffs in the Supreme Court action were assignees of a number of claims, while the defendant was the same. On the 18th day of December, 1908, the learned justice handed down a decision (N. Y. L. J., Dec. 18, 1908), and the opinion upon which so clearly and succinctly sets forth the issues involved for consideration that I present the same verbatim as follows: “ Benvegna v. U. S. Surety Co.; Musco v. U. S. Surety Co.— This is an action brought by an assignee of a number of claims against the defendant, a surety company in the City of New York, upon a bond given by the defendant for a so-called steamship ticket agent, its principal, pursuant to chapter 185 of the Laws of 1907. This statute provided that all corporations, firms and persons engaged in the selling of steamship or railroad tickets for transportation to or from foreign countries who, in connection with said business, carry on the business of receiving deposits of money for the purpose of transmitting the same • or the equivalent thereof to foreign countries, shall before entering into said business execute a bond to the People of the State of New York in the sum of $15,000, conditioned for the faithful holding and transmission of any money delivered to it for such purpose. The act further provided that suit to recover thereon might be brought by any person aggrieved. The defendant interposes two affirmative defenses, to which the plaintiff has demurred for insufficiency. The first affirmative defense alleges that the statute pursuant to which the bond was executed ‘ is unconstitutional and class legislation, and that all proceedings and acts thereunder are void, and any bonds given thereunder are null and of no effect.’ The second affirmative defense alleges that the plaintiff’s complaint herein does not state facts sufficient to constitute a cause of action.’ Both of these defenses are mere conclusions of law and wholly insufficient. The constitutionality [448]*448of a statute upon which a claim is based may be raised by a demurrer to the complaint or a general denial, preferably the former in this case. Where, however, an answer is demurred to for insufficiency the demurrer will be overruled, notwithstanding the infirmities of the answer, if the complaint itself fails to set forth a cause of action (Holland v. Grote, 56 Misc. 370; Court of Appeals opinion in same case, printed in the Law Journal, December 17, 1908). In my opinion the statute in question is unconstitutional by reason of the sixth section thereof, which excludes steamship companies or their authorized agents from the operation thereof. This is an arbitrary discrimination in violation of the equal protection of the laws guaranteed by the Constitution (People ex rel. Farrington v. Mensching, 187 N. Y. 8; People ex rel. Armstrong v. Warden, 183 id. 224). The statute being unconstitutional and void, the bond furnished under it necessarily falls (Vose v. Cockcroft, 44 N. Y. 415). Demurrer overruled, with costs.” An examination of the statute in question and particularly of the sixth section thereof convinces me beyond possibility of argument to the contrary that the statute is -unconstitutional by reason of its arbitrary discrimination in favor of steamship companies and their authorized agents, in violation of the constitutional guarantees to individuals of the equal protection of the laws, and to that extent I entirely agree with the opinion of that most learned justice. The concluding sentence of his opinion, however, to wit, “ the statute being unconstitutional and void, the bond furnished under it necessarily falls (Vose v. Cockcroft, 44 N. Y. 415),” raises a most interesting and serious question of law, and my examination of the authorities upon the question involved compels me, however, with the greatest diffidence and respect, to disagree with his conclusion of law upon that important point. The plaintiff maintains, even though the act in question is unconstitutional, that the defendant is in no position to raise the question so as to test the constitutionality of the statute under which it gave the bond. He insists that the United Surety Company, the defendant, gave the bond in question voluntarily and with[449]*449out any coercion from the legislative authority; that the said surety company is not one of the parties or persons, firms or corporations mentioned in the act required to give the bond, and cannot be considered as any party discriminated against or affected by the provisions of the act. It is well settled (and to this proposition of law counsel for the defendant agree, as evinced by a perusal of pages 14 and 15 of their elaborate brief), and it is now a firmly established principle of law, that no one can be allowed to attack a statute as unconstitutional who has no interest in it and who is not affected by its provisions. Red River Valley Nat. Bank v. Craig, 181 U. S. 548; Wiley v. Sinkler, 179 id. 58; United States v. Moriarty, 106 Fed. Rep. 886; People v. Brooklyn, F. & C. I. R. R. Co., 89 N. Y. 75-93; 8 Cyc. 787; People ex rel. Henry v. Folks, 89 App. Div. 171-180. For the constitutional inhibition against the taking of private property without due process of law and all constitutional guaranties of equal rights and privileges are for the benefit of those persons only whose rights are affected and cannot be taken advantage of by any other person. 8 Cyc. 788; People v. Turner, 49 Hun, 466.

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Bluebook (online)
61 Misc. 445, 115 N.Y.S. 844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patti-v-united-surety-co-nynyccityct-1908.