Ramsey v. Gould

38 How. Pr. 206
Procedural entryThis page is a short order in Ramsey v. Gould. Read the opinion of the Court — 4 Lans. 476
New York Supreme Court·Decided July 1, 1869·Published

Opinion

Balcom, J.

The place of trial of this action stated in the complaint is Delaware county. But neither the complaint nor any other paper before me in the case informs me where the parties or any of their witnesses reside; and I cannot act upon any knowledge I have personally in respect to such matters. I am, however, permitted to take judicial notice of the fact that only one term of this court is appointed to be held in a year in Delaware county, at which actions like this are usually tried; and that term is held on the last Tuesday of July.

The injunction and orders in the action were granted on the 23d day of last November, at a special term of this court in said county, without any previous notice to the defendants, and without any opportunity on their part to be heard. The injunction prevents each and every of eight directors of the Erie Railway Company (there are seventeen in all) doing any act whatever as director of the company; and it forbids the whole seventeen doing many acts which they might legally do were they not enjoined. One of the orders suspends eight directors, named as defendants in the action, so they cannot have or exercise any right, privilege or authority in respect of said company, or its franchises or property in any capacity whatever. That order also appoints Philo T. Ruggles, Esq., as referee ; and it gives him inquisitorial powers, and authorizes him to take evidence for certain purposes in the case. The other order appoints David Groesbeck special receiver of certain money, property and claims, and the proceeds thereof, to be collected, realized, held and disposed of. The most extraordinary powers are conferred upon Groesbeck. He is authorized, upon the happening of a certain event, of which he is made the judge, to control all the affairs of the Erie Railway Company, and run the road. He is commanded to [212]*212afford all information in his power, and aid as he may be able, in the prosecution of this suit. And in the order appointing him, Buggies is also made a referee, with authority to do a number of acts. The injunction and orders contain over thirty folios, and they are very sweeping and extraordinary for ex parte orders. No well considered precedent has been cited for such ex pa/rte orders or injunction; and I am confident none can be found. This injunction and these orders were obtained as above stated, without the knowledge of the defendants, eight months, and perhaps twenty, in advance of a trial of the action on the merits, when it may appear from the evidence that the plaintiff was not entitled to either the injunction or orders.

The summons, complaint, injunction and orders were served upon the Erie Bailway Company on the 24th day of last November, and on that day I granted an order staying the plaintiff’s proceedings, except the service of the summons and complaint in the action on defendants not previously served, not exceeding twenty days, to enable the defendants to make a motion in some proper county, to have said injunction and orders vacated. On the 26th day of said November, I discovered that my order did not permit the service of the injunction and orders accompanying it on defendants, who had not been served with the same, and on that day I modified my order so as to allow such service to be made. I need not cite any authority to show that it was my duty, as a judge of the district in which the place of trial of the action is laid, or the duty of any judge in the state to grant such a stay of the plaintiff’s proceedings. Every judge and lawyer in the state knows that my order was regular and proper, except perhaps in respect to the above mentioned omission, which injured no one, and which I promptly supplied without being asked so to do.

Judges Clebke and Parker also very properly granted orders, staying all proceedings by receiver Gfroesbeck.

The defendants were not obliged to make their motion [213]*213before the judge who granted the injunction and orders of which they complain. They noticed it for the first special term of the court, where it could be properly and regularly heard. And pursuant to a stipulation of the attorneys for the respective parties, the motion was adjourned to be heard, where it has now been argued.

The plaintiff’s counsel made a motion before Justice Murray, at Delhi, on the 17th day of the present month, to have my order, staying the plaintiff’s proceedings, vacated. But he held that such order was regular, and denied the motion.

The defendants could not appeal from the injunction or orders in question, because they were granted ex parte (8 Paige’s Ch. Peps., 481.) They were compelled to take such a motion as this, or submit to them. But the party who shall be defeated on this' motion, can appeal from my decision.

Section 225 of the Code,' athorized the defendants to make this motion, upon the complaint and the affidavits on which the injunction was granted, or upon affidavits on their part, with or without the answer.

The defendants’ counsel have made the' point that the plaintiff has not such an interest in the stock of the Erie Railway Company, or such claims or demands against the company, as entitle him to the injunction or- orders in question, if they were to concede that the same were regularly granted which they deny.

It clearly is necessary that the complaint should state facts sufficient to show that the plaintiff has such an interest in the controversy, as entitles him to the relief demanded in the complaint, or the injunction and orders in question cannot be sustained, whatever the eight suspended directors of the Erie Railway Company may have done, or may have omitted to do.

It is alledged in the complaint that the plaintiff is “a creditor of the Erie Railway Company,” and “the owner and holder of a past due claim for money, against and [214]*214legally payable by said company,” and that he is the owner of several fifth mortgage bonds of the company—also the owner of several sterling bonds of the company—also the owner of several other $1000 bonds of the company:—also the owner of several shares of the preferred and several shares of the common capital stock of the company, “entitled to be standing in his name on the books of said company, and of the right to receive dividends thereon.” It is father alleged that “ there are numerous other floating creditors of said company.” And the.plaintiff avers that he brings the action “on his own behalf and on b eh alt of all others of the said stockholders and bondholders (so far as said stockholders are entitled to be heard herein), and on behalf of all creditors of said company who shall join in and become parties to. this action, and contribute to the expense thereof.” But I am not informed that any other creditor or bondholder or stockholder has manifested any disposition to .come into the case on the part of the plaintiffs.

The complaint does not show when the plaintiff became the owner of his claim for money against the company or its amount, or its character, or how it accrued. Nor does it state when he became the owner of any bond of the company, or when or for what the saíne was issued, or when the same becomes due; or whether anything is due on any bond he has, or the amount of his bonds. It fails ,to allege that the plaintiff has any scrip or certificate for stock of the company by assignment or otherwise; and it does not state facts, from which any legal inference can be drawn' that he is “ entitled ” to have any stock stand in his name on the books of .

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Ramsey v. Gould, 38 How. Pr. 206 (N.Y. Super. Ct. 1869).

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