Robertson v. Ongley Electric Co.

31 N.Y.S. 605, 82 Hun 585, 89 N.Y. Sup. Ct. 585, 64 N.Y. St. Rep. 342
CourtNew York Supreme Court
DecidedDecember 14, 1894
StatusPublished
Cited by4 cases

This text of 31 N.Y.S. 605 (Robertson v. Ongley Electric Co.) 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
Robertson v. Ongley Electric Co., 31 N.Y.S. 605, 82 Hun 585, 89 N.Y. Sup. Ct. 585, 64 N.Y. St. Rep. 342 (N.Y. Super. Ct. 1894).

Opinion

PARKER, J.

The trial court dismissed the complaint on the ground that the note upon which the plaintiff sought to recover had not matured when the action was commenced. The note reads as follows:

“$22,783.33. New York, November 1st, 1892.
“Two years after date, we promise to pay to the order of Thomas W. Robertson twenty-two thousand seven hundred and eighty-three 33-100 dollars at No. 1 Broadway, New York City.
“Value received.
“Number. With interest at five per cent., payable semiannually. Due November 4, 1804.
“The Ongley Electric Company,
“By Geo. B. Hopkins, Vice President.”

The action was commenced April 4, 1893, some months before the. due date of the note, according to its terms. But at the time the note was given the defendant executed and delivered to the plaintiff, as collateral security for its payment, a chattel mortgage upon cer[606]*606tain patents, accounts, and chattels of the defendant. That instrument provided, among other things, that upon the happening of certain events the principal sum represented by the note should become' instantly due and payable. One of the events named was that if the defendant should permit or suffer any attachment or other process against the property to be issued against it, the note should become at once due. Two weeks prior to the commencement of this-action, a person claiming to be a creditor of this defendant (a New Jersey corporation, doing business in the state of New Jersey, and having its general offices for the transaction of business in Jersey City) procured an attachment to be issued in this state, and levied upon certain property of the defendant within the state of New York. The plaintiff in the action in which the attachment was issued sought recovery against the defendant for certain commissions alleged to have been earned by selling its treasury stock. The defendant answered the complaint, denied the debt, and refused to pay. Before this trial that action was put on the short-cause calendar for trial, but, as the limit of time allowed for such causes was reached, before the evidence was in, the result was that it went to the foot of the calendar under the rule. In such condition the action stood at the time of the trial of this cause. The situation, therefore, does not permit the court to infer that the issue of the attachment was-due to a failure on the part of the defendant to pay, in the ordinary course of business, a meritorious claim. The question, then, is whether the issuing of an attachment in a state other than that under the laws of which the defendant was incorporated, and under the circumstances to which we have briefly referred, operated, under the provision of the chattel mortgage, to make the sum secured by the-note at once due and payable. So much of the covenant relating, to the events which should cause the note to become payable prior to the date of maturity fixed by its terms reads as follows:

“And the said party of the first part, for itself and its successors and assigns, covenants and agrees to and with the said party of the second part, his executors, administrators, and assigns, that in case default shall be made in the payment of the said principal sum above mentioned, or in the payment of the interest thereon, or in case the said party of the first part shall at any time before the day of payment herein provided for remove the said goods, chattels, and property, or any part thereof, or permit or suffer any attachment or other process against property to be issued against it, or permit or suffer any judgment to be entered up against it, then the said principal sum above mentioned shall become instantly due and payable. * *

If this provision be read without having in mind the circumstance which, it is alleged, caused this note to mature, it will suggest that, the parties intended to cut down the time which the note should have to run only in the event of such happenings as should endanger the plaintiff’s chances of making his claim out of the property of the defendant. It undertook to provide that in the event of a removal of the goods covered by the mortgage, whether by the voluntary act of the defendant or through legal proceedings taken by a creditor, then the note should at once mature. In other words, the parties to that instrument apparently intended to relieve the payee of the note and the mortgagee as well from any possible em[607]*607barrassment by reason of the length of credit, should the mortgagor voluntarily attempt to dispose of the property, or some creditor, by means of an attachment or judgment, should be about to effect its disposition in order to make his claim out of the defendant’s property. A construction of this language which should make the note mature if an attachment should be obtained in another state or foreign country would not seem to be in accord with the plan which the parties to the instrument had in mind. The defendant may be presumed to know the law of the state to which it owes its creation, and to have made its contract with reference to it, but there is no occasion for extending the presumption of knowledge to the law of other states or foreign countries. There is no suggestion that in its own state this attachment would have been issued, if applied for. But in this state, the defendant being a foreign corporation, an attachment may issue against its property within the limits of the state, however solvent it may be, and however great its ability to pay all claims against it on demand. It is not within its power to prevent a creditor—or a fictitious claimant, even—from obtaining an attachment against its property in this state. And the construction contended for would, of course, put it in the power of the mortgagee, if at all inclined to turn sharp corners in order to gain some advantage over his debtor, to cause the note to become due at once by procuring an attachment to be taken out by some person in another state or county than that of the defendant’s residence. Now, clearly, this was not what the parties intended, and we have to inquire whether the language employed, if reasonably construed, is not in accord with what seems to have been their desire at the time. It will be observed, in the first place, that it is not provided that the note shall become due in the event that an attachment shall be issued. The provision contains words of limitation, in addition,—words indicating that the attachment provided for was one for the issuing of which the defendant should be in some measure responsible, because of its tacit consent, or its neglect to discharge its just obligations. The attachment provided for is one that the defendant shall “permit or suffer” to be issued against it. Now, it is not contended that the defendant did any affirmative act to procure or permit the issuing of the attachment; but, having failed to prevent its issue, it is urged that the defendant permitted or suffered it to issue. The learned counsel for the appellant concedes that, if the word “permit” had been used alone, there would be no opportunity for such construction of the instrument as that for which he contends.

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Cite This Page — Counsel Stack

Bluebook (online)
31 N.Y.S. 605, 82 Hun 585, 89 N.Y. Sup. Ct. 585, 64 N.Y. St. Rep. 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robertson-v-ongley-electric-co-nysupct-1894.