Russell v. McCall

22 N.Y.S. 615, 68 Hun 44, 75 N.Y. Sup. Ct. 44, 52 N.Y. St. Rep. 53
CourtNew York Supreme Court
DecidedMarch 17, 1893
StatusPublished

This text of 22 N.Y.S. 615 (Russell v. McCall) 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
Russell v. McCall, 22 N.Y.S. 615, 68 Hun 44, 75 N.Y. Sup. Ct. 44, 52 N.Y. St. Rep. 53 (N.Y. Super. Ct. 1893).

Opinion

VAN BRUNT, P. J.

Upon the trial of this action the following facts appeared: Prior to February, 1880, the defendant Schamu M. Moschowitz and one Mary A. Russell were copartners in the business of dressmaking at 299 Fifth avenue, New York city. In said February the said Mary A. Russell died, leaving a last will and testament in Which she designated her sister, Elizabeth L. Russell, as her executrix, who duly qualified, and subsequently, having become Elizabeth L. Macdona, commenced this action, and, having died, her brother, John J. Russell, was appointed administrator with the will annexed of said Mary A. Russell, and this action was revived and continued in his name. At the time of the death of said Mary A. Russell, the said copartnership was possessed of a large amount of assets and property in excess of its liabilities, which the said Schamu M. Moschowitz took possession of, as surviving partner of the firm of Moschowitz & Russell, and continued the business as theretofore carried on until the 1st of May, 1880. Upon this day Schamu M. Moschowitz [616]*616and James McCall formed a copartnership for carrying on said business, and under the name and style of Moschowitz & Bussell, and at the same place, continued to carry on said dressmaking business as such copartners. The capital upon which said copartnership carried on business consisted of the assets and good will of the old firm of Moschowitz & Bussell, of which said McCall had full knowledge. Upon entering into said copartnership, Schamu M. Moschowitz and James McCall ascertained the value of the assets of said firm, and fixed and agreed upon the value thereof, above all liabilities, at the sum of $51,019.90. All the liabilities of said firm had been paid and discharged, except a claim made by the defendant Herman Moschowitz for the sum of $40,000, claimed to be due for salary. The moneys realized from the sale of the assets and property of Moschowitz & Bussell were used by the firm, composed of Schamu M. Moschowitz and James McCall, in purchasing new merchandise, and paying the regular running expenses of the new business; and such assets and property, and such new goods and merchandise, were indiscriminately used in the business o.f the copartnership. On the 26th of October, 1880, Elizabeth L. Bussell, as executrix of Mary A. Bussell, commenced an action in this court against Schamu M. Moschowitz, alleging the copartnership between Bussell and Moschowitz, and that a large amount of assets belonging to said copartnership, over and above its liabilities, at the time of the death of said Mary A. Bussell, came into the possession of Moschowitz, as surviving partner, and that he, with due diligence, could have wound up and closed out said business within a few months after the dissolution of said firm by the death of said Mary A. Bussell, and have paid over to said plaintiff the share of said deceased in said copartnership business; that instead thereof the defendant had neglected so to do, and had continued in possession of the place of business of said firm, and said property and assets, and continued to carry on the business, and use the assets arid property of said firm in said business, and had made no efforts to sell and dispose of said assets and property, except in the ordinary course of said business, and that he had in his possession, not sold and undisposed of, the greater part of said assets and property, which were becoming less and less valuable; that plaintiff frequently requested the defendant to wind up the business, but the defendant had neglected so to do, and had not paid to the plaintiff, as executrix, any money or other proceeds of said copartnership, nor had he assigned, transferred, or delivered to her any assets, securities, or other property of the firm, or accounted with her in respect to the same. Then follows an allegation in respect to a claim upon the part of Moschowitz to use the firm name; and judgment is demanded that an account might be taken of all the dealings and transactions of said copartnership from the time of its commencement to the time of its dissolution by the death of Mary A. Bussell, and that the defendant account for all his dealings and transactions in regard to the property, assets, and effects of such copartnership since such dissolution, and that the defendant be adjudged to pay to the plaintiff any amount which might be due from him on such accounting, and that a receiver might be appointed, and an injunction issue. Issue was joined in said action. [617]*617and the same was duly referred, and the referee having reported on the 4th of January, 1884, a judgment was duly entered in said action, by which, after reciting that by said report it appears that the defendant Schamu M. Moschowitz, as surviving partner of the firm of Moschowitz & Bussell, was chargeable with the assets of said firm which came into his hands as such surviving partner, over and above all credits, in the amount of $73,458.44, and that the plaintiff, as successor of said deceased partner, was entitled to recover half of said balance of any assets, subject to the provisions in said decree made for the deposit of a portion thereof, and after reciting that it appeared by said report that Herman Moschowitz was prosecuting a claim, etc., against said firm, and after reciting that it appeared by said report that certain furniture belonging to said firm was in the possession of the plaintiff, and had not been reduced to possession by the defendant, it was adjudged that the defendant Schamu M. Moschowitz, within 30 days after the service of a copy of said judgment upon him, deposit in the United States Trust Company $44,000, to abide the event of said action brought by Herman Moschowitz against said Schamu M. Moschowitz, individually and as surviving partner of the firm of Moschowitz & Bussell, and then pending, said sum to be applied to the payment of any final judgment which should be obtained in said action, and the overplus, if any, or, in case no judgment should be obtained against the defendant, then the whole sum and interest, at the final determination of said action, to be divided equally between the defendant and the plaintiff or her successor. It was further adjudged that the defendant forthwith reduce to possession the household furniture thereinbefore mem tioned, and sell the same, and pay over to the plaintiff half of the net proceeds after deducting the necessary and proper expenses of sale, etc. And it was further adjudged that the plaintiff recover of the defendant the further sum of $14,729.22, being the half of the remainder of the balance of net assets thereinbefore mentioned, after deducting said sum of $44,000, together with costs and allowances. Subsequently proceedings were had by which the latter part of said judgment was modified, and said last-mentioned sum was reduced to $435.49. That on the 1st day of January, 1881, the firm of which Moschowitz and McCall were members was enlarged by the addition of a new member,—the defendant Herman Moschowitz,—and the firm name changed to Moschowitz Bros. Ho new capital was contributed by the incoming member, and the remaining assets and property of the firm of Moschowitz & Bussell were used by the new firm, and new goods and merchandise were purchased with the proceeds of such assets and property, and the same were indiscriminately used in the business of the copartnership of Moschowitz Bros. In February, 1882, McCall began an action in the court of common pleas against his copartners, the Moschowitzes, for a dissolution of said firm, an accounting, the appointment of a receiver, and the issuance of an injunction. In March, 1882, Schamu M. Moschowitz was appointed receiver, and, under the orders of the court of common pleas, continued to do business.

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Cite This Page — Counsel Stack

Bluebook (online)
22 N.Y.S. 615, 68 Hun 44, 75 N.Y. Sup. Ct. 44, 52 N.Y. St. Rep. 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russell-v-mccall-nysupct-1893.