Savings Bank of New London v. Santaniello

33 A.2d 126, 130 Conn. 206, 1943 Conn. LEXIS 167
CourtSupreme Court of Connecticut
DecidedJune 29, 1943
StatusPublished
Cited by101 cases

This text of 33 A.2d 126 (Savings Bank of New London v. Santaniello) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Savings Bank of New London v. Santaniello, 33 A.2d 126, 130 Conn. 206, 1943 Conn. LEXIS 167 (Colo. 1943).

Opinion

Jennings, J.

The principal question involved in this appeal is whether a defendant who files a cross-complaint in a foreclosure action has an absolute right to a jury trial under the circumstances here disclosed.

The pleadings and judgment in the case cover thirty-five-pages of the printed record but-are not as complicated as this statement would indicate. The substi *208 tuted complaint claimed foreclosure of two mortgages, the notes which these mortgages secured being signed by the named defendant, hereafter referred to as the defendant. In her answer the defendant denied the debt and filed a cross-complaint for money damages based on the mismanagement by the plaintiff’s assignor, whose debts the plaintiff had assumed, of certain securities held by the assignor as collateral to notes other than the mortgage debts. As relief she claimed damages, the cancellation of the notes for which the securities were collateral and a set-off. The plaintiff answered this cross-complaint and filed a counterclaim claiming a balance due on the same notes which were the basis of the defendant’s cross-complaint. Both plaintiff’s and defendant’s pleadings were supported by elaborate exhibits containing statements of accounts.

The defendant seasonably claimed the case for the jury, but when it came on for trial the trial judge of his own motion struck the case from the jury docket. In taking this action the trial court cited Bennett v. United Lumber & Supply Co., 110 Conn. 536, 148 Atl. 369, in which Chief Justice Wheeler said (p. 538) : “No action for an accounting, or one of this character, should be tried to the jury. It imposes upon a jury an impossible task, to expect them to carry in memory the details of a case of this character. It is unfair to a litigant to have his case determined by a tribunal which cannot fulfil that duty with accuracy or justice, however intelligent and desirous of doing their full duty the tribunal may be.” See also Hall v. Smedley Co., 112 Conn. 115, 117, 151 Atl. 321.

The constitutional right of a litigant to a jury trial has been frequently examined in this state and many of the cases are cited in Berry v. Hartford National Bank & Trust Co., 125 Conn. 615, 7 Atl. (2d) 847. *209 The precise question arises here: Does the filing of a cross-complaint by the defendant in a foreclosure suit, raising some legal issues, change the rule so that the defendant can demand the trial of these legal issues to the jury as of right? This question does not appear to have been passed on in this state.

The plaintiff’s complaint asking for the strict foreclosure of a mortgage was a purely equitable action and, as such, not triable by a jury as of right. Meriden Savings Bank v. McCormack, 79 Conn. 260, 262, 64 Atl. 338; Young v. Vail, 29 N. M. 324, 355, 222 Pac. 912, 34 A.L.R. 980. The defendant’s cross-complaint and the plaintiff’s counterclaim dealt with an entirely separate series of transactions which had no relation whatever to the foreclosure suit or to each other except as the result might determine the net balance due, since the parties were the same. The defendant’s claims are summarized as follows in the trial court’s memorandum: (1) unauthorized speculation with her stock, followed by a fraudulent procurement of a $1200 note to make good a debt; (2) appropriation of a payment of $3000 in cash with no credit given; (3) payment of interest without credit; (4) neglect and refusal to sell the collateral when directed, to the loss of the defendant; (5) neglect to sell certain warrants; (6) receipt of stock dividends without credit being given for them; (7) breach of trust in the sale of real estate; and a final claim that the plaintiff’s books of account and record are false, fraudulent and fictitious. As stated above, the defendant had filed a general claim for a jury trial and the case was on the jury docket, trial and assignment list.

The plaintiff made no objection to the filing of the cross-complaint and the case was fully tried out on the pleadings described. Where this not unusual situation exists, the rule is “Where in a complaint separate and *210 distinct causes of action are joined, one at law and one in equity, either party has the right to have a jury trial of the issues involved in the cause of action at law. Purdy v. Watts, supra [91 Conn. 214, 217, 99 Atl. 496]. So where there-is involved in a case a cause of action for damages properly cognizable at law, the fact that relief in equity in aid of or supplemental to it is also demanded will not destroy the right of either party to have the issues at law submitted to the jury . . . On the other hand, where the essential right asserted is equitable in its nature and damages are sought in lieu of equitable relief or as supplemental to it in order to make that relief complete, the whole action is one iff equity and there is no- right to a jury trial.” Berry v. Hartford National Bank & Trust Co., supra, 618, 619.

Applying this rule to these pleadings, it will be seen that the prayer for cancellation of the notes called for relief which could be granted only in equity. The remaining prayer-for relief reads: “$29,950.00 damages, or so much of said sum as may be found to be due to her, set off against the plaintiff's claim.” As is held in the Berry case, the fact that damages are claimed is not conclusive. The defendant has herself defined her claimed right as one of set-off and her pleading as a cross-complaint. This was correct. A counterclaim arises out of the same transaction described in the complaint. A set-off is independent thereof. Schaefer v. O. K. Tool Co., Inc., 110 Conn. 528, 530, 148 Atl. 330. The decisive question therefore is whether the set-off claimed is legal or equitable.

Set-off was unknown to the common law. Sullivan v. Merchants National Bank, 108 Conn. 497, 499, 144 Atl. 34. It was, however, early recognized in equity, which exercised its broad powers to prevent circuity of action (ibid.; Downing v. Wilcox, 84 Conn. *211 437, 441, 80 Atl. 288), to enforce the maxim that he who seeks equity must himself do equity (Goodwin v. Keney, 49 Conn. 563, 569; Rowan v. Sharps’ Rifle Mfg. Co., 29 Conn. 282, 324; Phelps v. Ellsworth, 3 Day 397) and, in general, to do equity between the parties where such legal right of set-off as existed was not adequate to accomplish this result and the case fell within the limits of recognized equitable principles. Lindsay v. Jackson, 2 Paige 581, 2 N. Y. Ch. (Law. Ed.) 1038, note; Rowan v. Sharps’ Rifle Mfg. Co., 31 Conn. 1, 23.

Legal set-off is governed in this state by General Statutes, § 5551. A condition precedent to its application is that it shall be in answer to a suit on a debt.

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Bluebook (online)
33 A.2d 126, 130 Conn. 206, 1943 Conn. LEXIS 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savings-bank-of-new-london-v-santaniello-conn-1943.