Sheldon v. Adams

18 Abb. Pr. 405, 41 Barb. 54
CourtNew York Supreme Court
DecidedMay 15, 1863
StatusPublished
Cited by10 cases

This text of 18 Abb. Pr. 405 (Sheldon v. Adams) 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
Sheldon v. Adams, 18 Abb. Pr. 405, 41 Barb. 54 (N.Y. Super. Ct. 1863).

Opinion

Potter, J.

The first question that arises is, whether the or der of the special term is, appealable. The actions were commenced in the spring of 1854. The complaints were verified by the then plaintiff. The notes are set forth in the complaint as notes made subsequent to the organization of the company, as premium notes given for policies of insurance, to be issued thereon. The notes are such in form, that is, premium notes. Sheldon, the receiver, as such, under the direction, sanction, and authority of the Supreme Court, settled and determined the amount of losses of the company, and the proportions to be assessed upon the said notes against the respective defendants for their proportions of losses and liabilities as members of the said company by reason of the notes; and he alleges that he did assess the notes the sums and proportions against the defendants that are therein sued for, and gave them due legal notice thereof; and then sets forth that the risks and business of the company were divided into two departments, “ The Farmers’ Department,” and “ The' Merchants’ -Department that the risks taken in each of these departments were, by the charter of the company, to be liable in no other department, and then alleges particularly in which of said departments the notes were severally made. The notes are dated in 1851. The actions have never been brought to trial. Mow, in September, 1862, more than eleven years after the date of the notes, an order is granted, authorizing the plaintiff to insert in his complaint an entirely different cause of action, and presenting entirely different questions for litigation.

The power to do this is claimed under the 173d section of the Code, “for the furtherance of justice,” and it is now claimed that when this has been adjudged by the court, it is but the exercise of a discretion, and cannot, and will not be reviewed. The right of appeal exists in all cases from an order of a special term or a judge, “ when it involves the merits of the action, or some part thereof, or affects a substantial right.” (Code, § 349, subd. 3.) To say that an entirely new and different cause of action, inserted in a complaint eight years after issue joined, requiring a different defence, does not affect a substantial right [407]*407or involve the merits, cannot be allowed; both reason and authority are against this idea. An appeal lies from such an order. (St. John a. Croel, 10 How. Pr., 253; Harrington a. Slade, 22 Barb., 161.) The amendment, in its nature, is based upon the doubt whether the- plaintiff can recover upon his-complaint as it is, or can recover more than a part of the amount. He now desires (and the amendment is to allow him to carry out that desire) to recover either a larger sum, or for a different cause of action. This, clearly, affects a substantial right.

The merits of the motion must then stand upon its being granted “in furtherance of justice.” If it cannot stand upon this ground, it should be reversed. Let us see how it looks in this view. It is now the settled doctrine of the Court of Appeals, that in allowing amendments, no discrimination should be made, in the exercise of that power, between legal defences offered to be set up, on-account of their character; that is, whether they are-such as have sometimes been called unconscionable, as the Statute of Limitations, Usury, &e., or otherwise; that is to say, all defences recognized by statute to be such, are in this regard to stand equal, and that it is not the duty of courts to make discrimination against the spirit of a statute. In other words, that a party has a vested right to set up these defences as well as any other, when they have become perfect; and the Statute of Limitations has been approvingly called by distinguished jui’ists “ the statute of repose.” (8 Cow., 615; 22 Barb., 164.) '

The notes in question, if they were original stock-notes, made for the organization of the company, as they bear date in 1851, had become outlawed as such, and no action could be maintained upon them if the defence of the Statute of Limitations should be interposed. By the effect of this order, these outlawed notes are put into a complaint in an action brought in 1853, as if sued on then, and thus the defendant is cut off from the defence of the Statute of Limitations; and this is claimed to be “in furtherance of justice.” They had been so outlawed four years when the order appealed from was granted. (Bell a. Yates, 33 Barb., 629; Howland a. Edmonds, Ib., 433; reversed 24 N. Y., 307.) By this order, these notes, put to their repose by statute, and to which if sued upon directly, the de[408]*408fendants could interpose a perfect legal statutory defence, are, in the exercise of this power at special term, revived against the defendants, without the promise or acknowledgment by the defendants in writing, required by section 110 of the Code; and to sustain this order is, in effect, to give the plaintiff the right to commence this action by an order, without commencing it by summons and complaint, as is required by section 127 of the Code. Rot only that, but a note which, by the company’s charter, and which, by the defendant’s policy, it is made a condition in his contract shall only be assessed for losses in one class of hazards, is permitted to be sued on as a stock-note and made liable for all losses. These aré extraordinary favors, certainly, to be conferred upon a plaintiff who has now awakened .after an eight years’ slumber upon his case; and it is in effect, by indirection, extending the provision of the Statute of Limitations, from six to ten years, against the vested rights of the defendants. This is too great an exercise of power to be accomplished by an order; yet we see that all this, it is claimed now, was done “ in furtherance of justice,” and, therefore, not to be reviewed. We do not see it in that light, and it is not probable that the point was presented to the learned justice at special term.

But without reference to the absolute inj ustice to the defendants, which would result from the order appealed from if permitted to stand, the papers used upon the motion show a decided preponderance of weight, I think, against the granting of the motion upon the facts. Sheldon, the receiver, who lived at the place of location of this company, the place where its officers resided, where its office of business was kept, who was appointed receiver two years after the organization of the company, and who must be presumed to be cognizant of the facts, from his examination of the books, vouchers, and notes of the company, made in order to the proper assessment upon premium notes, and which assessment he did make while in the possession of all such advantages,—himself verified jhe complaint in April, 1854, which states the notes to be premium-notes, made to be liable in only one of its departments, and made after the organization of the company. Against this quite full and satisfactory evidence, we have only the statement of the present attorney of the present receiver, who resides at Oxford, Ohe[409]*409nango county, made in July, 1862, more than eight years thereafter, who states that he has investigated the affairs of said company, and endeavored to ascertain whether said notes were “ capital stock.or premium-notes, and that this deponent cannot determine, and does not know whether the said notes are capital stock or premium-notes.” Indeed,.there is no ground of merit at all, nor any reason for the order, even had it been moved for in twenty days after issue joined.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Burrows Paper Co. v. State
174 Misc. 850 (New York State Court of Claims, 1940)
Brickell v. Miles
2 Ohio N.P. (n.s.) 153 (Court of Common Pleas of Ohio, Franklin County, Civil Division, 1904)
Garvie v. Greene
70 N.W. 847 (South Dakota Supreme Court, 1897)
Wooster v. Bateman
56 N.Y. St. Rep. 56 (The Superior Court of New York City, 1893)
Wilson v. Smith
14 N.Y.S. 628 (Superior Court of New York, 1891)
Arnold v. Chesebrough
33 F. 571 (U.S. Circuit Court for the District of Eastern New York, 1887)
Manhattan Savings Institution v. Town of East Chester
51 N.Y. Sup. Ct. 537 (New York Supreme Court, 1887)
Gilchrist v. Gilchrist's Executors
44 How. Pr. 317 (New York Supreme Court, 1873)
Union National Bank of Troy v. Bassett
3 Abb. Pr. 359 (New York Supreme Court, 1867)
Hinds v. Page
6 Abb. Pr. 58 (Chenango County Court, 1866)

Cite This Page — Counsel Stack

Bluebook (online)
18 Abb. Pr. 405, 41 Barb. 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheldon-v-adams-nysupct-1863.