Simmons v. Wood

45 How. Pr. 262
CourtNew York Supreme Court
DecidedJune 15, 1873
StatusPublished
Cited by2 cases

This text of 45 How. Pr. 262 (Simmons v. Wood) 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
Simmons v. Wood, 45 How. Pr. 262 (N.Y. Super. Ct. 1873).

Opinion

Fanchbr, J.

On the fourteenth day of October, 1863, an instrument was executed by and' between" Bichard France, William C. France, Zaehariah E. Simmons, Benjamin Wood and Charles H. Murray,, of the first part, and Zaehariah E. [265]*265Simmons, Lewis Davis and Charles H. Murray, of the second part. It was recited in the instrument that the parties of the first part had assigned to the parties of the second part certain lottery grants, privileges and franchises, and also certain printing-presses, plates, types, material appurtenant thereto, and other personal property, as set forth in three several assignments, which, by said instrument, were declared to be made to said Simmons, Davis and Murray, as trustees, for certain purposes therein specified. The said instrument or trust deed authorized the trustees to hold the lottery grants and privileges, and other property assigned, for ten years from the first day of September, 1863, and for that time to conduct the business thereunder according to their best ability and discretion ; and at the end of the term to reassign the grants, privileges and property unto the respective parties by whom they had been assigned, subject, however, to the revocation of the trust as hereafter mentioned.

The net profits of the business were to be divided at the end of each month among the parties, in the following proportions : nine per centum of the whole to William C. France; of the residue, thirty-nine and three-fourths per cent to Benjamin Wood; ten percent to Richard France; ten and one-half per cent to Charles H. Murray; and thirty-nine and three-fourths per cent to Zachariah E. Simmons. These proportions indicate the relative interest of the parties in the adventure at that time.

The trust deed provided that, during the term, the parties representing seventy-five per centum of the interest might revoke the trust, by written notification to the trustees; whereupon it should become the duty of the trustees “ forthwith to wind up and settle the business then current under the trust and agreement, and thereupon to reassign the said lottery grants, privileges and property, then remaining in their hands, unto the several parties by whom the same were conveyed to the trustees, or their legal representatives.”

By the said trust deed it was further agreed and declared [266]*266that any lottery grant or franchise, or interest in any lottery grant or franchise, which might thereafter be acquired by the parties or any of them, should be forthwith conveyed to the trustees, under the penalty of a forfeiture of his or their portion of the divisible interest stated in the trust deed, and the amount so forfeited should be divided among the other parties.

On the fifteenth of December, 1869, Zachariah E. Simmons verified his complaint in this action, in which he asserts that the business under the said deed of October 14, 1863, and under said lottery grants and franchises, had been carried on under the name of C. H. Murray & Co. up to the fourth December, 1869, at which latter date he alleges it was terminated by the parties who owned and represented seventy-five per centum of such divisible interest, in pursuance of their written direction and notification to the trustees conformably to the provisions of the trust deed.

The plaintiff further asserts that the business aforesaid is fully legalized in and by certain states, which had authorized the lottery grants, and that the same were lawful property in those states; that contracts and transactions relating to and growing out of such grants are upheld and sanctioned by the laws of said states, and that as property, having the same nature as other personal property, they have been and are of great pecuniary value.

The complaint contains an allegation, that whilst the said Wood was subject to the terms of'the trust, he acquired various lottery grants and franchises which he had refused to assign to the trustees, although requested so to do, and thereby he had forfeited all his interest in the grants and property, and all rights whatever, held under the said deed of trust.

"Upon this complaint, and an affidavit verifying the allega- ' tions contained therein, the plaintiff procured, on the sixteenth of December, 1869, from George G. Barkard, one of the justices of the supreme court, an ex fa/rte order appointing John Morrisey a receiver of all the property appertaining to the business carried on under the name of O. H. Murray [267]*267& Co., and of all the other business referred to in the complaint ; directing all parties to assign their interests to the receiver, and granting to him, as receiver, full power and authority in his discretion to sell and dispose of, at public or private sale, all and singular the said legislative grants, charters, franchises, choses in action, estate and effects, and the said business and good-will thereof, subject to the orders of this court; and the said order also contained an injunction against all the defendants, restraining their interference with the said grants, business or property.

It is asserted on this motion, and not denied, that judge Barnard’s order was granted out of court, late at night of the 16th December; and that on the next morning, before any of the defendants had been served with the summons or knew of the commencement of the action, the receiver, Morrissey, sold the grants and property referred to in the order at private sale in the lobby of the Hoffman House for the price of $25,000, of which $5,000 were cash and the residue secured by the notes of the purchaser, William L. Simmons, a brother of the plaintiff, payable at different times from four months to two years.

The summons in this action was served on the defendant, Wood, on the seventeenth, and on the defendant, Colton, on the 18th December, 1869. Ho expedition, which either of them could employ, was available to interfere with the sale made by the receiver, for it took place before either was aware of his appointment or of the commencement of this action. It was stated on the argument of this motion that the sale thus made by the receiver for $25,000 covered an interest which had, during the preceding thirteen months, yielded large profits, and, according to the verified allegations of the defendants, the price at the sale was grossly inadequate.

„ So soon as information of the receivership was given to the defendants an order to show cause why it should not be vacated, and containing a stay of proceedings, was procured and served, and thereafter the motion was argued before [268]*268judge Cabdozo at special term, and on the 26th January, 1870, submitted for his decision, but he went out of office without any decision of the motion.

On the 29th January, 1870, an ex parte order was obtained confirming the sale by the receiver, but the order of confirmation was vacated, after argument by Mi', justice Barrett, on the 18th November, 1872.

After the resignation of judge Cabdozo, leaving the motion to vacate the receivership undecided, a notice of the present motion was given, which includes not only an application to vacate the order appointing the receiver, but also to set aside the sale made by him; and also to set aside a subsequent order substituting Felix McClosky as receiver, in place of Morrisey. Notice of the application has been given to the plaintiff’s attorney, to the receiver, Morrisey, and to William L. Simmons, the purchaser at the receiver’s sale.

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Cite This Page — Counsel Stack

Bluebook (online)
45 How. Pr. 262, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simmons-v-wood-nysupct-1873.