Smith v. Endicott-Johnson Corp.

199 A.D. 194, 192 N.Y.S. 121, 1921 N.Y. App. Div. LEXIS 6636
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 28, 1921
StatusPublished
Cited by8 cases

This text of 199 A.D. 194 (Smith v. Endicott-Johnson Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Endicott-Johnson Corp., 199 A.D. 194, 192 N.Y.S. 121, 1921 N.Y. App. Div. LEXIS 6636 (N.Y. Ct. App. 1921).

Opinion

Van Kirk, J.:

The Endicott-Johnson Company was a partnership conducting a manufacturing business and employing many persons. On the 1st day of April, 1919, the Endicott-Johnson Corporation, this defendant, was organized to take over the business of the partnership, and it took over all the assets and assumed all the liabilities of the partnership on April 17, 1919. Three [195]*195separate judgments were procured by different plaintiffs against employees of this corporation (the defendant here). An execution was issued upon each of said judgments and was returned unsatisfied Thereupon in each case an application was made for a garnishee execution. The court ordered such execution issued and such execution in each case was presented by the sheriff to the corporation, which retained the same, and in each case the corporation refused to comply with the garnishee order and refused to apply any of the wages of the defendant named in the execution to the payment of the execution, although in each case sufficient wages were due or became due the employees to pay the execution. Section 1391 of the Code of Civil Procedure contains this: Either party may apply at any time to the court from which such execution shall issue, or to any judge or justice issuing the same, or to the county judge of the county, * * * upon such notice to the other party as such court, judge, or justice shall direct for a modification of said execution, and upon such hearing the said court, judge or justice may make such modification of said execution as shall be deemed just, and such execution as so modified shall continue in full force and effect until fully paid and satisfied, or until further modified as herein provided.” No application was made for a modification of the execution in either case above referred to. In all essential facts, each case is like the other, with one exception—the first judgment was procured and the first garnishee execution issued and presented to this defendant corporation on the 12th day of April, 1919, after it was duly organized, but before it had actually taken over the assets of the partnership. But I do not. think this distinguishes the cause of action based upon this judgment and execution from the others, because the execution was retained and the earnings of the defendant employee, after April 17, 1919, when the corporation took over the business, were more than sufficient, applying the amount of the percentage directed in the order, to pay the judgment; and section 1391 of the Code of Civil Procedure (which is now section 684 of the Civil Practice Act), provides that a garnishee execution issue against the wages of the judgment debtor and, on presentation of such execution by the officer to the person from [196]*196whom wages are due, or may thereafter become due and owing to the judgment debtor, “ said execution shall become a hen and a continuing levy upon the wages * * * due or to become due to said judgment debtor to the amount specified therein which shall not exceed ten per centum thereof, and said levy shall be a continuing levy until said execution and the expenses thereof are fully satisfied and paid or until modified as hereinafter provided.” The three causes of action set forth in the complaint, each based upon the failure of this defendant to comply with the garnishee order, as above stated, may be treated as identical.

The plaintiff in this action was the judgment creditor in the third execution set forth in the complaint. The first and second causes of action are based upon judgments and garnishee executions procured by others than the plaintiff herein, and they, judgment creditors of the employees of the defendant, have each assigned, prior to the commencement of the action, all the right, title and interest in and to the judgment, execution and right of action thereunder, to the plaintiff, who thereupon became the true and lawful owner thereof in each case. Section 1391 of the Code of Civil Procedure provides: “ It shall be the duty of any person or corporation, municipal or otherwise, to whom said execution shall be presented, and who shall at such time be indebted to the judgment debtor named in such execution, or who shall become indebted to such judgment debtor in the future, and while said execution shall remain a lien upon said indebtedness to pay over to the officer presenting the same, such amount of such indebtedness as such execution shall prescribe until said execution shall be wholly satisfied, and such payment shall be a bar to any action therefor by any such judgment debtor. If such person .pr corporation, municipal or otherwise, to whom said execution shall be presented shall fail, or refuse to pay over to said officer presenting said execution, the percentage of said indebtedness, he shall be liable to an action therefor by the judgment creditor named in such execution, and the amount so recovered by such judgment creditor shall be applied towards the payment of said execution.”

The causes of action set forth in the complaint are based upon this last-quoted provision of the statute, and it is claimed [197]*197by the appellant that, as to the first and second causes of action, assigned to the plaintiff, there can be no recovery because this is a right of action existing solely under this statute and the liability to an action is given to the judgment creditor named in such execution,” without naming the assigns of the judgment creditor. Whatever the cause of action on which the judgment has been recovered, the judgment is in the nature of a contract between the judgment debtor and the judgment creditor, and the assignment of the judgment and execution is the assignment of a contract obligation. The assignment of the claim the judgment creditor had against this defendant is an assignment of a right of action upon a liability imposed by statute; this right of action is a chose in action. (People v. Tioga C. P., 19 Wend. 73, 75; Gillet v. Fairchild, 4 Den. 80, 82.)

The general rule is that all rights of action in tort, which do not apply to the person strictly, but are for injury to one’s property or estate, are assignable. (5 C. J. 889.) A right of action for the wrongful conversion of personal property is assignable. (McKee v. Judd, 12 N. Y. 622.) A right of action under the Sherman Anti-Trust Act (26 U. S. Stat. at Large, 209, chap. 647; Id. 210, § 7),

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Cite This Page — Counsel Stack

Bluebook (online)
199 A.D. 194, 192 N.Y.S. 121, 1921 N.Y. App. Div. LEXIS 6636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-endicott-johnson-corp-nyappdiv-1921.