Smith v. Western Pacific Railway Co.

154 A.D. 130, 139 N.Y.S. 129, 1912 N.Y. App. Div. LEXIS 9893
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 20, 1912
StatusPublished
Cited by4 cases

This text of 154 A.D. 130 (Smith v. Western Pacific Railway Co.) 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. Western Pacific Railway Co., 154 A.D. 130, 139 N.Y.S. 129, 1912 N.Y. App. Div. LEXIS 9893 (N.Y. Ct. App. 1912).

Opinion

Clarke, J.:

The action is to recover $1,244,900 and interest which the plaintiff claims by virtue of an oral contract with defendant as commissions in consideration of alleged services in assisting to market the first mortgage bonds of the defendant. Plaintiff is a bond broker, a resident of New Jersey, and the defendant is a foreign corporation, organized and existing under the laws of the State of California. The first cause of action set up in the complaint is upon an agreement to pay a sum of money equal to two and one-half per centum of the par value of $50,000,000 of bonds, and the second cause of action is for the same amount upon the same transaction, but is upon a quantum meruit.

The defendant sets up; inter alia, as a defense in bar the ■ California Statute of Limitations. The Special Term by order directed the separate trial of the plea in bar, and pursuant thereto the trial of said issue was had at the Trial Term, a jury being waived. The learned court found as matters of fact that this action and the causes of action alleged in the complaint are upon alleged contracts and obligations founded upon alleged agreements made and entered into in July, 1904, in the State of New York. From prior to the time at which the plaintiff’s claims, alleged contracts and employment, referred to in the complaint, were made, continuously down to a time subsequent to the date of the commencement of this action, plaintiff was not a resident or a' citizen of the State of New York. Defendant,is not and never has been a resident of the State of New York, but was and is a railroad corporation organized under the laws of the State of California and is a resident and citizen thereof; that this action was commenced on the 14th of January, 1909, and was not commenced within two years after the causes of action, if any, alleged in the complaint accrued; that at the times mentioned in the complaint there were and ever since have been in force in the State of California the following statutory provisions of the Code of Civil Procedure thereof:

C£§ 312. Commencement of Civil Actions. Civil actions without exception can only be commenced within the periods prescribed in this title after the cause of action shah have accrued unless where in special cases a different limitation is prescribed by statute. * * *
[132]*132“ § 3.35. Periods of Limitation Prescribed. The periods prescribed for the commencement of actions other than for the recovery of real property,, are as follows: * * *
“ § 339. * * * • Within two years: 1. An action upon a contract, obligation or liability not founded upon an instrument in writing, or founded upon an instrument of writing executed out of the State.”

That more than two years had elapsed subsequent to the time when this action or causes of action alleged in the complaint accrued, and said causes of action were prior to the commencement of this action barred by the statutes of the State of California above mentioned, and • as conclusions of law that the causes of action were barred by the Statute of Limitations ■ of the State of California and of this State and that the defendant was entitled to judgment dismissing the complaint. From the judgment entered thereon plaintiff appeals.

• The first question presented is, when did the causes of action accrue? The complaint alleges that “in about the month of July, 1904, in the city of New York * * *, the defendant entered into an agreement with the plaintiff to employ the plaintiff, and did thereby employ the plaintiff, to assist the defendant in the sale of * * * $50,000,000 par. value of the first mortgage • bonds of the defendant to be issued and sold by the defendant * * "x", the said bonds to be secured by the first mortgage, hereinafter mentioned; and in consideration of said employment and of the promises of the defendant to the plaintiff in this cause of action hereinafter specified the plaintiff in and by said agreement promised to assist the defendant in devising plans to give said bonds a substantial value, and to assist said defendant in selling and finding purchasers for the said bonds, or in finding persons, or corporations through or by the assistance of whom purchasers for said bonds could be procured; and the defendant in said agreement further promised that the defendant and its officers and agents should and would co-operate with and assist the plaintiff in procuring purchasers for the said bonds; all to the end that by the co-operation of the efforts of the plaintiff and of the defendant, its officers and agents, and such other persons or corporations as the plaintiff might find and procure the assistance of, the said bonds should be sold, and [133]*133upon terms satisfactory to the defendant. And in said agreement the defendant further promised that for and in consideration of the services to be rendered by the plaintiff as in this paragraph alleged, and if all said bonds should be sold and disposed of through or by the assistance of the said services of the plaintiff, or through or by the assistance of the said services of the plaintiff in co-operation with the services and efforts of the defendant, its officers and agents, and such other persons or corporations as the said plaintiff might find and procure to assist therein, then the defendant should and would pay to the plaintiff a sum of money equal to two and one-half per centum -x- -x » 0f ffie par vaiUe of said bonds, to wit, two and one-half per centum * * * of * * "x" $50,000,000; but it was further agreed between plaintiff and defendant in and by the said' agreement, that -unless all the said bonds were so sold and disposed of, the defendant should not he liable to the plaintiff on the said agreement, or for the payment to the plaintiff of any compensation or any sum of money whatever. That "x" * * the plaintiff in the said city of New York, and in pursuance and performance of the contract upon his part, rendered to the defendant the services therein mentioned and performed all the conditions of said contract upon his part to be performed; and the plaintiff did find and procure and cause to be found and procured, and there was found and procured by and through the assistance and services of the plaintiff, purchasers for all of the said first mortgage bonds of the defendant and amounting to * * * $50,000,000 par value thereof, and at a price and upon terms satisfactory to the defendant. On information and belief, that in the said city of New York the defendant accepted the offer of the said purchasers so found and procured, and sold all the said bonds to the said purchasers; and pursuant thereto and on or about the 23rd day of June, 1905, and in the said city of New York the defendant executed, acknowledged and delivered its certain mortgage bearing date as of the first day of September, 1903, to the Bowling Green Trust Company "x" * * as trustee, to secure an issue of "x" * * $50,000,000 par value of its first mortgage five per cent thirty-year gold bonds * * "x" and the defendant thereupon agreed to sell and did sell in the said city of New York all of the said bonds to the said purchasers [134]*134procured and caused to be procured by the plaintiff, and by and through the assistance and services of the plaintiff as aforesaid; and that the plaintiff has duly performed all the terms and conditions of the said contract between the plaintiff and defendant to be performed by or on the part of the plaintiff.

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Related

Garrison v. Newman
222 A.D. 498 (Appellate Division of the Supreme Court of New York, 1928)
Kirsch v. Lubin
131 Misc. 700 (New York Supreme Court, 1927)
Weidenfeld v. Pacific Improvement Co.
267 F. 699 (E.D. New York, 1920)
Smith v. Western Pac. Ry. Co.
143 N.Y.S. 1144 (Appellate Division of the Supreme Court of New York, 1913)

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Bluebook (online)
154 A.D. 130, 139 N.Y.S. 129, 1912 N.Y. App. Div. LEXIS 9893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-western-pacific-railway-co-nyappdiv-1912.