Steamship Richmond Hill Co. v. Seager

31 A.D. 288, 52 N.Y.S. 985
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 1, 1898
StatusPublished
Cited by12 cases

This text of 31 A.D. 288 (Steamship Richmond Hill Co. v. Seager) 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
Steamship Richmond Hill Co. v. Seager, 31 A.D. 288, 52 N.Y.S. 985 (N.Y. Ct. App. 1898).

Opinion

Ingraham, J.:

The complaint in this action alleged that the defendants, with one Charles L. Seager, now deceased, were copartners doing business in the city of New York, and as such wore the agents for the plaintiff for the purpose of collecting the freights and other moneys belonging to the plaintiff and of making disbursements for the vessel of the plaintiff in the port of New York; that in the course of said business the defendants drew upon the plaintiff drafts, which were accepted and paid by the plaintiff, for the purpose of placing funds in the hands of the defendants for the use of the plaintiff; that the defendants collected for the account of the plaintiff freights amounting to the sum of over §7,000 over and above any disbursements which the defendants were required to make and after deducting their charges and commissions ; that each and all of said sums received by the said defendants were over and above the commissions and charges to which they were entitled as agents, and that on the 25th day of April, 1884, there remained in the hands of the defendants belonging to the plaintiff the sum of $7,983.42, no part of which has been paid, although payment thereof has been duly demanded ; that the aforesaid sums and the balance above stated were money belonging to the plaintiff received by the defendants in a fiduciary capacity and as agents for the plaintiff. This complaint was verified and served upon the defendants on February 7, 1889. The defendants failing to answer or demur within the time allowed by law, judgment was entered by default on October 29,1892. Execution against the property of the defendants was issued and returned unsatisfied, and, on February 28, 1898, an execution against the person of the defendants was issued, which, upon motion, the court set aside, and this is an appeal from the order entered on such motion.

The learned judge below based the order setting aside the execution upon the fact that the judgment was entered without application to the court under section 420 of the Code of Civil Procedure; and as he assumed that judgment in an action in which the plaintiff was entitled to issue an order of arrest could not be entered without an application to the court upon the default of the defendants, he seems to have held that by entering this judgment without application to the court the plaintiff waived its right to issue an exe[290]*290cution against the person. The right, however, of the plaintiff to enter judgment without application to the court, is not made by the Code dependent upon the remedy appropriate to enforce the judgment. By section 420 of the Code it is provided that judgment may be taken without application to the court, where the complaint sets forth one or more causes of action, each consisting of the breach of an express or implied contract to pay money received or disbursed, and thereupon demands judgment for a sum of money only. It would seem that- the complaint in this action comes expressly within the terms of this section. It alleges that the defendants, as agents of the ¡Dlaintiff, received and collected moneys for the account of the plaintiff, amounting to a sum named, over and above any disbursements which they were required to make, and, after deducting their charges and commissions, that the balance was as above stated; that the money was received bv the defendants in a fiduciary capacity and as agents for the plaintiff, and that there is now due from the defendants the sum of money named, together with interest thereon, and the plaintiff demands judgment against the defendants for a. sum of money only.

By section 1212 of the Code it is provided that, in an action specified in section 420, where the summons has been personally served upon the defendant, and a copy of the complaint served with the summons, the plaintiff may take judgment by default as follows: “ 1. If the defendant has made default in appealing, the plaintiff must file proof of the service of the summons, and of a copy of the complaint or the notice; and also proof, by affidavit, that the defendant lias not appeared. Whereupon the clerk must enter final judgment in liis favor.

2. If the defendant had seasonably appeared, but lias made ctefan. in pleading, the plaintiff must file proof of the service of the summons and of the appearance, or of the appearance only; and also proof, by affidavit, of the default. Whereupon the clerk must enter final judgment in his favor.”

By section 1213 of the Code it is provided that, where final judgment may be entered by the clerk, as prescribed in the last section, the amount thereof is to be determined, as follows: If the complaint is verified, the judgment must be entered for the sum for which tlie complaint demands judgment, and that if a computation of interest [291]*291is necessary it must be made by the clerk. In this action the complaint was verified, and the summons and complaint were served upon the defendants, proof of which was filed with the clerk. There was also proof filed that the defendants had not answered or demurred ; and upon this, the clerk, having computed the interest, entered judgment for the amount demanded by the complaint, with interest and costs.

It is difficult to see upon what ground it can be claimed that this judgment was at all irregular. The complaint is exactly within the provisions of section 420 of the Code, which entitled the plaintiff to take judgment without application to the court, and-being thus an action specified in - section 420 of the Code, it was the duty of the clerk to enter final judgment in favor of the plaintiff.

There is nothing in section 549 of the Code that at all affects this question. The provision of subdivision 2 of that section that e‘ where such allegation is made the plaintiff cannot recover unless he proves the same on the trial of the action,” plainly applies only to a case where a defense is interposed and a trial becomes necessary. Upon a default in the pleading, whether the j ndginent is to be entered by the clerk, or the amount is to be ascertained by a writ of inquiry or a reference, or by the court upon an application for judgment, the defendant by failing to answer admits the facts alleged in the complaint, and that the plaintiff is entitled to judgment demanded, there can be no trial of the action because there is no issue to try. By the service of the verified complaint upon the defendants they were apprised of the demand made upon them by the plaintiff, and the amount of the judgment which would be entered against them in case of their failure to answer the complaint. No proof of the cause of action, the complaint being verified, was required by the Code to entitle the plaintiff to judgment where the defendants had suffered a default and had failed to deny the allegations of the complaint or interpose a defense; and upon the neglect of the defendants, either to answer or demur, no trial of the action was possible. If the case was one within section 420 cf the Code, the plaintiff would be entitled upon such default to have the judgment entered in his favor by the clerk. In' case the action was not one within that section, then he could only obtain judgment upon application to the court; but in neither case would there [292]*292be a trial, and the provision that before the plaintiff would be entitled to judgment he must prove the facts required to be alleged in the complaint by section 549 of the Code, related only to a case whereby the action of the defendant in interposing his defense the trial had become necessary. The contrary seems to have been held in the case of Fayerweather v. Tucker (25 Abb. N. C.

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Steamship Richmond Hill Co. v. Seager
54 N.Y.S. 1116 (Appellate Division of the Supreme Court of New York, 1898)

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Bluebook (online)
31 A.D. 288, 52 N.Y.S. 985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steamship-richmond-hill-co-v-seager-nyappdiv-1898.