Tyng v. Good

38 N.Y. St. Rep. 323
CourtNew York Supreme Court
DecidedFebruary 9, 1891
StatusPublished

This text of 38 N.Y. St. Rep. 323 (Tyng v. Good) 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
Tyng v. Good, 38 N.Y. St. Rep. 323 (N.Y. Super. Ct. 1891).

Opinion

D. Dougherty, Referee.

The plaintiff, T. Mitchell Tyng, attorney-at-law, practicing in the city of New York, an expert business man, methodical and exact when disposed, with a knowledge of bookkeeping, became about July, 1888, the attorney and financial disbursing agent of J. & T. Charlton, engaged in the lumber and sash, door and general planing business, located at Tonawanda in the state of New York. The said J. & T. Charlton were, about the time mentioned, engaged in completing ten new buildings nearly finished, and erecting and completing eleven other houses, all on the same plot of ground in the city of Brooklyn. The Charltons were also furnishing “ trim ” for various buildings in process of erection in different parts of that city. Large sums of money were from time to time sent by the Charltons to their disbursing agent, the plaintiff, and by him deposited in the bank in his own name and not as agent or trustee of the Charltons. The said moneys were to be used in paying for the erection and completion of said buildings, and paying charges and expenses connected with their extensive business as dealers in timber and “ trim.”

The defendant, Samuel R Good, was a carpenter, and had been the foreman of one John G. Porter, who had commenced the erection of the buildings before referred to, but after erecting some ten of them, had financially failed; and by an agreement between the said Porter and the said Charltons, title was conveyed to the Charltons, who proceeded to the completion of the first ten and the erection of the remaining eleven, employing the said Good as superintendent; the said Good being furnished with checks drawn by the said Tyng, the plaintiff, from the money appropriated by the Charltons.

The defendant Good had no knowledge of bookkeeping, but roughly kept an account book of moneys received, on one side, and paid out on the other. He kept no bank account, and had no-[324]*324acquaintance with bank officers or bank business. He was without money, and without credit except such as he may have acquired while acting as superintendent for the Charltons.

The business intercourse continued between Tyng and Good after the completion of the Charlton buildings. While Good ceased to be superintendent from about December 1, 1888, and ceased to receive four dollars per day, he still remained connected with the business of the Charltons and was employed by them in a variety of ways, mostly under the direction of Tyng, up to the month of May, 1889, though he does not seem to have entirely ended his connection with the Charltons until late in the same year.

On and prior to the 19th day of January, 1889, one Jacob G. Dettmer, of the city of Brooklyn, was the owner in fee of the premises mentioned in the complaint herein, and on that day the said Dettmer contracted in writing under seal to sell the said premises to the defendant in two parcels at the price of $14,900 for one parcel, and $10,950 for the other; said parcels of land to be thereafter conveyed by the said Dettmer to the defendant, to be paid for, at the time of such conveyance, by the defendant’s bonds and mortgages thereon to the amount of the entire purchase price thereof. On the same day the said Dettmer entered into a “building loan agreement,” in writing, under seal, with the defendant; whereby the defendant agreed to erect eighteen houses upon said premises, as specified in said agreement, and the said Dettmer agreed to advance to the defendant, in aid of the construction of said buildings, the sum of $40,700, by instalments, at the times and in the manner specified, of which $21,800 was to be advanced upon the first nine of the said houses, the balance upon the remainder; the said houses being built in two parcels, the first parcel of nine houses to be completed before the second parcel was commenced.

About the month of January, 1889, the said plaintiff and defendant had occasional conversations concerning the proposed purchase by Good of said premises from the said Dettmer and of the proposed erection of buildings on said premises, and of the amount of money necessary to “ start the enterprise ” and complete the building in excess of the “building loan.” At some date in January, not specified in evidence, but agreed on by plaintiff and defendant as the 20th of January, 1889, in the office of the plaintiff, the plaintiff spoke of being about to receive certain moneys and of his willingness to join in said undertaking, and the defendant manifested an equal willingness that the plaintiff should do so. There was no agreement in writing, no written memorandum of agreement; there is not a single word in black and white offered in evidence that expresses such an agreement; the terms of the agreement, as stated by the plaintiff in his testimony in chief, are widely different from those stated by the defendant in his answer to the plaintiff’s complaint and in defendant’s testimony, nevertheless, the parties, plaintiff and defendant, have agreed to the following as the verbal agreement entered into as of January 20, 1889:

[325]*325(1.) That he, said plaintiff, would advance and pay over to the defendant the sum of $1,000 in cash, to be used by the defendant in the construction of said buildings.

(2.) That he, said plaintiff, would introdnce the said defendant to the officers of some suitable bank in Brooklyn where the defendant might open an account.

(3.) That he, said plaintiff, would further furnish to the defendant, to be deposited and held in and by such bank, in the name and for the account of the said defendant, mortgages to the value of §5,200, by means of which securities the defendant might secure the discounting of his notes by said bank And

(4.) That he, the said plaintiff, would advance to the defendant, from time to time upon demand, such sums of money as might be required by defendant to proceed with the erection and completion of the said premises.

As I will have most to say concerning the first stipulation, I will reserve that until the last. The plaintiff never introduced defendant to the officers of some suitable bank in Brooklyn, nor did he ever offer to do so, nor did he make any effort to do so. He gave defendant a note of introduction to Bichard Ingraham, Esq., a lawyer of Brooklyn who had business relations with the Charltons; but it is not pretended that Mr. Ingraham was a bank officer, and there is nothing to show that plaintiff knew Ingraham except in his capacity as agent for the Charltons. At least such is my interpretation of the words, “ he (Good), is measurably connected with us.” In fact the letter of introduction admits that plaintiff did not know any banks in Brooklyn, for he writes to Mr. Ingraham: Perhaps you would introduce him at your bank, as I do not know any of your banks or I would introduce him.” This note of introduction was in no way a compliance with the agreement, and was never presented to Mr. Ingraham, and defendant does not appear to have ever opened a bank account.

The plaintiff failed to comply with the third stipulation. He did not furnish the defendant, to be deposited and held in and by said bank in the name of the defendant, mortgages to the amount of $5,200, by means of which securities the defendant might secure the discounting of his notes by said bank. There is not a particle of evidence that the plaintiff ever had any mortgages of his own.

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Bluebook (online)
38 N.Y. St. Rep. 323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tyng-v-good-nysupct-1891.