Ulster County Sav. Inst. v. Fourth National Bank

8 N.Y.S. 162, 5 Silv. Sup. 144, 28 N.Y. St. Rep. 24, 54 Hun 638, 1889 N.Y. Misc. LEXIS 2219
CourtNew York Supreme Court
DecidedDecember 11, 1889
StatusPublished
Cited by2 cases

This text of 8 N.Y.S. 162 (Ulster County Sav. Inst. v. Fourth National Bank) 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
Ulster County Sav. Inst. v. Fourth National Bank, 8 N.Y.S. 162, 5 Silv. Sup. 144, 28 N.Y. St. Rep. 24, 54 Hun 638, 1889 N.Y. Misc. LEXIS 2219 (N.Y. Super. Ct. 1889).

Opinions

Learned, P. J.

This is an action to recover an alleged balance of account. The defense is a counter-claim, and the questions in the case arise on the counter-claim. After issue joined, the defendant applied to the special term, in September, 1880, for the removal of the cause to the circuit court of the United States, southern district of Hew York, on the ground that the suit and matters in dispute arose under the laws of the United States. The motion was denied. 59 How. Pr. 482. On appeal by defendant, the order of denial was affirmed by the general term, in February, 1881. 24 Hun, 140. In June, 1881, on an affidavit, the defendant asked leave to serve a supplemental answer, duly verified, setting forth the fact that defendant had presented said petition and the usual bond, and had on the 18th day of October, 1880, filed a copy of the record in the circuit court of the United States, southern district of Hew York, and averring that thereby this cause was removed to said court, and this supreme court was ousted of jurisdiction. The court, at special term, denied the motion. The cause afterwards came on to be tried before the special term in September, 1887, and a decision was rendered for the plaintiff, rejecting defendant’s counter-claim. Judgment was entered, and defendant appealed, stating in the notice of appeal its intention to bring up for review the order denying the motion for leave to serve a supplemental answer. Accordingly the defendant, in making up the case for the appeal, inserted therein the supplemental answer and the affidavit on which said motion for leave to serve such answer was made, and also the order denying such leave. Upon'settlement of the case an order was made striking out said affidavit and supplemental answer from the case, and from that order the defendant also appeals.

It was held in Illius v. Railroad Co., 13 N. Y. 597, that the order of the general term affirming the refusal to transfer the case was not appealable. If this be correct, the defendant could not by appeal have that order reversed. But the defendant could do what was done in a similar case. Stevens v. Insurance Co., 41 N. Y. 149. It could set up the facts showing that the cause ought to have been (and perhaps legally was) removed, and it could then prove these facts on the trial, and thus claim, before the court of appeals, on appeal from the judgment, a reversal for want of jurisdiction. This the defendant attempted to do, but the privilege of setting up these facts by supplemental answer was denied. An appeal from a judgment brings up for review an intermediate order, which necessarily affects the final judgment. The question, then, is whether the refusal to permit the supplemental answer necessarily affected the final judgment. It seems to us that this privilege of reviewing, on appeal from final judgment, an intermediate order, is not to be extended beyond the strict language of the section. A party against whom an order is made by the special term may appeal to the general term. If he neglects to do this within the proper time, it is not reasonable that he should, after the cause has been tried and decided, bring up this order, unless it necessarily affects the judgment. The defendant says, and says correctly, that if the proceedings for removal are regular, in a proper case, the state court is ousted of jurisdiction, whether the order of removal is granted or denied. Shaft v. Insurance Co., 67 N. Y. 544. If defendant, then, is correct as to the law respecting the right to remove this case, (as to which see Leather Manuf'rs Bank v. Cooper, 120 U. S. 778, 7 Sup. Ct. Rep. 777,) this court has no jurisdiction. But whether the order refusing to permit defendant to serve a supplemental answer necessarily affected the final judgment is another question. It may be that if an appeal had been taken from that order we should have reversed it. Whether, if the order had been granted, the final judgment would have been different, depends, partly at least, on what might be proved under the supplemental answer. And clearly there must be a uniform rule [165]*165as to all refusals to permit supplemental answers being reviewed on appeal from judgment. We therefore think that the order denying leave to file the supplemental answer, whether correct or not, cannot be reviewed on this appeal from the judgment. In this view we see no reason to reverse the order striking out that part of the case.

Tlie defendant on the trial of the case proved the facts claimed to show a removal of the case as aforesaid, and objected to any proceedings, on the ground that the cause was now pending in the circuit court of the United States, southern district of New York, and again moved, on like ground, for a dismissal. We are aware of the decision in Removal Cases, 115 U. S. 1, 5 Sup. Ct. Rep. 1113, and of the Leather Manuf’rs Bank Case, above cited. But we are not prepared to say what the effect of the statute of 1882 is upon this case; and, as the question of removal was once before us, we think it best to adhere to the decision then made. With great respect for the court whose decisions were last cited, we do not see how a claim for money against the defendant, whose corporate existence is admitted, is a suit arising under the laws of the United States, any more than a similar action against a man who had once been a slave would be a suit arising under the laws of the United States, on the ground that his right to sue and be sued was given by the fourteenth amendment.

This brings us to a consideration of the merits. The learned justice who tried this case held that whatever acts were done by Ostrander, the treasurer of plaintiff, in the matter in question, were done as agent for the administrator, and not as treasurer of the bank. We cannot agree with this conclusion, so far as the defendant is concerned. The plaintiff kept an account with defendant. The account in part is given in evidence. It shows, among other things, October 11,1877, 100 Lake Shore, $7,037.50, indicating a sale of stock by defendant for plaintiff. The scrip in question was sent in a letter of the form used for years in plaintiff’s correspondence with defendant. The defendant could not inquire whether the scrip belonged to plaintiff or not. Plaintiff might have had an interest in it or lien upon it, so far as defendant knew. The express charges on this scrip were in the account, and have not been objected to. i

The plaintiff objects that it is not liable, because Reynes & Villere sold 144 shares instead of 194. If this had caused any injury to plaintiff, there would be force in the objection. But the error was a positive benefit to plaintiff; for it diminished the possible liability by $500. There was no direction to sell either the whole or none. An agent authorized to sell a house might not be justified in selling half of it. But unless special directions to the contrary were given, an agent who had shares of stock to sell might sell in parcels, or might sell a part if he could not the whole; or he might sell a part to one person, and the rest to another. Each sale would be valid, and within his authority. So was the sale in the present case.

The defendant did exactly what the plaintiff requested. If in so doing it suffered any loss, or became liable to damage, the plaintiff must indemnify. The defendant assumed no risk as to the power of the administrator to make a transfer. It could know nothing about that.

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8 N.Y.S. 162, 5 Silv. Sup. 144, 28 N.Y. St. Rep. 24, 54 Hun 638, 1889 N.Y. Misc. LEXIS 2219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ulster-county-sav-inst-v-fourth-national-bank-nysupct-1889.