Von Hesse v. Mackaye

8 N.Y.S. 894, 62 N.Y. Sup. Ct. 365, 29 N.Y. St. Rep. 228, 55 Hun 365, 1890 N.Y. Misc. LEXIS 1837
CourtNew York Supreme Court
DecidedJanuary 24, 1890
StatusPublished
Cited by12 cases

This text of 8 N.Y.S. 894 (Von Hesse v. Mackaye) 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
Von Hesse v. Mackaye, 8 N.Y.S. 894, 62 N.Y. Sup. Ct. 365, 29 N.Y. St. Rep. 228, 55 Hun 365, 1890 N.Y. Misc. LEXIS 1837 (N.Y. Super. Ct. 1890).

Opinions

Barrett, J.

This is not an action in personam against Mrs. Mackaye to recover “a sum of money only,” as damages for a breach of contract, or for the wrongful conversion of, or other injury to, personal property. It is consequently not an action in which she could be proceeded against by attachment as a non-resident. The case for publication therefore, depends upon subdivision 5, § 438, of the Code of Civil Procedure; and the question is, does the complaint show a sufficient cause of action against Mrs. Mackaye with regard to “specific personal property within this state?” The subject of the action is 60 coupon bonds of certain foreign corporations. The plaintiff claims these bonds as part of the estate of his testator, James Mackaye. He avers [895]*895that they are also claimed by Mrs. Mackaye, the appellant, under an alleged gift from her husband, the said James Mackaye, made in his life-time. Mackaye died a resident of Paris, France. In the codicil to his will, executed on the 20th day of April, 1887, he declared his Paris residence. The complaint states that he died in that city, and the plaintiff, in the affidavit upon which publication was ordered, says that he “ had spent most of his time there for some years prior to his death.” Mrs. Mackaye resided in Paris with her husband, and still so resides. The bonds are in Paris, in the possession of bankers there, named Hottinguer & Co. There is no allegation or proof that the bonds were ever in this state, nor that they are payable here. It appears that the plaintiff and Mrs. Mackaye are now litigating their respective claims to these bonds before the French courts. The plaintiff admits that he has intervened there; and it seems to be undisputed that the foreign tribunal has acquired full jurisdiction over the parties and the,subject-matter. What, then, it may well be asked, is the plaintiff doing here? His complaint is framed as a bill in equity. The foreign corporations, the foreign bankers, and Mrs. Mackaye are made parties defendants. The prayer is that these foreign corporations, who are said to have offices here for the regular transaction of business, refrain from paying the principal or interest of the bonds; that a receiver be appointed to collect such principal and interest;- that Mrs. Mackaye be required to interplead concerning her.claim; and that it be adjudged that the bonds belong to the estate of the plaintiff’s testator. Distrust of the French courts seems to be one of the alleged equities of this bill. The plaintiff, in substance, avers that if the proceedings in France terminate unfavorably to his contention, and if Mrs. Mackaye should thus obtain possession of the bonds, he, as executor, might be remediless, and be unable to recover the possession of such bonds for the estate of James Mackaye, and, further, that if the corporations should pay her either principal or interest, that, too, might be lost to the estate.

It is not necessary to consider whether this complaint shows any cause of action against Mrs. Mackaye entitling the plaintiff to the relief demanded. The jurisdiction of the court as to non-residents proceeded against otherwise than for a money demand on contract, or for specific pecuniary damages, is quasi in rem, and the complaint must not only show a sufficient cause of action generally, but a sufficient cause of action with regard to “specific personal property within the state.” Indeed, the learned judge at special term conceded, and correctly so, that the order of publication could not be upheld if the 60 bonds in Paris were to be treated as the subject of the action. He sustained the order solely upon the ground that the bonds were only evidences of debt, and that the obligation of the corporations to pay the principal and interest was the real subject of the action. That obligation he held to be “specific personal property within the state, ” because the corporations had offices here for the regular transaction of business, and because process had been served upon their agents here, resulting in their general appearance in the action. Thus he necessarily held that the situs of the corporate obligation was not the locality of the corporate being, but followed its agencies wherever established, and was inseparable, so to speak, from the debtor’s person. The underlying objection to this view of the case is that the bonds, though evidences of corporate obligation, are themselves essentially personal property. They are such both at common law and by statute. Trover could be maintained for their conversion. They could be specifically replevied. They were accounted part of the movable estate of a deceased owner. Ersk. Inst. bk. 8, tit. 9, § 4. Money could be borrowed, and liens effected, upon them. They passed from hand to hand, upon purchase and sale, by mere delivery. The Code declares them to be “personal property capable of manual delivery,” and, as such, the subject of attachment; the sheriff being required to take them into his actual custody. Code Civil Proe. § 649, subd. 2. They can be attached in no other [896]*896manner, being expressly excepted from the provision whereby other obligations, not similarly evidenced, may be.attached, namely, by leaving a certified copy of the warrant, and an appropriate notice, with the person against whom such demand exists. Id. subd. 3. And, further, “evidences of debt” are expressly defined to be “personal property” by the seventh subdivision of section 3343. Then, too, such negotiable instruments are plainly contemplated by the phrase,.in the section under consideration, “specific personal property,” the title to which may be affected by the action. That section speaks of a demand of judgment “excluding the defendant from a vested or contingent interest or lien upon” this specific personal property within the state; a judgment enforcing, regulating, defining, or limiting such an interest or lien in favor of either party, “or otherwise affecting the title to such property.” The purpose of this legislation is apparent, and it produces a reasonable and harmonious system. There is no attempt to drag non-residents into our jurisdiction in money actions, or with regard to pecuniary demands of a strictly personal character. Jurisdiction over property within the state is asserted and provided for. If the property of a non-resident is here, it may be attached in an action in personam for money or damages. There the action itself has no relation to the property, yet its sole purpose is the subjection of the property to the demand. If, however, there be no such demand, then the court may proceed quasi in rem, though in form in personam, to adjudicate upon conflicting interests in specific real or personal property within the jurisdiction. But, clearly, the corpus must be within the state,—the actual thing upon which the judgment can properly and adequately act. It seems clear that this “actual thing,” in the case at bar, is not the intangible obligation which lies behind the bonds,—the mere jus incorpórale,—but the bonds themselves. It is the title to these bonds which the complaint questions, not the title to the jus incorpórale. With regard to the corporate obligation to honor its bonds there is no possible controversy. The corporations do not dispute that obligation, and they are ready to meet it, upon the production of the true subjects of the controversy. In our judgment, then, an intangible obligation, evidenced by a tangible bond, is not, apart from the instrument, “specific personal property,” within the meaning of that phrase, as used in the section in question.

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8 N.Y.S. 894, 62 N.Y. Sup. Ct. 365, 29 N.Y. St. Rep. 228, 55 Hun 365, 1890 N.Y. Misc. LEXIS 1837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/von-hesse-v-mackaye-nysupct-1890.