Warner v. Jaffray

37 N.Y. Sup. Ct. 326
CourtNew York Supreme Court
DecidedAugust 15, 1883
StatusPublished

This text of 37 N.Y. Sup. Ct. 326 (Warner v. Jaffray) 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
Warner v. Jaffray, 37 N.Y. Sup. Ct. 326 (N.Y. Super. Ct. 1883).

Opinion

Daniels, J.:

The plaintiff brought this action as assignee^ under • a general assignment made to him by De Forest Weld for tbe benefit of his creditors, for the'purpose of enjoining and restraining the defendants from proceeding under attachments issued in actions commenced in the Courts of Common Pleas for the counties of Crawford and Warren, in the State of Pennsylvania, for the recovery of about $60,000.

[327]*327The assignment to the plaintiff was executed by the debtor on the 1st of March, 1881, at Jamestown-in Chautauqua county and State of New York, and it was recorded in the office of the clerk of that county at eight o’clock in the morning on. the 2d of March, 1881. But it was not recorded in the office of the recorder of deeds of Crawford county, Pennsylvania, until the eighteenth of the same month, nor in the office of the recorder of deeds of Warren county until the nineteenth of that month. On the 1st day of March, 1881, after the assignment had in fact been delivered, but before it was recorded even in Chautauqua county, the defendants obtained attachments in the actions commenced by them in the Courts of Common Pleas of Crawford and Warren counties in the State of Pennsylvania, and under such attachments attached and seized the goods and merchandise which the debtor had in these counties where he hadpnaintained stores for carrying on the mercantile business. The defendants were residents and citizens of the State of New York, and because of that fact it was insisted by the plaintiff that their, right to proceed against the debtor’s property had been divested by the assignment before their seizure of the property under the attachments. This position was taken mainly under the authority of Van Buskirk v. Warren (2 Keyes, 119), which in the principle decided by it, was similar to the cases of Bigelow v. Baldwin (1 Gray, 245); Rhode Island Bank v. Danforth (14 id., 123) and Thurston v. Rosenfield (42 Mo., 474). The latter case is identical-in principle with that of Van Buskirk v. Warren, for they concur in holding that a citizen and resident of the State in which the assignment may have been made and delivered cannot afterwards, by means of an attachment, obtain priority over the title of the assignee under a general assignment even where it may be in contravention of the laws of the State in which the attachment is issued, if as a matter of fact it conformed to and 'was legal under the laws of the State in which it was executed by the debtor and in which'the creditor himself also resided. But the case of Yan Buskirk was, after its decision by the Court of Appeals, removed to the Supreme Court of the United States, and it was there reversed, for the reason that the principle upon which it had proceeded was deemed to be unsound.. (Green v. Van Buskirk, 7 Wall., 139.)

[328]*328And that case has been since considered to be a proper exposition of tbe law, both by the Court of Appeals of this State, and the Supreme Court of the United States. (Edgerly v. Bush, 81 N. Y., 199.)

In the decision of this case it was conceded that “Another State may make provision by statute in respect to personal property actually within its jurisdiction. Though a transfer of personal property, valid by the law of the domicile, is’valid everywhere as a general principle, there is to be excepted that territory in which it is situated and where a different law has been set up, when it is necessary for the purpose of justice that the actual situs of the thing be examined.” (Id., 203, 204.) And Hervey v. Rhode Island Locomotive Works (93 U. S., 664, 671, 672) followed in the line of the same principle.

The property seized under the attachment was tangible in its nature, and capable therefore, as a matter of fact, of having a local situs different and distinct from that of the residence of its owner. In this respect it was within the reasoning and conclusion of People v. Gardner (51 Barb., 352), which held that personal property in fact located in another State was not taxable as against the owner, although he resided within this State. And this was followed in People ex rel. Jefferson v. Smith (24 Hun, 492), where the same rules were again invoked by the same relator, and the latter determination has since been affirmed, though not reported, by the. Court of Appeals.

Under the controlling principle of these authorities, it was within the power of the legislature of the State of Pennsylvania to declare and control the effect of such an assignment executed within this-State, so far as it included this description of property situated in the State of Pennsylvania, and this authority had been exercised by the legislature before the execution and delivery of this assignment. The statute upon that subject is in the following terms:

“ Section 1. Whenever any person making an assignment of his or her estate, situated in this commonwealth, for the benefit of creditors, shall be resident out of this State, such assignment may be recorded in any county where such estate, real and personal, may be, and take effect from its date, provided that no bona fidepurchaser, mortgagee or creditor, having a lien thereon before the-[329]*329recording in the same county, and,, not having had previous actual notice thereof, shall be affected or prejudiced.”

It was the expressed object of this act to define and declare the effect of an assignment made in another State upon property actually located and situated in the State of Pennsylvania. And it was not allowed to take effect against a tona fide purchaser, mortgagee ,or creditor, having a lien upon such property before it was recorded in the same county, unless the party claiming in hostility to it had actual previous notice of it. No exception was made excluding creditors residing in other States from .the benefit of the provisions of this statute, and no reason therefore can be deduced from its terms for subjecting it to any exception of that description. It was, on the contrary, the evident purpose and design of the legislature to make the provision entirely general and comprehensive, including all proceedings which might' be authorized to be taken under the authority of the courts', of the State,' for the purpose of acquiring a lien upon the property and appropriating it to the payment of the debts of the assignor.

■ That the defendants were tona fide creditors of the assignor having no actual notice, at the tim.e they acquired their lien under the attachments, of the assignment, are facts which have been established upon the trial of this action. And it is not claimed that the evidence sustaining them -was not sufficient to justify the conclusion which was drawn from it by the learned referee before whom the trial was had. Theip proceedings therefore must be regarded as having been instituted and carried on in good faith for the purpose of enforcing tthe obligations which the assignor had incurred to them by the preceding sale and delivery of goods and merchandise to him. As such creditors they had .the right to proceed as they did against their debtor’s property in the courts of the State of Pennsylvania.

And if an application had been made there to set the attachments aside, it is clear that the application would not have been sustained. For in Philson v. Barnes

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Related

Green v. Van Buskirk
74 U.S. 139 (Supreme Court, 1869)
Hervey v. Rhode Island Locomotive Works
93 U.S. 664 (Supreme Court, 1877)
Edgerly v. . Bush
81 N.Y. 199 (New York Court of Appeals, 1880)
Hibernia National Bank v. . Lacombe
84 N.Y. 367 (New York Court of Appeals, 1881)
People ex rel. Jefferson v. Gardner
51 Barb. 352 (New York Supreme Court, 1868)
Van Buskirk v. Warren
2 Keyes 119 (New York Court of Appeals, 1865)
Thurston v. Rosenfield
42 Mo. 474 (Supreme Court of Missouri, 1868)

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Bluebook (online)
37 N.Y. Sup. Ct. 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-v-jaffray-nysupct-1883.