Wenk v. . City of New York

64 N.E. 509, 171 N.Y. 607, 9 Bedell 607, 1902 N.Y. LEXIS 888
CourtNew York Court of Appeals
DecidedJune 27, 1902
StatusPublished
Cited by26 cases

This text of 64 N.E. 509 (Wenk v. . City of New York) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wenk v. . City of New York, 64 N.E. 509, 171 N.Y. 607, 9 Bedell 607, 1902 N.Y. LEXIS 888 (N.Y. 1902).

Opinion

Webneb, J.

The courts below sustained a demurrer to the complaint interposed by the defendant, The United States Land and Improvement Company, Limited. The Appellate Division has certified to this court the question: “ Does the complaint state facts sufficient to constitute a cause of action?” That is the only question presented upon this appeal.

The action is brought by a taxpayer of the borough of Brooklyn, city of Hew York, under chapter 301 of the Laws of 1892, to annul certain leases of common and marsh lands located in the. former town of Jamaica, county of Queens, made by the trustees of that town on August 19th, 1892, and December 29th, 1897, to Alonzo E. Smith and William II. Boynton, to restrain the comptroller of the city of Hew York from receiving rentals reserved in such leases, aud to restrain the other defendants from in any way interfering with the premises demised.

In substance, the allegations of the complaint are that the town of Jamaica was formerly the owner of about three thousand acres of land under water, or marsh land, situate within that town, and now in the fourth ward of the borough .of Queens, city of, He.w York; that by chapter 235 of the Laws of 1822 these lands were placed under the control of trustees elected by the electors of the town of Jamaica; that these *611 trustees managed and controlled said lands, leasing them to different persons for short terms, usually one year, until May ■ 14th, 1892; that in that year, by chapter 580, Laws of 1892, the trustees elected under the act of 1822 were deposed from office, and the marsh lands in question were placed under the control of the Jamaica town board; that on Augiist 5th, 1892, this town board, consisting of six persons named, of whom .Frederick W. Dunton was chairman, voted to lease these lands for a term of fifty years from December 31st, 1892, and bids were advertised for during two weeks in two newspapers published in said town; that two persons, Alonzo E. Smith and George E. Hagerman were the only bidders for such lease, and on August 19th, 1892, the said town board leased the lands to Smith for a term of fifty years at a graduated rental running from $500.00 in the first year to $2,750.00 in the last year, amounting in all to $81,250.00; that Dunton, the chairman of the town board, procured the United States Land & Improvement Company, Limited, to be organized, and on July 11th, 1893, Smith assigned all his interest in the lease to that company ; that on January 25th, 1899, that company, through Dunton, its vice-president, sublet a small portion of the leased lands to the defendants Twombly and Eldert, which subleases were given to them as collateral security for the individual indebtedness of Dunton to them; that thereafter Dun-ton procured the Co-operative Society of New Jersey to be incorporated, and on May 11th, 1899, the said improvement company sublet the said leased lands to this co-operative society, excepting from such sublease a small portion of the lands and subject to the lease to said Twombly and Eldert.

It is further alleged that all of said acts were in furtherance of a collusive scheme to place the leased lands in the control and possession of Dunton; that the advertisement for bids for the lease of the lands was not published in any of the New York or Brooklyn papers, nor were such bids published in such a way as to encourage bidding; that Smith and Hagerman, the only bidders, were acting in league with Dunton and not in good faith, and the lease, which was in form made to *612 Smith, was, in fact made to Dnnton; that the latter controlled both the improvement company and the co-operative society ; that the subleases referred to were made in furtherance of his scheme, abetted by his associate^, to get possession of said lands, arid that Dunton paid the fh-st installment of rent on the lease to Smith.

It is further alleged that Dunton procured the town board to make a lease to Boynton of the lands demised to Smith for the period of fifty years commencing on December 1st, 1942, being the date of the expiration of the lease to Smith; that said lease to Boynton was dated April 19th, 1897; that Smith, Hagerman and Boynton were associated with Dunton in procuring this lease; that the co-operative society obtained control of this latter lease and, through its secretary, Dunton, assumed to lease a portion of the premises therein demised to the Brooklyn & Jamaica Bay Turnpike Company for a term extending until December 31st, 1992, such co-operative society also owning the original lease to Smith expiring in December, 1942; that on December 29th, 1897, the town board, of which Dunton was chairman, made a so-called confirmatory lease to Boynton of the lands leased to Smith in August, 1892; that said confirmatory lease was without consideration ; that all of these transactions were brought about, without legal right or power, by the collusive action of Dunton and the town board for the benefit of Dnnton and his associates.

The complaint further states that the charter of Greater New York became a law on May 4th, 1897, and, on the 1st of January, 1898, under the provisions of that charter, the town of Jamaica became apart of that city; that as successor to the town, the city of New York owns said lands in trust for the benefit of its inhabitants ; that the defendant Coler is the chief financial officer of New York city and, as such, it is his duty to receive the revenues from the property of the city; that the lands in question are of great value and the rents derived from them through the leases referred to are grossly inadequate, and that these leases constitute a waste of the city’s money.

*613 These are, in substance, the allegations which, for the purposes of this appeal, must be taken as true. Mot only the facts directly alleged but those which, by fair and reasonable intendment, may be implied from the direct allegations are traversable. (Marie v. Garrison, 83 N. Y. 14, 23.) Under the rule just referred to, we think the pleading before us is sufficient, if the statute invoked in support of the action authorizes an action against the parties named as defendants for the kind of relief demanded herein. It will be observed that none of the officers of the former town of Jamaica are made defendants. Aside from the city of Mew York and its comptroller, the only defendants herein are the corporations and individuals who are alleged to have taken some interest in said lands by virtue of the leases and subleases referred to.

The statute under which this action is brought (Chap. 301, L. 1892) provides: “ All officers, agents, commissioners and other persons acting, or who have acted, for and on behalf of any county, town, village or municipal corporation in this state, and each and every one of them, may be prosecuted, and an action or actions may be maintained against them to prevent any illegal official act on the part of any such officers, agents, commissioners or other persons, or to prevent waste or injury to, or to restore and make good, any property, funds or estate of such county, town, village or municipal corporation by any person or corporation whose assessment, or by any number of persons or corporations, jointly, the sum of whose assessments shall amount to one thousand dollars, * * *”

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Bluebook (online)
64 N.E. 509, 171 N.Y. 607, 9 Bedell 607, 1902 N.Y. LEXIS 888, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wenk-v-city-of-new-york-ny-1902.