Majority
Headnote
T. held a lease of certain real estate on Broadway, New York, which was taken for the widening of that street, under the act of 1869 (Chap. 890, Laws of 1869), providing for the alteration of the map or plan of said city. An award was made hy commissioners of estimate and assessment of $40,200 for the damages sustained by T. which was confirmed, and he thereafter assigned- $12,262 of the award to D., who assigned the same to plaintiff. Subsequently T. assigned to defendant M., who had knowledge of the prior assignment to D., $12,350 out of the award, and to secure said sum executed to M. a mortgage upon his leasehold interest, which mortgage was duly recorded. Afterward, under the act of 1871 (chap. 57, Laws of 1871), the award to T. was vacated and new commissioners appointed, who made an award of $11,544, which award was confirmed. In their report the commissioners found that T. was the owner of the leasehold premises, which, together with their award, was subject to the mortgage to M. In an action to restrain defendant, the city corporation, from paying the award to M. and to establish plaintiffs’ claim thereto, held, that as the act of 1869, by its own terms, condemned the land in question and the right to compensation was absolute, the first award represented T.’s claim for damages, and by the assignment to D. he in legal effect assigned a portion of his damages; that T.’s right to damages was not destroyed or impaired by the vacation of the award, and when the second award was made it again represented the damages, to which the assignment to D. attached; and that, therefore, said assignment being prior in point of time was entitled to a preference over the assignment to M.In 1870, Ezekiel R. Thompson held a lease of certain real estate situate upon Broadway, Hew York, and such real
On the 11th day of January, 1871, Thompson, by an instrument in writing under his hand and seal, assigned to the defendant Matthews the sum of $12,350 out of the award, and, at the same time, and to secure the same sum, he executed and delivered to Matthews a mortgage upon his lease and leasehold premises, which mortgage was recorded in the office of the register of the city and county of New York on the 12th day of January, 1871. At the time of such assignment and mortgage to Matthews, he had notice of the prior assignment of Thompson to Davis, above mentioned. Afterward, in April, 1871, under the act (Chap. 57 of the Laws of 1871), the Supreme Court vacated and set aside the award to Thompson and referred the matter back to new commissioners appointed by it.
The plaintiffs, claiming the sum last awarded by virtue of the assignment of Thompson to Davis" and Davis to them, and having duly demanded payment of the award to them, in February, 1873, commenced this action. In their complaint they alleged the. facts above set out, and" also that Matthews was of doubtful pecuniary responsibility; that he claimed the award by virtue of Thompson’s mortgage and assignment to him; that there was danger that the city would pay it to him, and the plaintiffs demanded relief — that the city be restrained from paying the award to Matthews, and that their hen upon the award be established as a prior hen to that of Matthews, and the city be ordered to pay the same to them, and that they have judgment against the city for the amount thereof, with interest.
The city appeared and answered, and admitted that it held the money for the last award, and that it was willing to pay to whichever of the claimants, Matthews or plaintiffs, appeared to be entitled thereto, and offered to pay the money into court. The defendant Matthews also appeared and answered, denying that he was of doubtful pecuniary responsibility; denying also that the plaintiffs were entitled to any interest in the last award by virtue of any assignment to them, and claiming that he had the prior right to the last award under his mortgage.
After this action was commenced, Matthews sued the city to recover the amount of the last award as mortgagee thereof. The city suffered default, and judgment for the full amount thereof, with interest, was entered against the city in June, 1875; and in 1876 the city paid the amount of that judgment to Matthews, with interest, and obtained a discharge and satisfaction thereof. Subsequently the city made a motion in this action for leave to serve a supplemental answer, setting up the
Afterward the action was brought to trial at a Special Term, and the court found the matters of fact hereinbefore stated, and also found that Matthews was wholly solvent, and gave judgment in favor of the plaintiffs against the defendants, providing in substance in the judgment that it should be enforced against the city only in case of failure to collect from Matthews, against whom execution was first to be issued. From that judgment the defendants appealed to the General Term; and from affirmance there, to this court.
The important question in this case is, who had the best claim to the award made for the leasehold premises, the plaintiffs or Matthews? And while we think plaintiffs’ claim is not entirely free from doubt, and the answer to the question is involved in considerable difficulty, we have concluded that the solution made by the judgment below is the most equitable and just and is sustained by the best reasons.
The contention on the part of Matthews is, that the assignment from Thompson to Davis was simply an assignment of a portion of the first award, and that when that award was
The act of 1869, by its own terms, condemned the land for widening Broadway.' Ho proceedings were to be taken under the act for that purpose. The commissioners of Central Park were authorized, not to take and condemn the land, but simply to locate and establish the lines of Broadway as widened and established by the act, and when they had done, these things, the land-owners were divested of their lands. The act was peremptory. It was not left to the discretion of the park commissioners, or of the city, whether the land should be taken and the improvement made as directed in the act. The land was, inevitably, to be taken and the improvement made, and the act simply provided how the improvement should be carried on, and how the damages for the land taken should be appraised and the expense of the improvement assessed and paid for. The land was, by the act, condemned for public use and the title thereof vested in the city, and compensation was to be made for it as provided in the act, and all that' remained to the owners of the real estate was the right to compensation and probably the right to thé possession of the land until the time of the actual opening of that part of Broadway to be widened, which time the commissioners of estimate and assessment were authorized, by the act of 1869, to designate. The right to such compensation was not contingent or dependent upon the will or action of the city, but was absolute, and the land-owners could compel it by mandamus in the mode prescribed in the act. Such right to compensation was, therefore, a mere chose in action with the general incidents and qualities of other choses in action.
The award with which the parties dealt when the assignment to Davis was made represented the value of Thompson’s leasehold interest as it had been determined. It was the amount of his damages for his leasehold premises taken and appropriated for the improvement, and it represented his claim against the city for such damages. So long as the award remained in force the damages were merged in and represented by it.
It has been held that the assignment of a judgment operates as an assignment of the debt or cause of action for which it was recovered. (Pulver v. Harris, 52 N. Y. 73 ; Coughlin v. N. Y. C. & H. R. R. R. Co., 71 id. 443; Ballou v. Crosby, 49 id. 183.) In the latter case Allen, J., said: “ The assignment of the judgment carried with it the claim and debt upon which it was founded, and all claims against others as collateral and incidental to' it. By whatever terms the assignment was made, the debt as the" principal thing passed, and with it all rights and remedies for its recovery and collection.” So the assignment of this award must be regarded as an assignment fro tanto of Thompson’s damages for the taking of his land. His right to damages was not impaired or destroyed by the vacation of the first award. After that they were at large, and he had the right to have them again determined; and when the second award was made, that again represented his damages, and all his damages. That fixed the compensation which, under the Constitution and the laws, he was entitled to ; and thereafter his assignment to Davis attached to that, not because by its terms it could be specifically applied to that award, but because the award represented and stood for the damages and compensation to which he was entitled. If these views are correct, it is quite clear that the assignment under which plaintiffs hold, being prior in time, is entitled to preference over the assignment to Matthews. According to these views the mortgage from Thompson to Matthews did not take effect upon the lease, and its only operation was to give him a claim upon the damages due to Thompson, subordinate to plaintiffs’ claim.
The defendant Matthews contends, however, that for a portion of his claim he had a lien upon these damages older than that of the plaintiffs. Such a position was not taken in his answer and, so far as I can discover, was not taken upon the trial; and the court, at Special Term, was not requested to rule upon it. It is, therefore, too late to take it upon this ap
But, notwithstanding the right of the plaintiffs to this award was the best, yet the defendants contend that the plaintiffs ought to have been defeated in this action, for reasons based upon certain provisions of the law yet to be noticed. The act, chapter 890 of the Laws of 1869, provided that all acts and parts of acts relative to opening, widening and laying out streets in the city of Mew York, except as otherwise provided in that act, should be applicable to the Broadway improvement, and thus certain provisions contained in the act, chapter 86, passed April 9, 1813, were made applicable; and in section 178 of that act it is provided, that the report of the commissioners of estimate and assessment when confirmed “ shall be final and conclusive, as well upon the said mayor, aldermen and commonalty of the city of Mew York as upon the owners, lessees, persons and parties interested in and entitled to the lands, tenements, hereditaments and premises mentioned in the said report, and also
Under these provisions of law, the contention on the part of the appellants is that the report of the commissioners was so far conclusive as to the person entitled to the award that the city was obliged to pay the same to Matthews, and that the only remedy of the plaintiffs was to recover the amount thereof of Matthews, after payment to him. Our attention has been called to no decision giving such a construction to these provisions of law. The main purpose of the appointment of commissioners was to have the damages in consequence of lands taken for street improvements appraised, and the amount thereof assessed as directed by law; and for that purpose their report, when confirmed, unless vacated or set aside by some direct proceeding, was declared final and conclusive. The ascertainment of the names of the persons whose lands were taken or to whom damages were to be paid was merely incidental to the main purpose, and was for the subsequent guidance of the city authorities and the protection of the city. The very terms in which the provisions of the law are expressed show that the report was not to be conclusive as to the persons entitled to the damages awarded, because it is provided in section 184 that even after payment to the person named in the award, the rightful claimant of the damages may recover them of the person thus paid; and in section 183 it is provided that before the person named in the award can recover the amount thereof of the city, he must prove not only the report of the commissioners, but his right and title to receive the same; hence, as we construe that section, in the suit by Matthews against the city for this award, if the city had defended, he would have been obliged to prove his right and title to the award, and he could have been defeated by proof that these plaintiffs were entitled to receive payment thereof. It is undoubtedly true that the city would be justified to pay1 the person named in the award, unless it had received notice' of an adverse claim. After such notice, and
Here the plaintiffs were,, in fact, entitled to' the award made. They had a double remedy: before payment by the city to Matthews, they could sue the city; after payment to Matthews, they could sue him.
But here, so far as appears, there was no adjudication by the commissioners that Matthews,was entitled to this award, even as between him and the city. They reported that the loss and damage of Thompson, in consequence of the leasehold premises taken, was the sum of $11,544, and made an award to him for that sum, and stated in their report simply that the award was subject to the mortgage of Thompson to Matthews. They did not determine that any part of the award was to be paid to Matthews, or that his mortgage was the only mortgage or claim thereon. They did not determine that the plaintiffs had no claim upon such award, prior or junior to that of Matthews, and it does not appear that they in any way passed upon or considered the claim of the plaintiffs. We can, therefore, perceive no reason for holding that the report of the commissioners was conclusive as to the persons entitled to this award. But if the commissioners had made an award distinctly to Matthews for his mortgage interest, then no other person could have claimed such award, and the city would have been absolutely bound to
But it is further contended on the part of the appellants that the plaintiffs could not maintain this action in equity against all these defendants, and that their only remedy "was an action at law against Matthews, after payment to him by the city. We are, however, of opinion that upon the facts as they existed at the commencement of this action, there were grounds forequitable relief. The plaintiffs were, of right, entitled to this award. Matthews also claimed it. The city claimed the right to pay it to him; and it and Matthews also claimed that the only right of the plaintiffs was to sue Matthews after payment to him. The plaintiffs had doubts of Matthews’ pecuniary responsibility, and after payment to him, according to the contention of the defendants, the only remedy of the plaintiffs would be against him, with no security but his personal responsibility, whatever that might be when execution should be issued against him upon judgment recovered. It is true that he has been found solvent upon the trial of this action, but it would hot be just to deprive the plaintiffs of the absolute responsibility of the city and torn them over to the mere personal security of Matthews. Under these embarrassing and peculiar circumstances, it was quite proper for the plaintiffs to commence this action, and have determined whether they or Matthews had the prior or superior claim to this award which could be treated as a fund in the possession of the city, and in the meantime to restrain the city from making payment to Matthews. This form of action has deprived neither the city nor Matthews of any substantial right. There were no conflicting questions of fact to be settled, and the case involved merely questions of law upon undisputed facts. Under such circumstances, under our present system of practice, even if the plaintiffs had mistaken their lorm of action, it would have been grossly unjust and improper to turn them out of court upon a mere question of form, in no way affecting any substantial right.
For the conclusion that this action can be maintained in equity, the cases of Astor v. Miller (2 Paige, 68), Astor v.
It is further contended that even if this action were maintainable upon the facts as they existed at the time of its commencement, a personal judgment could not be rendered against Matthews for the amount of the award paid to him, for the reason that the pleadings contain no allegation authorizing such a judgment. It is true that at the time of the commencement of the action and service of the pleadings therein, the award had not been paid; but the court having obtained jurisdiction over .the parties and the subject-matter, and a cause of action in equity having been proved to exist in favor of the plaintiffs at the time of the commencement of the action, the power of the court to grant complete relief could not be circumvented by transactions between the defendants subsequent to the commencement of the action. The nature of the controversy was not essentially changed by the payment. Before the payment, it was a controversy over a fund in the possession of the city. After the payment, it was a controversy over the same fund transferred to the possession of Matthews. The matter to be determined was, at all times, the right to the fund. It is a general rule in equity that the relief to be administered will be adapted to the exigencies of the case as they exist at the close of the trial. Matthews cannot complain of the judgment because the provision in the statute of 1813, above cited, made him liable to the plaintiffs. The city cannot complain of the judgment making it liable for any deficiency that cannot be collected of Matthews, because, but for the order of the General Term above referred to, it would have been liable for the whole sum. The right of the plaintiffs to the award being established, all the rest is mere matter of form affecting no substantial right, and should not avail to defeat the plaintiffs.
The foregoing discussion, it is believed, covers all the points made on the part of the appellants, and our conclusion is that the judgment should be affirmed, with costs.
All concur.
Judgment affirmed.
Cases cited
- In re John 19 Wend. 659 p. 360
- Page v. Waring 76 N. Y. 463 at 469 p. 360, p. 362
- Garrison v. City of New York 21 Wall. 196 p. 360
- Detmold v. Drake 46 N. Y. 318 p. 360, p. 362, p. 364
- People ex rel. Schuylerville & Upper Hudson Railroad v. Betts 55 N. Y. 600 at 603 p. 360, p. 363, p. 364
- Barhyte v. Shepherd 35 N. Y. 238 p. 361
- People ex rel. Porter v. City of Rochester 21 Barb. 656 at 670 p. 361
- Hatch v. Mayor, Aldermen & Commonalty 82 N. Y. 436 p. 361
- Almy v. Harris 5 Johns. 175 p. 361
- Bidwell & Banta v. Astor Mutual Insurance 16 N. Y. 263 p. 361
- Greason v. Keteltas 17 N. Y. 491 p. 361
- Moffat v. Moffat 10 Bosw. 468 p. 361
- Lanning v. Capenter 48 N. Y. 408 p. 362
- In re Widening Broadway of New York 61 Barb. 483 p. 362
- In re Mayor of New York 49 N. Y. 150 p. 362
- In re the Commissioners of the Washington Park 56 N. Y. 144 p. 362, p. 363
- In re the Department of Public Parks relative 60 N. Y. 319 p. 362
- Bloodgood v. Mohawk & Hudson Railroad 18 Wend. 9 at 18 p. 362
- Ashley v. Dixon 48 N. Y. 430 p. 363
- Wright v. Wright 70 N. Y. 98 p. 363
- McKeon v. Caherty 3 Wend. 494 p. 363
- Wright v. Delafield 25 N. Y. 266 p. 363
- Graham v. Read 57 N. Y. 681 p. 363
- Kay v. Whittaker 44 N. Y. 565 at 576 p. 363
- Brown v. Mayor of New York 66 N. Y. 385 at 390 p. 363
- People v. Stephens 71 N. Y. 527 at 549, 550 p. 363
- Mathews v. Aikin 1 N. Y. 595 p. 364
- Dexter v. Stewart 7 Johns. Ch. 52 p. 364
- Brown v. Jones 46 Barb. 400 p. 364
- Ryan v. Dox 34 N. Y. 307 p. 364
- Field v. City of New York 6 N. Y. 179 p. 364
- Jackson ex dem. Stevens v. Stevens 13 Johns. 316 p. 364
- Jackson ex dem. Weidman v. Hubble 1 Cow. 613 p. 364
- Bank of Utica v. Mersereau 3 Barb. Ch. 528 p. 364
- Wendell v. Crandall 1 N. Y. 491 p. 364
- Spears v. Mayor of New York 72 N. Y. 442 p. 367
- Pulver v. Harris 52 N. Y. 73 p. 369
- In re the Department of Public Parks to acquire title to lands 73 N. Y. 560 p. 375