Majority
Headnote
1. Taxes and assessments — Voro assessment paid by referee pursuant TO JUDGMENT OF FORECLOSURE CAN BE RECOVERED BACK.This action was brought to recover money paid to discharge the lien of an assessment, which, after the payment, had been vacated by order of the supreme court. The trial was before the court without a jury. The court at circuit dismissed the complaint. The general term reversed the judgment of dismissal, and ordered a new trial, and the present appeal is from the order of reversal. The only ground stated on the motion to dismiss was that there was no proof that the plaintiff ever paid the money. The money was paid under the following circumstances: The land, upon which the assessment was an apparent lien, was owned by Horatio N. Gray, the plaintiff’s intestate, and was subject to a mortgage held by Edward Roberts. A judgment was entered for the foreclosure of this mortgage, and the sale of the mortgaged premises by a referee, which judgment directed that all taxes and assessments-, upon the mortgaged premises be paid out of the proceeds of sale. Pursuant to this direction the referee, out of the proceeds-of sale, paid the assessment in question on the sixth of June, 1871. -Gray was then, as the former owner of the equity of redemption, entitled to the surplus moneys which arose on such sale. On his application, the assessment was vacated by order
It is apparent that the payment was made out of money belonging to the plaintiff’s intestate, and we think this was equivalent to a payment by him. The payment does not appear to have been made with his consent. He was living at the time of the trial, (the plaintiff having been substituted after judgment,) and testified that he was not aware of the fact at the time that the assessment was taken out of the surplus money. Having been paid out of funds belonging to him, and by order of the court, we think the payment was equivalent to a collection under process of law, and that, on the subsequent vacating of the assessment, he was entitled to recover the money so paid. So long as the assessment was not vacated, the court had power to direct its payment, and its validity could not be determined in the foreclosure action.
The.trial court, in its opinion, placed the dismissal on the ground that the foreclosure judgment, under which the money was paid, had not been set aside or annulled. We concur with the opinion of the court at general term that this ground is not tenable. The judgment of foreclosure was not the adjudication which created the apparent lien, nor the authority upon which the right of the city, as between it and the property or its owner, to collect the assessment, depended. It established no right as between them, and there was consequently no necessity of setting it aside for the purpose of entitling the plaintiff to recover the money paid. It was simply the means by which the city was enabled to collect the void assessment. On the appeal to the general term, the judgment of the trial court was sought to be sustained on the ground that the plaintiff’s claim was barred by the statute of limitations. We agree to the conclusion of the general term on tins point, but not with the reasoning by which it was reached. The general term held that the presentation of the claim by the plaintiff to the comptroller on the seventeenth of November, 1877, pursuant to the requirement of section 105 of the charter of 1873, (Laws 1873, c. 335,) the statutory limitation of six years not having expired at the time of such presentation, was the beginning of proceedings to enforce the claim, and therefore a quasi summons or legal process, and consequently that the service of the demand by the claimant, within the period of six years after the claim arises, must prevent the application of the statute to his prejudice. We are unable to adopt this view. The presentation, although a necessary preliminary to enable a claimant against the city to maintain an action on his claim, is not the commencement of an action. But there are other reasons which preclude the defendants from availing themselves of the statute of limitations to sustain the judgment of dismissal. In the first place, although
Section 410 of the Code of Civil Procedure does not affect this question. It provides only for cases where a simple demand
The order of the general term should be affirmed, and judgment absolute rendered against the defendants on their stipulation, with costs.
All concur.
Cases cited
- Dickinson v. Mayor of New York 92 N. Y. 584 p. 662, p. 664