Majority
Headnote
Shxeptions— how heart'd—agent, when liable for sale of principal's property — dama ges— how determined.When the trial of this cause was completed at the circuit, the learned justice who presided ordered the exceptions, taken by the defendants, to be first heard at the General Term, and judgment to be in the meantime suspended. The order in this respect was strictly in conformity with the provision made by section 265 of the Code of Procedure, and it was probably made, as such orders usually are, as a matter of practice, at the instance or solicitation, and to promote what may at the time have been considered the convenience, of the defendant. It is not important for the disposition of the case whether that was the fact or not, because the consequences of the order would be the same, even if it had been made at the instance of the learned justice himself; but such orders are not usually made in that way, particularly where the defeated party manifests any disposition to withhold his assent. Ho such
By the order made, the case was, in effect, sent to the General Term for two purposes. First, to enable the defendants to move for a new trial upon their exceptions; and secondly, for judgment to be pronounced there in case the motion should prove unsuccessful.. Where exceptions are taken, the Code has provided for three different modes of reviewing them: it may be done by an appeal from the judgment, by a motion for a new trial upon them at the General Term, under such an order as was made in this case, and by a motion for a new trial at the circuit or Special Term. In the latter instance, an application may also at the same time be made for a new trial, because of the misdirection of the court, or for the reason that the verdict has been rendered either without evidence or against the evidence appearing in the case.[14] This court has always possessed that power, and there is nothing in the Code by which ithas either been abrogated or abridged. A different view of the law was suggested by the judge who delivered the opinion in Parker v. Jervis,[11] but it was not necessary for the decision of the case, and probably was not concurred in by the other members of the court.[3] Several years after the order was made, directing the exceptions in this cause to be first heard at the General Term, such an application was made to the Special Term by the present defendants; it was opposed because of that direction, but the objection was overruled by the court, and the application was formally heard and denied. Both parties have appealed from the order which was then made, the plaintiff claiming that the application should not have been heard at all, on account of the direction which was given to the case at the circuit, and the defendants insisting that the verdict should have been set aside and a new trial ordered.
While the unqualified power to hear a motion for a new trial after verdict, has been given to the Special Term, its exercise has not been reserved in a case where a previous direction has been made that the motion shall be heard on the exceptions, in the first instance, at the General Term. Such an order, as well as the pro
‡ ‡ Smith v. Ætna Ins. Co., 49 N. Y., 211 , 216.
The only remedy available to the defeated party, where an order has been made, sending the case, in the first instance, to the General Term, while that direction remains undisposed of, is. to bring on the motion for a new trial before that court. And that, from the nature and terms of the direction, must be heard only upon the
The action was brought to recover damages arising out of the wrongful sale and conveyance of a large amount of real estate, owned by the plaintiff, and disposed of by the present defendants, as his agents. The property sold and conveyed, consisted of nineteen different lots or parcels of land, and an undivided half of two other parcels of land. It was incumbered by mortgages upon a portion of it, and by judgments which were liens upon all of it, to an amount exceeding the sum of $100,000, and it was sold, in one mass, for the nominal sum of $135,000, but in reality for the sum of $140,000, the additional $5,000 being added for the payment of commissions. The sale was made by the co-operation of both the present defendants, and the title conveyed by the defendant, Scott, under a power of attorney given by the plaintiff to him on the 3d of December, 1852, empowering him to sell any real estate owned by the plaintiff in the State of California. In the submission of the case to the jury, the court instructed them that the defendants could not be held liable for any error of judgment on their part or the part of either of them, or for injudiciously making the sale in
When the plaintiff rested his case, each of the defendants moved for a dismissal of the complaint. The motion was denied and the defendants severally excepted. No reason was specified for which a dismissal was claimed to be proper. But, without any doubt, the point should be regarded as taken, that the evidence was not sufficient to warrant a recovery upon the theory alone on which the action was rendered dependent; and that was whether these defendants had sold and conveyed the plaintiff’s property for the fraudulent purpose of despoiling him of it, and for the promotion of their own personal interests as distinguished from his. To that extent, the exception taken requires the consideration of the effect of the evidence then before the court, but no farther. For whether the ruling was proper or not as to the other defendant, who was one of the two joint purchasers of the property, it is not necessary to inquire, as the verdict of the jury was in his favor.
Before the power of attorney was given to the defendant, Scott, and in the month of September, 1851, another was given by the plaintiff to the other defendant, Keyes. This was not quite as extended in its authority as the one delivered to Scott, for the power it gave to sell was confined to any part or parcel of the plaintiff’s real estate situated in the State of California. The contract for the sale was made and executed on the'last day of June, in the year 1853. During the early part of the preceding month, and for some time before that, the defendant, Keyes, was in and about the city of New York, and represented to the plaintiff that his creditors were generally well disposed toward him; substantially, that he had nothing to apprehend from them so far as this property was concerned, and that his prospects in its management and final sale were promising. Before this defendant left the city of New York, on his return to San Francisco, and by a letter written and sent during his passage, he solicited from the plaintiff a power of
The witness, Van Nostrand, was allowed to state what was the value of this property in 1849, against the objection of the defendants that it was irrelevant. This followed the statement made by the same witness, that an offer of $300,000 was then made for the property, and Keyes disapproved of selling for that amount. The answer was, that the property was then worth that amount. And it was not irrelevant, because the condition and value of the property was generally traced down to the time of the sale, and evidence was given as to the extent to which it was improved by the plaintiff" in the meantime. This evidence, though remote, had some bearing upon the inquiry as to the value of the property when the sale was made, particularly as it was situated in a thriving, prosperous city where property was inclined .to advance rather than recede in value.
The court did not hold that the evidence, admitted against the other defendants, was admissible against the defendant, Scott. But the ruling was, that all letters and conversations prior to the sale were competent evidence, without specifying as to whom it should apply; and that, when competent for any purpose, it should be received, but whether it should finally be considered as testimony proper to be submitted against all the defendants, would depend upon what had or should transpire before the evidence closed. There could be no impropriety in this course, as the defendants were jointly charged with a fraudulent sale of the plaintiff’s property. It was not held that evidence, not admissible against either defendant, could be received; but that, so far as the evidence was proper against either, it should be received and afterward properly distinguished and applied by the court, as the case proved should require that to be done. Neither defendant could be injured by that course in the end, and it was the most convenient that, under the circumstances, the court could adopt.
Other exceptions were taken to the ruling of the court on the subject of receiving and rejecting evidence. But they are not relied upon in support of the present motion, and if they were, no reason appears for doubting the correctness of the decisions by which they were disposed of by the court.
Upon the subject of the defendants’ liability, after directing the jury that the defendants could only be held liable for intentional misconduct in'the disposition which was made of the plain
The learned justice was also requested to. hold and charge, that the plaintiff had so long acquiesced in this transaction before bringing this suit, that he should be precluded from bringing it, and should be held to-have acquiesced and to have been satisfied with what all the defendants had done: He responded that he held the contrary of that, and added, that if the- jury found that the fraud was perpetrated, and this action, was maintainable at any time, if he had chosen to bring it in two months or six months after the transaction came to his knowledge, he had just the-same right in six years afterward; and it could not be held, that he acquiesced in any such sense as to prevent the remedy which.the law would give him, if his rights had been assailed or injured by any fraudulent sale by these parties. The same proposition was- again repeated in nearly the same; terras, after, the. charge had. been, delivered: He was then.
There can be no doubt as to the correctness of the refusals, because the requests required him to hold that there had been such acquiescence, as matter of fact, as would prevent the plaintiff from maintaining the action. No such fact was established by the evidence, and it could not, therefore, be properly regarded as proved in the case. The learned justice was also right in holding that the law, relating to the effect of an account stated, had no application in this case. For, although an account had been rendered to the plaintiff, it contained so little of this transaction as to give no adequate idea of what had been done; while the letters of the defendants, mentioning it, simply showed that a sale had been made for $135,000, and that Scott had received and paid over to Keyes $10,000 of the price, the residue being applied to the extinguishment of incumbrances. Nothing was stated of the receipt and disposition of the other $5,000. And the important fact that the defendants had made the sale simply to obtain their commissions, and had divided the amount received between them, was not disclosed, but concealed under the assurance that the property had been disposed of for the plaintiff’s benefit. There was, evidently, nothing in the case from which the plaintiff could be said to have approved, at any time, of that disposition of his property.
The evidence of Dewey showed that the $5,000, paid beyond the amount mentioned in the contract of sale, did. not go into the hands of either of the defendants. It was not paid by either of
The plaintiff, in this case, never appears to have approved of the act of the defendants in selling this property, or in the act of the purchasers in appropriating any part of its proceeds to the payment of his debts, and has, in fact, derived no benefit from either act in any other way. His claim for redress is predicated on an unauthorized, unapproved wrong, for which, if it really existed, his right to satisfaction has in no way been relinquished.[11]
The refusal of the court to give the jury absolute direction, that the defendants should be credited the amount paid out of the proceeds of the sale, upon the verdict they might otherwise render in the ease, was strictly conformable to the rule settled upon that sub
† † McKnight v. Dunlop, 1 Seld., 537, 544.
The debts, which this portion of the charge referred to, were simply those that were satisfied by the $5,000 which the purchasers at first agreed to pay toward the defendants’ commissions and afterward used to compromise and remove the attachments sued out and levied under the law of the State, which took effect on the first of July. These attachments were not upon the property when the contract for its sale was entered into, and for that reason, probably, subordinate to the rights of the purchasers under it. And they were therefore not within the provision made in the contract of sale, allowing them to discharge the incumbrances out of the purchase money. The court did not hold that the plaintiff could recover the value of the property without' first excluding the incumbrances upon it at the time of the sale. The proposition held, was that the debts, paid by the defendants out of its proceeds, could not mitigate the amount of the recovery unless the plaintiff had acquiesced in the act of payment. And it must have been understood by the jury, for the amount of their verdict was $129,699.16, which was $10,000 less than the purchase price of the property. And this verdict was rendered nearly eleven years after the sale was made of the property, and probably included a proper allowance of interest. The debts mentioned in the charge, the payment of which was not allowed to reduce the verdict unless the plaintiff acquiesced in such payment, must necessarily therefore have been understood not to include the incumbrances by mortgages and judgments on the property. This view is further fortified by the evidence given upon the trial concerning the value of the property; for that ranged between the sums of $135,000 and $495,000. And it appeared that the purchasers sold portions of it, soon after the sale, at an important advance beyond the price they paid for it.
The sale was made on the 30th of June, 1853, and the court allowed the jury to regulate the amount of their verdict according to the value.of the property during the residue of that year. This
No other exceptions have been urged in support of the defendants’ motion for a new trial, and as those considered have been found to be without foundation, the motion must be denied, and. the plaintiff must have judgment upon the verdict, with costs. The motion for a new trial at the Special Term, should not have been heard and decided by the court, as long as the case was sent in the first instance, for a similar application, to the General Term, and was required by law to be there heard and decided. The order of the Special Term should, therefore, be modified so as to direct a dismissal of that application, and, as so modified, affirmed, with ten dollars costs. '
It was suggested upon the argument, that the defendant, Scott, had departed this life since the verdict in the case was rendered; for that reason, the order and judgment should be entered of some date subsequent to the verdict, and preceding the death of this defendant.
Davis, P. J., concurred; Donohue, J., dissented.
Order of Special Term modified, and, as modified, affirmed.
Judgment for plaintiff, with costs.
* Suydam v. Jenkins, 3 Sand. S. C. Rep., 614; Scott v. Rogers, 31 N. Y., 676 ; Matthews v. Coe, 49 N. Y., 57 ; Baker v. Drake, 53 N. Y., 211 , 219.
Footnotes
- * Code, § 265 ; Macy v. Wheeler, 30 N. Y., 231 .
- † † 3 Keyes, 271.
- * Beattie v. Niagara Savings Bank, 41 How., 137 .
- † † Devoe v. Hackley, 3 Robertson, 679; Morange v. Morris, 20 How., 257 , 263.
- * Code, § 265.
- † † Hoxie v. Green, 37 How., 97 ; Cronk v. Canfield, 31 Barb., 171 ; Hotchkiss v. Hodge, 38 id., 117; Dickerson v. Wason, 48 id., 412; Sheaf v. Utica & Black R. R. Co., 2 N. Y. Supreme Court Reports, 388.
- * Cox v. James, 45 N. Y., 557 .
- † † Justice v. Lang, 52 N. Y., 323 .
- * Story on Agency, §§ 239, 242; Moss v. Rossie Mining Co., 5 Hill, 137 ; Brass v. Worth, 40 Barb., 648 ; Murray v. Bininger, 3 Keyes, 107; Keeler v. Salisbury, 33 N. Y., 648 .
- * Hanmer v. Wilsey, 17 Wend., 91 ; Otis v. Jones, 21 Wend., 394 ; Hopple v. Higbee, 3 Zabriskie, 342; 1 Seld., 544, supra.
- * Griffin v. Colvin, 16 N. Y., 489 .