White v. Rand
White v. Rand
Opinion of the Court
—The motion was instituted by the petition of Stephen V. White, as receiver of the Grocers’ Bank, for the purpose of requiring the Rands to perform an agreement .alleged to have been made with them, by which they undertook to purchase a judgment recovered by the bank against John H. More in November, 1870, for $9,493.71, and the interest of the bank in the estate of More, represented by John M. Davidson in an action in which the Rands were defendants, and pay therefor the sum of twenty-five hundred dollars. The questions presented are (1) whether the contract was in fact made, and if so (2) whether the sale was a judicial one. It appears that in 1871 John M. Davidson was, in proceedings supplementary to execution, founded upon the judgment against More, appointed receiver of the property of the latter; that after-wards, an action was commenced in the superior court of the city of New York by John O. Hollenback and pthers against the Rands and More for the alleged purpose of subjecting to certain trusts, the interest of the latter in property before then held by those defendants as partners. Davidson, as receiver, was brought in as a party defendant in that action. And upon a reference had therein, to take testimony and to ascertain and state the accounts, etc., the referee reported, amongst other things, that there was due from the Rands to Davidson, as receiver, upwards of $15,000. After his appointment in 1880 as receiver of the bank, White, by counsel, took charge of the interest represented by Davidson as receiver in such pending action. And after the coming in of such referee’s report, he instituted proceedings to obtain the instruction of the court in regard to the disposition to be made by him of the remaining assets of the bank, and a reference was directed in that behalf; and pending the hearing before the referee, nego
The referee in his report recommended that the receiver of the bank be authorized by the court to accept such proposition, and make the sale. And thereupon, the court did, by its order, authorize the receiver, White, to make the sale and transfer, for such price, of which Crosby was soon advised, and at his request he was furnished with a copy of the order and informed that the receiver was ready to make the transfer, in whose behalf a draft form of assignment was also handed to Crosby, who prepared one as he desired it and sent it to the receiver’s attorney.
Three days after, and on June 27, 1884, Crosby wrote Mr. Blair and inclosed a draft order of substitution of some person as attorney for defendant Davidson, as receiver, in the action before-mentioned, with a blank for the insertion of the name of the attorney to be substituted, and asked that the consent at the foot of the order be signed by him and by receiver Davidson. And added that it was part of the “ arrangement that this substitution should be made.” Then he, in the same letter inquired, “ Has Davidson, receiver, now any claim for pay as such, or has he any claim lo be allowed, out of any property he might collect belonging to More, fees paid to attorneys employed by him?” and ■says “You understand I do not wish the purchaser and assignee of this judgment to be hereafter liable in any way to Davidson or his attorneys, or to have the fund obtained "by Davidson as receiver, in any way reduced, excepting his ■own fees after this date.”
The following day, Mr. Blair answered this letter as follows: “In reply to yours of yesterday, I will endeavor to :see Davidson, receiver, and obtain from him the desired ■consent for the substitution of attorneys, and will then further answer your inquiries.”
This Crosby letter of June twenty-seventh is regarded as important by the appellant’s counsel in its reference made to the fees of the receiver, and in view of the promise of Blair in his letter to further answer those inquires, inasmuch as no renouncement of the claim of Receiver Davidson to fees was furnished. If nothing further had occurred upon the subject, it would be difficult to determine that any contract was actualy and completely made for the sale in question.
And in support of that view Crosby, in his affidavit, states that this inquiry and statement about such, fees in
It is unnecessary to refer to any further communications between these attorneys, as upon the whole, the most that can well be said in the direction of the appellant’s contention, is that upon the question whether the minds of the contracting parties fully met upon the terms of the contract so as to make it effectual as such, was a question of fact which must be deemed disposed of by the court below. The attorney for the appellants afterwards declined to carry out the contract, and the receiver, White, caused a
But in this case no confirmation was requisite. The terms of the sale as authorized and as represented by the contract were expressed in the order. And in making the agreement he represented the court. He was the instrument, or officer of the court, and through him the sale may be deemed as made by it. No further action of the court, therefore, seems to have been necessary to consummate the sale. In re. Van Allen, 37 Barb., 225; Atty. Genl. v. Guardian Mut. Life Ins. Co., 77 N. Y., 277; Attorney-General v. North American Life Insurance Co., 89 N. Y., 103.
It is not important, for the purposes of the question, whether the sale be public or private, only that it be made by the receiver pursuant to the direction or authority given by the court. It then has the character of a judicial sale, and the party making it subjects himself to the jurisdiction of the court, and may be required to complete it. Cazet v. Hubbell, 36 N. Y., 677; In re. Attorney-General v. Continental Life Ins. Co., 94 id., 199.
This was the situation of the appellants in the present cáse. The motion was properly entertained by the court below, and no rule of law was violated by the result there ■ given to it.
The order should be affirmed.
All concur.
Reference
- Full Case Name
- In re Stephen V. White, as Receiver of the Grocers' Bank, Resp't v. Thomas B. Rand, App'lts
- Status
- Published