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National Bank of North Hudson v. Kennedy

Appellate Division of the Supreme Court of New York, First Department
Jun 8, 1928
223 App. Div. 680 (N.Y. App. Div. 1928)

Summary

In National Bank of North Hudson v. Kennedy (223 App. Div. 680) the opinion indicates that a plaintiff may be stayed for failure of his assignor to comply with an order for the latter's examination if the plaintiff has sufficient control over the assignor to secure his presence here in compliance with the order for his examination.

Summary of this case from Manley v. Stuart Silver Co.

Opinion

June 8, 1928.

Appeal from Supreme Court of New York County.

Otho S. Bowling of counsel [ Robert H. Elder, Harold H. Corbin and Alexander Simpson, attorneys], for the appellant.

Robert D. Steefel of counsel [ Stroock Stroock, attorneys], for the respondents.


The appeal is from an order staying the plaintiff, a foreign banking corporation, from proceeding with this action until it produces its assignors for an examination before trial. The assignors were two officers who had stolen funds from the plaintiff bank. In an effort to obtain restitution for its stockholders, the bank had obtained from these officers an assignment of their rights in an account which they had with the defendant stockbrokers. In aid of affirmative defenses, consisting of an account stated, payment and laches, the defendants obtained an order to examine before trial the assignors of the plaintiff. The defaulting officers are not now connected with the plaintiff, remain without the State, and there is nothing to show that the plaintiff has any control over them. Nor does it appear that the plaintiff is lacking in due diligence in assisting the defendants to obtain the presence of the two assignors for the purpose of the examination before trial. If the record were otherwise or if it had appeared even inferentially that the assignment of the cause of action was for the purpose of denying to the defendants their right to an examination before trial, the action would have been properly stayed. The defendants may, of course, procure the testimony by means of a commission and, if the circumstances warrant, by an open commission. It follows that upon this record the order staying the plaintiff from proceeding until it produces its assignors was not justified.

The order should, therefore, be reversed, with ten dollars costs and disbursements to the appellant, and the motion denied, with ten dollars costs.

Present — DOWLING, P.J., FINCH, McAVOY, MARTIN and PROSKAUER, JJ.

Order reversed, with ten dollars costs and disbursements, and motion denied, with ten dollars costs.


Summaries of

National Bank of North Hudson v. Kennedy

Appellate Division of the Supreme Court of New York, First Department
Jun 8, 1928
223 App. Div. 680 (N.Y. App. Div. 1928)

In National Bank of North Hudson v. Kennedy (223 App. Div. 680) the opinion indicates that a plaintiff may be stayed for failure of his assignor to comply with an order for the latter's examination if the plaintiff has sufficient control over the assignor to secure his presence here in compliance with the order for his examination.

Summary of this case from Manley v. Stuart Silver Co.
Case details for

National Bank of North Hudson v. Kennedy

Case Details

Full title:NATIONAL BANK OF NORTH HUDSON, Appellant, v. ROBERT H. KENNEDY and Others…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jun 8, 1928

Citations

223 App. Div. 680 (N.Y. App. Div. 1928)
229 N.Y.S. 323

Citing Cases

Peter Doelger, Incorporated v. L. Fatato, Inc.

In our opinion, there was no showing that respondent has control of its assignor. ( National Bank of North…

Manley v. Stuart Silver Co.

This is, however, not necessarily so. In National Bank of North Hudson v. Kennedy (223 App. Div. 680) the…