295 N.Y. 121 | NY | 1946
The Appellate Division, third department, has affirmed an order of the Court of Claims granting respondents' motion for leave to file a claim against the State, and the appeal is here upon the following certified question: "Does the proposed claim of the respondents state facts sufficient to constitute a cause of action?"
The claim is for damages for failure to invest and keep invested moneys paid into court pursuant to a final decree of the Supreme Court, County of Kings, which was entered February 7, 1894, in a partition action brought by Harry C. Hallenbeck and Elizabeth C. Hallenbeck, his wife, against Annette M. Hallenbeck and other defendants. Pursuant to this decree there was deposited with the Treasurer of the County of Kings $1,753.34, which the decree required to be kept invested during *125 the life of Isadora E. Mangles "for the benefit of her surviving children, the interest thereon to be accumulated, and the whole to be disposed of among the surviving children of said Isadora E. Mangles upon her decease as may be hereafter directed by this Court".
Under the Greater New York Charter the custody of this fund devolved upon the Chamberlain of the City of New York, who, on July 1, 1932, transferred to the Treasurer of the State of New York the sum of $6,233.16 representing the original deposit of $1,753.34 with accumulations to that date, all in accordance with the requirements of section
In a proceeding pursuant to sections 136 and 137 of the Civil Practice Act entitled in the Hallenbeck action, claimants obtained an order entered in the Kings County Clerk's office on June 20, 1944, directing the State Comptroller to pay to them the sum of $6,233.16. This order contained the following provision: "ORDERED, that, the Court not having considered the liability of the Comptroller of the State of New York and of the State of New York or either of them arising out of the failure and neglect, if any, of the said Comptroller to invest said fund, or any part thereof since the date of the transfer of said fund to the State Treasurer on or about July 1st, 1932, this application and order be and hereby are without prejudice to any claim or right which said petitioners [naming the claimants] or either of them may have or claim to have against the Comptroller of the State of New York and the State of New York or either of them arising out of the failure and neglect, if any, of the Comptroller of the State of New York to invest said fund as aforesaid."
Under this reservation the claimants contend that, in addition to the sum actually received by the State Treasurer and repaid to them, they are entitled to recover in the Court of Claims damages resulting from the failure of the State Comptroller to keep the fund invested. Jurisdiction of the Court of Claims to determine the sufficiency of the claim is predicated upon alleged wrongful acts of officials of the State acting as such (see Court of Claims Act, §
Authority to invest money paid into court, originally governed by rule 180 of the Rules and Orders of the Court of Chancery as revised and established in 1837, has since been defined by statute (L. 1892, ch. 651; Code Civ. Pro., § 747; Civ. Prac. Act, § 136). The force of the decree directing that the fund be kept invested is not questioned so long as the fund remained in the hands of the Treasurer of Kings County or of the Chamberlain of the City of New York, but the State contends that the order did not become binding upon it when the City Chamberlain transferred the fund to the Treasurer of the State pursuant to section
In behalf of the claimants it is contended that they had vested rights under the decree of 1894, including the provision that the fund should be kept invested during the life of their mother, and that this provision of a judicial decree was beyond the power of the Legislature to abridge or destroy. This statute did not confiscate or put again in jeopardy property rights established by judgments already obtained, as in such cases as Matter ofGreene (
We conclude that the statute was valid and that the decree, which was entered after the enactment of the statute, did not confer rights in conflict with the statute. Our decision inMatter of Schmidt v. Chamberlain of N.Y. (
It is urged that the amendment of section
The courts below relied strongly upon People v. Keenan
(
The orders should be reversed and the motion denied, without costs. The question certified should be answered in the negative.
LOUGHRAN, Ch. J., LEWIS, CONWAY, DESMOND and DYE, JJ., concur; MEDALIE, J., taking no part.
Orders reversed, etc.