Lead Opinion
As the motion to vacate was founded only on the original papers, the statements contained therein are, for the purposes of this appeal, to be regarded as true, and, if they establish a prima; facie case against the defendant, he should be required to satisfactorily answer or explain them before asking that important remedies for the temporary security of the plaintiff should be set aside.
It does not appear that any of the several contracts set forth in the complaint was entered into in violation of the usury laws of this State or of the statute prohibiting persons from transacting business under fictitious names. (3 R. S. [7th ed.], p. 2253; Laws of 1833, chap. 281; Laws of 1819, chap. 317.) These statutes are penal laws and have no extra territorial force. (The Western T. and C. Co. v. Kilderhouse, 87 N. Y., 430.) A contract will not be adjudged illegal when it is capable of a construction making it valid. (Lorillard v. Clyde, 86 N. Y., 384; Ormes v. Dauchy, 82 id., 443.) The principal contract upon which this action is founded is the bill of sale which was both dated and executed at Quebec, Canada. It purports to transfer a lumber business at Oswego, in this State, including stock on hand, accounts and mortgages. The plaintiff, a resident of Canada, had conducted this business at Oswego under the name of “Ross & Co.,” and apparently had thus acquired the property and interest transferred. Assuming that he had carried on the business in violation of law he did not forfeit the property he had acquired thereby or place it outside of legal protection. (Wood v. Erie R. R. Co., 72 N. Y., 196, 200.) If he violated the statute he was liable to punishment therefor, but the property thus acquired was still his and was subject to sale and transfer by any of the modes known to the usages of business. As
The bill of sale does not in terms state where it is to be performed, but as it binds the defendant to “remit” to the plaintiff, weekly, all collections, the presumption is that he was to remit to the plaintiff at his place of residence. But if it is silent as to the place of performance, the rights and liabilities of the parties under it are to be determined b,y the lex loci conhraetus. (2 Parsons on Contracts, 582; Pomeroy v. Ainsworth, 22 Barb., 118, 130; Northrup v. Foot, 14 Wend., 249.) Therefore if it was valid by the laws of Canada, where it was made and dated, it is valid everywhere. (Merchants Bank of Canada v. Griswold, 72 N. Y., 474; Potter v. Tallman, 35 Barb., 182; Story on Conflict of Laws § 282.) The burden of showing that it was invalid by the laws of that province rests upon the defendant. (Cutler v. Wright, 22 N. Y., 472; Thompson v. Ketcham, 8 Johns., 189.) All of the contracts except the bill of sale were by their terms to be performed in Canada. The acceptances were all drawn, dated, made payable and actually paid by the' plaintiff there. Whether, therefore, the action is based upon the drafts themselves or upon the implied promise to pay, springing from the fact of payment by the plaintiff for the benefit of the defendant and at his request, they are Canadian contracts and are to be governed by the laws of the place where they were made.
The affidavit of Alfred P. Pousette was considered at the time
By chapter 208, Laws of 1870, acknowledgment of deeds may be taken before the judge of any court of record .within the Dominion of Canada. By virtue of this act, and of section 844 of the Code, Judge Boyd was authorized to take the affidavit of Mr.
The certificate of the clerk literally follows the requirements of the act of 1870 in all respects, except that instead of stating in the language of the statute that “ he is well acquainted with the handwriting of such judge, and verily believes his signature genuine,” he certifies that “the name of said Judge John Boyd, subscribed to the above jurat, is to me known to be the autograph signature of said Judge John Boyd.” We think this is a substantial compliance with the statute, because it not only implies all that the statute requires, but includes more and furnishes a better safeguard, (Meriam v. Harsen, 4 Edw. Ch., 70; affirmed, 2 Barb. Ch., 232;
The moving papers show that the defendant was indebted to the plaintiff in*the sum of $89,233.44, of which ail but $8,000 had been past due for five months, during which period only fifty dollars had been paid thereon; that this debt was for the purchase-price of and for moneys advanced in a lumber business that he was conducting, ■ and from which he received large sums of money; that instead of remitting his collections to the plaintiff weekly, as he had agreed in writing to do, he retained substantially all that he received during the period of seven months immediately preceding the granting of the provisional remedies in question, and although he admitted that he had large sums on hand, yet he refused to pay the same to the plaintiff; that he ceased to make payments on this debt in August, 1883, yet continued after that to sell and reduce his stock and property until not more than $40,000 worth remained; that he had substantially no property aside from said business wñich he had purchased from the plaintiff wholly on credit in December, 1882, and which he had promised to pay for by October, 1883, with the exception of $8,000; that in March, 1884, when the provisional remedies were granted, he was owing the plaintiff $89,233.44, or $1,490.12 more than the original purchase-price, so that his indebtedness to the plaintiff ■during the fourteen months that he had carried on the business had increased instead of diminished; that in November, 1883, he refused to give plaintiff a mortgage upon a dock, then recently constructed by him, for the amount of plaintiff’s money invested therein; that during the same month, and after his large debt to the plaintiff was past due, he attempted to settle $10,000 that he had taken from the lumber business upon the lady to whom he was engaged 'to be married, and actually paid over the money to trustees for her benefit, stating that he did it so that if anything happened in regard to his business she would have that sum to fall back upon; that at the same time he further stated that he had plaintiff in his hands and could do with him as he liked; that he ¿ever intended to pay him at the time agreed upon, and should not pay him until he got ready; that he intended to bring plaintiff to his terms, and could fix his property in twenty-four hours so that he could get nothing out of it; that said $10,000 was subsequently repaid him
We think that these, with other facts not recited, made out a prima facie case, and gave the justice jurisdiction. Where a debtor who owes a large debt that is past due,, and has a large sum of money that he ought to pay upon that debt, refuses to pay anything to his creditor upon demand made, without giving any explanation for such refusal, slight evidence of a threatened removal or disposition of his property will authorize the inference of fraudulent intent. Where a man of very small estate is largely indebted and attempts to settle upon his intended wife a
The order appealed from should be affirmed, with costs and disbursements!
Dissenting Opinion
(dissenting):
The affidavit of Pousette was verified before a judge of a county court of the Province of Ontario, which court has a seal. The clerk of the court 'certified, under seal, that the person before whom the affidavit was taken was at the time a judge of the court, .and that the signature was genuine, but fails to certify that the judge was authorized by the laws of the Province to take and certify the acknowledgment and proof of deeds to be recorded in that Province.
It is assumed by the counsel for the respective parties that the word “ State,” in section 844 of the Code of Civil Procedure, embraces foreign countries, and that the section is applicable to affidavits taken without the United States, which I greatly doubt. Rut conceding the correctness of the assumption for the purposes of this case, I think the affidavit is not properly certified. An affidavit, verified before an officer of another State, cannot be used in an action or special proceeding in this State (except where it is otherwise specially prescribed by law) unless the officer before whom tlie affidavit is verified is authorized by the law of liis State to take and Certify the acknowledgment and proof of deeds to be recorded in his State; and -the official character of the officer, the genuineness of the signature, and that lie is authorized to take and certify the acknowledgment" and proof of deeds to be recorded in liis State, must be certified under the name and official seal of the clerk, register, recorder, or a prqthonotary of the county in which such officer resides, or by the clerk of any court thereof having a seal. (Code Civil Pro., § 844, chap. 195, Laws 1848, as amended •by chap. 557, Laws 1867, 3 R. S. [7th ed.], 2224.) This section of the Code evidently has reference to the statute cited, and they must be read and construed together. Chapter 208, Laws of 1870, authorizes the officer before whom the questioned affidavit was taken to fake the acknowledgment of deeds to be recorded in this State. The argument is that, by the section of the Code above cited, the ■authority to take affidavits to be used in the courts of this State is •vested in and limited to such officials of other States as are by the •statutes of this State authorized to take acknowledgments by virtue
The clerk of a county, or of a court of another State, could not have official knowledge that a particular officer within his jurisdiction was authorized by the laws of this State to take the acknowledgment of deeds and could not make the required certificate. Some light may be thrown on this section and the reason for it, by briefly considering the course of legislation on the subject of acknowledgments taken in other States and territories.
Authority to take acknowledgments has from time to time been conferred by the statutes of this State upon designated officials of other States and territories. But is was found that officers accustomed to the discharge of such duties were designated by different official titles in the various States and territories, and it was inconvenient to designate appropriate officials in all the States and territories by their official titles. To avoid this difficulty, and to enlarge the number of officials who should possess this authority, chapter 195, Laws 1848, was passed (and amended by chap. 557 Laws 1867), vesting the power to take acknowledgments of instruments to be recorded and read in evidence in this State, in any officer of any other State or territory authorized, by the laws thereof to take the proof and acknowledgment of deeds. It was the intention of the legislature not to restrict, but to enlarge the class of officials of other States authorized to take and certify affidavits to be used in this State. The affidavit of Pousette, verified March 4, 1884, is not certified as required by the section of the Code above cited, and cannot be considered on this appeal.
This construction of section 844 is in accordance with Phelps v. Phelps (6 N. Y. Civ. Pro. Rep., 117; affirmed, 32 Hun, 642); Williams v. Waddell (5 N. Y. Civ. Pro. Rep., 191); Harris v.
Order affirmed, with ten dollars costs and disbursements.
