71 N.Y. 222, People ex rel. Attorney-General v. Security Life Ins. Co.

Citation71 N.Y. 222
Party NameIN THE MATTER OF THE PEOPLE ex rel. ATTORNEY-GENERAL v. THE SECURITY LIFE INSURANCE COMPANY.
Case DateNovember 13, 1877
CourtNew York Court of Appeals

Page 222

71 N.Y. 222

IN THE MATTER OF THE PEOPLE ex rel. ATTORNEY-GENERAL

v.

THE SECURITY LIFE INSURANCE COMPANY.

New York Court of Appeal

November 13, 1877

Argued Oct. 9, 1877.

Page 223

COUNSEL

Robert Sewell, for appellant. The policyholders in this corporation were partners. (Grissil's Case [L. R.], 1 Ch., 528; Kean v. Johnson, 1 Stock., 401; Col. on Part. 641; Hoyle v. P. & N. R. Co., 54 N.Y. 314; Kohler v. B. R. Co., 2 Black., 715; A. & A. on Corp., § § 41, 591; Bissett on Part., § § 107-109, 254, 255; Oakley v. Aspinwall, 2 Sandf., 7; Penny v. Black, 9 Bosw., 310; Man. Brass Co. v. Sears, 45 N.Y. 797; Ontario Bank v. Hennessy, 48 Id., 545; Bullard v. Kenny, 10 Cal., 60; In re European Co., 5 Big. Ins. R., 714; N.Y. Life Ins. Co. v. Statham, 5 Ins. L. J., 868; Mygatt v. N.Y. Pro. Co., 21 N.Y. 61.) A policyholder in a life insurance company is not a creditor of the company within the meaning of the Revised Statutes respecting proceedings against corporations in equity. ( King v. Ac. L. Ins. Co., 3 C. B. [ [N. S.], 151; 5 Big. Ins. R., 635.) A member of a corporation may sue it for a cause of action arising out of his membership. ( Hill v. Manchester, 5 A. & D., 866; Culburter v. H. Co., 4 McL., 544.) The receiver could sue those holders of policies who had paid part of their premium in notes, and recover the amount of the notes. ( Osgood v. Ogden, 4 Keyes, 70; Farmers' Bank v. Maxwell, 32 N.Y. 579; Hope M. Ins. Co. v. Perkins, 2 Abb. Ct. App. Cases, 383; Hone v. Allen, 1 Sand., 171; Brouwer v. Appleby, Id . 158; Desraimes v. Mer. Co., 1 N.Y. , 371; Howland v. Meyer, 3 Id., 290; Brown v. Croake, 4 Id., 51; Lawrence v. Nelson, 21 Id., 158; 4 Bosw., 240; Cruikshank v. Brouwer, 11 Barb., 228; Mygatt v. N.Y. Co., 21 N.Y. 57; White v. Haight, 16 Id., 321.)

William Barnes and Hamilton Cole, for respondents. No creditor of an insolvent corporation is entitled to a preference in payment, unless he has a prior legal or equitable lien on, or a specific appropriation of some particular part of the

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corporate property or funds. ( Lowerre v. Am. F. Ins. Co., 6 Paige, 482; De Peyster v. Am. F. Ins. Co., Id., 486.)The relation of the policyholders to each other is not that of copartners. ( Baldwin v. Burrows, 47 N.Y. 199; Patterson v. Blanchard, 5 Id., 186; Ogden v. Astor, 4 Sandf., 311.)

ALLEN, J.

This court is without jurisdiction over the appeal. It is from...

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15 practice notes
  • 214 N.Y. 553, In re Empire State Sur. Co.
    • United States
    • New York New York Court of Appeals
    • April 13, 1915
    ...E. A. Ins. Assn., 175 Mass. 196; Matter of Attorney-General v. North American Life Ins. Co., 91 N.Y. 57; People v. Security Life Ins. Co., 71 N.Y. 222; Matter of Attorney-General v. Cont. L. I. Co., 27 Hun, 195.) The power of the court to fix a date for the valuation of claims under section......
  • 131 N.Y. 354, In re Equitable Reserved Fund Life Ass'n of City of New York
    • United States
    • New York New York Court of Appeals
    • March 1, 1892
    ...Ins. Co., 82 N.Y. 336; People v. E. M. L. Ins. Co., 92 id. 105; Schimpf v. L. V. M. Ins. Co., 82 Penn. St. 373; People v. S. L. Ins. Co., 71 N.Y. 222; Atty.-Gen. v. C. L. Ins. Co., 88 id. 77; People v. K. L. Ins. Co., 34 Hun, 476; Lawrence v. Nelson, 21 N.Y. 158.) Only those claimants under......
  • The myth of the neutral amicus: American courts and their friends, 1790-1890.
    • United States
    • Constitutional Commentary Vol. 20 Nbr. 1, March 2003
    • March 22, 2003
    ...87 U.S. 590 (1874) Acosta v. The Halcyon, 1 F. Cas. 58 (S.D. Fla. 1877) People ex rel. Attorney-General v. Security Life Ins. Co., 71 N.Y. 222 (1877) Malone v. The Pedro, 16 F. Cas. 556 (S.D. Fla. 1878) Hawes v. Contra Costa Water Co., 11 F. Cas. 862 (C.C.S.D. Cal. 1878) Hammond v. Lesseps,......
  • 152 N.Y. 529, Mason v. Henry
    • United States
    • New York New York Court of Appeals
    • April 20, 1897
    ...represents, the creditors and all interested in the fund, including policyholders. (People ex rel. Atty.-Gen. v. Security Life Ins. Co., 71 N.Y. 222; 77 N.Y. 272.)Primarily, the receiver stands in the place of the corporation; placed there by the court, in order to preserve its assets and p......
  • Request a trial to view additional results
13 cases
  • 214 N.Y. 553, In re Empire State Sur. Co.
    • United States
    • New York New York Court of Appeals
    • April 13, 1915
    ...E. A. Ins. Assn., 175 Mass. 196; Matter of Attorney-General v. North American Life Ins. Co., 91 N.Y. 57; People v. Security Life Ins. Co., 71 N.Y. 222; Matter of Attorney-General v. Cont. L. I. Co., 27 Hun, 195.) The power of the court to fix a date for the valuation of claims under section......
  • 131 N.Y. 354, In re Equitable Reserved Fund Life Ass'n of City of New York
    • United States
    • New York New York Court of Appeals
    • March 1, 1892
    ...Ins. Co., 82 N.Y. 336; People v. E. M. L. Ins. Co., 92 id. 105; Schimpf v. L. V. M. Ins. Co., 82 Penn. St. 373; People v. S. L. Ins. Co., 71 N.Y. 222; Atty.-Gen. v. C. L. Ins. Co., 88 id. 77; People v. K. L. Ins. Co., 34 Hun, 476; Lawrence v. Nelson, 21 N.Y. 158.) Only those claimants under......
  • 152 N.Y. 529, Mason v. Henry
    • United States
    • New York New York Court of Appeals
    • April 20, 1897
    ...represents, the creditors and all interested in the fund, including policyholders. (People ex rel. Atty.-Gen. v. Security Life Ins. Co., 71 N.Y. 222; 77 N.Y. 272.)Primarily, the receiver stands in the place of the corporation; placed there by the court, in order to preserve its assets and p......
  • 106 N.Y. 635, Sullivan v. Miller
    • United States
    • New York New York Court of Appeals
    • October 4, 1887
    ...65.) The proper remedy of Little & Co. is by a motion in the suit in which the receiver was appointed. (60 N.Y. 92; 65 Barb. 275; 71 N.Y. 225; 79 id. 271; 4 Paige, 374; 1 id. 269; 14 Hun, 8; 14 W. Dig. 241; 36 Barb. 15; 48 N.Y. 62; 10 Hun, 89; 72 N.Y. 170; Hazard v. McFarland, Seld. Not......
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2 books & journal articles
  • The myth of the neutral amicus: American courts and their friends, 1790-1890.
    • United States
    • Constitutional Commentary Vol. 20 Nbr. 1, March 2003
    • March 22, 2003
    ...87 U.S. 590 (1874) Acosta v. The Halcyon, 1 F. Cas. 58 (S.D. Fla. 1877) People ex rel. Attorney-General v. Security Life Ins. Co., 71 N.Y. 222 (1877) Malone v. The Pedro, 16 F. Cas. 556 (S.D. Fla. 1878) Hawes v. Contra Costa Water Co., 11 F. Cas. 862 (C.C.S.D. Cal. 1878) Hammond v. Lesseps,......
  • Is the New York State Court of Appeals still "friendless?" An empirical study of amicus curiae participation.
    • United States
    • Albany Law Review Vol. 72 Nbr. 3, June 2009
    • June 22, 2009
    ...position of one of the parties and were not a true friend of the court). But see People ex rel. Attorney-General v. Sec. Life Ins. Co., 71 N.Y. 222, 225 (1877) (noting that a non-party to litigation who wants to advocate for a position before the court should appear as amicus curiae). (56) ......