Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

CHASE NAT. BANK OF NEW YORK v. DIRECTORATE GEN. OF

January 17, 1951

CHASE NAT. BANK OF CITY OF NEW YORK
v.
DIRECTORATE GENERAL OF POSTAL REMITTANCES & SAVINGS BANK, etc., et al.



The opinion of the court was delivered by: SUGARMAN

On January 19, 1950, the Supreme Court of the State of New York, County of New York, entered an order granting the petitioner, Chase National Bank of the City of New York, (hereinafter referred to as Chase) leave to issue a summons against and serve a complaint upon Directorate General of Postal Remittances & Savings Bank, and seventeen other defendants. *fn1"

Pursuant thereto, a complaint against said defendants was issued and, together with a summons and, in accordance with an order made on the 23rd of January, 1950, was served by publication upon said defendants.

 The complaint alleges that the plaintiff is a national banking association; that the defendants Directorate General of Postal Remittances & Savings Bank and Chinese Postal Remittances & Savings Bank are commercial banking institutions organized under the laws of the Republic of China; that the plaintiff, at its branch at 18 Pine Street, holds in two deposit accounts, to the credit of defendant Directorate General of Postal Remittances & Savings Bank $ 532,829.68 and $ 200,000.00 respectively; that the plaintiff, at its same branch, holds in a deposit account to the credit of defendant, Chinese Postal Remittances & Savings Bank, $ 58,293.67. It further alleges that, according to the plaintiff's records, five of the defendants *fn2" are the persons authorized to sign documents affecting the $ 532,829.68 account of defendant Directorate General of Postal Remittances & Savings Bank; that six *fn3" of the defendants are authorized to sign documents affecting the $ 200,000.00 account of the defendant Directorate General of Postal Remittances & Savings Bank; that six *fn4" of the defendants are authorized to sign documents affecting the $ 58,293.67 account of defendant Chinese Postal Remittances & Savings Bank. It is further alleged that the defendant, Republic of China, represented in the United States by the defendant Wellington Koo, has an interest in said accounts. The complaint then alleges that on January 6, 1950 the plaintiff received a cable from Peking, China, purportedly signed by defendant Su Yu Nung, 'Director General of Postos', in substance advising the plaintiff that Su Yu Nung took over the three accounts, stopped payments therefrom and instructed the plaintiff not to honor directions of the prior officers of the defendant Directorate General of Postal Remittances & Savings Bank. Thereafter and on January 11, 1950, the complaint continues, the plaintiff received a cable purportedly from the defendant, Directorate General of Postal Remittances & Savings Bank, asserting its right to the accounts to the exclusion of the 'so called Peking China Director General of Postos'. It is also alleged that because of the present unsettled conditions in China, the plaintiff believes that there are others, unknown to it who might assert an interest in the accounts, or claim to have authority to act in connection therewith. *fn5" The usual relief of interpleader is then sought.

 On January 24th an order was made in the State court directing the plaintiff to retain to the credit of the action until final judgment, the three deposit balances. That order provided 'upon the entry of this order plaintiff shall be and is hereby discharged from any and all liability to any of the parties to this action with respect to all of said deposit balances * * *'

 On April 21st a motion was made, returnable at Special Term, Part III of the New York County Supreme Court, jointly by Nordlinger, R. & B., as attorneys for the defendants Republic of China and Wellington Koo, and Burke & B., as attorneys for thirteen of the remaining sixteen defendants, namely, all except Su Yu Nung 'Director General of Postos', 'John Doe' and 'Richard Roe', seeking an order striking out an appearance by Wolf, P. R. & W., as attorneys for the defendants Directorate General of Postal Remittances & Savings Bank, Chinese Postal Remittances & Savings Bank and Su Yu Nung 'Director General of Postos' as a defendant in the action.

 On May 3rd the motion was submitted, without argument, to Mr. Justice Edward R. Koch of the New York Supreme Court. The movants urged that the application be granted; Wolf, P. R. & W. requested an adjournment of ninety days. The Department of State of the United States delivered to the court a letter stating that the United States Government recognized the Nationalist Government as the Government of China; recognized Dr. Wellington Koo, the Chinese Ambassador to the United States, as the accredited representative of the Government of China in the United States and as the only person authorized to speak here for the Chinese Government. The Court took the motion under advisement.

 While the motion was pending and before a decision thereof by Mr. Justice Koch, certain other papers were filed. The movants by Burke & B. submitted an affidavit sworn to May 12, 1950 indicating that the plaintiff, Chase National Bank had received a certificate under Sec. 25(b) par. 4 of the Federal Reserve Act, 12 U.S.C.A. § 632, relative to the individuals having authority to sign with respect to the three accounts in question and accepting those accounts as belonging to the Directorate General of Postal Remittances & Savings Bank, an instrumentality of the National Government of China, the Government recognized by the United States. On the other hand, by an affidavit dated also May 12th, Wolf, P. R. & W. reiterated their request for a ninety day adjournment and, without prejudice, made substantive opposition to the application, asking its denial, or in the alternative, the appointment of a referee to hear the issues of fact arising thereunder. Additional affidavits were submitted by Wolf, P. R. & W. in opposition to the motion, the most significant of which is that sworn to May 31, 1950 indicating that the defendant H. C. Doong, who, until that time appeared to have been represented by Burke & B., authorized Wolf, P. R. & W. to represent him in the litigation and denied the authority of Burke & B. to have done so. *fn6"

 Ultimately, and on June 6, 1950, Mr. Justice Koch signed a short form order which was received from him (according to the stamp on its face) by the Clerk of Special Term, Part III on June 7, 1950. The short form order had attached to it the numbered papers submitted originally on the motion, the numbers of which appeared on the short form order and also, a stamped legend 'Memorandum Only'. The affidavits submitted subsequent to the submission of the motion and prior to the date of the short form order, were neither numbered, referred to in, nor attached to the short form order. The typed portion of the short form order reads: 'This is a motion to drop party claiming to be director of interpleaded banks, and to strike out appearance by him for said banks. The party whose appearance is questioned obtained his authority from the regime now in control of China. This regime has not been recognized by the United States as the Government of China; therefore, that regime and those claiming to be authorized by it are without capacity to sue in this court. Russian Socialist Federated Soviet Republic v. Cibrario, 235 N.Y. 255, 139 N.E. 259. Motion is granted. Settle order.'

 On June 10, 1950, four days after the short form order was signed by Mr. Justice Koch, Wolf, P. R. & W., on behalf of defendants Directorate General of Postal Remittances & Savings Bank, Chinese Postal Remittances & Savings Bank and Su Yu Nung, Director General of Postos, had the cause removed from the Supreme Court, New York County, to this court where it received Clerk's Number Civil 58-346. Simultaneously, the same firm of attorneys, but representing the defendant H. C. Doong (see marginal notes 3 and 6, supra), also had the case removed from the Supreme Court, New York County, to this Court, where the matter received Clerk's Number Civil 58-345. Thus, we now have pending in this district two causes, severally filed, emanating from one proceeding in the state court. *fn7"

 On June 15th Wolf, P. R. & W. obtained from one of the judges of this court an ex parte order, extending the time of the defendants Directorate General of Postal Remittances & Savings Bank, Chinese Postal Remittances & Savings Bank, Su Yu Nung, H. C. Doong, K. C. Tseng, Y. F. Loh, Fu Hsu-Ken and Y. W. Chan to answer or move with respect to the complaint until such time as would be fixed in an order to be entered on a motion returnable June 27, 1950 for an extension of time to plead. *fn8"

 On June 16th Wolf, P. R. & W. filed an affidavit in the New York Supreme Court, New York County, contesting that court's authority, in view of the removal of the cause to this court, to further act in the matter.

 On June 21, 1950 the same firm of Wolf, P. R. & W. filed in both pending matters in this court their notice of appearance as attorneys for Wen Hseuh Hung and Pan Shao Chung, individually and on behalf of all insurance policy holders similarly situated, Chen Wen Piao, individually and on behalf of all passbook savings depositors similarly situated and W. F. Wenli, individually and on behalf of all wartime savings certificate holders similarly situated, said defendants allegedly being described in the complaint as the fictitious 'John Doe and Richard Roe'.

 On June 22, 1950 Mr. Justice Koch signed a long form order in the New York Supreme Court providing that Su Yu Nung, 'Director General of Postos' be dropped as a party defendant and that the notices of appearance of Wolf, P. R. & W. as attorneys for the defendants Directorate General of Postal Remittances & Savings Bank, Chinese Postal Remittances & Savings Bank and Su Yu Nung 'Director General of Postos' be stricken. This long form order recited the papers referred to in the short form order and also the affidavits submitted while the motion was pending before Mr. Justice Koch which, as above indicated, were neither numbered nor referred to in the short form order of June 6, 1950. It was not until June 22, 1950 that all of the papers were filed in the New York County Clerk's office. From that order of June 22, 1950 Wolf, P. R. & W. filed a notice of appeal to the Appellate Division, First Department, on July 21, 1950.

 After the removal of the cause to this court, certain motions were made by the parties, in both suits now here pending, which are the basis of the instant determination. Wolf, P. R. & W. moved in one motion for threefold relief: (a) for a hearing under Rule 43(e), Fed.Rules Civ.Proc. 28 U.S.C.A.; (b) for extension of time to plead (see Note 8 supra); and (c) to strike the appearances of Burke & B. on behalf of the defendants H. C. Doong, K. C. Tseng, Y. F. Loh, Fu Hsu-Ken and Y. W. Chan (see Note 8 supra). Wolf, P. R. & W. also moved by a companion motion, to amend the title of the proceedings by substituting Wen Hseuh Hung, Pan Shao Chung, Chen Wen Piao and W. F. Wenli as the true names of 'John Doe and Richard Roe'. Nordlinger, R. & B. and Burke & B., in addition to opposing the aforesaid motions of Wolf, P. R. & W. have jointly moved by way of cross motions, for relief as follows: first, for an order remanding the causes to the New York State Supreme Court, New York County; second, for an ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.