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Keywords

plaintiffdefendantdamagesstatutetrialcorporationpiracy

plaintiffdefendantdamagesstatuteappealtrial

Related Cases

Akely v. Kinnicutt, 238 N.Y. 466, 144 N.E. 682

Facts

The action was brought by 193 plaintiffs, each claiming to have an individual, separate, and independent cause of action against the defendants for damages caused by the defendants' alleged fraud. The defendants conspired to organize a corporation and misrepresented the value of its stock through a fraudulent prospectus, which induced the plaintiffs to purchase shares at inflated prices. Each plaintiff's claim arose from their reliance on the false representations made by the defendants.

The action is brought by 193 plaintiffs, each one claiming to have an individual, separate, and independent cause of action against the defendants for damages caused by the fraud of the latter.

Issue

Does each of the 193 causes of action alleged in the complaint contain such a common question of law or fact as to permit the joinder of all of said causes in one action pursuant to section 209 of the Civil Practice Act?

‘(1) Does each of the 193 causes of action alleged in the complaint herein contain such a common question of law or fact as to permit the joinder of all of said causes in one action pursuant to section 209 of the Civil Practice Act?

Rule

Section 209 of the Civil Practice Act allows for the joinder of plaintiffs in one action if they have a right to relief arising out of the same transaction or series of transactions, provided that common questions of law or fact exist.

‘Section 209. Joinder of Plaintiffs Generally. All persons may be joined in one action as plaintiffs, in whom any right to relief in respect of or arising out of the same transaction or series of transactions is alleged to exist whether jointly, severally or in the alternative, where if such persons brought separate actions any common question of law or fact would arise; provided that if upon the application of any party it shall appear that such joinder may embarrass or delay the trial of the action, the court may order separate trials or make such other order as may be expedient, and judgment may be given for such one or more of the plaintiffs as may be found to be entitled to relief, for the relief to which he or they may be entitled.’

Analysis

The court determined that the causes of action involved common questions of law and fact, particularly regarding the defendants' alleged conspiracy and fraudulent misrepresentation of stock value. The court found that the common issues were substantial and outweighed the individual issues presented by each plaintiff's case. Additionally, the court concluded that the separate transactions of stock purchases by the plaintiffs constituted a series of transactions under the statute.

We do not need to hold that the presence in each cause of action of some common but inconsequential or theoretical issue would be a sufficient reason for assembling in one complaint nearly 200 causes of action.

Conclusion

The court affirmed the order allowing the joinder of the plaintiffs' claims, concluding that the statute was not unconstitutional and that the trial could proceed with the joined causes of action.

Therefore, as the appeal now stands, not only by interpretation of the statute as it seems plainly to read, but also applying the decisions made in the interpretation of the English Practice Act and of a similar act in New Jersey… we think the order should be affirmed, with costs.

Who won?

The plaintiffs prevailed in the case as the court upheld the decision to allow their claims to be joined in one action, finding that the common questions justified such a procedure.

The courts below have held that it is permissible under said section for plaintiffs to unite these many causes of action in one complaint.

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