Overview
Case summary
In Benedict v. Moore, the complainant Elias C. Benedict filed a bill in equity against John G. Moore and others, alleging he transferred 2,000 shares of Williamsburgh Gaslight Company stock to defendants solely to enable consolidation of Brooklyn gas companies, with shares to remain his property until exchanged for stock and bonds of the new corporation. Defendants allegedly used the shares for a different scheme, converted the property for personal gain, and refused to account or return profits. Defendants filed general demurrers challenging the bill's sufficiency. The Circuit Court for the Southern District of New York, per Judge Coxe, overruled the demurrers, holding the bill stated a cause of action for equitable relief—including declaration of trust, accounting, and injunction—as allegations showed violation of agreement, conversion, and inadequate remedy at law, regardless of redundant matter in the bill.
Abstract
Complainant transferred shares to defendants solely to facilitate consolidation of gas companies, with shares to remain his property until exchanged for new corporation's stock and bonds, but defendants allegedly used them for a different scheme, converted the property for personal gain, and refused to account or return profits. Defendants filed general demurrers challenging the bill's sufficiency, which the court overruled, holding that the bill stated a cause of action for equitable relief including declaration of trust, accounting, and injunction due to violation of agreement, conversion, and inadequate remedy at law. The demurrers were overruled, requiring defendants to answer or plead within 20 days.
Opinion of the court
opinionCOXE, District Judge
- Bill's length and redundancy do not affect sufficiency if cause of action is stated
- Allegations support equitable relief for trust declaration, accounting, and injunction
- Common law provides no adequate remedy given facts alleged
- Bill contains averments sufficient to prove cause of action
Jurisdiction
not challenged- Bill in equity filed in Circuit Court, S.D. New York
Procedural posture
- Sufficiency of bill in equity to state a cause of action
Legal categories
Case record
Issues & holdings
de novo
Bill alleges facts showing defendants obtained property under agreement, violated it, converted property for personal gain, and refused to account, warranting equitable relief
Issue preserved for review
Holdings of the court
Error analysis
- Bill fails to state cause of action sufficient to survive general demurrer — procedural · no error foundNot applicable as no error found · not applicable
Standards of review
- Sufficiency of bill on general demurrer — de novo Court reviews legal sufficiency of allegations in bill to determine if cause of action is stated
Timeline
Bill in equity filed by Elias C. Benedict against John G. Moore et al.
Outcome: Case initiated
Initiates equity proceeding seeking declaration of trust, accounting, and injunction
Defendants filed general demurrers to the bill
Outcome: Demurrers presented for ruling
Challenges legal sufficiency of bill to state cause of action
Court overruled demurrers, holding bill sufficient to state cause of action in equity
Outcome: Demurrers overruled
Allows case to proceed; establishes bill's allegations support equitable relief
Facts & evidence
Key facts
8 facts- Complainant owned 2,000 shares of Williamsburgh Gaslight Company stock
- Complainant transferred shares to individual defendants solely to enable consolidation of Brooklyn gas companies
- Shares were to remain complainant's property until surrendered for ratable share of stock and bonds of consolidated corporation
- Defendants obtained possession of shares under agreement to use them for consolidation
- Defendants used shares for different scheme, not the agreed consolidation
- Defendants declined to surrender original shares or new company stock/bonds
- Defendants made profits from transaction and refused to account or turn over profits
- Amount of profits unknown to complainant
Procedural history
3 steps- Bill in equity filed
- Defendants filed general demurrers
- Court considered demurrers
Evidence in the record
- Bill in equity (65 paragraphs, 138 folios, 34 pages)
- Evidence type: Bill in equity allegations · Challenge basis: General demurrer for failure to state cause of action · Trial court ruling: admitted · Reasoning: Allegations show defendants obtained property under agreement, violated it, converted property, made gains, and refused to account, warranting equity · Challenged on appeal: false · Appellate outcome: not applicable
Objects of relevance
Authorities
Standards & doctrines
- De novo review of bill sufficiency
- Equitable relief for inadequate legal remedy
Legal principles applied
- Bill is good on general demurrer if allegations show cause of action, regardless of superfluous content