New York Court of Appeals
The Bath Gas Light Company, Respondent v. John Claffy, Appellant, Impleaded With Others
December 1, 1896151 N.Y. 24
Summary
The Court affirmed the lower court's judgment for the Bath Gas Light Company, holding that the lease of its entire plant to United Gas, Fuel and Light Company was ultra vires and void as against public policy, but the lessee remained liable for rent accrued during its possession; the bond securing the lease was likewise void and the surety not liable. The Court also held the plaintiff not entitled to recover the taxes assessed. Justice Vann dissented, arguing that the ultra vires lease should preclude any recovery and the judgment should be reversed.