Case Name: Alfred L. Holihan et el., Plaintiffs, v. The City of New York, Defendant
Court: New York Supreme Court
Jurisdiction: New York
Decision Date: 1900-12
Citations: 33 Misc. 249
Docket Number: 
Parties: Alfred L. Holihan et el., Plaintiffs, v. The City of New York, Defendant.
Judges: 
Reporter: New York Miscellaneous Reports
Volume: 33
Pages: 249–249

Head Matter:
Alfred L. Holihan et el., Plaintiffs, v. The City of New York, Defendant.
(Supreme Court, New York Trial Term,
December, 1900.)
Interest — Does not run against a municipal corporation upon an accrued debt until demand.
Where a debt has accrued against a municipal corporation, interest does not begin to run upon it until payment has been demanded of the corporation.
Motion to correct judgment as to allowance of interest or claim sued upon.
John Whalen, Corporation Counsel, and George O’Reilly, for motion.
Black, Olcott, Gruber & Bonynge, opposed.

Opinion:
McAdam, J.
On November 14, 1900, the plaintiffs entered judgment against the defendant for the sum of $936.83, with interest and costs, in an action for goods sold and delivered. Interest was calculated from January 18, 1899, the date of the last delivery of the goods, although no demand was made upon the defendant's comptroller until January 18, 1900. Defendant contends that the interest should have been calculated from the date of demand, and moves to amend the judgment by deducting from the amount thereof the difference between the interest for the two periods. As to the payment of interest on accrued debts, the authorities apply a different rule to the case of a municipality from that which is applicable where the debtor is a private person. The individual is bound to seek his creditor and pay the debt when it becomes due, whereas a municipal corporation may require a demand before subjecting itself to the burden of interest. Paul v. Mayor, 7 Daly, 144; Donnelly v. City of Brooklyn, 7 N. Y. Supp. 49, 50; affd., 121 N. Y. 9; Taylor v. Mayor, 67 id. 87; People v. Canal Comrs., 5 Den. 404; Matter of College Place, N. Y. L. J., May 7, 1895; Matter of College Place & Greenwich Street, id. April 16, 1895. Motion granted.
Motion granted.