Borough of Hasbrouck Heights v. Agrios

10 F. Supp. 371, 1935 U.S. Dist. LEXIS 1691
CourtDistrict Court, D. New Jersey
DecidedMarch 20, 1935
StatusPublished
Cited by9 cases

This text of 10 F. Supp. 371 (Borough of Hasbrouck Heights v. Agrios) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Borough of Hasbrouck Heights v. Agrios, 10 F. Supp. 371, 1935 U.S. Dist. LEXIS 1691 (D.N.J. 1935).

Opinion

FORMAN, District Judge.

This is a motion to vacate final judgment, entered August 5, 1931, and August 19, 1931.

This suit was commenced in 1928 by the borough of Hasbrouck Heights against Philip Agrios and the Royal Indemnity Company to recover damages from Agrios and the Royal Indemnity Company (surety for Agrios), for a breach of contract by Agrios for the building of a sewerage works and disposal plant for the borough. The cause came on before Judge Runyon on the motion by the defendant the Royal Indemnity Company to strike the complaint filed by the plaintiff on the ground that it failed to state a cause of action. This motion was pending before Judge Runyon for two [372]*372years and he was unable to dispose of it because of his continuous illness. The plaintiff the borough, and the defendant the Royal Indemnity Company, consented to refer the matter for decision to a special master, and on April 9, 1931, Judge Fake signed a rule ordering the motion of the defendant to be referred for decision and report to Hon. Merritt Lane, a special master. The master filed his report on July 21, 1931, advising that the motion to strike the complaint be granted, and at the same time sent a copy of his report to the plaintiff and defendant. On July 3, 1931, Judge Fake signed a rule adopting the report of the master and ordering the complaint to be struck and final judgment to be entered in favor of the defendant Royal Indemnity Company. This rule was not filed until August 5, 1931. Apparently believing that this rule would not conform to rule 214 of the Supreme Court of New Jersey, Judge Fake signed another rule on August 17, 1931, ordering the complaint to be struck and entering final judgment in favor of the defendant. This rule was filed on- August 19, 1931.

It appears that no formal notice was given the plaintiff that these rules would be entered. The plaintiff took no exceptions to the rule of the master and did not appeal from the judgment entered by the District Court.

On March 12, 1934, the plaintiff the borough of Hasbrouck Heights made a motion before Judge Fake to vacate the orders of August 5, 1931, and August 17, 1931, on the following grounds:

“(1) Both the said orders were made although the Court was without jurisdiction or authority to make the same, or either of them because:
“(a) The same were made by the Court without notice to the plaintiff. '
“(b) The same were made by the Court without the plaintiff being afforded an opportunity to be. heard in respect thereto.
“(c) The same purports to enter a judgment final although there never had been a trial of the issue, or of the matter in dispute between the plaintiff and defendants.
“(d) The same were based on the reference of a motion of the defendant to strike, to a Master when the Court was without jurisdiction or lawful authority to refer said motion to a Master.
“(e) The same were based on the report of a Master, when such Master was without jurisdiction or lawful authority to make any report.
“(f) The same were based on the report of a Master, when the Court was without jurisdiction or lawful authority to receive, entertain or consider any report of any Master in relation thereto.
“(g) The proceedings had before the Master were illegal, void and a nullity, and the entry of the Orders based on such illegal, void and null proceedings are void and null.
“(1) Both of said Orders were improvidently made.”

Judge Fake was unwilling to dispose of the motion for the reason that it appeared that he was the attorney for the borough of Hasbrouck Heights, the plaintiff, in 1924, when the contract between the borough and Agrios was made, and the bond of the defendant the Royal Indemnity Company was executed. Accordingly, the same motion was made before Judge Clark on June 25, 1934. Judge Clark was of the opinion that the motion should be disposed of by Judge Fake. The motion was renewed on November 7, 1934, on the same grounds set out above in the motion made on April 10, 1934.

The first question to be disposed of relates to the power of this court over its judgments and decrees after the passage of the term. The judgment which the plaintiff seeks to vacate was entered in August, 1931, and the motion to vacate it was not made until March, 1934. Several terms of the court have intervened. A court cannot set aside or alter its final judgment after the expiration of the term at which it was entered, unless the proceeding for that purpose was begun during the term. United States v. Mayer, 235 U. S. 55, 67, 35 S. Ct. 16, 59 L. Ed. 129. There are certain exceptions that are not relevant here. But if the judgment was void, and this is what the plaintiff appears to contend, it cannot, of course, be made effective by the passage of time.

Doubtless, the rule entering the judgment which was not filed until August 1, 1931, is invalid. Rule 214 of the Supreme Court of New Jersey requires *the entry of the rule in the minutes of the court within ten days after it has been signed. But there was no reason why the defendant could not obtain a new rule, as it did, ordering the complaint to be struck and final ■ judgment to be entered. The failure of the [373]*373first rule could not invalidate the report of the master. It was only necessary for the defendant, to go back and correct the formal omission which was necessary to complete its successful attack on the complaint. Singer v. Juechter, 127 A. 795, 2 N. J. Misc. 714; Jersey City v. Davis, 80 N. J. Law, 609, 76 A. 969. The rule entered on August 19, 1931, was valid.

But the plaintiff contends that the rule was void for the reason that it was made without notice to it. The plaintiff contends that this court is bound by the law and the rules of court of the state of New Jersey for the procedure in the matter of the reference, and relies on section 155 of the Practice Act of 1903 (3 Comp. St. N. J. 1910, p. 4101, § 155), and Supreme Court Rule 100. It is only necessary to point out that the statute and rule apply to trial by referees. The reference here was of the same nature as those, the practice for which is set out in section 1 of the rules of the New Jersey Supreme Court, entitled “Preliminary References.” Under those rules, a Supreme Court Commissioner may determine a motion to strike out a pleading and enter any order the court could make. There is no such practice in the District Court of the United States.

The rule signed by Judge Fake on April 9, 1931, referring to the motion to the master for his decision is as follows:

“Upon consent heretofore given of the plaintiff, Borough of Hasbrouck Heights, a Municipal Corporation, and the defendant, Royal Indemnity Company, a corporation:
“It is on this 9th day of April, 1931, ordered that the motion of the defendant, Royal Indemnity Company to strike out the complaint of the plaintiff as against said defendant, Royal Indemnity Company, be and the same is hereby referred for decision and report to Merritt Lane, Esq. as Special Master.
“Guy L. Fake, Judge.

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Bluebook (online)
10 F. Supp. 371, 1935 U.S. Dist. LEXIS 1691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borough-of-hasbrouck-heights-v-agrios-njd-1935.