Chase v. Hogan

19 Bosw. 431
CourtThe Superior Court of New York City
DecidedMarch 24, 1860
StatusPublished

This text of 19 Bosw. 431 (Chase v. Hogan) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chase v. Hogan, 19 Bosw. 431 (N.Y. Super. Ct. 1860).

Opinion

The Judge, at Special Term, accompanied his decision, with the following opinion:

Slosson, J.

By the terms of the contract the house was to be fully completed before the 1st day of May, 1857.

When completely finished, the plaintiff was to have a deed.

If he neglected to complete it, or neglected to prosecute the work for ten days, the defendant was entitled to insist on the immediate repayment of all the advances he should have made, with interest, and was authorized, in such case, to sell, at public or private sale, all the estate, right, title and interest of the plaintiff in the premises, on giving ten days’ notice in writing of his [437]*437intention so to do, the proceeds of sale to be applied to the defendant’s reimbursements, and the surplus, if any, to be paid to the plaintiff.

The plaintiff suspended work on the house in the latter part of February, 1857.

On the 15th day of April the defendant gave him a written notice, that if, within ten days from that date, he did not repay the moneys he had advanced on the contract, with interest and charges, he would, after the expiration of the ten days, sell all his right, title and interest in the contract at public auction.

The plaintiff having done nothing, the defendant publicly advertised the property for sale at auction, by an advertisement, admitted to have been published in the public papers for six or seven days.

At the sale, the defendant became the purchaser for §10.

On the first day of June, 1858, the defendant contracted to sell the premises to Mee, and to advance him §5,000 towards the erection of a house thereon, upon the completion of which he was to give him a deed of the premises. Mee thereupon commenced the erection of the house, completing what plaintiff had failed to do, with some alterations, and has received a deed of the premises, and is in possession.

This action for specific performance was commenced on the 16th day of June, after the contract with Mee was executed.

The Court cannot now enforce the original contract with the plaintiff. The plaintiff wholly neglected to proceed with the work after stopping it in February, and the only excuse he makes is, that the severity of the winter rendered it unfit to proceed until the ensuing spring.

I think, under the pleadings, this should have been proved.

Even after the notice in April, the plaintiff did not offer to proceed with the work.

The parties, by their own contract, prescribed the mode in which, the plaintiff’s interest was to be foreclosed in case of his default.

This mode was pursued.

There is no proof, it is true, that notice of the day of sale was given to the plaintiff; but I do not think the contract called for it. After ten days’ notice of the intention to sell, the [438]*438defendant might, by the terms of the contract, have sold at private sale.

E. P. Cowles, for appellant.

The plaintiff had failed to perform his contract.

1st. By neglecting to complete the house “prior to the 1st day of May, 1857.”

2d. By allowing the “diligent prosecution of the work” on the premises to be suspended for more than ten days.

It was, in fact, suspended from and after February, 1857, and was never afterward resumed.

3d. By abandoning his contract altogether. And, therefore,

. II. The contingency provided for in the contract having happened, the defendant was authorized to sell all of the right, title and interest of the plaintiff in the premises.

Such sale could be either a public or private one.

The defendant pursued the remedy given him by contract.

1st. He gave the notice which the contract required.

And then caused the premises to be sold at public auction.

Of this the plaintiff had notice.

2d. The defendant sold at private sale to John B. Mee.

We submit that by one, if not by both, of these sales, the plaintiff was divested of any interest he might have in the premises.

But I have great doubt whether he could himself become the purchaser. • The sale was under the authority in the contract; and it is a rule that an agent to sell cannot become the buyer.

The plaintiff had no equity to enforce the contract; but I do not think it equitable to allow this purchase to foreclose the plaintiff from all right to an account;

I think exact justice will be done both parties by denying the prayer for specific performance, but decreeing an account.

Let an account, therefore, be taken of the moneys expended by the plaintiff, and thpse advanced by the defendant, in the éréction of the house, and, if any balance is found due the plaintiff, the defendant must pay it.

Question of costs reserved.

(4 Kent R., 475; Story on Agency, § 211; 1 John. Ch. R., 370; 4 id., 559; 13 John., 359; 21 Barb., 381; 4 Seld., 216.) .

[439]*439The Court below held the reverse of this; but the defendant respectfully insists that —

ITT. The first sale made at public auction, on the 12th May, 1857, at which the defendant himself became the purchaser, was a valid sale, made in strict compliance with the terms of the contract, and one which the law will uphold.

The relation of the plaintiff and defendant was not that of, nor was it analogous to that of, principal and agent, but was that of mortgagor and mortgagee.

The defendant might, therefore, at the public sale provided for in the contract, become the purchaser.

In foreclosure sales by advertisement, under the statute, it is expressly provided that the mortgagee may become the purchaser. (2 R. S., p. 546, § 7.) And this case comes fairly within that rule.

Besides, by the terms of this contract, by the nature of the case itself, it is to be presumed that the parties contemplated that either one might buy at public sale.

How, upon such sale, was the plaintiff to protect himself unless he was permitted to bid?

The sale was to be of all the “ estate, right, title and interest of the plaintiff in the premises.

All which the plaintiff could realize upon such sale was, consequently, the balance left after the payment of the five thousand dollars, and defendant’s advances, with interest.

So, too, unless the defendant could bid, he would hazard the loss of all his advances. He would realize such loss, if a stranger should purchase for a sum less than what he had advanced. Against such loss, the defendant could only protect himself by his bids at the sale.

If either party could bid, he could buy, for the right to one implies the right to the other also.

If these views are correct, they dispose of the case.

But if the Court shall rule otherwise, then we submit that —

IV”. The private sale made to John B. Mee, on the 1st day of June, 1858, was a valid sale under the contract.

The work on the building, at the time of this sale, on the 1st June, 1858, had been suspended for about eighteen months, for [440]

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Bluebook (online)
19 Bosw. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chase-v-hogan-nysuperctnyc-1860.