Day v. Devitt

81 A. 368, 79 N.J. Eq. 342, 1911 N.J. Ch. LEXIS 19
CourtNew Jersey Court of Chancery
DecidedOctober 21, 1911
StatusPublished
Cited by7 cases

This text of 81 A. 368 (Day v. Devitt) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Day v. Devitt, 81 A. 368, 79 N.J. Eq. 342, 1911 N.J. Ch. LEXIS 19 (N.J. Ct. App. 1911).

Opinion

Garrison, V. C.

The original bill in this suit was filed to compel the specific -performance by Martin B. Devitt and wife of a contract made between the said Martin B. Devitt and wife and the complainant, Michael C. Day, which contract was dated the 24th day of December, 19Q6, and related to a piece of-real estate in Jersey City.

Upon the final hearing upon the original bill and the answer and cross-bill of Devitt and wife thereto such facts were developed as caused the complainant to move for and obtain leave to amend his bill, and subsequently to obtain leave to file a supplemental bill herein.

An understanding of the situation will be best had by a recital of facts in narrative form:

The property in question belonged, at the time of her death, to Mary A. Fallon, who was the wife of James Fallon and the mother of the infant defendants herein. At the time of her death the title to the property became vested in the children, subject to the curtesy right of the husband. The only encumbrance upon the property at this time was a mortgage which originally had been $500, but upon which there was due at that time about three hundred and thirty odd dollars. This mortgage was held by the New Jersey Title Guarantee and Trust Company. The value of the property at that time was between four and five thousand dollars. There was no guardian acting in behalf of the children, and James Fallon, the father, was their natural guardian, under the circumstances. James Fallon conceived the idea that it was desirable to sell the property in question, and that the best way to effect this was to obtain the outstanding mortgage and foreclose it, thus cutting out the rights of the children, the owners, and to sell the thus cleared title. He had reason to believe that he could obtain at least $4,500 for the property if the title was cleared. Martin B. Devitt was a friend of Fallon’s, and Fallon disclosed [345]*345his scheme to Devitt, and Devitt consented to buy the mortgage in his own name, foreclose the same and .obtain the title and dispose of the same for the benefit of the owners; and upon the 15th day of March, 1906, the New Jersey Title Guarantee and Trust Company assigned the bond and mortgage to Martin B. Devitt in consideration of the sum of $336.30.

On the 24th of May, 1906, Devitt filed a bill in this court to foreclose the mortgage. Fallon and the children were of course parties defendant. No defence was interposed, and, on the 26th of November, 1906, the complainant Devitt purchased the property at the sheriff’s sale for $500. He obtained his deed from the sheriff on the 4th day of December, 1906, and on the 24th day of December, 1906, he and his wife entered into the contract in issue in this suit by which he agreed to sell the property in question to Michael C. Day for $4,§00, $200 of which was then paid him. The title by the agreement was to be clear.

It is perfectly plain from the testimony of Devitt himself, apart from any burden or duty which the law would cast upon him, that he acted in this matter solely to protect the interest of Fallon, the husband, and the infant children of Fallon, the owners of the property. He says he went into it “to do a little missionary work and help outand after he had given a full, and I believe trustful version, he was asked by the court a question, which, together with his answer, I think fully discloses his attitude. He was asked whether he understood that his relationship toward this property was to get his own money out of it which he had put in to purchase the mortgage, and then hold the balance in some way for the Fallon family, and he said that that was exactly his understanding. The situation in which he thus voluntarily places himself is practically that in which the law would have placed him even against his will. Johns v. Norris (Chancellor Zabriskie, 1871), 22 N. J. Eq. (7 C. E. Gr.) 102; Johns v. Norris (Court of Errors and Appeals, 1875), 27 N. J. Eq. (12 C. E. Gr.) 485.

After he had disclosed his relationship toward the property by this testimony the amended and supplemental bills were filed, the other defendants were brought in as parties, and the court appoinxecí a solicitor for the infants so that they might have inde[346]*346pendent representation before the court. By the amended and supplemental bills the complainant assumed this attitude: By contract between the complainant and Devitt and wife, the defendants Devitt and wife engaged to sell the property in question to the complainant for $4,500. Being advised by the testimony of Devitt in the suit that he occupied the position of trustee, the complainant had the right, if not the duty, of bringing the cestui que trusteni before the court, they being proper, if not necessary, parties under the circumstances. And, further, it being developed by such testimony that Devitt would probably be held to be a trustee of the land for the said infants, and therefore unable to sell the same until he should have received the sanction of this court, there was an additional reason why the complainant had the right if not the duty to bring the infants before the court. And it further developing by such testimony that Devitt and the Fallon children undoubtedly (and perhaps Fallon, the father of the children) had interests in tire $4,500 to be paid as the purchase price, the complainant was required, after irotice of these facts, to bring all of these parties before the court so as to protect himself, secure a good title, and have all of the rights in this subject-matter adjudicated in the one action.

As I understand the attitude of the defendant Devitt, it is this: He does not deny the facts ; he frankly and commendably sets forth facts which show that he was a trustee; that his sole interest in the matter was to secure to the husband who had the curtesy interest, and the children who had the fee, the benefits of this property, and that all that he did was to that end; but he says, since Day made a contract to purchase the property from him, and he is now willing to give Day a. deed for whatever interest he individually has in the property, that is all that Day can require, and that the other parties defendant are improper parties defendant, and no decree should be made against Devitt in the suit in which such other defendants are parties.

There are some suggestions by the defendant Devitt of laches, but in my view of this case they are not such as to require serious consideration. The proofs show that the parties were negotiating back and forth for a long time after the date fixed for the final settlement, and the circumstances of the purchase of this mort[347]*347gage for so small a sum, and the sale of the property to Devitt for what was admitted to be only one-ninth of its value, and the presence of infants and their rights were under discussion, and the complainant, Dajr, was always insisting upon wishing to take the property, and never by any act or statement showed an abandonment, seems to me to settle the question, and to show that there was no laches under any of the applications of that doctrine which I have found in this state.

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Bluebook (online)
81 A. 368, 79 N.J. Eq. 342, 1911 N.J. Ch. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/day-v-devitt-njch-1911.