Gluck v. Rynda Development Co.

99 N.J. Eq. 788
CourtNew Jersey Court of Chancery
DecidedJuly 5, 1926
StatusPublished
Cited by16 cases

This text of 99 N.J. Eq. 788 (Gluck v. Rynda Development Co.) 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
Gluck v. Rynda Development Co., 99 N.J. Eq. 788 (N.J. Ct. App. 1926).

Opinion

I will dispose of this matter now. I have allowed the fullest latitude in the trial of this cause, because I thought it best to have a complete record of the whole transaction, so that there will be no question hereafter as to the basis of this decision.

This bill seeks the specific performance of a contract for the sale of land, entered into between the defendant Rynda Development Company as vendor and Chemtec Company as vendee. The complainant Amalia R. Gluck is the assignee of the Chemtec Company. The complainant Maurice B. Gluck is her husband, and, I believe, the real party in interest. The agreement was dated May 1st, 1922, and provided for the sale and purchase of a lot of land sixty feet in front by one hundred and forty feet in depth, located at South Orange, New Jersey, known and designated as lot 31 on map of Rynda Development Company. The purchase price of the lot was $2,340, of which $160 in cash was paid on the date of the agreement and the contract provided for the payment of $780 in cash on the day of settlement and the balance of $1,400 by the execution and delivery to the Rynda Development Company of a mortgage, payable one-third in one year and the balance at the end of the second year, together with interest at six per cent., and which mortgage was to be subject to a proposed first mortgage in an amount not exceeding eighty per cent. of the cost of a house to be erected on the lot. It was stipulated in the agreement that the purchaser was to be let into possession for the purpose of constructing a dwelling. The date fixed for final settlement under the contract was August 1st, 1922, but the *Page 790 date of settlement was continued from time to time until some time in December, 1922. The exact date to which it was continued is a little uncertain, as neither party agrees to the particular date on which settlement was to be finally had, but as I look at this case it does not make much difference whether it was December 21st or December 26th.

The complainant Maurice B. Gluck was the president of Chemtec Company, the vendee under the agreement of sale. The Chemtec Company entered into possession and began the construction of a building, but became financially involved; mechanics' lien suits were instituted and prosecuted to final judgment, and the defendant Arlington Realty Company became the purchaser of the property at sheriff's sale held under an execution issued on the mechanics' lien judgment, and received a deed from the sheriff of Essex county. The complainants allege tender of performance by them and refusal of the defendant Rynda Development Company to perform. Complainants also allege the delivery of a deed by the defendant Rynda Development Company to them, redelivery by the complainants to this defendant and unlawful retention of that deed by this defendant. Some phases of this controversy have already been before this court in at least two suits in which three opinions were filed by Vice-Chancellor Backes. The files in these cases have been produced here in court to-day and are, respectively, docket 54, page 565, and docket 56, page 535, and some phase of this matter has also been before the Essex county circuit court in various mechanics' lien suits, and in particular one brought by the complainant Maurice B. Gluck against the complainant Amelia R. Gluck, the defendant Rynda Development Company and others, and which suit was dismissed by Judge Dungan for failure to prosecute within the year. This judgment was affirmed by the court of errors and appeals on Judge Dungan's opinion in May of last year, and the report of that case will be found in 3 N.J. Adv. R. 997.

The purchase price stipulated in the agreement was never paid by the vendee or its assignee. The only payments on account of the purchase price shown to have been made are *Page 791 the payment of $160 on the execution of the contract and the payment of $400 by the Chemtec Company by virtue of an assignment of certain other contracts by that company to the defendant Rynda Development Company, and for which this defendant gave the Chemtec Company a credit of that amount. Complainant Gluck contends that the $1,400 mortgage referred to was executed and tendered with the purchase price of $780 in cash, and that that tender was made to the Rynda Development Company on or about November 25th. This is denied by the Rynda Development Company's officers. I find as a fact that no such tender was ever made. The reasons for my finding against Mr. Gluck on this point will appear later.

Some time in November, 1922, the complainants had arranged for a loan from the defendant Franklin Society for Home Building and Savings, with the proceeds of which it was intended to complete the purchase of the lot in question and also to complete the buildings. In order to facilitate the consummation of this loan and the settlement, the defendant Rynda Development Company delivered to the defendant Hennessey, in escrow, a deed for the lot in question, duly executed by the Rynda Development Company, which was to have been delivered to the complainant Amalia R. Gluck only upon completion of the whole transaction and the payment of the balance of the purchase price according to the terms of the agreement. By subterfuge, the complainant Maurice B. Gluck obtained possession of this deed from a representative of the defendant Rynda Development Company, to whom it was entrusted for delivery to Mr. Hennessey, had a photostatic copy thereof made and then returned the deed to this representative or induced the representative to have a copy made himself; but in the view I take of the matter, it does not make any difference, in the legal effect, which of these statements is true. Some time thereafter the complainants executed to one Frieda Horn, a sister of Mr. Gluck, a mortgage on the premises in question for $850, and attached this photostatic copy of the deed to the mortgage and recorded the mortgage with the copy of the deed attached in the office of the Essex county register of *Page 792 deeds. And prior to this, Mr. Gluck had attempted to have the photostatic copy recorded as a deed, but this was refused by the register of deeds and Gluck left the register's office vowing that he would get the copy of the deed on record in spite of such refusal. The arrangement with the defendant Franklin company, whereby the complainant Amelia R. Gluck was to obtain a loan from that company, was never consummated, and the deed which had been delivered to Mr. Hennessey, in escrow, was returned to the Rynda Development company and destroyed. The mechanics' lien suit and sheriff's sale, at which the defendant Arlington Realty Company became the purchaser, followed. The Arlington Realty Company entered into possession of the premises over the protest of Mrs. Gluck, completed the building and thereafter executed a mortgage for $8,000 to the defendant Dime Savings Institution. The Arlington company then filed its bill to quiet title to the land. This bill was dismissed when it appeared at the trial that the complainant was not in peaceable possession, its possession being disputed by Mrs. Gluck, and actual peaceable possession being the jurisdictional requirement of the statute. It was held in that suit, however, that the deed, photostatic copy of which was made and recorded by the complainant Maurice B. Gluck, was never delivered, and that the copy was a fraud.

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Cite This Page — Counsel Stack

Bluebook (online)
99 N.J. Eq. 788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gluck-v-rynda-development-co-njch-1926.