Harvey v. Orland Properties, Inc.

261 A.2d 708, 108 N.J. Super. 493, 1970 N.J. Super. LEXIS 619
CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 29, 1970
StatusPublished
Cited by3 cases

This text of 261 A.2d 708 (Harvey v. Orland Properties, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harvey v. Orland Properties, Inc., 261 A.2d 708, 108 N.J. Super. 493, 1970 N.J. Super. LEXIS 619 (N.J. Ct. App. 1970).

Opinion

Lane, J. S. C.

This matter is before the court on final hearing. The complaint seeks to foreclose a mortgage dated June 10, 1964 made by defendant Orland Properties, Inc. (Orland) to plaintiff. Solomon and the Romanellis each seek a judgment quieting their title to the property.

The property is described in the mortgage and all deeds involved as being in the Township of Millstone, County of Monmouth. On December 27, 1943 there was a tax sale by Millstone to Mrs. Harriet Robbins for the 1941 and the 1942 taxes. The tax sale certificate describes the property as "34.19 acres and assessed thereon to Mrs. Franklin C. Price as owner.” The property was and is vacant land.

On September 24, 1963 a complaint to foreclose the right of redemption was filed on behalf of Mrs. Robbins. Final judgment of foreclosure was signed December 26, 1963. See N. J. 8. A. 54:5-79. From date of the tax sale Mrs. Robbins paid the taxes to Millstone until she sold the property to the Romanellis. The conveyance from Robbins to [496]*496the Romanellis was by deed dated September 4, 1965. The purchase price, computed on the basis of $100 an acre as taken from a plotting made for Mrs. Robbins, was $3,377. Since their purchase the Romanellis have paid taxes.

Harvey learned of the foreclosure proceedings. On behalf of Orland he attempted to locate the heirs of the last record owner. He was successful and obtained deeds from them shortly after the final judgment for a nominal consideration.

The title is undisputed up to the foreclosure judgment. Eranklin C. Price acquired title in 1918. He died June 9, 1923 leaving a will devising the premises to his sons Frank Ray Price and Neal Heath Price. On November 4, 1944 Frank Ray Price died, intestate, leaving a widow Lorraine and a son Lawrence Wain Price. On December 30, 1951 Neal Heath Price died intestate, leaving a widow Ella and a daughter Anna Louise Price.

On December 23, 1963 Harvey wrote to Lawrence Wain Price saying:

This letter relates to a tract of vacant land in Millstone Township in which, according to the record, your late grandfather, Franldin C. Price, had an interest. The lot was sold for taxes many years ago and a tax foreclosure action is now pending against it.
Following the death of Franklin C. Price in 1923 and the subsequent death of your late father, F. Ray Price, you may claim an interest in the property under foreclosure. We are writing to inquire whether you will furnish a voluntary release of your possible claim. A courtesy consideration of $50. will be paid you for the release.
The proposed instrument is enclosed. It requires to be signed in the presence of a Notary Public. When so executed it will have the effect of releasing any claim which you have or may have in the property therein described.
Upon receipt of this instrument here, executed as above, we will forward you our cheek of $50. in payment.
Since the time under the foreclosure is up, we will need to receive the executed deed by return mail. A return special delivery envelope is enclosed for the purpose. We regret not having written sooner, but we only just now learned your address.
Tour cooperation with regard to the time is appreciated.

On December 24, 1963 Harvey wrote an almost identical letter to Anna Lonise Price. After some correspondence [497]*497with each he received deeds from them to Orland. The deed from Lawrence Wain Price was dated December 31,

1963. The deed from Anna Louise Price was dated January 30, 1964. He received a deed from Lorraine Price dated April 28, 1964, and a deed from Ella Price dated April 24, 1964. All of these deeds were quitclaim deeds. The total consideration paid by Llarvey was $152.50.

The mortgage from Orland to Harvey and the bond were signed by Freda Solomon as vice-president. The deed from Orland to Freda Solomon dated October 5, 1966 was signed for Orland by Freda Solomon as vice-president. (This deed was not offered into evidence but the court has examined the records in the Monmouth County Clerk’s office to determine this fact.)

It is alleged on behalf of Harvey and Solomon that the tax sale certificate foreclosure proceedings were defective in not naming Lawrence Wain Price and Anna Louise Price properly, and in a deficiency of the inquiry made. See Bonded Certificate Corp. v. Wildey, 137 N. J. Eq. 564 (E. & A. 1946).

The threshold question is whether Harvey has standing to attack the foreclosure judgment. Of course, the rights of Solomon can rise no higher than Harvey’s. She is obviously not a bona fide purchaser for value without notice. The Romanellis contend that the decision of the Supreme Court in Bron v. Weintraub, 42 N. J. 87 (1964), judgment on mandate affirmed 45 N. J. 1 (1965), bars Harvey. Harvey argues that Bron should be confined to its own facts and certainly not applied where those relying upon the tax foreclosure judgment have not expended sums of money to improve the property.

The basis of the decision in Bron was not a balancing of the equities but a matter of public policy. The Chief Justice stated, after discussing what public policy is:

“With respect to the factual pattern before ns, no one disputes the right of the holders of existing interests to convey them to third persons if they wish. What is challenged is the legality of the intru[498]*498sion into the scene by third persons who seek only to further their own interests rather than the interests already on hand. As we have pointed out, the policy of the statute is to support tax titles, a policy which overall is burdened by the conduct before us. The burden upon individuals situated as are the householders in this case is evident enough. These manifest hurts should not be tolerated unless it can be said that some other legitimate interest or advantage is served. We find none. We see no social value or contribution in the activities of Hudson. On the contrary, decent men must sense only revulsion in this traffic in the misfortunes of others.
We are not aware of any precedent precisely in point, although reference could appropriately be made to the established hostility toward so-called “heir-hunting.” [42 N. J., at 95]

He further stated:

*• * «i We have no doubt the common conscience condemns the conduct of Hudson and Alternare as an undue interference with the rights of the householders. Hudson and Alternare having acquired the outstanding title under “circumstances which render it unconscientious for the holder of the legal title to retain and enjoy the beneficial interest, equity impresses a constructive trust on the property thus acquired in favor of the one who is truly and equitably entitled to the same.” 4 Pomeroy, Equity Jurisprudence (5th ed. 1941) § 1053, p. 119. The householders are equitably entitled to the property upon the payment of the sum of $400 plus simple interest from the date of the payment to the Weintraub heirs, [at 96]

The Legislature obviously agreed with the Bron holding. N. J. S. A. 54:5-89.1, having to do with persons claiming an interest in land sold for unpaid taxes subject to an action to foreclose the right of redemption, was amended by L. 1967, c.

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Bluebook (online)
261 A.2d 708, 108 N.J. Super. 493, 1970 N.J. Super. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harvey-v-orland-properties-inc-njsuperctappdiv-1970.