Hedley v. Snipes

188 A. 617, 124 Pa. Super. 396, 1936 Pa. Super. LEXIS 389
CourtSuperior Court of Pennsylvania
DecidedOctober 13, 1936
DocketAppeal, 173
StatusPublished
Cited by5 cases

This text of 188 A. 617 (Hedley v. Snipes) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hedley v. Snipes, 188 A. 617, 124 Pa. Super. 396, 1936 Pa. Super. LEXIS 389 (Pa. Ct. App. 1936).

Opinion

Opinion by

Rhodes, J.,

This is an appeal from the refusal by the court below, sitting in equity, to vacate its previous decree and allow plaintiff a rehearing.

Plaintiff, on August 29, 1927, conveyed certain real estate in Bucks County to defendant and Henry W. Comfort, since deceased. On the same date the grantees executed a declaration of trust to the plaintiff. It provided that the trustees were empowered to manage, mortgage, and sell the property, and, after paying all *398 charges, pay any balance then remaining to the plaintiff; and that said trust was to continue until all moneys advanced by the trustees had been repaid, with interest, but in no event should the same continue beyond the life of plaintiff.

By deed dated September 3, 1930, defendant, surviving trustee, conveyed the real estate in question to Joseph W. Prince, the deed reciting a consideration of $1,500, subject to a mortgage of $8,500. By deed dated September 29, 1930, Prince conveyed the same property to Morris F. Miller for a consideration, according to the deed, of $1, clear of encumbrances. Both deeds were recorded on October 7, 1930. On September 3, 1930, Prince paid defendant $1,500, and on October 3, 1930, Miller paid Prince $12,000; $10,000 for the property in question, and $2,000 for an option to purchase ten private garages in Philadelphia. Prince endorsed the $12,000 check to defendant, who transferred $10,000 to a trust account, paid the $8,500 mortgage on the property which had been conveyed by him as trustee of plaintiff, made an accounting, and remitted the balance to plaintiff. Defendant held a note against Prince, dated August 30, 1929, in the amount of $3,000, which he paid, together with interest thereon of $17.50, from Prince’s money in his possession, and remitted to Prince the balance on October 7,1930.

On February 1, 1932, plaintiff filed a bill in equity which averred, inter alia, that the sale by defendant to Prince was not bona fide; that Prince was merely a straw man for defendant; that the actual consideration for the deed from Prince to Miller was $12,000, whereas that in the deed from defendant to Prince was $10,000; and that as a result of these transactions defendant made a profit of $2,000, which he had converted to his own use.

Defendant filed an answer in which he averred that he and the other trustee had' accepted the trust as an *399 act of charity, at the urgent request of plaintiff, in order to save the real estate from a pending foreclosure sale under mortgage executed by plaintiff to a building and loan association; that he and Henry W. Comfort, the other trustee, raised the mortgage money of $8,500, paid off the mortgage, and held the property for plaintiff under the declaration of trust. Defendant denied that Prince was a straw man, and further averred that the sale to Prince was a bona fide sale for a consideration of $10,000, and made with plaintiff’s knowledge and consent. Defendant admitted the sale from Prince to Miller, but denied knowledge of. the price, paid by Miller, or that he had profited from the sale. Defendant’s answer also alleged that he had previously accounted to plaintiff, and to the satisfaction of her then counsel; that he had exhibited to plaintiff and her attorney all memoranda, all correspondence, book accounts, checks, and. deposit books pertaining to the transaction; that the controversy had been submitted under an agreement between the parties to a committee of the Germantown Monthly Meeting of Friends; that it was agreed between the parties that the decision and award of this committee should be a final disposition of plaintiff’s complaint; that the committee rendered a report absolving defendant of “any illegal or immoral actions in the matter and [that defendant] had done his best for Mrs. Hedley and her interests in the face of rather trying circumstances and a good deal of annoyance from Mrs. Hedley.” A copy of defendant’s account and a copy of the decision of the committee were attached to the answer.

' Hearing on the bill and answer was held December 14, 1933, before Davis, P. J., sitting as chancellor, at which the only witness was the defendant, who was called as on cross-examination by plaintiff, and later examined by his own counsel. Numerous exhibits were also offered in evidence.

*400 On January 19, 1934, the chancellor filed his adjudication, setting forth thirty-one findings of fact.

The sixteenth, eighteenth, nineteenth, and twentieth findings of fact are as follows:

“16. This sale to Prince was a bona fide sale and had no relationship to the sale subsequently made by Prince to Morris F. Miller.......

“18. On October 3, 1930, Morris F. Miller drew a cheek to the order of Prince for $12,000, part of which was to pay for the said property under the terms of the following undertaking by Prince:

‘Philadelphia, Pa., October 3, 1930.

‘Received of Morris F. Miller, $12,000; $2000 of which is for an option to purchase ten private garages at the southwest corner of Aspen and Brooklyn Streets, Philadelphia, and $10,000 of which is for the purchase of property at Langhorne, Bucks County, Pennsylvania.

‘I hereby agree in consideration of said $12,000, receipt of which I acknowledge, to give Morris F. Miller an option to have deeds made to him or his assigns without further consideration to said ten private garages at the southwest corner of Aspen and Brooklyn Streets, Philadelphia, Pa., subject to existing mortgages of a first $5,000 and a second $2,000 building and loan mortgage and taxes. This option is to expire one year from this date. Morris F. Miller is to give Joseph W. Prince ten days written notice prior to the expiration date of this option if said Miller desires deeds for the premises covered by this option.

‘Witness my hand and seal the 3d day of October, 1930. Signed Joseph W. Prince.’

“19. The defendant in this suit had at no time any interest in the garages at the southwest corner of Aspen and Brooklyn Streets, mentioned in the above agreement.

“20. The above transaction between Miller and Prince was entirely without the knowledge of the de *401 fendant, and a transaction entirely independent of Mm.”

Aftér a thorough discussion of the evidence, the chancellor concluded as a matter of law that there was no evidence of conspiracy between defendant and Prince; that the sale to Prince by the defendant was bona fide; that Prince was in no sense a straw man or a mere nominee of the defendant; that defendant was not guilty of fraud in the management of the trust estate; and that the arbitration and the finding of the arbitrators made on October 5, 1931, were final and binding upon both parties.

To these findings of fact and conclusions of law plaintiff, on January 29, 1934, filed seventeen exceptions. They were dismissed by the court below on March 28, 1934. From this action of the court below plaiptiff took no appeal. Such was the status of the matter, when, on March 2, 1936, more than two years after the dismissal of plaintiff’s bill, she filed the present petition, asking that the adjudication be set aside, the decree vacated, and a further hearing allowed.

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Bluebook (online)
188 A. 617, 124 Pa. Super. 396, 1936 Pa. Super. LEXIS 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hedley-v-snipes-pasuperct-1936.