Kenny v. Lembeck

53 N.J. Eq. 20
CourtNew Jersey Court of Chancery
DecidedOctober 15, 1894
StatusPublished

This text of 53 N.J. Eq. 20 (Kenny v. Lembeck) 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
Kenny v. Lembeck, 53 N.J. Eq. 20 (N.J. Ct. App. 1894).

Opinion

Van Fleet, V. C.

The complainants seek by this suit to have a sale of land made-by a master of this court, and the deed made in execution of such' [21]*21:sale, set aside and declared to be nullities, or that the defendant .Lembeck be required to pay, in addition to the price for which the land was sold to him at public sale, the sum of $1,900. 'The complainants rest their right to relief on the ground of fraud.

The following are the material averments of their bill: In .June, 1892, Margaret Burke and James T., her husband, and Ellen Kenny filed their petition in this court, asking that certain land, devised by the will of John Kenny, deceased, be sold under the statute authorizing the sale of land limited over to infants or in contingency. Margaret Burke was a daughter of John Kenny, deceased, and took under his will an undivided moiety •of the land sought to be sold, in case she and her brother, Patrick Kenny, one of the complainants, were both living when Ellen Kenny, the widow of John, died or remarried. The other petitioner, Ellen Kenny, was the widow of John, -and by his will was entitled to a life estate in the land provided she did not remarry. James T. Burke joined in the petition as the husband of Margaret. Patrick Kenny, one of the complainants, was made a party to the proceeding because, under the will of his father, he took a contingent estate in the land precisely like that •of his sister, Margaret Burke. The court, on the 3d day of October, 1892, and after the questions raised by the petition •above mentioned had been referred to a master and he had reported there.on, ordered the land to be sold, and it was sold at public auction on the 10th day of May, 1893, to the defendant Lembeck for $8,100. This sum was $100 in excess of the value of the land as ascertained by the master. The sale was •confirmed May 31st, 1893, and a deed made in execution of it ■on the 13th day of June following. On obtaining his deed, Mr. Lembeck commenced tearing down the building on the land and erecting new structures.

The preceding averments are not controverted, but the dispute •commences at this point and grows out of an averment charging that Mr. Lembeck, shortly before the petition was filed, secretly •entered into a fraudulent agreement, by which he promised that .if the petitioners would institute proceedings and cause the land [22]*22to be sold, he would pay the costs and expenses of the proceedings, and at the sale buy the land-at a price as much below $10,~ 000 as he could, and that if he succeeded in acquiring the land for less than $10,000 he would pay the petitioners the difference between the price he paid and $10,000. The complainants-allege that, by means qf this secret arrangement, Mr. Lembeck was enabled to acquire the land for $1,900 less than he would otherwise have been compelled to pay for it.

There can be no doubt, if the arrangement alleged existed when the land was sold, that the effect of it was to change the-position of the petitioners towards Mr. Lembeck from one of conflicting interests to one of identity of interests. In the absence of such an arrangement, it is manifest the petitioners-would, to promote their interests and benefit themselves, have done everything in their power to cause the land to be sold for the highest.price possible; and it is equally clear, if such an arrangement existed, that it necessarily operated as a powerful bribe to induce the petitioners to assist Mr. Lembeck in acquiring the land for the lowest price possible. The less money he-paid the more they would be entitled to receive in ready cash,, and just to the extent that they were benefited, in the execution-of such a scheme, would the persons in whom the money should ultimately vest be defrauded. The complainants had an indisputable right to have the land sold free from any collusive arrangement by which its price might be depressed, and also to have every dollar which should be paid for it, either openly or secretly, invested and held until future events should decide what persons would, if the land had not been sold, have been entitled to it in fee simple absolute. If it has been satisfactorily proved that Mr. Lembeck acquired the land, by means of the-fraudulent contrivance alleged, no doubt, I think, can be entertained that a wrong has been committed against the complainants which it is the duty of this court to redress. If the fact is-that Mr. Lembeck acquired the laud by means of the fraud alleged, then it is undeniable that he, with the assistance of the-petitioners, has used the machinery of this court to defraud the-complainants. Instead of being used, as it was intended to be,, [23]*23for the protection of the complainants, the process of this court has been prostituted and made the instrument by which they have been deprived of their rights. Against a wrong committed by such means this court must, not only that wrong may be undone and the right vindicated, but also to preserve its own honor and dignity, give the most complete redress within its power. If Mr. Lembeck either concocted or adopted this scheme for the purpose of obtaining the land for a less price than he would otherwise have been compelled to pay for it, secretly intending to use it as a means not only of defrauding the complainants, but also to cheat the petitioners, by making promises to them which he did not mean to perform, then it is obvious that his fraud is so outrageous and iniquitous in its character as to place him in a position where a fearless and effectual administration of justice requires that the court shall, in undoing his wrong, give redress without regard to the consequences to him. In such a case, nothing short of a thorough undoing of the wrong, regardless of the consequences to the wrongdoer, would adequately redress the injured person and at the same time vindicate the majesty of the law.

It is thus made plain that the question on which the complainants’ right to relief depends is, Has the fraudulent agreement alleged been satisfactorily proved ? Or, stated in another form, Has that agreement been so clearly established by proof that it may safely be made the basis of judicial redress? The bill alleges, it will be remembered, that this agreement was made a short time before the petition, asking that the land be sold, was filed, and that the parties to it were Mr. Lembeck on the one side and Margaret Burke and James T., her husband, and Ellen Kenny on the other, and that its principal provisions were that Lembeck should pay the costs of the proceeding, buy the land at the sale as low as he could, and if he succeeded in buying it for less than $10,000 pay the difference between his bid and $10,000 to all three of the petitioners. No attempt has been made to prove that an agreement of the kind alleged was made with all three of the petitioners, nor with anybody at the time alleged. If such an agreement was ever made, it was made with [24]*24James T. Burke alone, and without the knowledge of the other two petitioners; and if such an agreement was made with him, it was not made until long after, the petition had been filed, nor until the questions raised by the petition were under investigation.

The only witness by whom the complainants attempted to prove the agreement was James T. Burke.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
53 N.J. Eq. 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenny-v-lembeck-njch-1894.