Kerr Steamship Co., Inc. v. Westhoff

498 A.2d 793, 204 N.J. Super. 300, 1985 N.J. Super. LEXIS 1460
CourtNew Jersey Superior Court Appellate Division
DecidedApril 4, 1985
StatusPublished
Cited by7 cases

This text of 498 A.2d 793 (Kerr Steamship Co., Inc. v. Westhoff) 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
Kerr Steamship Co., Inc. v. Westhoff, 498 A.2d 793, 204 N.J. Super. 300, 1985 N.J. Super. LEXIS 1460 (N.J. Ct. App. 1985).

Opinion

204 N.J. Super. 300 (1985)
498 A.2d 793

KERR STEAMSHIP CO., INC., PLAINTIFF,
v.
JOHN D. WESTHOFF, JR., DEFENDANT.

Superior Court of New Jersey, Law Division Camden County.

Decided April 4, 1985.

*302 Michael J. Waldman for plaintiff (Ferrara & Waldman, attorneys).

David S. Rudenstein, for defendant.

WEINBERG, J.S.C.

Defendant John D. Westhoff, Jr., his counsel David Rudenstein and Michael Ferrara, counsel for plaintiff, appeared in court on September 6, 1984 for the purpose of putting the terms of a settlement on the record. The terms as placed upon *303 the record were deemed to be in full settlement of this matter (pending in Superior Court of New Jersey under the above caption) as well as a related action pending in the United States District Court for the Southern District of New York designated as No. 82 Civil 1619-83.

The terms of the proposed settlement were as follows:

1) Defendant John D. Westhoff agreed to pay $55,000 in full settlement of all civil actions pending against him by plaintiff, Kerr Steamship (Kerr);

2) The sums due to plaintiff were to be paid from the proceeds of sale of defendant's residence. A tenancy in common interest with defendant's parents was owned by defendant and his wife as joint tenants. The home in West Berlin, New Jersey was to be listed for sale with a local real estate broker no later than September 10, 1985;

3) Should the $55,000 be paid on or before September 10, 1985, no interest on the said amount would be assessed; however, "in the event the home is not sold by September 10, 1985, interest at the rate of fourteen per cent (14%) begins to accrue and the full amount of principal and interest is due on or before September 10, 1987 ... whether or not the home is sold";

4) Defendant with his wife and parents as owners of the residence were to execute a mortgage and note or bond payable to Kerr and the bonding company, Federal Insurance, Co. (FIC). The documents would incorporate the aforementioned payment and interest requirements and upon recordation would secure plaintiff as a priority creditor, secondary to Westhoff's first mortgage and certain unspecified but minor lienholders;

5) A title search was anticipated to reveal the existence, if any, of other lienholders whose claims would reduce the value of equity in the property. If title were to reveal a value in the property insufficient to secure the settlement, thus materially affecting the agreement, a modification of the settlement would be sought by the parties;

*304 6) Kerr and FIC were to be named as loss payees on the existing homeowner's insurance policy held by Westhoff in the amount of $55,000. Defendant and his counsel indicated that the proposed terms had been fully explained and were completely understood.

In particular this court was sensitive to the rights and obligations of the absent and unrepresented joint owners of the real estate and undertook to clarify and verify defendant's authority to encumber their interests in said property. The following verbatim colloquy not under oath from the transcript of September 6, 1984 will demonstrate the depth and nature of the inquiry:

Mr. Ferrara: The proceeds, in the event there is closing on the home, the proceeds are due to Kerr and Federal even if Mr. Westhoff's share isn't sufficient to pay the money. In other words, he has the obligation at the closing to get the money from his wife or parents or from wherever else. It is not contingent on him getting enough out of his share to pay the amount of money.
Mr. Rudenstein: That's understood.
The Court: Gentlemen, may I pose this question? Has any thought been given to what occurs if his wife and/or his parents refuse to either list the property or execute the documentation that's been set forth to be executed by them?
Mr. Rudenstein: Your Honor, Mr. Westhoff in some forethought has obviously spoken with his wife and his family and he is and I through him am in the position to represent to the Court that they have given him the authority and have okayed this.
The Court: Mr. Westhoff, —
Mr. Westhoff: Yes, Your Honor.
The Court: — you have heard the counsel for Kerr Steamship provide me with the terms of settlement in this case, have you not?
Mr. Westhoff: Yes, I have.
The Court: You have heard your attorney amplify the terms of settlement, have you not?
Mr. Westhoff: Yes, I have.
The Court: Is there anything you did not understand from the comments of either attorney?
Mr. Westhoff: No, there is not.
The Court: Sir, what was your last type of employment position?
Mr. Westhoff: I was head of operations for the East Coast of the United States for Kerr Steamship Company...
The Court: So that you have what one could be accurately described as a business background?
*305 Mr. Westhoff: That's correct, Your Honor.
The Court: And there is nothing that's been set forth in this record by either lawyer today that's not completely understood by you?
Mr. Westhoff: That's correct, Your Honor.
The Court: Do you agree with each and everyone of the terms of settlement?
Mr. Westhoff: Yes, I do, Your Honor.
The Court: Have you spoken to your wife and your parents?
Mr. Westhoff: Yes, I have.
The Court: Regarding their obligations to carry forth certain terms of settlement?
Mr. Westhoff: Yes, I have, Your Honor.
The Court: And they've advised you that they're willing to do so?
Mr. Westhoff: Yes, Your Honor ...
The Court: ... I want to make sure that you're not settling this case with any duress or compulsion or thought that the settlement of this case must necessarily in some way benefit you ...
Mr. Westhoff: It's understood, Your Honor.
The Court: Very well. Do you have any questions?
Mr. Westhoff: No, Your Honor.
Mr. Rudenstein: Your Honor, may I ask one or two questions?
The Court: Surely.
Mr. Rudenstein: ... John, have you been satisfied with my services in this matter?
Mr. Westhoff: Yes, I have.
Mr. Rudenstein: ... And I haven't or anybody hasn't forced or threatened you or made any promises to you to encourage you into this settlement?
Mr. Westhoff: No, I made it of my own free will.
Mr. Ferrara: Judge, I have just one question. Do you have any questions, Mr. Westhoff, of your counsel, of Judge Weinberg or myself in any connection with this agreement?
Mr. Westhoff: None whatsoever. I think it's been spelled out.

The note and mortgage were subsequently submitted to defendant for execution by himself, his wife and parents. Defendant's wife and parents refused to sign the documents and on January 17, 1985, Rudenstein filed a notice of motion seeking an order vacating the entire settlement as recorded on September 6, 1984.

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

Related

Mary O'Shea v. Borough of Englewood Cliffs
New Jersey Superior Court App Division, 2025
John H. Taberer v. Armstrong World Industries, Inc.
954 F.2d 888 (Third Circuit, 1992)
Taberer v. Armstrong World Industries, Inc.
954 F.2d 888 (Third Circuit, 1992)
Matter of Daniels
570 A.2d 416 (Supreme Court of New Jersey, 1990)
In re the Negotiation of a Labor Contract for the Employees of the Surrogate
581 A.2d 125 (New Jersey Superior Court App Division, 1989)
State v. Gale
545 A.2d 279 (New Jersey Superior Court App Division, 1988)
Kerr SS Co., Inc. v. Westhoff
521 A.2d 1298 (New Jersey Superior Court App Division, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
498 A.2d 793, 204 N.J. Super. 300, 1985 N.J. Super. LEXIS 1460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-steamship-co-inc-v-westhoff-njsuperctappdiv-1985.