Knight v. Nottingham Farms, Inc.

113 A.2d 382, 207 Md. 65, 1955 Md. LEXIS 283
CourtCourt of Appeals of Maryland
DecidedApril 18, 1955
Docket[No. 123, October Term, 1954.]
StatusPublished
Cited by15 cases

This text of 113 A.2d 382 (Knight v. Nottingham Farms, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knight v. Nottingham Farms, Inc., 113 A.2d 382, 207 Md. 65, 1955 Md. LEXIS 283 (Md. 1955).

Opinions

Collins, J.,

delivered the opinion of the Court.

This is an appeal from an order ratifying the sale of real estate made by executors. The case comes to this Court on a stipulation of facts, which follows.

William G. Knight, deceased, late of Baltimore County, died on June 6, 1953. He left a will which was duly admitted to probate on June 16, 1953. Letters Testa[67]*67mentary were on that day granted to Walter R. Haile and Roland Knight, the son of the testator, executors named in the will, who so qualified. Under the residuary clause of the will, the executors were directed and empowered to sell the deceased’s real estate within two years after his death. The clause directing the sale was as follows: “I hereby vest in my said executors, without application to or authorization by any court, full power and authority to sell, convey, transfer or assign any real or personal property which may constitute the residue of my estate, for the purpose of converting the same into cash, and any purchaser or purchasers from them shall be relieved of the necessity of seeing to the application of the purchase money.”

Included in such real estate was a tract of unimproved land, low and marshy, situated along the Great Gunpowder Falls to the east of Pulaski Highway. Although the boundaries of the tract are set forth in a deed to the deceased, no mention of the acreage is made therein and the exact acreage is not known and cannot be ascertained from the Land Records. It is believed, however, to contain upwards of two hundred acres. On August 25, 1953, the executors filed an inventory of the real estate. The above mentioned tract, together with some acreage on the opposite side of the River, was appraised at $2,500.00. The executors checked the Baltimore County tax records and found that the land in question had never been assessed for State and County taxes. It was thereupon assessed for $2,000.00.

During the latter part of June, 1953, Mr. E. H. Nicholson, a real estate broker of the Maryland-Virginia Farm Agency, visited the office of Mr. Elmer R. Haile, the acting counsel for the executors, and inquired whether the Knight property, above referred to, was for sale. He was told that it would be necessary to sell this in order to carry out the provisions of Mr. Knight’s will. As neither of the executors were present, there was no discussion as to price or terms of sale and Mr. Nicholson was not authorized to negotiate a sale of this property.

[68]*68On June 29, 1953, Mr. Nicholson again visited the office of the counsel for the executors and presented to him a contract in triplicate for the sale of the property in question to one Charles Scheeler for the price of $13,-000.00, subject to a real estate commission of five per centum. This contract had been signed by Mr. Scheeler and Mr. Nicholson stated that he had received and was holding a down payment of $1,000.00. The counsel then advised the executors of this offer. After some discussion, they signed the contract subject to the following conditions: first, that the purchaser would accept title regardless of whether there was a valid right-of-way ■to the property; and, second, that, if any survey was deemed necessary to determine the exact acreage and outlines of the property, the cost of such a survey would be borne by the purchaser. These conditions were inserted in the contract which was delivered to Mr. Nicholson for the purchaser’s approval. Mr. Nicholson at that time said he did not think the conditions would be objectionable as the same purchaser had purchased or was negotiating for the purchase of the adjoining property then owned by Richard T. Jones and wife, through which access would be obtained to the Knight property from the Pulaski Highway and as Knight’s deed seemed to adequately describe the boundaries of the property. However, a few days later Mr. Nicholson telephoned the counsel and stated that the conditions inserted in the contract by the executors- were not acceptable to the purchaser; that the contract had been torn up; that he had returned the down payment to the purchaser; and that the deal was off. During these negotiations Mr. Nicholson did not disclose the fact that Mr. Scheeler was acting as a straw-purchaser for C. J. Langenfelder & Son, Inc. Since then he has admitted that such was a fact. For the purposes of this case it is admitted by the parties that Scheeler was in fact acting for C. J. Langenfelder & Son, Inc.

On August 21, 1953, the executors entered into a contract to sell the property here in dispute to Nottingham [69]*69Farms, Inc., appellee here, for the net price of $13,000.00, subject to the same conditions as were inserted in the Scheeler contract, namely, that the purchaser would accept title regardless of whether there was a granted or legally established right-of-way to the property and would bear the expense of any survey. A cash deposit of $1,000.00 was made by the purchaser. This private sale was promptly reported to the Orphans’ Court, and the Court passed and caused to be published the usual order nisi, ordering that the sale be ratified and confirmed, unless cause to the contrary be shown on or before September 26, 1953. The negotiations leading to this reported sale were initiated by Leroy W. Kern, agent for the purchaser.

On September 17, 1953, C. J. Langerfelder & Son, Inc., through George H. Langenfelder, president, submitted a signed contract to the executors to purchase the same property for the price of $14,000.00, subject to a broker’s commission of five per centum, payable to the Maryland-Virginia Farm Agency. The offer was accompanied by a $1,000.00 check to cover the down payment. This contract was not signed by the executors.

Before the time fixed for ratification of the sale to Nottingham Farms, Inc., exceptions thereto were filed by Jennie B. Knight, widow of the deceased, one of the appellants here, on the ground that $13,000.00 was not the best price that could be obtained for the property, a higher offer having since been submitted by C. J. Langenfelder & Son, Inc.

The execptions were set for hearing by the Orphans’ Court on November 10, 1953. No formal sworn testimony was offered at the hearing. However, Nottingham Farms, Inc., was represented by Milton R. Smith and H. Anthony Mueller, its attorneys. The executors and exceptant were represented by Elmer R. Haile, their attorney. Roszel C. Thomsen, of the Baltimore Bar, attended the hearing as attorney for C. J. Langenfelder & Son, Inc. The facts and circumstances relevant to the reported sale were presented by counsel. Mr. Thomsen [70]*70first argued that the sale to Nottingham for $13,000.00 should not be ratified, but that Langenfelder’s offer of $14,000.00 gross should be accepted. Later, and during the course of the hearing, Mr. Thomsen increased Langenfelder’s offer to $15,000.00 net. Still later, and during the course of the hearing, Mr. Thomsen again increased Langenfelder’s offer to $18,000.00 net. At the same time, Mr. Thomsen stated to the court that if the sale to Nottingham Farms, Inc., was not ratified, and it was later decided to offer the property by public auction, that his client, C. J. Langenfelder & Son, Inc., would start the bidding off at $18,000.00. Mr. Thomsen presented to the executors a formal contract executed by George H. Langenfelder as president of C. J. Langenfelder & Son, Inc., to purchase the property for the net price of $18,-000.00, accompanied by a down payment check in the amount of $1,000.00.

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Knight v. Nottingham Farms, Inc.
113 A.2d 382 (Court of Appeals of Maryland, 1955)

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Bluebook (online)
113 A.2d 382, 207 Md. 65, 1955 Md. LEXIS 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knight-v-nottingham-farms-inc-md-1955.