O'Brien v. Pentz

48 Md. 562, 1878 Md. LEXIS 131
CourtCourt of Appeals of Maryland
DecidedMay 3, 1878
StatusPublished
Cited by14 cases

This text of 48 Md. 562 (O'Brien v. Pentz) 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
O'Brien v. Pentz, 48 Md. 562, 1878 Md. LEXIS 131 (Md. 1878).

Opinion

Stewart, J.,

delivered the opinion of the Court.

The bill in this case admits, that an open, legal and bona fide contract was made between the complainant and Folger, O’Brien, Cannon and Roberts, to transfer to the latter all the title of the former, to certain steamers in the said contract referred to ; but it seeks to have established the provisions of a secret trust, which the bill first alleges was made between complainant and all of the others of the said parties; but afterwards modifies such averment by charging that such secret contract and trust were made [576]*576between the complainant and Cannon and Roberts, with the knowledge of Folger and O’Brien.

That, hy this arrangement, although the property in the said steamers had been ostensibly sold and transferred to the said parties, the complainant really retained one-sixth of the same, and now seeks a recovery accordingly.

Such claim on the part of the complainant places the parties in- a very different position from the open one indicated hy the public records of the transaction.

If sustained, the complainant is to a certain extent, shielded from full responsibility for losses and other liabilities. Its establishment by a Court of equity under the circumstances, would seem to require the most satisfactory and conclusive evidence of its entire legality and justice.

We do not understand the testimony as proving that Folger and O’Brien so comprehended the transaction ; and if it could be sustained against Roberts and Cannon, that the former are to be held responsible as contracting parties thereto, or as affected with the knowledge thereof.

The secret method of undertaking to secure such right for the complainant, does not strike us as calculated to impress a Court of equity with its entire bonafides.

Holding out to the world by placing upon the public record the evidence required by the law, to make known to all the true ownership of the property, but by a contemporaneous secret arrangement between the parties attempting to avoid such conclusion, and in effect treating the record as presenting an erroneous and false view, would seem to be against the principle of public policy.

What is it in truth but a fraud upon the public, to undertake to pursue the requirements of the law, making the public record evidence of the transfer of title, as a mere pretext, the more effectually to accomplish the secret scheme of the complainant, to secure rights for himself in utter antagonism to the open and published contract between the parties ?

[577]*577The undisguised and undisputed contract between the complainant and Folger and O’Brien, is in utter conflict with the provisions of this secret trust set up in the bill. The two cannot stand together, or the one be modified or qualified by the other, upon the proof that has been adduced.

There is no principle to justify a Court of equity in upholding the secret contract to the prejudice of the other.

The recognition of the private arrangement made between some of the parties, as alleged, to the exclusion or modification of the open and avowed contract, recognized by all of the parties, would be a strange perversion of the well settled principle applicable in such cases.

If this secret contract was made before the open transfer ■of the property, it would be superseded thereby ; — if after, it was made without consideration and nudum, pactum.

The interposition of a Court of equity in granting relief by the enforcement of the specific performance of any •contract, is not a matter ex débito justitice, and to warrant its interference, the terms thereof must be fair, and it must be founded on an adequate consideration, and be made under circumstances commending it to the favorable apprehension of the Court. The party seeking its execution must, at the same time, be able to show that he has fully, not partially, performed every thing to be done on his part.

The contract must also be mutual and equal in all its parts, and having no circumstances of suspicion as to its bona, fides.

Its terms must not be ambiguous, and they must be accurately stated in the bill, and the proof must correspond therewith, so as to leave no room for reasonable doubt, but be such as will enable the Court to measure out exact justice to the parties.

The Court cannot undertake to amend the contract, or if it be performed in part by the complainant, leaving [578]*578other parts unperformed, and without any tender of performance on his part, it cannot be carried out in part, and adjusted to that extent. -

It must be executed as an entirety, and cannot be arranged in parts.

In every case the question must be, whether the exercise-of the power of the Court is demanded to subserve the ends of justice, and unless the Court is satisfied that it is right in every respect,' it refuses to interfere. Geiger vs. Green,. 4 Gill, 472; Waters vs. Howard, 8 Gill, 262; Semmes vs. Worthington, 38 Md., 298.

How does the contract with its surroundings relied upon here, stand the application of these well established tests ?

The complainant has totally failed to present such a contract for the intervention of the Court; and as set out in the bill has not been sustained by full and adequate proof.

The complainant has not shown that he has performed his part of the same, and there is a total failure to show that Folger and O’Brien were aware of the alleged agreement between complainant, Cannon and Roberts, or that they had notice of the same.

The contract between Pentz, the complainant, and Cannon and Roberts seems to have been industriously kept a secret, and is incapable of standing the ordeal of equitable examination.

In its very inception the witness thereto, recognized as a guard to its fairness and authenticity, did not see the parties execute the same ; but inadvertently attested it upon the representations of others.

Obscure and doubtful in its origin, there is no clear light from surrounding circumstances, to show its precise outlines and entire fairness.

Considered in reference to the illiterate character of one-of the ostensible contracting parties, Roberts, it lacks that full comprehension of its import ón his part, recognized by the law to give to it full scope and effect.

[579]*579Roberts proved to have been an uneducated person, having had unbounded confidence in the complainant, whilst admitting that he signed the papers, supposing they were intended to be executed for another purpose, denies that they were ever read over to him or that he understood their purport as now insisted upon.

The witness as has been stated, cannot testify that they were read over to him or that he understood their meaning.

Under such circumstances there is an absence of sufficient proof of the execution of the papers, with knowledge on the part of Roberts of their contents.

•There is no adequate proof that their existence was known to Polger and O’Brien or that they were cognizant of the purport thereof.

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Bluebook (online)
48 Md. 562, 1878 Md. LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-pentz-md-1878.