Reichert Estate

51 A.2d 615, 356 Pa. 269, 1947 Pa. LEXIS 335
CourtSupreme Court of Pennsylvania
DecidedJanuary 6, 1947
DocketAppeal, 152
StatusPublished
Cited by32 cases

This text of 51 A.2d 615 (Reichert Estate) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reichert Estate, 51 A.2d 615, 356 Pa. 269, 1947 Pa. LEXIS 335 (Pa. 1947).

Opinion

Opinion by

Mr. Justice Drew,

Louis Bell, a prospective purchaser, filed a petition in the Orphans’ Court for a citation to show cause why the private sale of the real estate situated at 1064 North *271 2nd Street, Philadelphia, should not be set aside. Charles G. Glaser and Walter F. Hatley, Testamentary Trustees, acting under a power of sale contained in the will of Frank Reichert, deceased, made the conveyance to Ben and Rose Tizer. Bell alleged that fraud by the Tizers and the trustees prevented him from purchasing the property at a higher price. A citation was awarded directing respondents, the trustees, the Tizers, and also James G. Gill, Esq., who was counsel for one of the trustees, to show cause why the prayer of the petition should not be granted. The court dismissed the answers raising preliminary objections; ordered that Kensington National Bank, guardian of the minor beneficiaries of the trust, be made a party respondent, so that the interests of those beneficiaries be fully protected; and decreed that respondents answer on the merits.

After respondents answered on the merits and Bell filed a replication, Leo Weinrott, Esq., was appointed Master. To the latter’s findings of fact, conclusions of law and recommendations the parties filed a total of eighty-three exceptions. After argument before the court en banc on these exceptions, a final decree Avas entered setting aside the sale and dismissing the citation against James G. Gill, Walter F. Hatley, Charles G. Glaser and the Kensington National Bank. This appeal by the Tizers followed.

At the hearing before the Master the folloAving facts were established: “On September 5, 1944, the day following Labor Day, the trustees executed and delivered to one Simelsohn, a realtor and agent for the Tizers, both an agreement for the sale of premises 1064 N. 2nd Street and a Deed conveying the said premises to Benjamin and Rose Tizer, his wife, in consideration of the payment by several checks of an aggregate sum of $3500.00. The settlement was consummated in the offices of James G. Gill, attorney for the trustee, Glaser. There was no examination of title or title insurance. *272 At 9 a. m. on the morning of September 6, the next day, the deed was recorded.

“At the time that this sale was consummated the petitioner, Louis Bell, was also negotiating with Charles Glaser, one of the trustees for the purchase of the same property. Bell and the Tizers were bidding against each other. Within ten days before this sale, Bell had increased a previous $3,000. offer to $3,500. after the Tizers had matched his $3,000. offer and then offered $3,200. for the property. Bell was represented in the negotiations by a realtor named Benjamin Soffian and the Tizers were represented by Simelsohn, also a realtor.

“Bell and the Tizers were competitors in the retail linoleum business. Bell conducted a store at 1060 N. 2nd Street and the Tizers were the tenants in the estate’s property at 1064 N. 2nd Street. Apparently Bell wanted this property in order to evict Tizer and thus stifle such competition as Tizer offered. The feud between the Tizers and Bell was apparently a bitter one and of long duration. Both of the trustees were acquainted with the differences between these merchants and they apparently favored their tenants, the Tizers. The estate of the decedent was in an excellent position to profit by this situation as the desire of these people to acquire this property was sufficiently strong to induce both to bid more than the market value that this property would have otherwise enjoyed.

“Unfortunately for the estate, the trustees did not reap the full benefit of this special market. Each of Bell’s offers was submitted to the Tizers in order to give them an opportunity to bid further. But the Tizers’ offer of $3,500. made on or about August 30th was not held under consideration long enough to enable Bell to raise it by the presentation of an agreement to pay $4,500. Bell’s agent, Soffian, testified that he did offer $4,500. on August 31st by telephone and that he brought an agreement signed by Bell to pay this sum to Mr. Gill *273 on Tuesday, September 5th. During this period Mr. Gill held a deposit check of Bell, in the amount of $1,000. originally deposited on the $3,500. offer of August 30th. Mr. Gill denied receipt of this $4,500. agreement, but admitted closing with the Tizers at $3,500. on the fifth and making settlement in his own office simultaneously.

“On September 5th, Tizer’s agent, Simelsohn, met with Mr. Glaser and Mr. Gill in Gill’s office at about 1:30 in the afternoon. He procured a deed signed by Glaser and prepared by Mr. Gill. Simelsohn then took this deed to Mr. Hatley for his signature and finally obtained that signature about 5:30 p. m. on that day. During the same afternoon Simelsohn saw both Bell and his agent Soffian at Soffian’s office by appointment. He pretended to act as a peacemaker in connection with the competition for this property and thereby succeeded in inducing Bell and Soffian to refrain from communicating with Mr. Gill that afternoon. At this meeting, Simelsohn concealed the fact that he was then concluding a settlement for the Tizers with the trustees.

“Bell contends that the sale to the Tizers was the result- of a conspiracy between the trustees, attorney James G. Gill and the Tizers acting by their agent, Simelsohn. The trustees denied receipt of the $4,500. offer from Bell but conceded that they favored the Tizers. They were also concerned about the possibility of a settlement of the differences between the Tizers and Bell which would have had the effect of destroying the market for this property. Mr. Gill denied any wrongdoing in connection with his representation of Mr. Glaser.”

The Tizers, appellants, maintain that it was error for the learned court below, on the basis of fraud, to grant a decree setting aside the conveyance and directing the trustees to reopen negotiations Avith all interested parties for the sale of the premises in order to obtain the highest price therefor, for the reason that *274 the conduct of Simelsohn, their agent, did not constitute fraud to the detriment of the estate; that the testimony of Soffian, agent of Bell, the disappointed bidder, as to Simelsohn’,s fraud, was not clear, satisfactory and credible; and that since the court below determined that the trustees were not guilty of fraud, it could not properly set aside the sale.

There is no merit in the contention that the conduct of Simelsohn did not constitute fraud. “As a general rule, fraud consists in anything calculated to deceive, whether by single act or combination, or by suppression of truth, or a suggestion of what is false, whether it be direct falsehood or by innuendo, by speech or silence, Avord of mouth, or look or gesture. It is any artifice by which a person is deceived to his disadvantage”: Wiley v. Wirebelauer, 116 N. J. 7q. 391, 174 A. 20, 23. In this connection, we said in Thorne’s Estate, 344 Pa. 503, 511, 25 A. 2d 811: “The essence of fraud is deceit intentionally and successfully practiced to induce another to part with property or with some legal right.

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Bluebook (online)
51 A.2d 615, 356 Pa. 269, 1947 Pa. LEXIS 335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reichert-estate-pa-1947.