Reilly v. Griffith

56 A.2d 502, 141 N.J. Eq. 154, 1947 N.J. Ch. LEXIS 4, 40 Backes 154
CourtNew Jersey Court of Chancery
DecidedDecember 29, 1947
DocketDocket 147/667
StatusPublished
Cited by15 cases

This text of 56 A.2d 502 (Reilly v. Griffith) 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
Reilly v. Griffith, 56 A.2d 502, 141 N.J. Eq. 154, 1947 N.J. Ch. LEXIS 4, 40 Backes 154 (N.J. Ct. App. 1947).

Opinion

This is a suit by vendees (husband and wife), to obtain the rescission, surrender and cancellation of a recorded contract for the purchase of land and a dwelling at 263 White Horse Pike, Audubon, New Jersey, and the declaration of a vendee's lien on the premises for $2,400, down-money paid on account of their attempted purchase. Time was stipulated to be of the essence of the contract, and it is the contention of the complainants that the defendants defaulted by failing to appear and settle at the hour and place fixed.

Joining issue, the defendant-vendors advanced many questions of fact for resolution by this court: (a) that time was not, in fact, of the essence; (b) that complainants orally agreed to a postponement of the settlement and then failed to appear and perform, whereby the complainants defaulted and *Page 156 forfeited to the defendants their down-payment of $2,400; (c) that complainants are barred of relief by their laches; (d) that complainants have not performed "to an extent" which would entitle them to relief; (e) that complainants did not put the defendants in default by notice before institution of this suit; (f) that complainants have an adequate remedy at law; and (g) that no lien may be declared upon the premises because they have been conveyed for value and this suit was not instituted and alis pendens filed within three months after the date stipulated in the contract for its consummation, as required by R.S.46:21-3.

The contract was dated September 7th, 1946. The purchase price was $12,000, $1,000 down, $5,000 at settlement, and $6,000 to be secured by execution of a purchase-money mortgage. It was stipulated that settlement was to be made at the office of the vendors' broker November 15th, 1946, at 4 P.M., that time was of the essence, that if the vendees did not make settlement in accordance with its terms "the payment or payments" made on account would be forfeitable as liquidated damages at the option of the vendors, and that the complainants take title subject to the tenancy of the occupants.

The sale was negotiated by a salesman of defendants' real estate broker. Complainants made an initial payment to him of $100 and it was understood that the broker would prepare a formal contract. When that instrument was ready for execution, the broker asked complainants for $2,350 instead of $900 ($1,000 being the amount agreed upon orally and written in the contract), explaining that a governmental agency required twenty per cent. of the consideration to be paid as a prerequisite to any dispossession proceedings against the tenant, and that a deposit of $50 was necessary to secure title searches. The complainants, being anxious to gain early possession of their property, gave the broker $2,350. The defendants now call attention to the fact that the printed contract provides for a forfeiture — not of "the payment" made on account but of "payment or payments," and claim $2,400.

The original answer filed herein asserted, by way of a separate defense, that the time fixed for settlement in the *Page 157 contract was extended from November 15th to November 19th at two o'clock in the afternoon and that, at the latter time, defendants "tendered an executed deed to the complainants." Also, that complainants did not appear, nor did anyone for them, and that, immediately thereafter, the defendants caused notice to be forwarded to them that at two o'clock in the afternoon of November 26th, 1946, the defendants would appear at the office of their broker for the purpose of again tendering to complainants a deed for the premises and for settlement in accordance with the "then existing terms" of the contract. And that, at two o'clock in the afternoon of November 26th the defendants appeared at the place designated and caused a duly executed deed for the lands to be tendered, and then caused a notice to be sent to the complainants that the defendants had, "in accordance with the terms of said Agreement elected to forfeit the down payment made by the complainants due to the default of the complainants."

When the cause was called for final hearing defendants submitted an order amending their answer and, as the complainant would not be prejudiced, it was advised. The effect of the amendment was to present a different statement of fact, viz., that, by oral agreement, the time fixed for settlement in the contract was extended from November 15th to November 26th, at two o'clock in the afternoon, and the complainants then not appearing the defendants elected to declare a default and forfeiture.

After the broker had requested and obtained $1,400 more than the complainants had expected to pay as earnest money, Dr. Reilly repeatedly inquired of the broker's representative as to when and how complainants could obtain possession of their property, and what the additional cost would be to them for conveyancing and the like. When the doctor failed to obtain any satisfactory answers to his inquiries, he became suspicious of the defendants and their broker. On the day before the day designated for settlement, those suspicions were augmented. First, he received a letter from the broker stating that settlement would be made on the "19th" "according to your agreement of sale" — and his agreement read the *Page 158 15th. A little later he received a telephone message from the broker's office that the "19th," written in the letter, was incorrect and a mistake of a stenographer. The doctor decided he needed legal advice and assistance, and immediately retained his present solicitor.

At four o'clock in the afternoon of November 15th the complainants, their attorney and another attorney associated with him, were at the place designated for settlement "ready, desirous, prompt and eager" to perform. Meidling v. Trefz,48 N.J. Eq. 638, 644; 23 Atl. Rep. 824; Vandermade v. Appert,125 N.J. Eq. 366, 371; 5 Atl. Rep. 2d 868. They were received by a settlement clerk. The defendants did not appear. Complainants made formal tender of the cash balance due and offered to execute the purchase-money mortgage which, it is admitted, was to have been prepared in the broker's office. The settlement clerk did not have the deed or the mortgage and he was otherwise unprepared to make settlement for the defendants. Complainants left the office. They waited three days and then, on November 18th, 1946, their attorney wrote the broker, called attention to the defendants' failure to appear and settle, and requested repayment of the moneys paid, $2,450.

Two days later, November 20th, 1946, the broker wrote directly to Dr. Reilly: "Confirming your telephone conversation with this office on last Thursday, November 14th, 1946, we have scheduled your settlement covering the above property, to be held here in our office, on Tuesday, November 26th at 2:00 P.M. We shall look forward to seeing both you and Mrs. Reilly here at that time." The complainants, having declared a default on the part of the vendors and having asked for the return of their deposit moneys, did not appear at the broker's office on November 26th. Nor, did the defendants appear, except by attorney. However, that very afternoon the broker wrote to Dr. Reilly declaring that the complainants' failure to settle at two o'clock constituted a default and that the sellers had elected a forfeit of the moneys paid and a termination of "any further interest" the complainants might have in the property. Shortly thereafter, this suit was instituted and a lis pendens was filed.

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Cite This Page — Counsel Stack

Bluebook (online)
56 A.2d 502, 141 N.J. Eq. 154, 1947 N.J. Ch. LEXIS 4, 40 Backes 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reilly-v-griffith-njch-1947.