Simon v. Etgen

152 A.D. 399, 137 N.Y.S. 369, 1912 N.Y. App. Div. LEXIS 8543
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 10, 1912
StatusPublished
Cited by6 cases

This text of 152 A.D. 399 (Simon v. Etgen) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simon v. Etgen, 152 A.D. 399, 137 N.Y.S. 369, 1912 N.Y. App. Div. LEXIS 8543 (N.Y. Ct. App. 1912).

Opinion

Hirschberg, J. :

The action is at law to recover damages for the breach oían executory contract relating to the sale of real estate, the claim having been assigned to the plaintiff by Ferdinand H. Mela.

The defendants’ testator, William H. Burgess, wrote the following letter to his attorneys, Messrs. Rose & Putzel, on the day of its date:

[400]*400“New York, July 15/1903.
‘' Messrs. • Rose & Putzel;
“ Gentlemen.— If you will procure a general release executed to me by Ferdinand H. Mela of any and every claim that he may allege that he has against me, I will agree to pay to you for his account whatever sum I may realize on the sale of the Coronet, 58th Street and Sixth Avenue, over and above six hundred and ninety thousand dollars, but only to the extent, however, of twenty-five thousand. dollars, so that in no event shall he receive from me more than twenty-five thousand dollars. In speaking of six hundred and ninety thousand dollars, I include the present mortgages of all kinds affecting the property. This is intended to bind me and my executors.
“ Very truly yours,
“W. H. BURGESS.”

Upon the receipt of the letter, Rose & Putzel sent for plaintiff’s assignor, Ferdinand H. Mela, and he at once executed and delivered to them a general release in favor of Burgess. Ever since accepting that release in 1903, Burgess, and since his death in 1909, the defendants, his executors, have refused to sell the Coronet. The Coronet is a valuable apartment house in the borough of Manhattan, and since the acceptance of said release by Burgess has been salable at from $725,000 to $775,000, and has produced for Burgess or his estate a large net annual income. After accepting the release Burgess made no effort whatever to sell the property. On the contrary, he conveyed it to his wife gratuitously, and she refused advantageous offers for its purchase and manifested an intention to keep the property. Since his death his executors, to whom the property was devised by him in trust with a power of sale, have made no attempt to sell it. They have' now . petitioned for their discharge. In 1910 the plaintiff brought an action in equity, alleging these facts and asking to haye.it adjudged.that she had a lien upon the Coronet to the extent of $25,000. The complaint in that action was dismissed by the First Department of this court for want of equity, but without prejudice to- an action at law for relief with respect to the same subject-matter. (See Simon v. Burgess, 146 App. Div. 37.)

This action has since been' instituted to recover damages for

[401]*401the alleged breach of contract by Burgess and the defendants in refusing to sell the Coronet within a reasonable time. At the conclusion of the plaintiff’s evidence the learned Trial Term dismissed the complaint solely on the ground that the facts proven did not constitute a cause of action at law, and cited as its authority for that decision the cases of Lorillard v. Silver (36 N. Y. 578; more fully reported in 3 Tr. App. 146) and Murray v. Baker (6 Hun, 264).

Although the question presented is by no means free from doubt, I think a contrary conclusion may be reached. In Lorillard v. Silver (supra) it appeared that the purchaser of land agreed. with the seller to pay an additional consideration of $500 upon a contingency expressed in these words: In case I \i. e., the purchaser] realize thirty-five hundred dollars for said land, or any other sum between three thousand and thirty-five hundred that I may sell said land for, less the interest on said purchase, after six months, and to the time I may dispose of the same.” The evidence established the fact that the purchaser, the defendant, had refused an offer of $4,"500 for the property, and that after such refusal the property had depreciated in value so that it was doubtful whether it could be sold for the original purchase price of $2,500. What the Court of Appeals held in that case was that under the facts found by the referee, before whom the case had been tried, the defendant purchaser was not bound as matter of law to accept the offer of $4,500. (See Jones v. Kent, 80 N. Y. 585, 590.) Two opinions were written in the case, one by-Judge Hunt to the effect that the contract did not import an obligation on defendant’s part to sell, and one by Judge Grover to the effect that the contract did import an obligation upon the defendant’s part to sell within a reasonable time, but that the defendant was not obliged to accept the first offer. Two of the judges dissented from the judgment of the court, and the rest concurred, but the grounds of them concurrence do not expressly appear.

In Murray v. Baker (supra) the plaintiff did certain flagging' for the defendant in front of eight houses owned by the latter, under a written agreement which stated that the plaintiff would wait for payment " until Baker [the defend[402]*402ant] sells some of the houses for cash, and then, when sold, I want my bill of flagging paid.” On the trial it appeared that the defendant had sold one house for soap and another for jewelry, and still owned the rest. The court held that the plaintiff could not recover the amount of his bill, the sale of some of the houses for cash being a condition precedent to the payment for the flagging. That decision seems to have been largely based upon Judge Hunt’s opinion in Lorillard v. Silver (supra).

The contract in the case at bar I think fairly imports an obligation on the part of the defendants’ testator to' sell the Coronet within a reasonable time, and the facts disclosed by the records before us are distinguishable from the facts disclosed in the Lorillard and Murray cases. In neither of those cases was there any evidence such as the record in the cade at bar contains, establishing a persistent neglect to sell continuing' for a long period of time during which the property could have been sold for a profit. In the Lorillard case only one' offer was refused, after which the property depreciated in .value; and in the Murray case the record on appeal shows that the defendant had diligently endeavored to sell the houses for cash but had been unable to do so. Moreover the language of the contract in th a Lorillard and Murray cases differs materially from the language employed in the case at bar. In the Lorillard case the money was to be paid only in the event that the defendant “may sell said land; ” and in the Murray case nothing was due “until Baker sells some of the houses for cash.” In the case at bar the plaintiff’s assignor was to be paid an ascertainable amount from whatever sum the defendants’ testator might realize “ on the sale ” of the property. Thus while the amount that might be realized was uncertain, the phrase, “on the sale,” shows that the parties definitely contemplated “ the sale ” of the property. On the other hand, in the Lorillard case the money was to be paid -from the proceeds realized at such time as the defendant “ may dispose of ” the land; and in the Murray case it was not payable “ until ” the houses should be sold for a certain commodity,viz., “ cash.” In those cases the sale was an uncertainty.

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Bluebook (online)
152 A.D. 399, 137 N.Y.S. 369, 1912 N.Y. App. Div. LEXIS 8543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simon-v-etgen-nyappdiv-1912.