Standish v. Babcock

48 N.J. Eq. 386
CourtNew Jersey Court of Chancery
DecidedMay 15, 1891
StatusPublished
Cited by1 cases

This text of 48 N.J. Eq. 386 (Standish v. Babcock) 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
Standish v. Babcock, 48 N.J. Eq. 386 (N.J. Ct. App. 1891).

Opinion

Van Fleet, V. C.

This is a suit for an account. The transactions which gave rise to the suit were the following: On the 26th day of March, 1884, the complainant, defendant and Joseph W. Moyer executed an agreement in writing by which Moyer and' the complainant agreed to use their best endeavors to obtain coal lands at or near Tremont, in Schuylkill county, Pennsylvania, at the lowest price and upon the best possible terms. ■ The defendant ■agreed to use his best endeavors to make sale of the'lands so ■obtained at the best attainable' price, but only upon consultation' with the complainant and Moyer. And it was further agreed that all profits made on the sale of the lands obtained should be ■equally divided among th§ three! Title to a tract of land lying' near Tremont was acquired on the 5th day of April, 1884, though" the complainant and Moyer had purchased it about two weeks prior to that date at a public sale made by the commissioners of" 'Schuylkill county. The title to this tract was made to neither ■of the parties to this suit, but to a son of the defendant. The title was made to the son by the direction of the complainant and Mr. Moyer, notwithstanding the-defendant had, in a letter written-by him in New York, on the very day the commissioners’ sale was made — March-21st, 1884 — and sent to the complainant at Potts-ville, Pa., requested that the title be made either to the complainant or to Mr. Moyer. In that letter the defendant said :

“ If. you buy the commissioners’ title to-day to the two lots, one. for four hundred and thirty-eight acres and one of one hundred and, three acres, have separate deeds, and put either in your name or Mr. Moyer, arid then come home that we may raise money on them. And be sure to bring with you the ’ •evidence that we have the positive control of the six hundred a.nd seventy-five acres at Panther Head.” .

The one hundred and three acres mentioned in this letter is the same tract which the complainant and Mr. Moyer purchased ■ at. the commissioners’ sale on the 21st day of March, 1884; and [388]*388subsequently, on the 5th of April following, procured to be conveyed to the defendant’s son. The defendant’s son had no-beneficial interest in the land. He did not purchase it, nor pay for it, nor pay anything on account of it. He has never pretended that he was the beneficial owner of it. The title was put in his name without his knowledge, and, as it would appear, simply because neither the complainant nor Mr. Moyer was willing to take it. The price paid for the land was $245. The-purchase-money was raised in this way: a draft was drawn by the complainant on the defendant for $200, and Mr. Moyer paid the other $45. The defendant paid the draft and also refunded the $45 to Mr. Moyer, so that he paid the whole of the purchase-money. The defendant, in January, 1889, sold the land' and made a conveyance of it as the attorney in fact of his son,, without consulting the complainant or Mr. Moyer and without their knowledge. He received the whole of the purchase-money and applied it to his own uses. The fair market value-of the land at the time of the sale, as the complainant’s proofs show, was $90 an acre. The defendant’s proofs make it much more, even as high as $400 an acre, but the complainant’s proofs-are, in my judgment, more trustworthy than those of the defend-' ant. The defendant denies the complainant’s right to an account.. He says that the land in question formed no part of the subject-matter of the agreement of March 26th, 1884, but was purchased by the complainant, as his agent, for him, at his request, and for his own exclusive benefit prior to the time that that agreement was made.

It is thus seen that- the court, in deciding the case, is required' to answer but a single question, and that is, were the one hundred and three acres purchased for the defendant alone or for the joint benefit of the complainant, Mr. Moyer and the-defendant ? The complainant went to Pottsville in the early part of March, 1884. Just before he went, he had an interview with the defendant, in which they discussed the chances of making-money by the purchase of coal lands. The complainant knew something about the lands lying in the vicinity of Pottsville,. which it was supposed contained deposits of coal. The defend[389]*389ant had no personal knowledge respecting them. The object of the complainant’s visit was to inspect such lands, to see whether they could be purchased at prices which would enable the purchaser to resell them at a profit. The defendant requested the complainant to go, and paid his expenses. The complainant swears that it was understood between the defendant and himself, before he went to Pottsville, that all profits which should be made by the purchase and sale of coal lands were to be equally divided among Mr. Moyer, the defendant and himself, and'that he so informed Mr. Moyer when he first stated to him the object of his visit to’ Pottsville. Mr. Moyer is a lawyer, and the special service he was to perform, in the prosecution of the venture, was to examine and pass upon the titles to the lands which might be offered for sale. The claim of the complainant is,' that the agreement of March 26th, 1884, merely put in writing what had been previously, before he went to Pottsville, orally agreed upon. The defendant’s own letters show that this claim is true.

In his letter of March 21st, 1884, from which a quotation has already been made, he says, referring to a contract of purchase already made or about'to be made:

“ I want a certified copy of the agreement, or an agreement from Mr. Moyer that, on the payment of §30,000, he will produce the titles to the property. This will be enough to show that we have the control of it.”

And in a letter written the next day, March 22d, while the complainant was still at Pottsville, he says:

“As soon as the sale is over [meaning the commissioners’ sale] you must •return here, either with the titles or such evidence of them as will enable us to borrow some money.”

And in a letter written by him to Mr. Moyer, dated April 25th, 1884, he asked Moyer to change the consideration mentioned in a deed to his son for lands purchased by the complainant and Moyer, either on the same day or the day after the one hundred and three acres were purchased, by raising it from $900 to any sum between $4,500 and $6,000, saying: .

[390]*390I probably could not explain to Mr. Mason [a person with whom he was-negotiating a sale of the land] the why and wherefore of our obtaining the-property at the low price that it comes to m.”

On the 13th day of January, 1885, the defendant sent' to the complainant, by mail, a copy of a contract which he informed •the complainant, by a letter enclosed with the copy, that he had ■signed for the complainant and himself, authorizing a person, by the name of Overton,' to make sale of the' one hundred and three acres, together with other lands belonging to them. This-contract declares that the complainant and defendant are the “ owners of deeds and contracts for deeds of certain coal lands 'known as the Otta tract, the Kidd tract, the Filbert tract and the Panther Head tract, containing together about twenty-five hundred acres, situated in the county of Schuylkill,” &c.

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Bluebook (online)
48 N.J. Eq. 386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standish-v-babcock-njch-1891.