Winslow v. Atz

177 A. 272, 168 Md. 230, 1935 Md. LEXIS 148
CourtCourt of Appeals of Maryland
DecidedFebruary 14, 1935
Docket[No. 8, January Term, 1935.]
StatusPublished
Cited by2 cases

This text of 177 A. 272 (Winslow v. Atz) 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
Winslow v. Atz, 177 A. 272, 168 Md. 230, 1935 Md. LEXIS 148 (Md. 1935).

Opinion

Offutt, J.,

delivered the opinion of the Court.

On and prior to December 22nd, 1930, the Universal Sand & Gravel Corporation owned a tract of land containing about twenty-five acres known as the Roa Hook property, situated in the Town of Cortlandt, Westchester County, New York, which was subject to a first mortgage for $18,000 to the Mercantile Credit Company, of Baltimore, and to a second mortgage for $122,000 to the American Security Company, trustee. One Frank K. Sauer represented the Universal Sand & Gravel Corporation, as attorney and agent, and J. Leiper Winslow represented the American Security Company and other corporations, as attorney and agent.

The first mortgage being in default, the Mercantile Credit Company, as mortgagee, had prior to that date instituted proceedings to foreclose it, and that proceeding was then pending in the New York Supreme Court, County of Westchester, against Winslow’s clients.

On December 22nd, 1930, Sauer and Joseph Atz, a member of the New York Bar, met Winslow at the latter’s office in Baltimore, and discussed (1) refinancing the first *235 mortgage, (2) delaying the foreclosure sale under the proceedings instituted by the Mercantile Credit Company, and (3) a sale of the property by Atz. Winslow said that “Mr. Sauer was his client who had arranged to pay off the first mortgage and all legal charges if defendant’s clients would give him a half interest in their mortgage.” As a result of their negotiations, Winslow and Sauer executed two agreements called herein “Agreement No. 1” and “Agreement No. 2.”

Under Agreement No. 1, which was executed by Win-slow as attorney and agent for the New York Tidewater Gravel Corporation, the Tidewater Bondholders’ Corporation, and the American Security Company, designated as the contractor, and Frank K. Sauer, of Elizabeth, N. J., as attorney and agent for the Universal Sand & Gravel Corporation, designated as contractee, the contractee agreed to negotiate a loan to take up the first mortgage with interest and legal charges, and to have that mortgage extended for a period of three years. The contractor agreed to have a foreclosure proceeding pending “on the second mortgage” satisfied of record, or to deliver to the contractee fifty per cent, of the bonds accompanying such second mortgage. It was further agreed that the property described in the two mortgages should be held by the contractor and contractee as tenants in common equally, and the contract contained also this provision, that “any fee for title searches and legal fees of Joseph Atz of New York City shall be equally paid by the contractor and contractee herein.” It contained other stipulations which are not material to the questions involved in this appeal.

Agreement No. 2 was executed by Winslow and Sauer as individuals and as attorneys and agents for the parties and corporations specifically mentioned in Agreement No. 1. Under it Atz was authorized to sell the Roa Hook property for $200,000 and from that sale he was to receive a commission of five per cent.

On January 2nd Atz wrote Winslow a letter, in which,, among other things, he said:

*236 “On even date herewith, I interviewed Mr. Pyne and Mr. Parker, of Emory and Pyne, the attorneys for the Mercantile Credit Company, and on behalf of the Universal Sand & Gravel Company filed a notice of appearance, and requested a stipulation for a period of twenty days, so that such corporation would not be in default. I likewise informed them, that, we hope, within the next ten days to pay the first mortgage.
“It is not clear to me, if the intent of the agreement entered into, the time we were at Baltimore, is to authorize me to appear for the various companies that you are interested in. The attorneys for the Mercantile told me, that no one on your behalf has appeared so far. Such an appearance should be made and a stipulation obtained, so that such corporations will not be in default, as we wish to keep our rights open until we have time to take up the first mortgage.
“If it is the intention of your associates and yourself to have me appear for you then it will be essential that I have an authorization in writing. I am enclosing such document.”

The “authorization” referred to in that letter, after stating the title of the foreclosure case in the New York Supreme Court, Westchester County, continued:

“I, J. Leiper Winslow, of Baltimore, Maryland, individually, as agent, and as attorney for the following:
New York Tidewater Gravel orporation; Tidewater Bondholders Corporation; American Security Corporation as Trustee;
Do Hereby Authorize Joseph Atz, counsellorat-law, of the City of New York, to appear and act as attorney for the various designated corporations herein, in the above-entitled action.
*237 Dated, Baltimore, Md., January 3rd, 1931.
J. Leiper Winslow,
Individually, as agent and as attorney for the above-described corporations.”

Winslow signed and returned the “authorization” to Atz and at the same time wrote him:

“I am enclosing document so that you can file same at the proper time. A Director of the Mercantile Credit Company called in my office today and stated that you had written their lawyers, that the first mortgage would be paid off within ten days.”

To that letter Atz replied:

“On receipt of yours dated the 3rd of January, 1931,1 promptly appeared in the first mortgage foreclosure proceeding for your various companies, and obtained an extension until the 28th of January, 1931, so that none of the defendants could get in default.
“I lodged with the Title Company a requisition for a certificate to be issued to the assignee of the first mortgage, that same is a first mortgage lien.
“Before the end of the week of the 12th, the prospective purchaser promises arrangements will be made as to a contract for the sale of this property.”

Although it was conceded that there was no meritorious defense to the foreclosure proceeding, Atz, by manipulating the legal processes available for the protection of defendants in such cases, was successful in delaying the foreclosure for many months, but he did not succeed in obtaining a purchaser for the property, nor did Sauer succeed in refinancing the first mortgage.

Prior to October 1st, 1931, Atz’s connection with the foreclosure proceedings appears to have terminated, and *238 on that day he sent Winslow a statement in which he charged Winslow and Sauer jointly $3,000 for:

“Professional Services Rendered:
In re: Foreclosure Action—Mercantile Credit Company vs. New York Tidewater Gravel Corporation, Tidewater Bondholders Corporation, American Securities Corporation, as trustee, and Universal Sand & Gravel Corporation, et als.”

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Related

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72 A.2d 763 (Court of Appeals of Maryland, 1950)
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3 A.2d 463 (Court of Appeals of Maryland, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
177 A. 272, 168 Md. 230, 1935 Md. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winslow-v-atz-md-1935.