Wyatt v. Bergen

2 N.J. Misc. 1169, 1924 N.J. Ch. LEXIS 24
New Jersey Court of Chancery·Decided December 10, 1924·Published·Cited by 2 cases

Opinion

Griffin, V. C.

The bill in this cause was filed to compel the defendant vendee to specifically perform a contract entered into on the 15th day of September, 1922, whereby Anna E. Simpson, widow, in her lifetime, contracted to' convey, and the defendant contracted to purchase, certain lands in Hudson county for the sum of $20,000, to be paid for as follows: Five hundred dollars on the execution of the agreement, $1,500 on delivery of a deed and the balance by mortgage for $15,000. In the contract the vendor “covenants and agrees that the building erected on the land above described does not encroach on adjoining property, nor does any buildings on adjoining property encroach on the land above described.” The title was to’ pass on January 10th. 1923. On November 1th, 1922, Mrs. Simpson died, leaving a will in which she appointed the complainants as her executors. After the date fixed in the contract for the closing of the title the complainants wrote the defendant as follows:

“You are hereby notified that the executors of the Estate of Annie F. Simpson demand that you perform your contract made with Annie F. Simpson, dated September 15, 1922, for the purchase of premises No. 50 Tonnele Avenue, such performance to take place on or before January 31, 1923. Wfe have endeavored to find your address and have asked the Branleygran Company to furnish it to us, hut they have not complied with such request. Had we known your address we would liave communicated with you on the 10th inst. When title is closed the interest will be demanded upon the unpaid purchase price from January 10, 1923.”

On February 1st, 1923, one Joseph Irving, who' was the agent of the defendant, wrote a letter to Mr. Morton, one of the executors, as follows:

“After being notified by you, that you would require an additional deposit of $500 on account of the contract made by the late Mrs. Anne Simpson with Miss Mildred Bergen, for premises 50 Tonnele [1171]*1171Avenue, this city, I immediately got in touch with Miss Bergen, and she authorizes me to state to you that on the 12th inst. she will mail check for the amount you require.
“I am. doing all I can to get myself in readiness for the closing of the matter.”

On February 5th, 1923, Mr. Morten wrote Mr. Irving, Exhibit 5, as follows:

“Replying to your letter of the 1st inst. relative to the purchase of property Jso. 50 Tonnele Avenue, Jersey City, I would advise that the Rev. Dr. Wyatt and myself, executors of the estate of the late Anna F. Simpson, feel that in giving- you until February 12, within which to make an additional deposit of $500', is all the time that we can grant, and unless you make this deposit we will have to consider the contract as abandoned by you and either rent the property or make some other disposition thereof, so that the interest of the estate may be protected. I am wi-iting you so that there may be no misunderstanding, and ask you to regard this as formal notice to that effect.
“We do this so that we will not be open to any criticism ourselves, and while personally we would like to give you longer time and every possible opportunity to avoid any loss, yet in duty to the persons who are the beneficiaries under the will of Mrs. Simpson, we cannot do what we would like to do, but we must do as the law requires us to do.
“I feel quite certain that you appreciate the position in which we are placed and will govern yourself accordingly.”

This additional deposit of $500 having been paid, the time for closing the title was extended to- April 1st. On April 3d. 1923, complainants’ solicitors wrote to the defendant a letter, Exhibit 6, of which the following is a copy:

“You have not. performed contract for purchase of Tonnele Avenue property, and, on behalf of the executors of the estate of Anna F. Simpson, we now give you notice that if contract is not performed by the 10th inst.. we shall deem the contract null and void, and feel at liberty to make such disposition of the property as opportunity may afford. All your rights under contract heretofore made will cease and determine after April 10, 1023.”

On April 9th the defendant’s solicitors wrote the complainants’ solicitors, Exhibit 7, of which the following is a copy:

[1172]*1172“We represent Mildred Bergen, the purchaser of property No. 50 Tonnele Avenue, Jersey City, which she purchased on September 15th last from Anna P. Simpson.
“Our client has turned over to .us your letter of the 3rd inst., addressed to her.
“We desire to say that our client rejects the title in question for the following reasons:
‘T. That the building adjoining the premises in question on the north encroaches over for 25/100ths of a foot on the' premises in' question for approximately a distance of 22 feet, more or less.
“2. Thar, the executors of the seller are unable at the present time to convey according to contract terms, because the lands in question are liable for the debts of the deceased for one year from the date of her death.
“3. There is no waiver of inheritance tax releasing the property in question on file in the County Clerk’s Office in Hudson County'.
“4. That there is a life estate in the premises in question outstanding in Ida B. Simpson, the life tenant mentioned in the will of Anna IT. Simpson.
“The purchaser is able to perform and has had the balance of the purchase price in readiness for some time past, and she insists upon rejecting the title .for the reasons above set forth.
“Will yc-u kindly have your client make arrangements to refund the deposit, as well as search and survey fees and fees paid to the broker under the contract in question.”

About the 18th of April, 1923, the defendant rendered a claim, under oath, to the complainants for a return of the money’s'paid under the contract, and for search and survey fees.

It appears that the complainants'were anxious to close the title promptly, and the defendant, for some unexplained reason, desired delay. In this situation the complainants wrote the letter of April 3d, 1923, 'Exhibit 6, in which the complainants gave plain notice to the defendant that, unless the title was closed on April 10th, the contract would be null and void, thus attempting to declare time to be of the essence of the contract, which was not the case before.

A question arises as to whether this notice, Exhibit 6, in the language of Mr. Justice Holmes, in Stewart v. Griffith, 217 U. S. 323; 30 Sup. Ct. Rep. 528, was “politely to apply a spur” to the defendant to speed her in the performance of the contract, or whether it was intended to operate as making time of the essence of the contract. As [1173]*1173applied to the letters, Exhibit 8 (undated) and Exhibit 5, of February 5th, 1023, it is easy to conclude that these were intended to “spur” the defendant to perform her contract, but, as applied to the letter of April 3d, it cannot he.

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Wyatt v. Bergen, 2 N.J. Misc. 1169, 1924 N.J. Ch. LEXIS 24 (N.J. Ct. App. 1924).

2 N.J. Misc. 1169 (Wyatt v. Bergen) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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