Kahn v. Chapin

Headnote

Trusts—Purchase op Trust Property by Trustee.

Where a trustee bid in for himself the trust property at a sale under a mortgage, the title of his grantee will not for that reason be disturbed 28 years after the sale, 22 years after the youngest cestui que trust became of age, and 13 years after the trustee’s grantee acquired title, where the trustee is still living, and financially responsible, and his action had never been questioned by the cestuis que trustent.

Appeal from special term, New York county.

Action by Mayer Kahn against Chester W. Chapin for specifier performance of a contract to convey real estate. There was a judgment in favor of plaintiff, and defendant appeals. Affirmed.

September 6, 1851, Abel Harker died, seised in fee of No. 291 West Twelfth street, subject to a mortgage to secure the payment of $3,500, executed by him and his wife October 6, 1847, and recorded October 7, 1847. Abel Harker left, him surviving, Jane Ann Harker, widow, and four daughters, his only heirs and next of kin. He left a last will and testament, which was

duly probated September 25, 1851, by which two executors were nominated, both of whom refused to qualify, and on the 2d of October, 1851, letters of administration with the will annexed were issued to the widow and James Wooley, who accepted the trust and administered the personalty. By the will a trust was established over the realty for the benefit of the widow and children. Wooley also assumed the execution of the trust created in the real estate. February 1, I860, upon the petition of the widow and the four daughters, Joseph Barker, a nephew of the testator, was appointed as trustee to execute the trusts created by the" will, and entered upon the discharge of his duties. February 27, 18G6, Oornelius Vanderbilt, the assignee of the aforesaid mortgage, began an action for its foreclosure, in which the widow, the four daughters, the persons named as executors in the will, and the trustee were made parties defendant, all of whom were served. All of the parties were of full age, except Virginia O. Barker and Louise E. Barker, who were upward of 14 on February 28, 1866. A guardian ad litem was appointed for the infants, who appeared and served the usual answer, submitting their rights to the court. A judgment of foreclosure was recovered April 30, 1866. The premises were sold and conveyed May 22, 1866, in pursuance thereof, to Joseph Barker, for $9,000. After the payment of the judgment and the costs of sale, there was a surplus of $5,038.57, which was paid by the referee to the chamberlain of the city of New York. Afterwards Barker applied, as trustee, for an order directing the payment of the surplus to him. The matter was referred. The infants appeared upon the hearing by their guardian, and the surplus was directed to be paid to Barker, as trustee. The two infant daughters became of full age on or before February 28, 1873. March 15, 1881, Joseph Barker and his wife conveyed the premises to Chester W. Chapin for $14,000, by a deed recorded March 18, 1881. Subsequently the grantee died, leaving this defendant his sole heir, who acquired the title which his father acquired under the aforesaid deed, and has since remained in possession of the premises. October 19, 1892, the litigants entered into an executory contract by which the defendant sold and agreed to convey to the plaintiff, by a warranty deed, said premises, in consideration of $16,000. On the date fixed for passing the title, the plaintiff refused to accept the conveyance tendered by the defendant, on the ground that his title was defective, because the trustee personally purchased the property at the mortgage sale, and defendant’s title was derived from him. Afterwards this action was brought, the plaintiff asking that the contract be specifically performed in case the defendant was able to convey a good title, but, if not, that damages be awarded. The defendant answered, denying that his title was defective, and demanding a'judgment that the contract be specifically performed. At the conclusion of the trial, the plaintiff waived his objections to the title, and announced that he was ready to take the conveyance tendered and execute the contract. The defendant waived all claim to affirmative relief, and thereupon a judgment was entered directing him to convey the premises to the plaintiff by a warranty deed. No costs were awarded to either party. The defendant appeals, and insists that the court erred in directing him to convey to the plaintiff and warrant a defective title.