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John S. Westervelt''s Sons v. Regency Inc.

Decided: October 19, 1949.

JOHN S. WESTERVELT'S SONS, PLAINTIFF-RESPONDENT,
v.
REGENCY, INC., DEFENDANT; JEAN G. L. CASSEL VAN DOORN AND MARIJ V. CASSEL VAN DOORN, DEFENDANTS-APPELLANTS; WILLIAM HENIG, AS TRUSTEE IN BANKRUPTCY OF REGENCY, INC., BANKRUPT, DEFENDANT-RESPONDENT



Jacobs, Donges and Bigelow. The opinion of the court was delivered by Donges, J.A.D.

Donges

Defendants, Jean G. L. Cassel van Doorn and Marij V. Cassel van Doorn appeal from a supplemental judgment of the Superior Court, Chancery Division. The judgment which was rendered on July 15, 1949, provides, inter alia , that the defendants, Jean G. L. Cassel van Doorn and Marij V. Cassel van Doorn, make, execute and deliver a deed to premises situate at 240 Broad Avenue, in the City of Englewood, New Jersey, to William Henig, the trustee in bankruptcy of Regency, Inc., bankrupt, and that they also deliver possession thereof as well as all keys thereto. It is this latter provision concerning the delivery of possession which the defendants appeal from.

The facts are fairly well agreed upon and are substantially as follows:

On November 10, 1943, plaintiff instituted suit for the recovery of moneys due from the defendant, Regency, Inc. Prior to the entry of judgment in that case, Regency, Inc., which was at that time holder of the title to premises in question, conveyed said premises to the defendant, Jean G. L. Cassel van Doorn. The van Doorns were the only stockholders, directors and officers of said corporation. Thereafter, judgment was entered against Regency, Inc., on February 16, 1948.

On March 25, 1948, plaintiff instituted an action in the former Court of Chancery of New Jersey against Regency, Inc., and the van Doorns seeking to set aside the conveyance from Regency, Inc., to Jean G. L. Cassel van Doorn as a fraudulent conveyance.

While the action was pending and on April 23, 1948, the defendant, Regency, Inc., was adjudicated bankrupt and one William Henig was elected trustee in bankruptcy on May

19, 1948, and qualified as such. Thereafter, the plaintiff was given leave to amend his complaint and to add Henig as an additional defendant.

On September 13, 1948, the Chancellor entered an order, inter alia , appointing William Henig receiver pendente lite of the premises in question. Said order further provided that the individual defendants shall "on or before the 15th day of September, 1948, and monthly thereafter in advance, pay to the said Receiver the sum of $450.00 per month as rent for said premises." The order further provided that the receiver, from said rents, pay taxes, sewerage charges, and fire insurance upon said premises.

On October 25, 1948, the Judge of the Superior Court rendered a written opinion, by which he determined that summary judgment should be entered setting aside the conveyance made by Regency, Inc., to Jean G. L. Cassel van Doorn, and requiring van Doorn to pay to the trustee in bankruptcy of Regency, Inc., the sum of $25,000, the proceeds he received for a part of the premises he conveyed away.

On May 3, 1949, the Appellate Division of the Superior Court issued its mandate on affirmance of the judgment below.

Thereafter, the plaintiff and the trustee in bankruptcy served a notice of motion to fix terms of supplemental judgment. After hearing of argument on the motion, the court below entered the supplemental judgment, from which the individual defendants appeal.

The two individual defendants have fully satisfied every portion of the judgment except that provision which awards to the defendant trustee in bankruptcy possession of the ...


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