Jones v. Davis

Citation48 N.J.E. 493,21 A. 1035
PartiesJONES et al. v. DAVIS.
Decision Date01 June 1891
CourtNew Jersey Court of Chancery

Action ex contractu by A. Elwood Jones and James G. Kitchen against John S. Davis.

M. P. Gray and Jos. De F. Junkin, for complainants.

Allen B. Endicott and I. Newton Brown, for defendant.

GREEN, V. C. The complainant Jones, in 1889, ascertained that the United States Hotel property at Atlantic City could be purchased for $100,000. It consisted of a whole block of land, with the hotel buildings. In his judgment there was money to be made on a purchase at that price, by disposing of the unoccupied portions of the land. Having no money to invest, he looked for some gentleman of means, who was willing to enter into the speculation, and put up the amount necessary to make the cash payments. Having an acquaintance with Mr. Davis, the defendant, he approached him with a proposition contemplating the purchase by Davis of the property; and that gentleman finally became the purchaser, under the conditions hereafter set out. An agreement in writing was entered into between the owners, the United States Hotel Company, and John S. Davis, which is dated October 1, 1889, but was not signed until October 4th, for the sale to and purchase by him of the property for $100,000; to be paid, $10,000 on signing the agreement, $30,000 on February 1, 1890, and $60,000 on May 1, 1890; the purchaser to have the right of immediate possession, but not to move buildings without giving security. On October 4th, Mr. Davis paid the first $10,000. Contemporaneous with this transaction, the following paper was drawn by Jones, and signed by Davis: "Phila., October 1, 1889. To whom it may concern: This is to declare that having this day purchased from the United States Hotel Company the United States Hotel property at Atlantic City for the sum of one hundred thousand dollars, that I hold the same subject to the following interest of A. Elwood Jones therein, viz.: That after I have received from the sale of the said property, either in part or as a whole, the full amount of money invested therein by me, together with interest on the money, and the incidental expenses attending the said transaction, I am to divide equally with the said A. E. Jones the net profits of said operation, in consideration of his services in effecting the purchase of said property, and his giving his undivided attention to the sale and disposition thereof. John S. Davis. Witness present: W. H. Pettit." There was an understanding by which Davis was to sell lots before the delivery of his deed, and the hotel company was to make the title to the purchasers on receiving the purchase money, which was to be credited on the consideration to be paid by Davis. The plan was settled on by Davis and Jones to move the hotel proper, except one section, from its former location to the south-western end of the block, to open a street through the middle of the block, and lay off the balance in building lots. A contract to move the hotel was made November 8, 1889, to be completed February 15, 1890, and the work was commenced and prosecuted with energy, and the building put in order for occupancy during the then next summer season. The deed to Davis was dated March 7, 1890, but was not delivered until May of that year. Between October 4, 1889, and the delivery of the deed, lots had been disposed of to the amount of $43,400, and soon afterwards others to the amount of $12,000. A mortgage was negotiated on the hotel and unsold lots for $60,000, which was realized by Mr. Davis, May 23, 1890. Immediately on the agreement being signed, Jones went to Atlantic City, and took charge; acting, however, under the directions of Mr. Davis as to all matters involving a sale or radical change. He superintended the work going on, and busied himself in trying to effect sales. The hotel was refitted by Mr. Davis at his own expense, and was operated by certain parties for him during the season. The portion of the hotel not moved from Atlantic avenue has been leased, with a privilege of purchase; and Mr. Davis has contracts for the purchase of all the property remaining unsold, except the large hotel. Differences arose, during the summer, between the parties, which resulted in a breach of their friendly relations; and all intercourse of a business character, except the most formal, has ceased; and any harmonious action is rendered improbable, if not impossible. The complainant Jones, by writing under his hand and seal, under date of November 25. 1889, assigned to the complainant Kitchen all his right, title, and interest in the said hotel property, and all his interest in the profits to be derived upon a sale of the same, with a request and direction to John S. Davis to pay and transfer the same to said Kitchen when the same are realized, subject to the...

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8 cases
  • Botsford v. Van Riper
    • United States
    • Nevada Supreme Court
    • September 2, 1910
    ...the venture, or of property received as compensation for services rendered in connection with the venture. 23 Cyc. p. 460; Jones v. Davis, 48 N. J. Eq. 493, 21 A. 1035; Scott v. Clark, 1 Ohio St. 382; Delmonico Roudebush (C. C.) 5 Fed. 165; Reilly v. Freeman, 1 A.D. 560, 37 N.Y.S. 570; Mars......
  • Stein v. George B. Spearin, Inc.
    • United States
    • New Jersey Court of Chancery
    • April 25, 1936
    ...Eq. 61, 36 A. 488; Carr v. Sterling Realty Corporation, 94 N.J.Eq. 128, 119 A. 184, affirmed 95 N.J.Eq. 274, 126 A. 926; Jones v. Davis, 48 N.J.Eq. 493, 21 A. 1035; Calkins v. Worth, 215 Ill. 78, 74 N.E. 81; Getty v. Devlin, 54 N.Y. 403; McCutcheon v. Smith, 173 Pa. 101, 33 A. 881; Irvine v......
  • Lind v. Webber
    • United States
    • Nevada Supreme Court
    • August 21, 1913
    ... ...          At ... Goldfield, on the 3d day of February, 1906, the plaintiffs ... and the defendants Webber and Davis entered into an agreement ... that Webber should make a trip into the Fairview mining ... district in Churchill county where a new find of mineral ... Styles, 15 Fed. Cas. 1143, No. 8,625; ... Cunningham v. Davis [Tenn. Ch. App.] 47 S.W. 140; ... Matthews v. Kerfoot, 64 Ill.App. 571; Jones v ... Davis, 48 N. J. Eq. 493, 21 A. 1035; Spier v ... Hyde, 92 A.D. 467, 87 N.Y.S. 285; Calkins v ... Worth, 215 Ill. 78, 74 N.E. 81; ... ...
  • Gamble v. Silver Peak Mines
    • United States
    • Nevada Supreme Court
    • January 4, 1913
    ... ... C. A ... 190; Morris v. Wood [Tenn. Ch. App.] 35 S.W. 1013; ... Lyles v. Styles, 15 Fed. Cas. 1143, No. 8,625; ... Cunningham v. Davis [Tenn. Ch. App.] 47 S.W. 140; ... Matthews v. Kerfoot, 64 Ill.App. 571; Jones v ... Davis, 48 N. J. Eq. 493, 21 A. 1035; Spier v ... Hyde, ... ...
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