Crystal Spring Finishing Co. v. Town of Freetown
| Decision Date | 30 June 1943 |
| Citation | 314 Mass. 315,50 N.E.2d 34 |
| Parties | CRYSTAL SPRING FINISHING COMPANY v. TOWN OF FREETOWN. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
December 10, 1942.
Present: FIELD, C.
J., DONAHUE, QUA DOLAN, & RONAN, JJ.
Municipal Corporations, Ultra vires, Disposition of property.
One, who had purchased land from a town, giving in part payment a note secured by a mortgage on the land, had no standing to contend that the acceptance of the note and mortgage were ultra vires the town.
BILL IN EQUITY filed in the Superior Court on February 21, 1941. The suit was heard by Walsh, J.
Argued for the plaintiff by its president, D. V. Guillemette, not a member of the bar.
G. H. Potter, for the defendant.
This is a bill in equity by which the plaintiff seeks to have the defendant restrained from foreclosing a mortgage held by it on certain real estate, which had been purchased by the plaintiff from the town in September, 1935.
The case was referred to a master. No objections were made to her report by either of the parties, and an interlocutory decree was entered confirming the same. Thereafter a final decree was entered dismissing the bill, and the plaintiff appealed.
Material facts found by the master follow: One Guillemette, the president and general manager of the plaintiff corporation, had been negotiating for a considerable period of time for the purchase of the real estate in question, which had been acquired by the town under a decree of the Land Court in proceedings to foreclose the right of redemption of a tax title. He talked to various town officers relative to the subject matter and conferred especially with one Richmond the chairman of the board of selectmen, and after securing an option on the property "used that option in selling stock." He was present at a board meeting "with all members of the committee named to arrange for the sale of the property [see G. L. (Ter. Ed.) c. 40, Section 3] and there was a discussion about how a mortgage and note could be arranged for." The plaintiff "was not deceived or misled by the board of selectmen, the committee members, or any official representing" the town.
On September 21, 1935, the town, by deed of a committee thereunto duly authorized by vote passed at a special town meeting, conveyed the premises in question to the plaintiff by quitclaim deed. The purchase price, "including land, buildings, machinery and water rights," was $22,000. Of this amount $5,000 was paid in cash, and a note secured by mortgage of the realty was given for the balance. The plaintiff made payments from time to time which reduced the amount due to $9,500 as of October 1, 1940. In the period between 1935 and 1940, the plaintiff expended $74,181.62 for new equipment, improvements and repairs. Sometime "in 1940 the . . . [plaintiff] defaulted on . . . [its] interest and principal payments." It tried to secure a second mortgage on the property and could not do so.
It "acted with reasonable promptness . . . [itself] and through . . . [its] attorney in all matters concerning this action and committed no laches." The master further found that the amount due from the plaintiff to the defendant to July 1, 1941, for principal, interest, taxes, insurance and related expenses totalled...
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