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

• Decision Date: 25 October 1948
• Docket Number: No. 158/538.,158/538.
• Citation: 63 A.2d 818
• Parties: JOHN S. WESTERVELT'S SONS v. REGENCY, Inc., et al.
• Court: New Jersey Superior Court

63 A.2d 818

JOHN S. WESTERVELT'S SONS

v.REGENCY, Inc., et al.

No. 158/538.

Superior Court of New JerseyChancery Division.

Oct. 25, 1948.

Suit in equity by John S. Westervelt's Sons against Regency, Inc., Jean G. L. C. van Doorn and his wife to set aside a deed from defendant corporation to defendant husband and recover money due from defendants van Doorn, in which William Honig, as trustee in bankruptcy for defendant corporation, was joined as a party defendant in an amended bill of complaint. On plaintiff's motion for summary judgment.

Judgments for the bankruptcy trustee, setting aside the deed as to part of the property conveyed and against Jean van Doorn personally for an amount paid him by bona fide purchasers of the remainder of the property, and prayer for money judgment for plaintiff against defendants van Doorn denied.

Huckin & Huckin, of Englewood, for plaintiff.

Abraham H. Sles, of Jersey City, for defendant Regency, Inc.

Eichmann & Seiden, of Jersey City, for defendants Marij V. Cassel van Doorn and Jean G. L. Cassel van Doorn.

L. Stanley Ford, of Hackensack, for defendant William Henig, trustee in bankruptcy of Regency, Inc.

GRIMSHAW, Judge.

This is a motion for summary judgment under Rule 3:56. The plaintiff seeks a judgment setting aside a deed from Regency, Inc., a corporation of New Jersey to Jean G. L. C. van Doorn, one of the defendants, and a money judgment against van Doorn and his wife. From the affidavits filed in the cause the undisputed facts appear to be as follows:

Regency, Inc., was incorporated under the laws of New Jersey in 1941. According to the certificate of incorporation the corporation was formed to engage in the business of buying and selling real and personal property. Five hundred shares of stock having no par value were issued for the sum of $50,000.00. Of this stock, 498 shares were issued in the name of Marij van Doorn, one in the name of Jean van Doorn and one in the name of Abraham H. Sles. Marij van Doorn was president of the corporation and Jean van Doorn was the treasurer and directing head of the corporation. All three stockholders were directors. Sles later retired from the corporation leaving the van Doorns as the only persons interested in the company as officers, directors and stockholders.

In December, 1941, Regency, Inc., purchased the main tract of the property in dispute for $50,000.00 using the money originally subscribed for the capital stock. Two adjoining tracts were later purchased for $10,000.00 and $10,500.00, respectively. The money used in these purchases was supplied by the van Doorns.

On April 10, 1942, Regency, Inc., entered into a contract with the plaintiff for extensive alterations and additions to the buildings on the property. On November 10, 1943, plaintiff instituted an action at law to recover the amount due under the contract and on February 16, 1948, recovered a judgment in the sum of $23,103.90 and $78.97 costs. The judgment has not been satisfied.

On January 29, 1945, while the suit was pending, Regency, Inc., conveyed all of its property to the defendant, Jean van Doorn. The conveyance was made as part payment on a claim of $290,675.79 which the van Doorns asserted against the corporation. As a result of the conveyance, a credit was given upon the claim of $129,233.00 and a promissory note for the balance of $161,442.79 in favor of van Doorn was executed by the corporation.

By the conveyance to van Doorn, Regency, Inc., stripped itself of all of its assets a deposit of $50.00 for telephone service. At the time, in addition to the van Doorn claim, the corporation was indebted to the plaintiff in the sum of $23,103.90, to William Beyenberg in the amount of $505.00 and to Frank Ackerman in the sum of $1,460.63. The...