Titus v. Miller

• Decision Date: 29 December 1942
• Docket Number: 139/709.
• Parties: TITUS v. MILLER.
• Court: New Jersey Court of Chancery

29 A.2d 550

132 N.J.Eq. 541

TITUS

v. MILLER.

139/709.

Court of Chancery of New Jersey.

Dec. 29, 1942.

Syllabus by the Court.

1. When a judgment final is entered, the original cause of action is merged therein.

2. Under the terms of a written agreement the decedent had the right to sell or compromise the whole or any part of a claim. The agreement did not authorize him to sell, or compromise, any judgment which might be recovered in an action brought to enforce the claim. His executor therefore cannot assume a power which the decedent had not possessed to effect a compromise of a judgment recovered on the claim.

3. Regardless of whether decedent was an agent or trustee, the relationship created was one of personal trust and confidence. Under the circumstances he could not delegate his powers—they terminated with his death. The proceeds of a judgment arising from the claim would not and could not pass to the decedent's executor.

Action in chancery by Walter L. Titus against Haydock H. Miller, individually and as executor of the estate of Edward H. Titus, deceased, to restrain defendant from consummating a proposed settlement of a judgment, and to have legal title to the judgment assigned to complainant.

Decree for complainant in accordance with opinion.

Walscheid & Rosenkranz, of Jersey City, for complainant.

Paul Koch, of Newark, for defendant.

EGAN, Vice Chancellor.

On December 1, 1925, the complainant, by written agreement assigned to the defendant executor's decedent, Edward H. Titus (hereinafter referred to as Edward), a claim for 250 shares of the capital stock of Secor Hotel Company in "order to enable" the decedent to institute suit against Lou C. Wallick. Under the terms of the assignment any proceeds of the assigned claim collected by Edward were to be delivered to the complainant for distribution in accordance with the terms of the agreement. Edward instituted suit for the claim against Wallick in the State of New York, and in May, 1934, recovered a judgment against him for $389,103.21. The judgment remained unsatisfied. Wallick left the State of New York and went to the State of Ohio where Edward sued him on the New York judgment. The Ohio courts decided in favor of Wallick. An appeal was taken to the United States Supreme Court; that tribunal reversed the judgment of the Ohio courts. Thereupon, judgment was finally entered in the Ohio courts in favor of Edward and against Wallick for principal, interest and costs aggregating $505,850.38.

Edward died in November, 1939. He left a last will and testament which was probated in the County of Bergen, New Jersey, and letters testamentary were issued to the defendant, Haydock H. Miller, who had been named executor. Miller as executor of Edward's estate agreed to compromise the judgments for $60,000 and applied to the Bergen County Orphans' Court for its approval of the proposed agreement of settlement. Complainant charges that the decedent's executor is without authority to negotiate a settlement since the judgments were not the assets of his decedent's estate, but the property of the complainant.

The bill of complaint alleges that the entry of the judgments aforesaid barred the decedent from any right to sell, assign, transfer, set over, pledge, compromise or discharge the assigned claim, since on the entry of the judgments the claim had become merged therein and Edward's powers of control thereupon ceased and were at an end. The complaint further says that the judgments were recovered by Edward for the benefit of the complainant as the equitable owner thereof, that his (Edward's) title thereto became that of a trustee under the terms of the written assignment; and that on the death of Edward, it then became the duty of his executor, the defendant, to transfer the legal title to the judgments to the complainant.

The defendant's answer in lieu of plea admits in substance the material allegations of the bill, and submits the question of the construction of the written agreement as the chief issue.

The complainant's contention that when the assigned claim took the form of judgment, it became merged in the latter and that the decedent's right thereafter to sell, etc., or compromise, etc., came to an end, finds support in the decisions of the courts of this state.

Under the terms of the written assignment Edward, the decedent, had the right to sell, etc., or compromise, etc., the whole or any part of the "said claim"; but he thereby was not authorized to sell, etc., or compromise, etc., any judgment which might be recovered in...