American National Bank & Trust Company of Chicago, as Trustee, Etc. v. Joseph M. Taussig, Ruth Saxelby v. Joseph M. Taussig

255 F.2d 765
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 2, 1958
Docket12138_1
StatusPublished
Cited by10 cases

This text of 255 F.2d 765 (American National Bank & Trust Company of Chicago, as Trustee, Etc. v. Joseph M. Taussig, Ruth Saxelby v. Joseph M. Taussig) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American National Bank & Trust Company of Chicago, as Trustee, Etc. v. Joseph M. Taussig, Ruth Saxelby v. Joseph M. Taussig, 255 F.2d 765 (7th Cir. 1958).

Opinion

MERCER, District Judge.

Both appeals herein are from orders entered by the United States District Court for the Northern District of Illinois, Eastern Division, in the case of Ruth Saxelby, et al., v. Joseph M. Taussig, et al., Civil Action No. 45 C 2271. This litigation has previously been before this Court in Ex parte Joseph M. Taussig, No. 9586, October, 1947 Term, and in Taussig v. Chicago Title & Trust Company, 7 Cir., 171 F.2d 553.

The original complaint was filed December 20, 1945 by Ruth Saxelby, a beneficiary of a trust created under the Will of her father, Maurice Taussig. Relief was sought against her brother, Joseph M. Taussig, appellant herein, and against a co-trustee; American National Bank and Trust Company of Chicago, as Trustee, was also a defendant.

On June 4, 1947 (more than ten years ago) the District Court entered the first of seven final decrees. The first decree removed appellant and his co-trustee as testamentary trustee, appointed as their successor in trust The Northern Trust Company and directed a conveyance to the successor trustee of the real estate held by American National as land trustee for appellant. This decree also directed the appellant to execute and deliver to American National a written direction authorizing such conveyance. American National complied with the decree, conveyed the real estate to the successor trustee and advised appellant of its action. However, appellant did not execute the direction.

Thereafter, final decrees were entered October 26, 1948, December 30, 1948, June 2, 1949, October 20, 1950, May 6, 1952 and November 4, 1952. The decree of *767 October 26, 1948 approved the Master’s Report on re-reference, overruled objections and entered additional personal judgments against appellant and Robit-shek, charging fees and expenses against appellant and making the same an equitable lien against his interest. The decree of December 30, 1948 settled the controversies between the parties, entered upon express stipulation of appellant, the stipulation providing that its terms were conclusive upon all parties, including appellant, and provided that acts done in compliance with the decree “shall not be questioned or attacked, directly or indirectly in this or any other court”. The decree of June 2, 1949 construed the Will of testator, authorized further distribution of the trust estate to beneficiaries, including appellant as one of the beneficiaries, and provided for attorney fees, including appellant’s attorney. This decree was also entered pursuant to a stipulation executed by appellant. The decree of October 20, 1950 authorized a private sale of real estate, provided for distribution to the appellant out of the purchase price, liquidation of appellant’s indebtedness and payment of appellant’s attorney fees and expenses. This order was entered with appellant’s consent. The decree of May 6, 1952 authorized payment of income tax deficiency assessments out of a reserve held in trust for this purpose. Appellant renewed his objections to the jurisdiction of the court but these objections were overruled. The decree of November 4, 1952 approved an accounting of the successor trustee; appellant objected upon jurisdictional grounds and the objections were overruled.

No appeal was taken from any of the above-mentioned decrees.

No action was taken by or requested of the District Court after the decree of November 4, 1952, until June 26, 1957 when a petition was filed by American National and a Motion was filed by appellant.

On June 6, 1957 appellant sued American National in the Superior Court of Cook County for $500,000.00, alleging that American National’s conveyance in compliance with a former decree was a breach of agreement. The petition of American National filed June 26, 1957 prayed that appellant be ordered to comply with the decree of June 4, 1947 and that appellant be permanently enjoined from prosecuting the State Court action. The court found that appellant’s failure to execute and deliver to American National a proper direction was a direct violation of the 1947 decree and that the State Court action was predicated upon such violation. Appellant was ordered to execute and deliver the direction and was permanently enjoined from prosecuting the Superior Court action. The appeal in No. 12137 is taken from this order.

On the same day, June 26, 1957, appellant filed a motion “to vacate, set aside- and hold for naught and expunge from its records, this Court’s final decree of June 4, 1947, all supplemental proceedings and decrees, including this Court’s decree of December 30, 1948, and all other proceedings in the above cause”. The Court denied appellant’s motion and the appeal in No. 12138 is taken from that order.

The contested issues in these appeals-are:

(1) Whether the issues sought to be reopened by appellant after ten years-delay are res judicata by reason of their prior adjudication in the unappealed decrees of the District Court in Saxelby, et al., v. Taussig, No. 45 C 2271.

(2) Whether appellant is estopped to attack the decree of the District Court.

(3) Whether the granting of American National’s petition of June 26, 1957 was a proper exercise of the District Court’s power to require compliance with its decree of June 4, 1947 and to protect such decree by enjoining litigation in a. state court.

(4) Whether appellant’s motion to vacate and expunge from the record all final, orders was correctly denied.

We are of the opinion that the District Court’s decree of June 4, 1947 and subsequent decrees in which it found that it had jurisdiction are not void and the- *768 same are res judicata in this case. The case of Sorenson v. Sutherland, 2 Cir., 109 F.2d 714, affirmed by Supreme Court, Jackson v. Irving Trust Co., 311 U.S. 494, 61 S.Ct. 326, 85 L.Ed. 297) states clearly the pertinent principles of res judicata as applied to a belated attack (by motion ■to vacate) on an unappealed decree on the ground that the court lacked jurisdiction to enter it.

In that case a decree was entered by the District Court 27 F.Supp. 44 against the Alien Property Custodian and the Treasurer of the United States, in an action under the Trading with the Enemy Act, 50 U.S.C.A. Appendix, § 1 et seq. A jurisdictional question was whether a party named “Sielcken” was a resident of the United States or of an enemy country, Germany, which under the Act would bar recovery. No appeal was taken by the government. About nine years later a motion was made by the Attorney General to vacate the original decree on the ground that the court lacked jurisdiction because Sielcken was, in fact, a resident of Germany. The District Court allowed the motion and entered an order vacating the original decree. The Court of Appeals reversed in an opinion which is very much in point. The pertinent part of the opinion reads as follows [109 F.2d 718]:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Commonwealth v. Superior Court
86 P.R. 656 (Supreme Court of Puerto Rico, 1962)
Estado Libre Asociado de Puerto Rico v. Tribunal Superior
86 P.R. Dec. 692 (Supreme Court of Puerto Rico, 1962)
Irene Smith Cliett v. Mamie S. Hammonds
305 F.2d 565 (Fifth Circuit, 1962)
Banco Popular de Puerto Rico v. Superior Court
82 P.R. 236 (Supreme Court of Puerto Rico, 1961)
Banco Popular de Puerto Rico v. Tribunal Superior de Puerto Rico
82 P.R. Dec. 242 (Supreme Court of Puerto Rico, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
255 F.2d 765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-national-bank-trust-company-of-chicago-as-trustee-etc-v-ca7-1958.