American Trust & Savings Bank v. Dawson

75 Ill. App. 624, 1897 Ill. App. LEXIS 790
CourtAppellate Court of Illinois
DecidedJune 3, 1898
StatusPublished

This text of 75 Ill. App. 624 (American Trust & Savings Bank v. Dawson) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Trust & Savings Bank v. Dawson, 75 Ill. App. 624, 1897 Ill. App. LEXIS 790 (Ill. Ct. App. 1898).

Opinion

Mr. Justice Burroughs

delivered the opinion of the Court.

One Lewis B. Casner, engaged in a general banking business, commonly known as Farmers Bank,” at Decatur, being in failing financial circumstances, on April 4, 1896, made an assignment to the appellee under the provisions of the act concerning “ voluntary assignments for the benefit of creditors.” The appellee accepted the position of assignee, and at once entered upon the discharge of his duties as such, promptly filing with the clerk of the County Court of Macon County an inventory and valuation of the real and personal estate of his insolvent, so far as the same was known to him.

Subsequently he gave notice to the creditors to file claims, and many such were filed. He seems to have conferred with numerous creditors of his insolvent debtor, and he and some of them seem to have formed and given out the impression that the estate would pay out in full.

Influenced, doubtless, by this impression, and being a son-in-law of the insolvent, the assignee (appellee here) made adjustments with some of the creditors of his insolvent, who were also, on some matters, his debtors before this assignment, in which adjustment he allowed them certain claims by way of set-offs, and gave them certain notes of his insolvent’s estate,, which were in his hands as assets, so that the effect was, such creditors were paid either in full, or partially so.

The real property of this estate consisted of farm lands in Macon county and city property in Decatur. The personal property was cash notes and accounts, such as bankers usually have, and some cattle and horses. The low price at which real estate was selling and the difficulty of making collections, made the conversion of the assets of this estate into money slow work. Some of the creditors of this insolvent estate were very anxious to realize upon their claims, and Messrs. Cabe & McKinnon of Chicago, were induced to purchase some of the claims of such creditors, getting them at a discount such as they could, and it seems that the assignee encouraged them in making such purchases to the extent of giving them much encouragement that the estate would pay out in full.

January 12, 1897, the assignee made his report to the County Court as follows :

“ Report of J. A. Dawson,’assignee of the Farmers Bank.

January 8, 1897.
Assets.
Real estate.................................$ 68,302 00
Rotes due bank............................ 70,026 00
Rote of John Casner........................ 7,500 00
Rote of James Wikoff....................... 7,500 00
Overdrafts................................. 8,109 45
Chattels................................... 2,998 00
Prospective asset from Bear judgment, Eich-
inger farm............................. 4,000 00
Cash on hand at assignment.................. ' 2,150 00
Total assets................................$170,585 45
Total claims filed..............$150,625 42
Less conditional claims.......... 22,917 00 $127,708 42
Assets in excess of liabilities..................$ 42,877 03
Collected from notes, overdrafts, rents, etc..... 5,893 77
Proceeds of cattle sale....................... 2,189 00
Cash in hand at date of assignment........... 2,150 00
■ Total cash and collections...................$ 10,232 77
Less expenses, interest, taxes, clerk hire, etc... 1,288 97
Cash on hand January 8, 1897...............$ 8,943 80
Rotes hypothecated as collateral prior to assignment ................'..............$51,085 18
Reported paid on same...................... $24,320,95
Rotes and accounts on which suit has been
brought................................ $13,714 42
Rotes probated............................. $600 00
Rotes and accounts regarded worthless....... $4,200 00
Rotes and accounts regarded doubtful........ $2,200 00
J. A. Dawson, Assignee.
Subscribed and sworn to before me this 12th day of January, 1897.
J. M. Dodd, County Clerk.”

On January 12, 1897, exceptions were filed by American Trust and Savings Bank, and Cabe & McKinnon, both of Chicago, as creditors of the insolvent estate, to the report of the assignee, filed January 12,1897, the principal complaint being that the report was vague, uncertain and indefinite, and praying it be set aside, and the assignee required to make a full, correct, and itemized report of all matters touching his conduct as such assignee, and to show the true status of the estate.

Nothing further was then done until March 24, 1897, when the assignee petitioned the County Court for an order directing him to 7pay six per cent on the claims allowed against the estate, which the court allowed the same day, and the assignee at once commenced paying out the dividend.

On April 8, 1897, the American Trust and Savings Bank, Cabe & McKinnon, and some other creditors of the insolvent estate, filed, in the County Court, their petition for the removal of John A. Dawson as such assignee, claiming his relationship to the insolvent and some of the creditors was such that he was not a proper person to be such assignee, and also charging that he was wasting and misapplying the trust estate.

The assignee answered the petition for his removal, in which he admitted he was a son-in-law of the insolvent and denied the charges of waste and misapplication of the trust estate.

On April 17, 1897, said petitioners procured the County Court to issue a citation against the assignee and assignor, directing each of them to appear before the court, and that the assignee file in that court a full, complete, itemized and correct report of the condition of the insolvent estate, and to bring with him all books and papers belonging to the insolvent estate, and to answer all matters and things upon which he might be examined concerning the trust estate, and that the assignor answer under oath, such matters as may be required of him as to the amount and situation of his estate and the names of his creditors, and both to further do and perform, what the court should then require and adjudge.

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35 Ill. App. 271 (Appellate Court of Illinois, 1890)

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Bluebook (online)
75 Ill. App. 624, 1897 Ill. App. LEXIS 790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-trust-savings-bank-v-dawson-illappct-1898.