Andersen v. Wirt

317 N.E.2d 600, 22 Ill. App. 3d 983, 1974 Ill. App. LEXIS 2122
CourtAppellate Court of Illinois
DecidedOctober 8, 1974
DocketNo. 73-278
StatusPublished
Cited by1 cases

This text of 317 N.E.2d 600 (Andersen v. Wirt) 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
Andersen v. Wirt, 317 N.E.2d 600, 22 Ill. App. 3d 983, 1974 Ill. App. LEXIS 2122 (Ill. Ct. App. 1974).

Opinion

Mr. JUSTICE KASSERMAN

delivered the opinion of the court:

The question presented by this appeal is whether a party selling real estate under an installment sales contract is subject to liability on an action brought under the Illinois Dram Shop Act.

Plaintiff instituted action against the defendant, James Wirt, under the Wrongful Death- Act and against all other defendants under the Dram Shop Act. Plaintiff joined as defendants Arnold Nolan, as the licensee and operator of premises utilized for the sale of alcoholic liquor to the general public, John Lee Williams, as administrator of the estate pf John Taylor, deceased, who was the beneficiary of a land trust covering said premises and as contract seller of said premises, and Richard F., Beshack and David Lindskog as contract buyers. Defendant First National Bank of Waukegan was sued as trustee under a land trust covering the premises in which John Taylor was the original owner of the beneficial interest and to whose interest John Lee Williams succeeded as administrator by reason of his appointment upon the death of John Taylor.

/' After hearing arguments on a motion to dismiss, the trial court dismissed the complaint as to the First National Bank of Waukegan and John Lee Williams, as administrator of the estate of John Taylor, deceased. No appeal was perfected from the order dismissing the complaint as to the defendant bank; however, this appeal was filed on behalf of plaintiffs and relates only to the, order of the court dismissing the complaint as to the defendant John Lee Williams, as administrator of the estate of John Taylor, deceased.

The land trust agreement by which John Taylor retained the bene1 ficial interest was entered into on January 5, 1961, and provided that Taylor, as beneficiary, retained the power to direct disposition of the title to the property and the right to receive or direct the disposition of the proceeds from rentals and from mortgages, sales or other disposition of sa'd premises. On November 14, 1968, at the direction of Taylor, the bank, as trustee, entered into articles of agreement for warranty deed with one Mark Margoian who subsequently assigned his interest in the contract to the defendants Richard E. Beshack and David Lindskog. The contract was approved by Taylor, who at the time knew that the premises had been and would continue to be utilized for the sale of alcoholic beverages to the general public.

The assignment from Margoian to the defendants Richard F. Beshack and David Lindskog was prior to the occurrences which gave rise to the filing of the complaint in this cause, and John Lee Williams was appointed administrator of the estate of John Taylor upon his death prior to the institution of this action.

The Dram Shop Act provides as follows: “Every person who is injured in person or property by any intoxicated person, has a right of action in his own name, severally or jointly, against any person who by selling or giving alcoholic liquor, causes the intoxication of such person. Any person owning, renting, leasing or permitt'ng the occupation of any building or premises with knowledge that alcoholic liquors are to be sold therein, or who having leased the same for other purposes, shall knowingly permit therein the sale of any alcoholic liquors that have caused the intoxication of any person, shall be liable, severally or jointly, with the person selling or g'v'ng the liquors. * * * An action shall lie for injuries to means of support caused by an intoxicated person or in consequence of the intoxication, habitual or otherwise, of any person resulting as aforesaid.” (Ill. Rev. Stat. 1971, ch. 43, par. 135.)

Appellee argues that a contract seller is not an owner under the provisions of the Dram Shop Act but rather, from the dafe of the entry of the contract, he becomes a lien holder or mortgagee and argues that a contract seller has no rights or powers with respect to the possession, control or use of the real estate after the entry of the contract. Shay v. Penrose, 25 Ill.2d 447, 449, 185 N.E 2d 218, 219, 220 (1962); Wahl v. Fairbanks, 405 Ill. 290, 293, 90 N E 2d 735, 736, (1950); Anderson v. Cosmopolitan National Bank, 132 Ill.App 2d 307, 311, 270 N.E 2d 254, 256 257 (1971); Anderson v. Cosmopolitan National Bank of Chicago, 54 Ill.2d 504, 301 N.E.2d 296, 298, 299 (1973); Robinson v. Walker, 63 Ill.App 2d 204, 207, 208, 211 N.E.2d 488, 499, (1965); and Castle v. Fogerty, 19 Ill.App. 442, 444 (1885), are cited in support of this contention.

It is our opinion that the beneficiary under the trust in the case at bar occupies the same position as a seller under a contract deed in which no Rust agreement is involved. Tire trustee holds naked legal Rtle to the real estate as trustee for the beneficiary who historically has been viewed as the equitable owner of any real estate covered by the trust agreement. The fact that the trustee in this case bore no responsibility for the possession, control or use of the premises is evidenced by the fact that the trial court sustained a motion to dismiss the complaint as to the defendant trustee and no appeal was taken from that order.

Appellee contends that the principal of equitable conversion should be applied and that, as a result.thereof, John Lee Williams, as administrator of the estate of John Taylor, holds beneficial title to the premises in question in trust for Richard F. Beshack and David Lindskog, assignees of the buyer. Shay v. Penrose, 25 Ill.2d 447, 449, 185 N.E.2d 218, 219, 220 (1962), and Wahl v. Fairbanks, 405 Ill. 290, 293, 90 N.E.2d 735, 736 (1950), are cited in support of this argument In Shay v. Pen-rose, the appellate court held that the principal stems from the basic equitable principal that equity regards as done that which ought to be done; and in that case the court decided that real estate sold on contract was not the subject of partition because an equitable conversion had taken place at the time of execution of the contracts for sale and the seller no longer possessed an interest subject to partition. In Wahl v. Fairbanks the supreme court held that an equitable conversion had resulted in order to effect the true intention of the parties to a contract to sell real estate who later erroneously caused a deed to be prepared in which buyers received title as tenants in common instead of as joint tenants as provided in the contract. The court there concluded that the buyers in the contract acquired title to the premises as joint tenants at the time of execution of the contract by reason of an equitable conversion.

The question presented by this appeal was considered by the Appellate Court, First District, in the case of Wendt v. Richter, 17 Ill.App.3d 230 (1974), in which it was held that there is no uniform meaning to the term “owner” as used in the Dram Shop Act and that consideration must be given to the nature and purpose of the statute involved. The court further found that the Dram Shop Act is designed to fulfill a need for discipline of traffic in liquor and to provide a remedy for the evils and dangers which flow from such traffic, quoting Osinger v. Christian, 43 Ill.App.2d 480 (1963).

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Bluebook (online)
317 N.E.2d 600, 22 Ill. App. 3d 983, 1974 Ill. App. LEXIS 2122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andersen-v-wirt-illappct-1974.