Burnham v. Roth

91 N.E. 472, 244 Ill. 344
CourtIllinois Supreme Court
DecidedFebruary 16, 1910
StatusPublished
Cited by10 cases

This text of 91 N.E. 472 (Burnham v. Roth) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burnham v. Roth, 91 N.E. 472, 244 Ill. 344 (Ill. 1910).

Opinion

Mr. Justice; Dunn

delivered the opinion of the court:

The Winthrop Harbor and Dock Company, a corporation, being the owner of certain real estate mortgaged it. The mortgage was foreclosed in the circuit court of Lake county and the mortgaged premises were sold under the decree of foreclosure. On August 13, 1903, the last day allowed by law for that purpose, a redemption was made from that sale in the name of Caroline Roth as a judgment creditor, by virtue of a judgment for $14,486.45 recovered by her in the superior court of Cook county, a transcript of which had been filed in Lake county. The amount required for such redemption ($12,330.35) was paid to the sheriff, who .thereupon advertised and sold the premises under the execution on the Roth judgment to Lawrence C. Moore for $24,000 on September 5, 1903. On September 7, 1903, the appellee, H. Martin, being the assignee of a judgment for $275.83 recovered by the Illinois Brick Company against the Winthrop Harbor and Dock Company, upon which an execution had been issued, redeemed from the sale of September 5 by delivering his check for $24,000 to the sheriff, who thereupon issued his certificate of redemption and advertised the premises for sale under the execution on the Illinois Brick Company’s judgment on September 30, 1903. The defendants in error, who are the owners of judgments against the Winthrop Harbor and Dock Company, then filed the bill in this case against Caroline Roth, William C. Heinroth, J. Husak, F. H. Novak, Lawrence C. Moore, H. Martin and others, charging them with conspiring to acquire the title to the premises involved and prevent the defendants in error from redeeming from the sale thereof or receiving any part of the proceeds of such sale on their judgments, and alleging that the judgment of Caroline Roth, uncjer which the redemption of August 13, 1903, was made, had been before that time in large part paid and that not more than $2500 remained due thereon. The bill prayed for an injunction restraining the sheriff from paying out the sum deposited for the redemption from said sale of September 5 and enjoining the sale advertised for September 30, for an accounting and ascertainment of the amount properly due on the Caroline Roth judgment, for the setting aside, of the sale of September 5, 1903, and for a new sale. A temporary injunction was issued. The defendants to the bill answered it, and after a reference to the master the cause was heard and a decree was rendered making the injunction theretofore granted perpetual; setting aside the sale of September 5, 1903; reducing the judgment of Caroline Roth to $2297.60; ordering a sale of the premises by the master; directing the manner in which it should be conducted and providing for the distribution of the proceeds. The Appellate Court affirmed this decree.

The plaintiffs in error insist that it was erroneous to find that any part of the Roth judgment had been satisfied; that the purchaser at the sale of September 5 and the redeeming creditors could not be affected by the excessive amount of the Roth judgment, and that the defendants in error had a complete and adequate remedy at law by motion to quash the execution or compel the entry of partial satisfaction of the judgment.

The Winthrop Harbor and Dock Company on November 26, 1900, executed twenty-eight promissory notes for $600 each and One for $700, secured by a second mortgage on real estate other than that involved in this suit. On March 12, 1903, Caroline Roth recovered a judgment in the circuit court of Kenosha county, Wisconsin, on eight of these $600 notes, which was satisfied on execution. The judgment in the superior court of Cook county was rendered on March 30, 1903, on the other twenty-one notes secured by the mortgage. On April 6, 1903, a decree was rendered by the circuit court of Lake county in a suit brought to foreclose the prior mortgage, to which Mrs. Roth was made a party, finding the total amount due her upon all the notes, except one which was paid, to be $18,957.16. A sale was made under this decree on May 19, 1903, satisfying all prior liens and Mrs. Roth’s lien to the extent of $11,206.83. Thié amount, together with the amount realized on the Wisconsin judgment, reduced the sum due on the indebtedness of the Winthrop Harbor and Dock Company to Mrs. Roth, represented by these notes, to $2297.60 on September 5, 1903, as found by the circuit court.

It is insisted by the plaintiffs in error that the amount received by Mrs. Roth from the foreclosure sale should not be regarded as a payment on the Cook county judgment, both because there is no satisfactory evidence of the identity of the indebtedness represented by the judgment and that included in the foreclosure decree, and because the sale, though made in May, was' not confirmed until October, and the payment of the money could not be regarded as satisfaction until the sale had been confirmed. In our view of the evidence there is no doubt that the Cook county judgment and the Wisconsin judgment were, respectively, rendered upon separate portions of the indebtedness represented by the twenty-nine notes before referred to, which had been endorsed to Mrs. Roth, and that the decree of foreclosure included the whole indebtedness represented by all the notes. The payment of the money by the master at the time of the sale, to the extent of the amount paid, extinguished the indebtedness mentioned in the decree, whether such sale and payment were ever reported to the court and approved or not. After such payment the creditor had no right to disregard it and enforce the collection-of the original amount of the indebtedness. The rights of the parties might be affected by the subsequent disapproval of the sale and cancellation of the payment, but until some action by the court the payment by the master must be regarded as an extinguishment, pro tanto, of the debt.

The plaintiffs in error contend that Lawrence C. Moore, in whose name the purchase was made at the sale on September 51, and H. Martin, in whose name the redemption from such sale was made, were without notice of the fact that the full amount of the Roth judgment was not due thereon and could not be affected by reason of that fact. In fact, however, neither Moore nor Martin had any interest in the transaction. They came into it merely as names under which other persons sought to conceal their identity. They knew nothing of the property, were never interested in its purchase, and simply permitted the use of their names for others’ purposes. Underwood, who caused the bidding to be done in Moore’s name, when examined as a witness refused to disclose whom Moore represented but admitted that he had no interest in the bid. He was made a party to the bill but made no defense. Martin’s name was used to represent a syndicate organized by the plaintiff in error Novak, and of which Novak was a member but Martin was not. What was done in Martin’s name was done by Novak, who was a lawyer, and whatever knowledge Novak had was the knowledge of Martin and those acting in his name.

The complainant in the foreclosure suit resulting in the sale of the property was Mrs. Foley. William C. Heinroth was her son-in-law, and after Mrs. Foley’s death, which occurred during the pendency of the suit, Mrs. Heinroth, who was an executrix of her will, was substituted as a complainant. Heinroth was a nephew of Mrs. Roth, and was a party to the suit individually and as trustee under a mortgage given to secure certain bonds of the Winthrop Harbor and Dock Company. He was treasurer of the Winthrop Harbor and Dock Company at the time the notes held by Mrs.

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Bluebook (online)
91 N.E. 472, 244 Ill. 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burnham-v-roth-ill-1910.