Cassem v. Heustis

66 N.E. 283, 201 Ill. 208
CourtIllinois Supreme Court
DecidedFebruary 18, 1903
StatusPublished
Cited by23 cases

This text of 66 N.E. 283 (Cassem v. Heustis) 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
Cassem v. Heustis, 66 N.E. 283, 201 Ill. 208 (Ill. 1903).

Opinion

Mr. Chief Justice Magruder

delivered the opinion of the court:

The appellant is an attorney at law, and, during the transactions here involved, the relation of attorney and client, as well as the relation of creditor and debtor, existed between him and appellee. Appellee began to consult him as a lawyer in her business affairs as early as 1882, and the relations thus indicated existed between them from that time until the last of December, 1887. While the relation of attorney and client existed between appellant and appellee, and while the relation of creditor and debtor existed between them, they met, on February 5, 1885, and, as we understand the evidence, the meeting" took place at appellant’s office in Yorkville, Kendall-county. There, on February 5, 1885, appellee and her husband, James C. Heustis, executed a note dated Yorkville, February 5, 1885, for $130.00, by which, one year after date, they jointly and severally promised to pay to the order of appellant $130.00 with interest at eigljt per cent per annum. At the same time, for the purpose of securing this note of $130.00, appellee and her husband executed to the appellant a quit-claim deed, conveying to him all of appellee’s one-fifth interest, subject to her mother’s life estate, in the tract of 138.10 acres, mentioned in the statement preceding this opinion. The property was the separate property of appellee, inherited by her from her father. The deed was recorded the next day, to-wit, on February' 6, 1885, in the office of the recorder of deeds of Kendall county. At the same time, to-wit, on February 5,1885, appellant executed to appellee the bond for a deed mentioned in the statement preceding this opinion. The bond was in the penal sum of $130.00, and'its condition recited that, whereas Caroline Heustis had given to Randall Cassem a note for $130.00 with interest at eight per cent, payable to his order, and signed by her and James C. Heustis, if, on payment of the note and interest being made at the time when they should become due, Cassem or his representatives, should, whenever thereunto afterwards requested, execute and deliver to Caroline Heustis, or her legal representatives, a good quit-claim deed conveying to her his interest in the real estate of William P. Boyd, deceased, devised by him,. and occupied by his widow, Sarah Ann Boyd, containing 138 acres, more or less, and more fully described by the quit-claim deed, dated February 5,1885, given to said Cassem, and on re-conveyance the description therein to be used free and clear of all encumbrance, then the Obligation to be null and void, otherwise to be in full force and effect, “it being" distinctly understood and agreed by and between the parties hereto that the payment herein above fixed shall be material and of the essence of this contract, and that, in case of failure therein, the intervention of equity is forever barred.”

There can be no doubt that this deed, though absolute on its face, was a mortgage, when considered in connection with the written defeasance or bond, executed simultaneously with the deed. Nor was it any the less a mortgage, because of the insertion, in the bond of the above quoted clause, making time of the essence of the contract, and barring the intervention of equity. (Tennery v. Nicholson, 87 Ill. 464; Jackson v. Lynch, 129 id. 72.) The doctrine is well settled that a deed, absolute in terms, if intended to secure an indebtedness, is a mortgage whether the intention is manifested by a written defeasance, by parol declarations, or by the acts of the parties. (Price v. Karnes, 59 Ill. 276; Carr v. Rising, 62 id. 14; Smith v. Doyle, 46 id. 451; Hunter v. Hatch, 45 id. 178; Sutphen v. Cushman, 35 id. 186). Where a debtor conveyed real estate to his creditor by deed absolute in form, and also gave his note for the amount due, and the grantee at the same time gave the grantor a contract for a re-conveyance of the premises upon payment of the note and interest, it was held that the deed, note and contract to re-convey all constituted but one transaction, which was a mortgage. (Jackson v. Lynch, 129 Ill. 72).

On February 24 or 25,1885, it is claimed by the appellant that a further indebtedness of $123.00 was incurred by appellee to him. Thereupon, the old note of $130.00 was canceled and surrendered by appellant to appellee, and a new note for $253.00, made up of the $130.00, represented by the old note, and the $123.00 above mentioned, was executed by appellee and her husband, dated February 5,1885, by the terms of which the makers thereof jointly and severally promised one year after date to pay to the order of Randall Cassem $253.00 with interest at eight per cent per annum. The bond for a deed was then changed by inserting the sum of $253.00 in place of the sum of $130.00, so that it stood as a bond for the re-conveyance of the property upon the payment of the note for $253.00, instead, as theretofore, of the note for $130.00.

The only indebtedness, secured by the deed and the defeasance .executed simultaneously with it, was said note of $253.00. The evidence is clear and conclusive that both appellant and appellee treated the conveyance and the bond for a deed as a security up to December 27, 1887. Although the note was due in one year, to-wit, on February 5, 1886, it was extended by agreement of the parties, either express or implied, from time to time, until the settlement hereafter referred to was had on December 26 and 27, 1887. There is an endorsement upon the back of the note, showing that on February 19, 1887, more than a year after the maturity of the note, the appellee paid, and appellant accepted, $20.24 for interest.

Both parties claim and admit that the note for $253.00 has been paid, and that such payment was made on December 26 or December 27, 1887. The appellee contends that she paid the full amount due upon the note in money to the appellant on December 26 or 27, 1887, at his office in Aurora. Appellant, on .the other hand, claims that, at that time, appellee owed him, according to one statement of the account, $541.23, and according to another statement of the account made by him, $793.72,- and that he was paid by an oral agreement on the part of the appellee, consenting to allow him to retain, the title to the property, deeded to him on February 5, 1885, as a full payment and satisfaction of the amount claimed to be due from her to him. He’says that the bond for a deed, dated February 5, 1885, was executed in ¿Implicate, and that he had one copy and appellee had one copy of the bond; and that, on December 26 or 27,1887, he destroyed his bond for a deed in her presence in pursuance of the oral agreement, but that she, not having with her the duplicate copy of the bond, agreed that she would look it up, and bring it in to be destroyed. If the bond was executed in duplicate, the copy held by her was never destroyed, and was produced upon the hearing in this case and is in the record. It will thus be seen that the appellant and appellee contradict each other in regard to the manner, in which the indebtedness, secured by the deed and the bond, was paid and satisfied.

This court has held, it is true, that, where an absolute deed of land is given as security for an indebtedness, a bona fide agreement may be made between the mortgagee and the mortgagor, by the terms of which the equity of redemption of the mortgagor may be extinguished, and the entire estate vested in the mortgagee, but such an agreement for the extinguishment of the equity of redemption will never be sustained, unless the transaction is fair, and unaccompanied by any oppression, or fraud, or undue influence.

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66 N.E. 283, 201 Ill. 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cassem-v-heustis-ill-1903.