Cauley v. Northern Trust Co.

43 N.E.2d 147, 315 Ill. App. 307, 1942 Ill. App. LEXIS 882
CourtAppellate Court of Illinois
DecidedJune 24, 1942
DocketGen. No. 40,528
StatusPublished
Cited by1 cases

This text of 43 N.E.2d 147 (Cauley v. Northern Trust Co.) 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
Cauley v. Northern Trust Co., 43 N.E.2d 147, 315 Ill. App. 307, 1942 Ill. App. LEXIS 882 (Ill. Ct. App. 1942).

Opinion

Mr. Presiding Justice Burke

delivered the opinion of the court.

On April 26, 1937, Frank W. Cauley, Rosalie Hill Cauley, James B. Cauley and 1550 Hinman Avenue Building Corporation filed a complaint at law in the superior court of Cook county against the Northern Trust Company, a- corporation, seeking a judgment for $25,000 and the income accrued thereon from May 8, 1934. Plaintiffs set forth portions of articles 6 and 7 of a 99-year lease on real estate in the city of Evanston, and allege that the Cauleys were the owners and holders of all of the capital stock of the 1550 Hinman Avenue Building Corporation, an Illinois corporation, and as such were interested in the subject matter and in the right to the relief sought and therefore joined as plaintiffs with the building corporation. On June 3, 1937, the Northern Trust Company filed its motion to dismiss, setting forth nine reasons. On December 30, 1937, plaintiffs were given leave to amend by (1) changing the complaint from law to equity ; (2) discontinuing the building corporation as a plaintiff and naming it as a defendant; (3) joining as additional plaintiffs the members of the firm of McG-ilvray, Eames, Vaughan & Tilley; and (4) naming as additional defendants Pure Oil Company, a corporation, the North Side Cleaners & Dyers Company, a corporation, Loch, Inc., a corporation, Julius Erlenbach, doing business as Melanie Beauty Salon, Ruth Tooze, doing business as the Book Box, Northwestern Realty & Building Company, Inc., a corporation, and Nelson Ewings. The amended complaint was filed on December 30,1937, and recited that plaintiffs sued also for the benefit of any other creditors of the building corporation who might desire to become parties plaintiff. There was no allegation that the creditors had recovered a judgment against the corporation. Plaintiffs sought to recover from the Northern Trust Company, depositary under the 99-year lease, the sum of $25,000 and the income thereon, and to recover from the additional defendants, who were alleged to be in possession of various parts of the premises since prior to June 8, 1937, the fair rental value of the various portions of the premises so occupied. It was alleged that the corporation had been dissolved more than two years prior to the commencement of the action, and plaintiffs asked that a receiver be appointed and that the various sums sought to be collected be paid to the receiver for the benefit of the creditors of the corporation and its stockholders. On May 11, 1938, separate motions to dismiss, one by the Northern Trust Company and the other by the occupants of the premises, were sustained. Pursuant to leave of court, plaintiffs filed a second amended complaint alleging* 'that the “plaintiffs hereby dismiss the cause as to 1550 Hinman Avenue Building Corporation,” although no order of dismissal appears to have been entered. The lessors, Libbie B. Hill, Jean Patterson Hill and Matson B. Hill, were not made parties to the original complaint or the amended complaint. Jean Patterson Hill and Matson B. Hill, who had also acquired the rights of Libbie B. Hill, were named as parties defendant to the second amended complaint. No relief was prayed against them. On July 12, 1938, the motion of the Northern Trust Company to dismiss the second amended complaint was sustained, and on July 14, 1938, a similar motion by the occupants, was sustained. Plaintiffs elected to stand upon the second - amended complaint and it was dismissed. Jean Patterson Hill and Matson B. Hill, lessors, died after the filing of the second amended complaint. On the verified motion of plaintiffs, the court, on September 16, 1938, dismissed the cause as to them. Notice of appeal was filed by the plaintiffs on September 19, 1938.

The second amended complaint, which for convenience we will hereinafter call the complaint, alleges that on May 12, 1926, Libbie B. Hill, a widow, Jean Patterson Hill, a spinster, and Matson B. Hill, divorced and not remarried, as lessors, executed a certain indenture of lease with Morris E. Feiwell, as lessee, wherein they demised for a period of 99 years commencing with June 1, 1926, and ending May 31, 2025, certain premises in Evanston, and that the lease was duly executed, acknowledged and recorded; that it was provided in the lease among other things, as follows:

“Article Sixth
Construction of New Building
“Section 1. Lessee covenants, as security for the payment of the rent on or before June 1, 193.1, to erect upon said premises a first class modern building, suitable for the purposes specified in said Lease, not less than two stories in height, to cost not less than $125,000.00; said building to be ready for occupancy on or before June 1, 1931 and Lessee to pay all costs and expenses in any way connected with its construction and to keep demised premises and building free from all mechanics’ and similar liens and to deliver to Lessors and The Northern Trust Company an Architect’s Certificate certifying that the building has been built pursuant to the provisions of Lease and paid for in full.
“Sec. 4. Lessee agrees, upon delivery of this Lease to deposit with The Northern Trust Company, as Trustee for Securities cash and/or securities of market value of not less than $50,000.00 to be held by said Trustee for use in the construction of such new building and/or for other purposes, as hereinafter provided.
“Sec. 5. If Lessee desires to postpone the erection of new building for a period of five (5) years beyond June 1, 1931, he may do so by depositing with said Trustee, on or prior to June 1, 1931, additional cash and/or securities of a market value of $25,000.00, which additional cash ‘and/or’ securities shall be held by Trustee under the same conditions.
“Sec. 8. Lessee may wreck the building now on premises any time after making the deposit of cash and/or securities, providing that at the time of the removal of said building Lessee shall not be in default under this lease; in the event the present building is wrecked, the materials shall belong to Lessee.
“Article Seventh
Deposit of Securities
“Lessee covenants before tearing down the present building or any building at any time on said premises and before commencing any work on a new building, to deposit with The Northern Trust Company, as Trustee, cash and/or securities approved by said Trustee, of an additional market value equal to the estimated cost of the building to be erected, provided that in making* such deposit Lessee shall be given credit for the cash and/or securities theretofore deposited with the Trustee,- provided, further, that if Lessee shall procure from any reputable bank, trust company or loan house having a paid up capital of not less than $750,000.00, a valid commitment to make a loan sufficient to erect said new building and shall agree to accept said loan and shall execute the mortgage or trust deed and notes or bonds to evidence the same, then the amount of securities to be deposited shall be decreased by the amount of the net proceeds of said loan; the cash and/or securities so deposited with the Trustee shall be held, applied and disposed of by said Trustee as follows:

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Bluebook (online)
43 N.E.2d 147, 315 Ill. App. 307, 1942 Ill. App. LEXIS 882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cauley-v-northern-trust-co-illappct-1942.