Champion v. Spurck

134 N.E. 717, 302 Ill. 241
CourtIllinois Supreme Court
DecidedFebruary 22, 1922
DocketNo. 14165
StatusPublished
Cited by6 cases

This text of 134 N.E. 717 (Champion v. Spurck) 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
Champion v. Spurck, 134 N.E. 717, 302 Ill. 241 (Ill. 1922).

Opinion

Mr. Justice Duncan

delivered the opinion of the court:

John A. Hoffman and George A. Spurck were on January 19, 1921, owners in fee, as tenants in common, of 36.75 acres of coal land in Peoria county, Illinois. Spurck claimed that he was entitled to an accounting from Hoffman for coal mined from the' premises and for taxes paid by Spurck on the same. George Grigsby obtained a tax deed to the land in 1902, which was a cloud on the title of both Hoffman and Spurck, and the bill in this case alleged the deed was voidable on several grounds. Hoffman filed a voluntary petition in bankruptcy in the district court of the United States for the southern district of Illinois, northern division, and on February 8, 1921, was regularly adjudged a bankrupt by said court, and appellee, Edwin V. Champion, was elected and qualified as trustee in bankruptcy of the bankrupt estate and is now acting as such trustee. Said trustee was authorized by the United States district court, through an order entered by Harry A. Egolf, special referee in bankruptcy of said court, before whom the bankruptcy proceedings are and were pending, to file a bill in chancery in the circuit court of Peoria county for partition, accounting, for removal of a cloud and for other relief against Spurck and others. By said order the trustee in bankruptcy was authorized, in case of the sale of the real estate in partition, to consent that the circuit court of Peoria county, or the master in chancery thereof, might make sale of the interest in the real estate belonging to the bankrupt estate, in accordance with the laws of Illinois governing the sales of real estate in partition proceedings. The order of the referee recited and found the foregoing facts with reference to the title to the land; that the district court was without jurisdiction to compel Spurck to account; that it was without jurisdiction to remove the tax deed and partition the property, or to make a sale of the fee of the real estate as a whole iñ case it could not be partitioned; that it was in the interest of the bankrupt estate that the trustee in bankruptcy be authorized to file the suit for partition. On April 1, 1921, the trustee in bankruptcy filed his bill in the circuit court of Peoria county for partition and for an accounting and for removing the cloud from title, and set up the foregoing facts in his bill by apt averments. He also alleged that he was seized of an undivided one-half interest in the premises subject to the inchoate right of dower of Sarah C. Hoffman, wife of John A. Hoffman, and that Spurck was seized of the other undivided one-half thereof. He made as defendants to his bill, Spurck, Sarah C. Hoffman and George Grigsby. Spurck, by Alfon L. Anderson, his guardian ad litem, filed a demurrer to the bill, and Grigsby also filed a demurrer to the same. Sarah C. Hoffman filed an answer admitting complainant’s right to partition, subject to any right which she might have as wife of Hoffman. The court overruled both demurrers to the bill and entered a decree for partition, finding that the trustee in bankruptcy and Spurck were each entitled to an undivided one-half of the premises as tenants in common. Spurck has prosecuted this appeal and is represented in this court by Michael D. Spurck, his conservator.

It is contended by appellant that appellee, as trustee in bankruptcy, is not a tenant in common of the land in question with Spurck, and for that reason he cannot maintain his bill for partition. The cases of Lindsay v. Runkle, 82 Ohio St. 325, and Hobbs v. Frazier, 56 Fla. 796, are relied upon as authorities for this contention. In the former case the Supreme Court of Ohio seems to hold that a trustee in bankruptcy is not such a tenant in common as is recognized in partition proceedings but is simply a trustee of a tenant in common. It is, however, disclosed in the opinion that the trustee in that case did not disclose in his petition that the bankruptcy court had ordered or authorized him to come into a State court for any purpose, and it is stated in the opinion that it is not the duty of the court to entertain the suit of the trustee when it is inevitable that a conflict of jurisdiction will arise between the State and the Federal courts. It was apparently on the last ground that the court felt constrained to hold that the trustee was not entitled to demand partition in the Ohio court. In the latter case it is also stated by the court that there was no showing by the trustee that partition was necessary or expedient to protect the rights of the trustee in bankruptcy or those whom he represented. The allegation of the trustee in that regard was simply that the trustee in bankruptcy “is desirous of obtaining a partition and division of the said premises.” The court held that the statute of that State did not contemplate that partition might be enforced except when required by the demands or the interests of a beneficial owner or when shown to be necessary to protect the rights of those beneficially interested. The partition in that case was resisted by the defendant, as it is in the case now before this court, and the court held that in the absence of consent to partition by the other defendant, and in the absence of a showing of any necessity or expediency for the same, the right to partition should be denied.

In the case now before this court the showing is quite different from what it was in the cases that have just been considered. The allegations in the bill, as well as the findings by the referee in bankruptcy when the facts were presented on petition for leave to bring this suit, show that there was a necessity for just such a proceeding as this. The district court had no jurisdiction to entertain a bill for partition or for an accounting or to remove a cloud from the title to the land in question. It is evident that a sale by the trustee in bankruptcy of the land, — that is, the interest of the trustee therein, — would be greatly hampered by the various claims of Grigsby and Spurck, and in order that the trustee’s interest might be sold to advantage it was necessary that such interest be declared and understood in the partition proceedings, and in case actual partition could not be made, that all interests in the premises be sold, the conflicting interests declared and the net proceeds from the sale of the trustee’s half interest be turned over to him after Grigsby and Spurck were paid their claims. This the circuit court could do and we think rightly consented to do, as the district court had waived its right to order sold the interest of the trustee in its incumbered condition, and had, in substance, requested the circuit court to take jurisdiction.

Under section 70a of the Bankruptcy act of 1898 the trustee of an estate in bankruptcy, on his appointment and qualification, is vested by operation of law with the title of the bankrupt as of the date he was adjudicated a bankrupt, with actual or constructive possession, except in so far as the property may be exempt. (Acme Harvester Co. v. Beekman Lumber Co. 32 Sup. Ct. 96; Collier on Bankruptcy, — 9th ed. — 998.) There is no sort of claim that the property in question was in any part exempt. The trustee takes just such title or interest in the bankrupt’s property as the bankrupt had at the time of the filing of the petition, and is also invested with the rights of the bankrupt’s execution creditors with respect to the property. (7 Corpus Juris, 133, and notes.) It has been many times decided by this court, as well as by the Supreme Court of the United States, that a trustee in bankruptcy takes the same title the bankrupt had when he was adjudicated a bankrupt.

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Bluebook (online)
134 N.E. 717, 302 Ill. 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champion-v-spurck-ill-1922.