Chicago Title & Trust Co. v. Cleary

2 N.E.2d 970, 286 Ill. App. 97, 1936 Ill. App. LEXIS 434
CourtAppellate Court of Illinois
DecidedJune 22, 1936
DocketGen. No. 38,440
StatusPublished
Cited by1 cases

This text of 2 N.E.2d 970 (Chicago Title & Trust Co. v. Cleary) 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
Chicago Title & Trust Co. v. Cleary, 2 N.E.2d 970, 286 Ill. App. 97, 1936 Ill. App. LEXIS 434 (Ill. Ct. App. 1936).

Opinion

Mr. Justice Hebel

delivered the opinion of the court.

This action was instituted by the Chicago Title and Trust Company against William J. Cleary" in the municipal court of Chicago to recover $481.80, alleged to be due on an open account. On motion of the Chicago Title and Trust Company its cause of action was non-suited on April 16, 1934. The proceeding was heard before the court and a jury on the second amended counterclaim of Cleary filed November 15,1933, in that litigation, in which he makes claim upon a contract in the nature of an escrow executed by the company, and at the conclusion of the hearing the jury returned a verdict in favor of Cleary and against the company for $150,844.50 on June 29, 1934. On August 27, 1934, the court entered an order as follows:

“This cause coming on for hearing upon motion of plaintiff and counter-defendant, Chicago Title & Trust Company, a corporation, heretofore entered herein June 29', 1934, for a directed verdict, and the court being fully advised in the premises sustains said motion.

“This cause coming on for further proceedings herein, it is considered by the Court that final judgment be entered for the plaintiff and counter-defendant Chicago Title and Trust Company, a corporation, notwithstanding the verdict, and against the defendant and counter-plaintiff, William Cleary, without costs, it appearing to the Court that no costs have accrued to either party to this cause.”

The pleadings upon which this proceeding was had consist of the second amended counterclaim of Cleary which sets forth a certain escrow agreement between the company and certain other persons therein named, including Cleary, under which Cleary was, upon certain conditions set forth in said escrow agreement, entitled to receive from the company $100,000 of the bonds of the Chicago Harbor Lumber Company and $10,000 in cash.

The company filed a reply in which it denies that it is indebted, individually and as trustee, or in either capacity, to Cleary in the sum of $150,000, or in any amount, as damages arising and growing out of a certain transaction for which Cleary has filed his suit in this cause against the company.

The company further denies that Cleary entered into a certain escrow agreement with the Chicago Title & Trust Company, a corporation, and Fred T. Becks, president of Chicago Harbor Lumber Company, G-. Frank Croissant and Robert Owens in the words and figures set forth in paragraph 2 of the counterclaim; denies that said escrow agreement was ever delivered to or accepted by the company and designated by the company as its escrow No. 70521; denies that in pursuance of said escrow agreement there was deposited with the company the several deeds and other instruments in writing therein described, together with certain amounts in cash; and denies that it thereupon became and was the duty of the company to receive and distribute said deposits in accordance with the terms of said escrow agreement.

In the discussion of the various questions called to our attention, when referring to the parties we have adopted the method used in the several briefs filed in this ease, and refer to William J. Cleary, sometimes designated as defendant and sometimes designated as counter-plaintiff, as Cleary, and the Chicago Title and Trust Company, sometimes designated as plaintiff and sometimes designated as counter-defendant, as the company.

Cleary’s theory of the case is that the escrow agreement dated November 26, 1927, was duly executed by all the parties thereto, and under the terms thereof Cleary became entitled to $10,000 in cash and $100,000 in bonds of the Chicago Harbor Lumber Company, or the value thereof.

The company admits that the theory of defense given by Cleary is substantially correct, but denies that it is a complete statement of its defense. It is the company’s theory, also, that the alleged escrow agreement upon which Cleary’s claim is founded is spurious and that it was manufactured out of a carbon copy of the escrow agreement of November 21, 1927; that the receipt of Cleary produced as evidence of deposits of money and stock under that spurious agreement is a forgery, and that a copy of the spurious agreement produced by one of Cleary’s witnesses, who testified that he obtained that copy from the company, is likewise spurious.

The question of fact involved in this litigation is whether the escrow agreement was duly executed. The company denies that it was, and much of the testimony in the record bears upon this question.

It is well to have in mind the escrow agreement in the instant case, dated November 26, 1927, and setting forth substantially that certain deposits of quitclaim deeds were made to convey the property described therein, also the deposit of quitclaim deed from William Cleary and Mary B. Cleary, his wife, to the Chicago Harbor Lumber Company, purporting to convey the same property. This provision follows:

“The Chicago Harbor Lumber Company will deposit with you (meaning the Chicago Title & Trust Company) the sum of $14,616.67. Chicago Harbor Lumber Company will deposit with the Company Trust Indenture in duplicate, made by themselves to the Chicago Title and Trust Company, Trustee, dated October 15, 1927, securing bonds in' the principal sum of $200,000, and purporting to convey . . .” the premises described in the trust deed.

“William Cleary deposits with the Company four contracts dated August 15, 1927, between the Union Bank of Chicago, Trustee, as sellers, and Isabele M. Cleary, as purchaser purporting to convey . . .” the premises therein described.

Then it is provided in the agreement that the property therein described with- respect to the several sites is subject to certain provisions of the escrow contract. Then follows this provision:

“Chicago Title and Trust Company to deliver One Hundred Thousand Dollars in bonds to William J. Cleary, when certified, also $10,000 cash and stock; deliver mortgage policy to Chicago Title and Trust Company, Trustee.

“Gr. Frank Croissant directs you (meaning the Company) herewith, out of the $14,616.67 directed to be paid to him hereunder, to pay an amount sufficient to clear all prior liens and the" encumbrances on premises first and second herein described, so that the policy herein can issue subject to the objections enumerated as affects Nos. 1 and 2.”

From the facts as they appear in the record, the company denies that the Chicago Harbor Lumber Company deposited with it the sum of $14,616.67, provided in the escrow agreement to be deposited, but proof is offered by Cleary that this sum was deposited, together with $10,000 that was to go to Cleary, making a total of $24,616.67, and there is evidence to the effect that the bonds of the Chicago Harbor Lumber Company were delivered io the company and by it certified and delivered to the Trust Department of the company; tliaf on November 28, 1927, Cleary notified the company not to deliver the bonds to the Chicago Harbor Lumber Company, until he had been paid the amount of money, bonds and stock due him under the contract, but that on November 30, 1927, the company delivered $125,000 bonds of the Chicago Harbor Lumber Company to Kirkeby, Watts & Company.

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Related

Chicago Title & Trust Co. v. Cleary
48 N.E.2d 576 (Appellate Court of Illinois, 1943)

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Bluebook (online)
2 N.E.2d 970, 286 Ill. App. 97, 1936 Ill. App. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-title-trust-co-v-cleary-illappct-1936.