Colehour v. Bass

143 Ill. App. 530, 1908 Ill. App. LEXIS 117
CourtAppellate Court of Illinois
DecidedOctober 6, 1908
DocketGen. No. 13,244; Gen. No. 13,801; Gen. No. 13,611
StatusPublished
Cited by3 cases

This text of 143 Ill. App. 530 (Colehour v. Bass) 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
Colehour v. Bass, 143 Ill. App. 530, 1908 Ill. App. LEXIS 117 (Ill. Ct. App. 1908).

Opinion

Mr. Presiding Justice Smith

delivered the opinion of the court.

The first general contention on behalf of appellants is that the nature of the suit and the proceedings in Colehour v. Boby and the receivership therein were of such a character that neither Bass, nor Geer, as executor, etc., could have or acquire any standing in the case for relief, and therefore the orders or decrees giving them relief were and are erroneous.

In support of this position much of the argument of counsel for appellants is based on matters which must be regarded as settled adversely to appellants’ contentions by the decrees of June 12, 1890, and of January 30, 1896, which have been affirmed by the Supreme Court. Roby v. Colehour, 135 Ill. 300, and Roby v. Title G. & T. Co., 166 id., 336. These decrees are binding adjudications under which the title and possession of the property involved became vested in the receiver. The Colehours and Roby were adjudged partners in the net profits of the venture and their proportionate interests in the profits and also their rights inter se were settled. Before the decrees now before us for review were entered, it had also been adjudged necessary in order to adjust the rights of the parties to sell and convert into money the entire property in the receiver’s hands. The propriety of the appointment of the receiver and the powers conferred upon the receiver are settled, we think, by those decrees, whether all the questions upon-those decrees were raised in the Supreme Court or not, on the appeals prosecuted therefrom. In our opinion the original suits were brought to settle a partnership, and under the pleadings an accounting was necessary for that purpose. The court had the power to appoint the receiver and order the parties to convey their titles to the lands in controversy to the receiver as a necessary step to preserve and protect the partnership assets and to a proper administration of the partnership affairs. The receiver was not a mere trustee only with the powers limited by the order of appointment, but it was the hand of the court in the practical settlement of the controversy before the court; and the powers of the receiver might be enlarged or withdrawn as the exigencies of the situation demanded, in working out the equities of the case. These appeals, and this writ of error, do not bring before us any questions of that nature. The relief asked for by the appellees and the defendant in error was subordinate to such orders and proceedings, and in recognition of their validity, and the relief granted was of the character asked by the petitions. All errors therefore assigned upon other orders or decrees than those before us must be disregarded, and likewise all arguments based thereon.

Regarding the decree of June 25, 1906, the record shows that Bass was a master in chancery of the Oircuit Court in which the litigation was pending’, and that the fees charged and allowed were incurred by the parties for the master’s services under orders of reference. The items allowed were not at the time they were allowed questioned by Charles W. Colehour and William H. Colehour, at whose instance and request, as well as at the request of Bass, they were ordered paid out of the Colehour fund in the receiver’s hands. It appears that the master’s services were performed and his fees earned in the litigation, and with reference to the subject of the litigation or fund which was in the possession of the court for administration and settlement. We think the court had the power to protect its officers and order the fees to be paid out of the funds named in the decree. 2 Daniels Ch. Pr., pars. 378 and 1380; 2 Beach Modern Eq. Jur. 979, sec. 1013. Courts of equity have a-large discretion in the matter of costs, and frequently give costs in intermediate stages of a case without waiting for a final decree. 11 Cyc. 98; Avery v. Wilson, 20 Fed. R. 856.

The objection that the petition of Bass is informal is without merit, for no petition was necessary. A mere motion was sufficient.

In our opinion, the decree of June 25, 1906, is free from material error and must be affirmed.

The decree of April 30, 1906, in No. 13801, in favor of defendant in error Ira J. Geer, executor, etc., is based on a claim for services rendered and loans to the Colehours guaranteed by William C. Goudy, deceased, in his lifetime, in regard to the lands involved in this cause, and other lands. Mr. Goudy as solicitor for the Colehours procured the decree of June 12, 1890, in favor of the Colehours and against Boby declaring that the lands and lots involved in the litigation were unlawfully held by Boby, directing an accounting and .appointing a receiver to take title to the property and to hold and sell it, etc.

The trust estate was liable to be lost by the expiration of redemption under foreclosure. At the last moment and under the most difficult circumstances Mr. Goudy procured loans of about $146,000, $110,000 of which "was secured by receiver’s certificates, the payment of which was personally guaranteed by him. Roby v. T. G. & T. Co., supra.

It appears that in June, 1891, Mr. Goudy and the Colehours made a settlement of the amounts then due to Mr. Goudy from the Colehours, and they gave him three written instruments dated June 30, 1891, acknowledging the indebtedness to him and assigning to him the amounts thereof out of the moneys to become due to the Colehours from the. sale of the lands by the receiver. These three instruments are shown by the exhibits attached to' the petition of Geer designated as “Exhibit A,” “Exhibit B,” and “Exhibit C,” respectively in the record. The last one, “Exhibit C,” is different in form from the others and does not contain formal words of assignment, but it contains an acknowledgment of the indebtedness and an agreement to pay it out of the fund in question and authorizes and consents to. the entry of such an order by the court whenever Goudy shall apply for the same. We are of the opinion that it was an equitable assignment by the Colehours of the amount therein named out of their shares of the estate in the receiver’s hands.

The record shows that Mr, Goudy continued to render services to the Colehours until his death, April 27,1893, and that the Colehours at that time owed him further moneys for legal services and disbursements. On September 19, 1893, the Colehours executed an assignment to the executors of Mr. Goudy for $1,622, to be paid out of moneys due to them arising from the sales of lands by the receiver, with interest thereon at five per cent. The assignment contained their consent to the entry of an order in the case for the payment of the money by the receiver.

On June 30, the first three instruments above named were exhibited to the receiver, and on December 13, 1893, the fourth one of said instruments was exhibited to the receiver. Copies of said instruments were also furnished the receiver, and the record shows the admission by the receiver of such copies.

The intervening petition of Geer as executor is based upon the instruments above enumerated, and sets up the death of Mr. Goudy, the probate of his will, the death of the other executor, the death of William H. Colehour and the probate of his will devising his estate to Carrie M.

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Bluebook (online)
143 Ill. App. 530, 1908 Ill. App. LEXIS 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colehour-v-bass-illappct-1908.