Davis v. Oliver

25 N.E.2d 905, 304 Ill. App. 71, 1940 Ill. App. LEXIS 918
Appellate Court of Illinois·Decided February 9, 1940·No. Gen. No. 9,463·Published·Cited by 4 cases

Opinion

Mr. Presiding Justice Dove

delivered the opinion of the court.

On August 8, 1936, a consent decree in'a foreclosure proceeding pending in the circuit court of McHenry county was entered, from which no appeal was taken. On July 8, 1938, a complaint in the nature of a bill of review to set aside this decree was filed in the circuit court of McHenry county, to which a motion to strike was sustained and the complaint dismissed with leave to the plaintiff to file an amended complaint within 20 days. Within the time specified and on August 11, 1938 an amended complaint was filed, which was stricken on motion of the defendants and an appeal was prosecuted to the Supreme Court, which transferred the cause to this court. Davis v. Oliver, 371 Ill. 287.

From the amended complaint it appears, as stated by the Supreme Court in its opinion, that appellant and her husband were the owners of certain subdivision property consisting of a large number of unimproved lots; that in 1927 and 1928 two deeds of trust were executed to Lynn Richards, trustee, covering most of said lots, to secure one loan of $25,000 and a second loan of $7,662.93; that in 1930 all of the lots described in said two mortgages were conveyed by appellant to the Woodstock State Bank as trustee for the purpose of carrying out the terms of a certain trust agreement known as trust No. 53, by the provisions of which said bank could sell and convey any of said lots and apply the proceeds as specified in the trust agreement. The amended complaint further alleged that in 1931 Richards, as trustee, filed his bill to foreclose the two trust deeds and in that proceeding the Woodstock State Bank as trustee filed a cross-bill setting forth its rights and duties under the trust agreement. That by stipulation between appellant and the holders of the notes under the Richards ’ trust deeds, 52 lots were dismissed from the foreclosure so that the Woodstock State Bank as trustee could complete certain sales of lots under the trust agreement to purchasers thereof and apply the money so received therefrom on the mortgages and for other purposes set out in the trust agreement. The amended complaint further alleged that on December 30, 1929, a suit to foreclose a mechanics’ lien was filed by James Stearns and that thereafter this suit was consolidated with the foreclosure proceeding instituted by Richards, trustee: It is then alleged that on April 4, 1936, the parties to said foreclosure suit met, compromised, agreed and settled the foreclosure suit and entered into a stipulation to that effect by which all the lots covered by the trust deeds except one were to be conveyed by appellant tothe Woodstock State Bank as trustee and all of her indebtedness canceled. The amended complaint then alleges that a decree was presented to Judge Shurtléee at his residence in Marengo and subsequently signed by him and on August 8, 1936 filed with the circuit clerk of McHenry county. It is then alleged that this decree “did not recite the lots covered by the trust deeds or mortgages as provided for by the stipulation of the parties but on the contrary by mistake, inadvertence or fraudulent intent, said decree did recite that Gr. E. Stott and Daisy E. Davis will sign, acknowledge and deliver to the State Bank of Woodstock as trustee a good and sufficient deed of conveyance covering all the premises conveyed to the State Bank of Woodstock, as trustee, by the deed from John W. Davis and Daisy E. Davis to the State Bank of Woodstock, Trustee, bearing date of August 4,1930 and recorded in the Recorder’s office of McHenry County in Book 201 of Deeds at page 250.” It is then alleged that this provision of the decree was wholly different from the settlement agreed upon and the stipulation of the parties in that it directed appellant to convey to the said bank of Woodstock 52 lots which had been dismissed out of said suit according to the former order and in addition thereto required appellant to convey 14 lots which were never covered by the Richards trust deeds. It is then alleged that by reason of the wrongful conduct and practices of the defendants appellant was defrauded and wrongfully deprived of these 52 lots and these 14 lots and the complaint prayed that the decree be set aside and that the State Bank of Woodstock be ordered to convey to the plaintiff or such parties as shall be designated by her all parts or parcels of land not covered by the trust deeds which were foreclosed and that said bank be ordered to account to the plaintiff for any funds received on said lots since April 4, 1936. The defendants in the proceeding are S. T. Oliver, deputy receiver of the United State Bank of Crystal Lake, Illinois, P. F. Rosenthal, Anton Ibels, Gr. D. Crabtree and State Bank of Woodstock, trustee.

Counsel for appellant concedes that the instant proceeding is a collateral attack upon the decree of August 8, 1936 and admits that the court rendering that decree had jurisdiction of appellant and all other parties to that proceeding but, as we understand his argument, insists that as to 14 lots not described in the trust deeds and 52 lots as to which the foreclosure proceeding had been dismissed, the court did not have jurisdiction to make any order concerning them and that the decree so far as these lots were concerned is a nullity.

An examination of the record discloses that these lots (not 14 in number as counsel states but 17 tracts, being 15 full lots and a part of 2 other lots) were described in the cross-bill filed by the State Bank of Woodstock as trustee and were also described in the deed executed by appellant and her husband on August 4, 1930, which conveyed the legal title thereto to the State Bank of Woodstock as trustee. They were also described in the trust agreement executed by appellant and in the declaration of trust and these instruments were attached to and made a part of the cross-bill filed by said bank in said foreclosure proceeding. These lots therefore were before the court and were within the jurisdiction of the court at the time the final consent decree was rendered. As to the 52 lots which were described in the original bill to foreclose as to which an interlocutory decree had been entered dismissing the bill so far as they were concerned, an examination of the record discloses that the amended complaint alleges that the bill was dismissed as to them in order that the bank, as trustee, might be able to carry out contracts which it had made with various purchasers, the interlocutory decree providing that upon payment to the trustee of the balance of the purchase price by the purchaser of any of these lots that then the bank as trustee should convey to such purchaser the lot so purchased.

Regner v. Hoover, 318 Ill. 169, was a bill in the nature of a bill of review seeking to vacate a decree pro confesso rendered by the superior court of Cook county against the plaintiff. The error alleged was that the relief granted was not warranted by the allegations of the bill or prayed in the prayer thereof. In the course of its opinion the court said:

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Davis v. Oliver, 25 N.E.2d 905, 304 Ill. App. 71, 1940 Ill. App. LEXIS 918 (Ill. Ct. App. 1940).

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