Dingledine v. Hershman

53 Ill. 280
CourtIllinois Supreme Court
DecidedJanuary 15, 1870
StatusPublished

This text of 53 Ill. 280 (Dingledine v. Hershman) 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
Dingledine v. Hershman, 53 Ill. 280 (Ill. 1870).

Opinion

Mr. Chief Justice Breese

delivered the opinion of the Court:

Appellees were petitioners in the circuit court of Brown county, at the September term, 1867, for liens as mechanics and material-men, on a lot of land in the possession of Charles D. Wilber, who had contracted with the petitioners to erect a hotel building thereon. The work was done and materials furnished, for the most part, by the petitioners. The ground on which it stood was purchased by Wilber of one Jacob C. Bloom, who was the owner thereof as far back as the fifteenth of June, 1866, on which day he executed four notes to one Sebastian Dingle-dine, of one thousand dollars each, payable in one, two, three and four years from date, with interest at six per cent, and on the same day he executed, his wife joining therein, a deed of mortgage on this land to secure the payment of the notes, which was duly acknowledged and recorded. Dingledine was made a defendant to the petitions, who, in his answer, set up this lien as a prior lien.

One Ira Van Olinda, also made a defendant, claimed and set up a lien prior in time to the petitioners, arising out of a trust deed executed by Wilber to one Leavitt, on the twenty-fifth of August, 1866, to secure the payment of three promissory notes of sixteen hundred and eighty-two dollars each, payable in one, two and three years, at eight per cent interest, which deed was in trust for the use of J. C. Bloom, his interest in which, he, for a valuable consideration, had sold and assigned to Van Olinda, and put him in possession of the premises. This deed was recorded on the third of September, 1866.

No one of the petitioners claimed any lien of a date anterior to May, 1867.

The number of petitioners for liens as mechanics and material-men amounting to about fifteen, the court ordered that the suits should be consolidated, for the purpose of a full and final decree.

At the March term, 1868, a jury being waived by the parties, the cause was heard upon the original and amended petitions, interpleaders, the answers of Dingledine and Van Olinda and others, and replications thereto, and a decree rendered that Wilber pay, within four, months, all costs and the several amounts found by the court to be due the lien creditors, and in default of payment, that the premises be sold to satisfy them. It was further found by the decree, that the premises, before the improvements were made by the petitioners, were of the value of twelve thousand dollars, and that to the extent of that value Van Olinda and Dingledine were prior incumbrancers, and that by reason of the improvements, the premises were then of the value of thirty thousand dollars, and it was ordered that the master, from the proceeds of the sale, pay, first, the fees, costs and expenses of the cause, and costs of all the causes and suits, “ and it appearing to the court that the amount due Van Olinda and Dingledine upon the decree will not exceed, before the next term of court, twelve thousand dollars, the value of the premises immediately prior to the first of said mechanics’ liens, it is ordered that the master pay Van Olinda and Dingledine the full amount due them ; but if the premises fail to produce money enough to pay them in full, then they should be paid pro rata.”

The master reported to the court, at the September term, 1868, that he had sold the premises, on default of Wilber, to Van Olinda and one Loring P. Wheeler, for eight thousand two hundred and fifty dollars, which they paid, and the master executed a deed; that he paid all costs, etc. and then paid to Sebastian Dingledine, the oldest incumbrancer, four thousand four hundred and six dollars eighty-four cents, being his claim in full as found by the decree, and the residue, amounting to three thousand four hundred and ninety-two dollars eighty-one cents he paid to Van Olinda, and that nothing remained Avjth which to pay mechanics’ Hens.

In August, 1868, a bill of review was filed to the September term by the petitioners, in Avhich Van Olinda, Dingledine, Bloom and Leavitt, and one Smith, were made defendants, and process served upon them, complaining of error in the original decree, in respect that Dingledine and Van Olinda are to be paid in full or pro rata first, and before complainants; that the decree should have been so framed as to direct eighteen-thirtieths of the proceeds, after the payment of costs, etc. should be paid pro rata, among complainants, and they pray that Dingle-dine be compelled to refund eighteen-thirtieths of the proceeds received by him, and that Van Olinda refund all he received. Dingledine answered the bill, insisting upon the decree as rendered ; that he had a prior mortgage, duly recorded, before any other lien attached, and that Van Olinda had a mortgage prior to any mechanic’s lien; that his rights were acknowledged and settled by the decree; that the value of the premises was correctly found by the decree, and that they, Dingledine and Van Olinda, were able to protect their interests by making the property bring money enough at the sale to pay their liens, had not their interests and priorities been protected by the decree under which the sale was made; that as the sale to Van Olinda and Wheeler can not be canceled, it would be unjust to Dingledine to deprive him of his remedy under his mortgage, and then take his money by a subsequent decree, to pay junior creditors. A replication was put in to the answer, and at the March term, 1869, a decree was entered to correct the original decree in this manner: That out of twelve-thirtieths of the proceeds of the sale, after paying costs out of the entire proceeds, the master shall pay Dingledine the amount due him, if there be sufficient; if not, then pay the whole of the twelve-thirtieths to Dingledine. But if the same be more than sufficient to pay Dingledine, the residue of the twelve-thirtieths be paid to Van Olinda, and if there be a surplus after paying him, then the residue to be applied, with the eighteen-thirtieths, to the lien creditors,pro rata; and the court finds the sale to Van Olinda and Wheeler for eight thousand two hundred and fifty dollars, the amount of Dingledine and Van Olinda’s several claims, and the payment to them, as under the original decree, and then finds that twelve-thirtieths of the proceeds of the premises amount to thirty-three hundred dollars, and then decrees that, to that extent, Dingledine is entitled to be paid from that share of the proceeds, and that Van Olinda being a junior incumbrancer to Dingledine, and there not being sufficient to pay Dingledine in full, he, Van Olinda, is entitled to no portion of the twelve-thirtieths. It was then ordered and decreed that Dingledine, within ten days from the rendition of the decree, refund to the master eleven hundred and six dollars eighty-four cents, being the excess of these proceeds, to be distributed to the lien creditors. It was further ordered, in the event of a refusal by Dingledine to refund this amount within ten days, that then a fi. fa. issue in the name of the special master against Dingledine’s goods and chattels, lands and tenements, with like force and effect as upon a judgment at common law.

To reverse this decree, Dingledine has appealed to this court, assigning several errors.

We have not considered the minor objections raised by appellant to this decree, but only the central question involved, as connected with the equity of the case as it appears to us, on a full consideration thereof.

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53 Ill. 280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dingledine-v-hershman-ill-1870.