Dishinger v. Bon Air Catering, Inc.

84 N.E.2d 562, 336 Ill. App. 557, 1949 Ill. App. LEXIS 223
CourtAppellate Court of Illinois
DecidedMarch 8, 1949
DocketGen. No. 10,314
StatusPublished
Cited by12 cases

This text of 84 N.E.2d 562 (Dishinger v. Bon Air Catering, Inc.) 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
Dishinger v. Bon Air Catering, Inc., 84 N.E.2d 562, 336 Ill. App. 557, 1949 Ill. App. LEXIS 223 (Ill. Ct. App. 1949).

Opinion

Mr. Justice Bristow

delivered the opinion of the court.

This is an appeal by John E. Johnson, attorney for the defendant corporation, in his personal capacity, from an order of the circuit court of Lake county adjudging him in civil contempt for refusal to comply with a decree entered in a receivership proceeding instituted by plaintiff, Margaret Dishinger, against the defendant corporation.

The appeal presents two legal issues: The scope and binding effect of the final decree and the order promulgated to enforce it; and the propriety of the order adjudging John E. Johnson in civil contempt for failure to comply therewith.

From the record it appears that plaintiff, Margaret Dishinger, obtained an award from the Industrial Commission of Illinois, which was reduced to judgment, for the death of her husband in an accident arising out of, and in the course of his employment by the defendant corporation. This award was acknowledged, but never paid by the defendant corporation, and on January 18, 1943, plaintiff filed the complaint herein under secs. 86 and 87 of the Business Corporation Act (ch. 32, pars. 157.86, 157.87, Ill. Rev. Stat. [Jones Ill. Stats. Ann. 32.088, 82.089]), seeking the appointment of a receiver and the liquidation of the assets of the defendant corporation so that payment could be made on her judgment.

Defendant’s motion to dismiss was denied, and in its answer defendant denied ownership of the property referred to in the complaint, and asserted that it operated the premises under a rental agreement with the owners.

The cause was referred to a master before whom testimony was taken, and he found that the defendant corporation had certain contracts with the Albert Pick Co. which sold hotel and restaurant equipment, and that between June 7, 1938 and September 18, 1939, after the defendant corporation was incorporated, it paid the Albert Pick Co. some $11,274 on unsecured accounts, which together with the sums paid on secured accounts, amounted to $24,178.86. The money was paid for specific items of kitchen equipment, such as ranges, refrigerators, a dishwashing machine, tables, chairs, bars, glasses, dishes and other enumerated properties. This personalty is still on the original premises in Vernon Township on Milwaukee avenue where it is held in storage.

The master further found that defendant had engaged certain public accounts to supervise its accounts from 1938 to 1941, but, nevertheless, did not produce in this proceeding the balance sheets prepared by the accountants revealing defendant’s assets and liabilities, thereby indicating by negative implication that the facts contained in those records did not sustain defendant’s contention herein.

The master rejected the allegation asserted in defendant’s answer that it merely rented the property from the owner. For the only lease offered by defendant was dated April 10, 1940, some two years after its incorporation, and involved merely the rental from William R. Johnson of “the golf course and club house, incidental buildings, appurtenances, fixtures and equipment thereunto appertaining.” It did not even purport to cover any personal property, much less that which defendant had purchased in 1938 and 1939 from the Albert Pick Co.

Defendant’s objections to the master’s report were overruled, and stood as exceptions in the trial court where the question of the legal effect of the lease was reargued. The trial court overruled defendant’s exceptions, confirmed the master’s report, and entered a decree in accordance with the prayer of the complaint.

Under this decree of March 16, 1948, the court directed that proceedings be taken to liquidate the assets of the defendant corporation, that a receiver be appointed with title to all assets and property of the defendant corporation, and ordered him to take immediate possession thereof, and to prepare for the court an inventory of all assets within 15 days.

No appeal was ever taken from this decree of March 16,1948, and it became final. However, defendant refused to comply therewith, for on April 15, when the receiver went out to the premises where the aforementioned personal property was stored, defendant, through its counsel, the appellant, John E. Johnson, refused him admittance, claiming that he had no right to enter the premises inasmuch as the buildings and the property within belonged to William R. J ohnson. The appellant did admit, however, that he possessed an inventory of all the personal property on the premises, which he would present to the court.

As a result of this episode, plaintiff presented a motion requesting that the receiver be granted admittance to the premises in order to prepare the inventory specified in the decree of March 16,1948. This motion was argued, and at the hearing John E. Johnson persisted in his refusal to admit the receiver within the premises, and reaffirmed his possession of the inventory which he promised' to make available to the court. It was thereupon ordered, on April 27, 1948, that the inventory be turned over to the court, and that the receiver be admitted to the premises within 10 days.

Before the expiration of the 10 days, John E. Johnson filed a petition to vacate that order, wherein he retracted his admission that he possessed an inventory and asserted that the owner refused to allow him on the premises, and therefore he could not comply with the order of the court. Plaintiff answered this petition, asserting that it was within defendant’s power to comply with said order of the court, and that his refusal was contumacious. At the hearing on this petition it was shown that John E. Johnson had an undivided one-eighth interest in the premises, and was a tenant in common with William R. Johnson.

The court, therefore, entered an order on May 14, 1948, finding John E. Johnson guilty of civil contempt and committing him to jail until he complies with the order of April 27, 1948, or until he is discharged by due process of law. Prom this order John E. Johnson has appealed to this court.

The theory of John E. Johnson’s defense herein is that the original decree of March 16, 1948, was improper since it disposed of assets claimed adversely by William R. Johnson, who was not a party to this proceeding and, therefore, could not be affected thereby; that the enforcement order of April 27, 1948, directing John E. Johnson to turn over an inventory and admit the receiver to the premises was improper, since John E. Johnson discovered, several days after the order, that he did not possess the inventory, and that he could not admit the receiver to his brother’s property, even though he personally owned a one-eighth interest in it; and that inasmuch as he cannot comply with the enforcement order, he should not have been held in civil contempt.

This court will consider first the scope and binding effect of the decree of March 16, 1948. This decree was entered after hearings before the master, and arguments in open court where evidence was presented. The primary issue therein was whether the defendant corporation possessed any assets as alleged in the complaint, out of which plaintiff’s award and judgment for compensation for the death of her husband could be satisfied under the terms of secs. 86 and 87 of the Business Corporation Act of Illinois (ch. 32, pars. 157.86, 157.87, Ill. Rev. Stat. [Jones Ill. Stats. Ann. 32.088, 32.089]).

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Bluebook (online)
84 N.E.2d 562, 336 Ill. App. 557, 1949 Ill. App. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dishinger-v-bon-air-catering-inc-illappct-1949.