Dolese v. McDougall

78 Ill. App. 629, 1897 Ill. App. LEXIS 812
CourtAppellate Court of Illinois
DecidedNovember 16, 1898
StatusPublished
Cited by2 cases

This text of 78 Ill. App. 629 (Dolese v. McDougall) 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
Dolese v. McDougall, 78 Ill. App. 629, 1897 Ill. App. LEXIS 812 (Ill. Ct. App. 1898).

Opinion

Mr. Justice Adams

delivered the opinion of the court.

These appeals were taken from the same decree and have been argued by counsel and considered by the court on the same record. November 16, 1891, John Dolese and Jason H. Shepard filed a bill, alleging the recovery by them, as copartners under the firm name of Dolese & Shepard, November 14, 1891, of a judgment against James C. McDougall and Edward E. Hammond for $4,017 and costs; that on the same day execution was issued on the judgment, and November 16, 1891, was returned by the sheriff no part satisfied, etc. The bill further alleges that McDougall & Hammond, as partners under that name, have been engaged in the business of plumbing, sewer building and grading, paving and improving of streets and highways; that various persons have become indebted to them, etc.; that they have done work and furnished material for municipalities, including the village of South Evanston, and that large sums of money are or shortly will be due them, on account of contracts between them and said municipalities, but only when the work contracted for shall be completed; that, by reason of the financial embarrassment of McDougall & Hammond, work on the contracts had been suspended, etc.; and that it was for the interest of all parties that a receiver should be-appointed and that the work contracted for should be completed, etc. The bill further alleges that, October 24,1891, McDougall & Hammond assigned to the complainants all moneys, warrants, etc., due or to become due to them on said contracts" from the village of South Evanston, and appointed Jason H. Shepard to collect and receipt for the same, but that the village refused to recognize the assignment and threatened to pay over said moneys, etc., to ' McDougall & Hammond, or some person or persons on their behalf. It is further alleged, on information and belief, that within ten days prior. tó the filing the bill, McDougall, in the night.time, spirited away the goods and chattels, etc., of the judgment debtors, and secretly sold 'and assigned them to Peck Bros. & Co., a corporation; L. Wolff Manufacturing Company, a corporation; E. W. Blatchford & Co., a corporation, and Oliver D. Peck and Albert D. Sanders, who claim to be creditors of McDougall & Hammond, and that said sale and assignment were made in payment of the indebtedness to them of McDougall & Hammond. “ But complainants show that at the time of the sale and assignment the said defendants, to whom the same was made, were under a valid and binding contract with the complainants not to seek or accept from the said firm any preference or advantage over the complainants in the premises, and that by reason thereof the said sale, assignment and transfer is void in equity and of no effect as against complainants.” The bill, after alleging that Benjamin F. and Haitian A. Hill are indebted to the judgment debtors, contains the usual general allegations as to the ownership of property by the judgment debtors, and prays for an answer under oath and a discovery, an injunction against defendants restraining them from assigning, etc., or in any manner incumbering, disposing of or interfering with any of the property or assets of the judgment debtors, and the appointment of a receiver, etc.

James 0. McDougall, Edward C. Hammond, Peck Bros. & Co., E. W. Blatchford & Co., L. Wolf Manufacturing Company, Oliver D. Peek, Albert D. Sanders, Eliphalet W. Blatchford, Benjamin F. Hill, Hath an A. Hill, the village of Highland Park, the village of Evanston and the village of South Evanston, were made defendants to the bill.

On the same day on which the bill was filed a temporary injunction was granted as prayed by the bill, and a writ of injunction was issued and served on the village of South Evanston. Eric J.Helson was appointed receiver. Answers to the bill were filed by McDougall, the two Hills, the villages of Evanston, South Evanston and Highland Park, Peek Bros. & Co., E. W. Blatchford & Co., L. Wolff Manufacturing Company, Oliver D. Peck, Albert D. Sanders and Eliphalet W. Blatchford. Hammond was not served nor did he appear. On petition of the Cleveland Stone Co. it was made a party defendant and filed its answer to the bill, and also filed a cross-bill, in which it is alleged, substantially, that on and prior to November 5, 1891, McDougall & Hammond were indebted to cross-complainant in about $5,041.16, partly evidenced by their promissory notes and partly on open account; that prior to said date McDougall & Hammond caused cross-complainant and others of their creditors to meet at the office of ■ Dolese & Shepard to arrange some plan by which the creditors would forbear to sue at law, and thus enable McDougall & Hammond to complete their contracts and pay their creditors; that an arrangement was proposed at said meeting which was deemed impracticable, and the meeting was adjourned till November 5, 1891; that, at the last date, creditors representing $38,000 of indebtedness out of a total of something over $40,000, were present, including E. W. Blatchford & Co., Peck Bros. & Co., L. Wolff Manufacturing Company and Olof Yider and M. J. La Bounty, partners under the name of Olof Yider & Co.; that Jason H. Shepard was chairman of the meeting, and that a motion was put and adopted (all present, except Edward Johnson, who wanted time to think over the matter, voting in favor of the motion) that McDougall & Hammond should assign and transfer to Jason H. Shepard and Albert D. Sanders, as trustees for the creditors, all their assets except amounts due or to become due, on contracts for plumbing or sewer work taken since August 20, 1891, and that said trustees should, without charge for their personal services, complete the uncompleted contracts as economically as possible, and ■should pay the creditors pro rata; that it was thereupon agreed by all the creditors present and by McDougall & Hammond, that the attorney of cross-complainant should reduce “ the proposition and agreement ” to writing,when the same was to be considered by a committee consisting of the attorneys of the complainants, the attorneys of Peck Bros. & Co., and the attorneys of McDougall and of Hammond, said committee to have the writing circulated among the creditors, and that, in the meantime, no steps should be taken bj1" any of the creditors then present to collect their claim, nor. by said firm; that cross-complainant’s attorney, within one or two days after the meeting, reduced the agreement to writing, leaving certain blanks to be filled by the committee, and gave the same to the attorney of Peck Bros. & Co., as had been understood and agreed; that while cross-complainant, relying on said agreement, was waiting to have said agreement presented to it for signature, E. W. Blatchford & Co., Peck Bros & Co., the L. Wolff Manufacturing Company, Olof Yider, M. J. La Bounty and Edward Johnson conspired secretly with McDougall, and without Hammond’s knowledge or consent, to take possession of certain of the property and assets of McDougall & Ham-mond and convert the same to their own use; that about November 12, 1891, E. W. Blatchford & Co., Peck Bros. & Co., and L. Wolff Manufacturing Company, assisted by McDougall, carried away the goods and chattels of McDougall & Hammond in the night time, which had been formerly valued by said last mentioned firm at $6,750, and divided the same among themselves, in what proportion cross-complainant knows not; that the book accounts and other choses in action were also assigned - to said corporations or to Oliver D. Peck, Albert D. Sanders and Eliphalet W.

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Bluebook (online)
78 Ill. App. 629, 1897 Ill. App. LEXIS 812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolese-v-mcdougall-illappct-1898.