Dunbar v. Springer

99 N.E. 889, 256 Ill. 53
Illinois Supreme Court·Decided October 26, 1912·Published·Cited by 3 cases

Opinion

Mr. Justice Carter

delivered the opinion of the court:

On March 18, 1908, appellant filed a bill in the superior court of Cook county against appellees, Warren Springer, James B. Brougham and the Chicago Title and Trust Company, the objects of which were (i) to set aside the settlement of appellant with Springer involving an escrow agreement dated November 30, 1904; (2) to. revive the notes representing appellant’s claim which had been canceled by the Chicago Title and Trust Company under said escrow agreement; (3) to have delivered up for cancellation the release of appellant’s claim against Springer which the Chicago Title and Trust Company had delivered to him; (4) to obtain a personal decree against appellees for the amount of the appellant’s claim,—against Springer as upon the original claim revived, against Brougham upon his agreement in writing with Springer to pay appellant’s claim, among others, and against the Chicago Title and Trust Company for its alleged improper cancellation of appellant’s trust notes. Answers were filed by the several defendants, and after an extended hearing before the chancellor the bill was dismissed for want of equity. On appeal to the Appellate Court for the First District the decree was affirmed and a certificate of importance granted. This appeal followed.

The facts as shown by the record are somewhat complicated. December 26, 1903, appellant loaned.Springer on a judgment note $4362.75. About July 13, 1904, Springer induced appellant to exchange this note for three other notes of $2133.33 each, representing that they were secured by land in Kentucky. It was subsequently ascertained that Springer owned no land in Kentucky and that the notes were unsecured, and appellant notified Springer to that effect. About this time Springer was arranging with his creditors for a settlement. He owed at this time to the Northwestern Mutual Life Insurance Company some $465,000, which debt was secured by trust deed on his real estate, and had other obligations amounting to about $72,-' 000. He was negotiating with his creditors to settle this latter indebtedness, by giving a series of new notes secured by a second deed of trust on his real estate. Springer offered to appellant for the three Kentucky notes four notes secured by this deed of trust, each for $1108.14, the Equitable Trust Company being named as trustee in the trust deed. These latter four notes are the ones appellant al-, leges were improperly canceled by the Chicago Title and Trust Company. Appellant seems never to have had possession of these notes, and there is some controversy in the record as to whether he ever agreed to accept them. An order to turn them over to Springer is found in the record, signed in the appellant’s name, which he claims he never signed and knew nothing about. Involuntary bankruptcy proceedings were begun in the United States district court against Springer, wherein he was adjudged solvent. Thereafter, on September 17, 1904, Springer conveyed certain property in Chicago to appellee Brougham, under an agreement that Brougham would satisfy or cause to be released the trust deed to the Equitable Trust Company securing $72,000, a part of which amount was represented by the four notes assigned to the appellant. At that date the appellant was represented by Furber Sl Wakelee, attorneys, who were trying to collect his claim against Springer. They took up the settlement of the appellant’s claim with Brougham. In the negotiations by Brougham to settle with Springer’s creditors it appears they were divided into two classes. He was negotiating to settle with the first class by paying them twenty-seven per cent of their claims in cash, sixteen per cent in an interest in property called in the record Park avenue property, and the balance in an interest in a part of the real estate that is sometimes called in the record LaGrange land and at other times Western Springs land, and which is situated between the villages of La-Grange and Western Springs. The second class of these creditors were to receive twenty-seven per cent of their claims in cash and the balance in an interest in. another part of said LaGrange land. When attorney Wakelee first talked with Brougham about the settlement the latter stated that he thought possibly he might be able to arrange to put appellant in the first class and settle on the basis outlined for that class. A day or two later Brougham told Wake-lee that it would be impossible to put appellant in the first class of creditors but that he could settle with him on the same basis as outlined for the second class,-—-that is, twenty-seven per cent cash and the balance in an interest in the LaGrange land. Both Furber and Wakelee had' a talk with appellant in regard to the settlement and they both testified that he agreed to accept the offer as made by Brougham. Appellant himself testified that he understood that he was to receive in settlement twenty-seven per cent of his debt in cash, sixteen,per cent in Park avenue property and the balance in ah interest in LaGrange property. From this record we think the settlement offered by Brougham and accepted by appellant was to put him among the second class of Springer’s creditors, and that he should receive twenty-seven per -cent in cash and the balance in an interest in the LaGrange property.

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Dunbar v. Springer, 99 N.E. 889, 256 Ill. 53 (Ill. 1912).

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