Elieff v. Lincoln National Life Insurance

17 N.E.2d 47, 369 Ill. 408
CourtIllinois Supreme Court
DecidedOctober 13, 1938
DocketNo. 24499. Reversed and remanded.
StatusPublished
Cited by6 cases

This text of 17 N.E.2d 47 (Elieff v. Lincoln National Life Insurance) 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
Elieff v. Lincoln National Life Insurance, 17 N.E.2d 47, 369 Ill. 408 (Ill. 1938).

Opinion

Mr. Justice Gunn

delivered the opinion of the court:

On May 22, 1935, appellant, on leave granted, filed his original verified complaint in equity in the nature of a bill of review, in the circuit court of Cook county against the Lincoln National Life Insurance Company (herein called the insurance company) and the Semmes-Nein Investment Corporation and others, praying that a decree of foreclosure and sale entered in that court on June 16, 1933, and all orders and proceedings therein, in so far as they affect the appellant, be vacated and set aside, and for other relief.

The complaint, among other things, alleged that on April 29, 1932, the premises in question were conveyed to appellant by his brother Atanas P. Elieff, for a valuable consideration, and the deed therefor duly recorded the following day; that on May 27, 1932, the defendant insurance company filed its bill in the circuit court of Cook county to foreclose a trust deed on the property made by Atanas P. Elieff on August 7, 1925; that appellant was not made a party thereto nor did he enter his appearance nor authorize anyone else to do so; that on December 28, 1932, appellant was made a defendant, by amendment, on leave granted; that no summons in that cause was ever issued or served on him; that on January 13, 1933, an answer in the form of a general denial was filed, purporting to be on behalf of appellant, by an attorney at law. The complaint then alleged that appellant was not acquainted with and did not know such attorney and did not at any time retain or employ him to file such answer, and had no knowledge that such answer was filed. The complaint further stated appellant did not have any actual or constructive notice of the pendency of the suit, and that the first notice he had in any manner was on December 26, 1934, when he was advised by his brother Manoli that suit had been instituted, proofs made, a decree of sale entered, the property sold and the period of redemption expired, and that the Semmes-Nein Investment Corporation was claiming ownership and had started a forcible detainer suit against Atanas P. Elieff to gain possession. The complaint further alleged that a certificate of sale was issued to the insurance company and thereafter, on October 13, 1934, a deed was issued by the master to the Semmes-Nein Investment Corporation acting on behalf of the insurance company. It also averred that defendant Atanas P. Elieff, on May 15, 1932, executed an assignment of rents to the insurance company on its express promise of an extension of time during the period of economic depression then existing in Chicago, and until further notice, and that it would not institute foreclosure proceedings under its trust deed without notice; that the money from the rent assignment was to be used to pay taxes, necessary repairs, and interest on the loan, and any balance applied on the principal. An answer substantially denying these facts was filed by the insurance company.

Later, the insurance company filed its motion to strike the complaint on the following grounds: (1) That appellant, as a defendant to the foreclosure suit, had not offered to comply with the terms of the decree by paying or offering to pay the amount found due therein; (2) did not offer to surrender possession; (3) was precluded from the right to relief by reason of laches; (4) did not rely upon the so-called extension agreement, and, (5) did not allege any legal or equitable defense to the foreclosure. Appellant thereupon, by leave of court, filed a verified amendment to his complaint, alleging, in substance, that he was unable to comply with the terms of the decree because of lack of knowledge of it; that had he known of the decree at the time of its entry he could then have paid the amount found due; that upon learning of it, compliance was impossible due to the sale already had and the expiration of the period of redemption; that the decree had then been satisfied to the amount bid at the sale and appellant was not personally liable for the payment of the deficiency decree entered against his brother Atanas P. Elieff. He further alleged his financial inability to pay at the time his complaint was filed and at the time he first learned of the foreclosure decree, but stated that at the time the foreclosure was instituted, during its pendency and at the time the decree was entered, and for a long time thereafter, he did have sufficient assets and funds to have paid said mortgage and the amount found due by the decree, and would have paid the same if he had had knowledge of the facts which he would have known had he been served with a summons. The insurance company thereupon renewed its motion to strike the complaint, as amended, and on June 9, 1937, this motion was sustained and the complaint, as amended, dismissed for want of equity. From this order appellant prayed an appeal to the Appellate Court for the First District, and, on motion of the appellee insurance compan)q the cause has been transferred here, a freehold being involved.

A court of equity does not acquire jurisdiction of a defendant in a cause where no personal or constructive service is had on such defendant, nor his appearance entered either personally or by someone authorized and where no pleadings are filed in his behalf by his authority, and a decree entered in such case is void as to such defendant. (Griggs v. Gear, 3 Gilm. 2; Bruschke v. Der Nord Chicago Schuetzen Verein, 145 Ill. 433; Borders v. Murphy, 78 id. 81; Anderson v. Hawhe, 115 id. 33; Leslie v. Fischer, 62 id. 118.) “A decree obtained without making those persons parties to the suit, in which it is had, whose rights are affected thereby, is fraudulent and void as to those parties.” Story’s Eq. Pl. (10th ed.) sec. 427.

Appellees first charge the complaint was fatally defective in failing to allege performance, or excuse for non-performance, of the decree it attacks. As sustaining this contention appellees cite cases which we have examined and will analyze briefly. In Kuttner v. Haines, 135 Ill. 382, there was no question of service of process involved, nor was there any excuse for non-performance alleged. In Griggs v. Gear, supra, relief was granted on a claim similar to the one here involved, without performance, because defendants answered instead of moving to strike at the first opportunity. Bruschke v. Der Nord Chicago Schuetzen Verein, supra, reached the same result, and, further, held performance was not necessary to the jurisdiction of the court to entertain the bill.

"The decree must be first obeyed and performed before a bill of review can be brought; as if it be for land, the possession must be given up; if it be for money, the money must be paid; if for evidences, the evidences must be brought in, and so in other cases. But if any act be decreed to be done, which extinguishes the parties’ right at the common law, as making of assurance or release, acknowledging satisfaction, cancelling of bonds, or evidences, and the like, it is declared that those parts of the decree are to be spared until the bill of review be determined.” (Story’s Eq. Pl. (10th ed.) sec. 406.) In a foot note to this section Story says, “There are other exceptions to the rule, as to the performance of the decree, than those stated in the text; as for example, the party is not bound to perform any more of the decree than his adversary can show that he is bound to perform at the time when he seeks to bring a bill of review, and in regard to which he is in default.” To the same effect see 2 Daniel’s Chancery Practice, (8th ed.) p. 1331.

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17 N.E.2d 47, 369 Ill. 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elieff-v-lincoln-national-life-insurance-ill-1938.