Elkhart State Bank v. Schlarman

270 Ill. App. 440, 1933 Ill. App. LEXIS 538
CourtAppellate Court of Illinois
DecidedApril 11, 1933
DocketGen. No. 8,728
StatusPublished
Cited by3 cases

This text of 270 Ill. App. 440 (Elkhart State Bank v. Schlarman) 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
Elkhart State Bank v. Schlarman, 270 Ill. App. 440, 1933 Ill. App. LEXIS 538 (Ill. Ct. App. 1933).

Opinion

Mr. Justice Shurtlbff

delivered the opinion of the court.

Elkhart State Bank of Elkhart, Illinois, a banking corporation, defendant in error (which will hereinafter be referred to either as the complainant or the bank), filed its bill in equity in the circuit court of Logan county against St. Patrick’s Roman Catholic Congregation of Elkhart, Illinois, a religious corporation, and the five trustees of that corporation, namely, Joseph H. Schlarman, Bishop of the Roman Catholic Diocese of Peoria, Illinois; Gerald T. Bergan, Vicar General; Ralph J. Lane, parish priest; Patrick Bohan and Michael Danaher, and also named as a party defendant the Roman Catholic Diocese of Peoria, Illinois, which is merely a territorial subdivision of the Catholic Church and was not served with process. The Catholic Diocese of Peoria, a religious corporation, was served with process and for that reason joined in the answer. Those defendants (hereinafter referred to as such) are the plaintiffs in error in this cause.

The bill charges that many years ago certain real estate therein described was acquired for the purpose of erecting thereon a Catholic church at Elkhart, in Logan county, Illinois, and later such church, known as St. Patrick’s Roman Catholic Church, was erected and a parochial residence for the parish priest was also built thereon; that the title to the real estate was held in trust for the use and benefit of the congregation ; that originally such title was held by the Catholic Bishop of Chicago, who, in 1877, conveyed the same to John L. Spaulding, the first Bishop of Peoria, who later conveyed it to Edmund M., Dunne, the second Bishop of Peoria. The latter died in 1928, and his successor, Joseph H. Schlarman, the present Bishop of the Diocese of Peoria, acquired the title through the will of the former Bishop. Thereafter, on the 25th of October, 1930, Bishop Schlarman caused the incorporation of the congregation with the five persons above named as trustees.

The bill further charges that one Patrick J. Barry, a Catholic priest, was duly appointed in 1921 by the Bishop of Peoria as the pastor of said church at Elk-hart and continued as such pastor until September 1, 1930; that said Patrick J. Barry as such pastor thereby became the agent and representative of Edmund M. Dunne as Bishop of Peoria and of the Roman Catholic Diocese of Peoria, and of St. Patrick’s Roman Catholic Congregation at Elkhart, and as such carried on, conducted and managed the fiscal affairs and business of the Bishop, Diocese and Congregation at that place.

The bill further charges that in carrying on the business and affairs as such pastor the said Patrick J. Barry borrowed various sums of money from the bank and gave his notes therefor, and in so doing was acting as agent and representative of the Bishop of Peoria, said diocese and said congregation, who recognized and held him out as their agent and representative for that purpose; that among said notes were certain notes executed in 1928 and 1929, aggregating the principal sum of $3,231, which were unpaid.

The bill then prays that the court fix and determine by decree the amount of indebtedness due to the bank and “direct and decree and enforce the payment of the same and may make the demand thereof a lien and charge upon the said trust property aforesaid, and that your orator may have such other and further relief in the premises as to equity shall appertain and to your Honor shall seem meet.”

The defendants filed a demurrer to the bill, setting forth that the bill of complaint was without equity and that on its face it showed that the complainant, if it had a remedy at all against any of the defendants, had an adequate remedy at law. This demurrer was overruled by the court. The defendants then filed an answer to the bill, in which they reserved all right of exception, etc., admitted the ownership of the real estate described in the bill and the chain of title thereto as set forth in the bill of complaint, and that Father Barry was the duly appointed pastor of the church at Elkhart from 1921 to the 1st day of September, 1930, and that, as such pastor, he was the representative of the Bishop of Peoria in the collection of funds for the support of the church at Elkhart and for the disbursement of such funds so collected in the payment of ordinary expenses of said church, but the defendants, in their answer, denied that Father Barry was at any time authorized by the bishop, or by any other person or persons whomsoever, to borrow any money for any purpose in connection with said church, parish or congregation on account of which the notes sued on were given, and the defendants further denied that Father Barry, in borrowing any money or incurring any indebtedness evidenced by any of such notes, was acting as the agent or representative or by authority of either the Bishop or Diocese of Peoria or the congregation at Elkhart, and that if such promissory notes exist they are the personal and individual obligations of Patrick J. Barry.

The answer further admits that, subsequent to the dates of these notes, on October 25, 1930, the Bishop of Peoria caused the incorporation of St. Patrick’s Roman Catholic Congregation at Elkhart, as alleged in the bill, but sets forth that prior to that date the congregation was not incorporated and was not a legal entity of any kind or character and had no organization of any kind, but consisted solely of those persons professing the Roman Catholic faith who attended that church as parishioners, and that the members of said congregation held no meetings, had no officers or trustees or managers, but .that the affairs of the church and the property thereof were under the sole control and supervision of the bishop of the diocese, under and in accordance with the customs, usages, rules and regulations of the Roman Catholic Church.

The defendants further in their answer set forth that prior to May 9, 1931, the Roman Catholic Diocese of Peoria was merely a territorial subdivision of the Roman Catholic Church, and was not incorporated, nor was it a legal entity of any kind or character, but that on that date the Bishop of Peoria caused the Catholic Diocese of Peoria to be organized as a religious corporation in accordance with the laws of the State of Illinois.

The answer denies that the complainant is entitled to relief sought in the bill or any part thereof, or any other or different relief in the premises.

A trial was had before the court, sitting as a chancellor, and a decree was entered sustaining the allegations of the bill of complaint, finding that Patrick J. Barry was the agent and representative of the bishop, the diocese and the congregation in borrowing the money and executing the notes in question, and adjudged that the defendant, St. Patrick’s Roman Catholic Congregation of Elkhart, Illinois, a corporation, pay to the complainant the sum of $4,231.05, together with costs of suit.

This writ of error is sued out to reverse that judgment and decree.

Shortly after Father Barry was appointed pastor of the Elkhart church in 1921, he did some remodeling and repairing, both of the church and the rectory. The bank introduced evidence of witnesses to show materials furnished and work done in that connection. According to the bank’s own testimony, it appears, however, that practically all of such work and materials were paid for prior to 1926, and the evidence shows the balance was paid for out of current income.

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Cite This Page — Counsel Stack

Bluebook (online)
270 Ill. App. 440, 1933 Ill. App. LEXIS 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elkhart-state-bank-v-schlarman-illappct-1933.