Everingham v. National City Bank

25 Ill. App. 637
CourtAppellate Court of Illinois
DecidedJanuary 7, 1888
StatusPublished

This text of 25 Ill. App. 637 (Everingham v. National City Bank) 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
Everingham v. National City Bank, 25 Ill. App. 637 (Ill. Ct. App. 1888).

Opinion

Baker, J.

In respect to personal property, the general rule is that executions are to be satisfied in the order of their priority, the writ first delivered to the officer taking precedence" as the first lien, and the others following in the order in which they are received. This rule obtains even though the first seizure may have been made on a subsequent execution; and if the Sheriff has more than one execution in his hands he should apply the proceeds of sale on the elder writ, for the sale is not for the benefit of the particular writ which is first levied, or under which the sale is made, but for the benefit of all the writs in his hands in the order in which they rank as liens upon the personalty.

So, also, a fieri facias delivered to a Sheriff takes preference of an attachment levied before they?, fa. but after such delivery. Freeman on Executions, Sec. 196; Herman on Executions, Sec. 183; Rogers v. Dickey, 1 Gil. 636; Leach v. Pine, 41 Ill. 65; Lawrence v. McIntire, 83 Ill. 399.

This much seems to be conceded in this case; but the contention of appellant is, that as the attorney for appellee gave to the Sheriff a description of the real estate and told him to levy appellee’s execution thereon, and at the same time informed him that he was about to file a bill in chancery in aid of such levy, and actually did file such bill, therefore appellee lost the right to levy its senior execution on the personal property and assert a priority over the junior writs, because the levy on real estate and the exhibiting of the bill in aid were inconsistent with a levy on the personal property and a suspension of the lien of the senior execution.

It is well settled doctrine, that as the object of an execution is to obtain satisfaction of the judgment on which it issues, therefore any act of the creditor, or directions from him to the Sheriff diverting the execution from this purpose, renders it dormant and inoperative against other creditors and clothes them with priority. Gilmore v. Davis, 84 Ill. 487; Koren v. Boemheld, 6 Ill. App. 275; Kellogg v. Griffin, 17 Johns. 274; Knower v. Bernard, 5 Hill, 377.

This doctrine had its origin in the Statute of 13 Elizabeth, Ch. 5, which provided that executions taken out with intent to hinder, delay, or defraud creditors, or others, should be, as against the persons sought to be hindered, delayed or defranded, utterly void.

It has been deduced from this statute that any attempt to make use of an execution, even without any actual fraudulent intent, for purposes of security merely, is a perversion óf the writ, and renders it constructively fraudulent as to junior executions and writs. It has been remarked that there is no settled rule whereby it may be determined when a senior writ Joses its preference, and that each particular case must be determined by its own peculiar circumstances.

Under the circumstances of the case in hand, the bank was guilty of no improper use of the process of the court, and by its conduct waived no legal right or lost no lien. Immediately upon recovery of judgment it sued out a fieri fiadas, and had it levied upon real estate, and on the same day filed a bill in chancery in aid of the levy, for the purpose of setting aside what it supposed to be a fraudulent conveyance of the land. It used unusual zeal and diligence in getting service and pressing the suit in aid.

The allegations of the bill were that William Butters had not sufficient personal property to satisfy the execution, and that James JEL Butters had not sufficient property liable- to execution to satisfy the judgment, and that he was virtually insolvent. It does not appear that at the time of the levy on real estate the bank had any actual notice of the personal property which was afterward seized and sold, or of its value. It may be the levy on the land was not the most effective way in which the bank could have proceeded in order to make its money and make it as quickly as possible, but probably it was not then advised of any more promising mode of procedure. In any event, what it did was in furtherance of the object of the writ, to enforce payment of its judgment. ¡Neither the bank nor its attorney directed the Sheriff not to levy on personal property. The bill in equity could only be prosecuted upon the theory, the personal property the defendants in execution had, was insufficient to satisfy the debt; and had the bank known there was sufficient of such property, it would clearly have been inconsistent in it to both file the bill and levy on the personalty. But that is not the standpoint from which this ease is to be regarded, for appellee was proceeding, as is shown by the allegations of the bill, upon the theory of an insufficiency of personalty, and there is nothing in the record to indicate it was not acting in good faith.

Besides this, a levy on real estate, even of value sufficient to pay the debt, is not prima fade a satisfaction of the execution. The levy, therefore, did not prevent. the Sheriff from seizing other property under the writ, and selling it. It will not do to say that whenever an execution is, by direction of a plaintiff, levied on' certain property, such levy is effective to suspend the lien of the writ in respect to all other property of the defendant in execution.

Even in regard to personalty, where a levy sufficient to pay the indebtedness operates sub modo as a satisfaction, it may turn out the property seized belongs to another person, or is exempt from forced sale, or is insufficient to satisfy the debt, or is removed from the possession or control of the Sheriff by the act of the defendant in execution. The rule prevails, without exception, that an officer, notwithstanding a prior levy, has, at any time before the return day, power to make such further seizure as may be necessary to satisfy the plaintiff’s debt. Freeman on Executions, Sec. 253; Montgomery v. Wayne, 14 Ill. 373. But here, as the first levy was upon real estate, the case is all the stronger for appellee, as such levy, regardless of the question of value of property, did not, like a levy on sufficient personal property, operate, while undisposed of, as such a satisfaction of the judgment as to bar an attempt to enforce collection in any other manner. Herrick v. Swartwout, 72 Ill. 340. In Deloach & Wilcoxson v. Myrick, 6 Ga. 410, a fieri facias had been levied on lands and the levy afterward dismissed by order of plaintiff’s attorney and a levy made upon a negro boy, and intermediate the two levies the boy had been sold to Deloach & Wilcoxson, and it was decided they could not hold the boy as against the lien of the plaintiff in execution. See also, Hammond v. Myrick, 14 Ga. 77, and Hogshead v. Caruth, 5 Yerg. 227.

The logic of appellants’ claim made herein would lead to the conclusion that a direction to levy upon, particular property would be effective to suspend the lien of the execution as to all other property of the execution debtor. Herein, we .think, lies the fallacy of his argument. It is true that from February 14th to March 11th the bank was not seeking to enforce its execution of February 14th against the personal property upon which it was subsequently levied, but, in our opinion, the conclusion does not follow therefrom that during that time the lien of the execution was dormant and constructively fraudulent as to such personal property.

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Related

Kellogg v. Griffin
17 Johns. 274 (New York Supreme Court, 1820)
Deloach & Wilcoxson v. Myrick
6 Ga. 410 (Supreme Court of Georgia, 1849)
Hammond v. Myrick
14 Ga. 77 (Supreme Court of Georgia, 1853)
Montgomery v. Wayne
14 Ill. 373 (Illinois Supreme Court, 1853)
Leach v. Pine
41 Ill. 65 (Illinois Supreme Court, 1866)
Herrick v. Swartwout
72 Ill. 340 (Illinois Supreme Court, 1874)
Lawrence v. McIntire
83 Ill. 399 (Illinois Supreme Court, 1876)
Gilmore v. Davis
84 Ill. 487 (Illinois Supreme Court, 1877)
Hannibal & St. Joseph Railroad v. Crane
102 Ill. 249 (Illinois Supreme Court, 1882)
Koren v. Roemheld
6 Ill. App. 275 (Appellate Court of Illinois, 1880)

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Bluebook (online)
25 Ill. App. 637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/everingham-v-national-city-bank-illappct-1888.