Fekete v. Fekete

154 N.E. 209, 323 Ill. 468
CourtIllinois Supreme Court
DecidedOctober 28, 1926
DocketNo. 17313. Reversed and remanded.
StatusPublished
Cited by11 cases

This text of 154 N.E. 209 (Fekete v. Fekete) 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
Fekete v. Fekete, 154 N.E. 209, 323 Ill. 468 (Ill. 1926).

Opinion

Mr. Justice Dunn

delivered the opinion of the court:

Thomas L. Fekete filed a bill in the circuit court of St. Clair county to compel Forrest F. Fekete, in accordance with an alleged declaration of trust made by him, to convey to the complainant certain real estate in the city of East St. Louis. The defendants answered denying the execution of the declaration of trust by Forrest F. Fekete and filed a cross-bill, in which they prayed to have the declaration of trust removed as a cloud on the title, as well as a certain deed which Forrest had on December 6, 1920, signed in blank as to the name of the grantee and acknowledged but in which the name of Charles O. Piale was subsequently written as grantee without authority. The cross-bill sought to set aside also a deed of Hale conveying the premises to Emily M. Fekete, trustee, and a deed of Emily M. Fekete, trustee, to Thomas L. Fekete, her husband. The cross-bill was answered, the evidence was heard by the chancellor, and from the decree which he entered dismissing the cross-bill for want of equity and granting the relief prayed for in the original bill, the defendants in the original bill, who were also the complainants in the cross-bill, have appealed.

The case turned on the question of the execution of the declaration of trust. All the defendants to the original bill, six in number, were the children of the complainant, Thomas L. Fekete. The following facts are not disputed: Dr. Alexander Fekete, who was the father of the appellee, Thomas L. Fekete, formerly owned the property and resided in a brick residence which was situated on it and fronted on Collinsville avenue. Dr. Fekete’s wife, Sarah C., owned an adjoining lot on the east, which fronted on Fifth street. In the year 1900 the brick residence was removed to the Fifth street lot, and a new building, consisting of store-rooms with flats above, was erected on the lot, fronting on Collinsville avenue. The cost of this improvement was derived chiefly from the proceeds of a loan for $10,000, secured by a mortgage on the property. Dr. Fekete was the post-master at East St. Louis and was not then practicing his profession. He and his wife occupied an apartment on the second floor of the new building until his death, on February 27, 1911, and his wife continued to live there until her death, in 1919. By his will Dr. Fekete left all his property to his wife, but directed that if any part of it were not disposed of during her lifetime it should go to the appellee and Ida M. F. Lancaster, who was his daughter and died in his lifetime. The appellee was engaged in the real estate, insurance and loan business in East St. Louis. After the erection of the new building on Collinsville avenue he managed the property, renting the stores and offices in the Collinsville avenue building and the brick residence on Fifth street and collecting the rents but rendering no account to anyone. The $10,000 mortgage was increased in 1904 to $12,000, in 1915 to $17,200,' and has since been increased to $25,000. The appellee became insolvent, losing all his property, including his home. Judgments were obtained against him which were not satisfied, some of them being for the principal of mortgage debts belonging to other people which he had collected and failed to pay over. In 1915 he was indebted to insurance companies which he had previously represented, and his son, Thomas L. Fekete, Jr., paid his obligations and succeeded him as agent. On May 4, 1915, Sarah C. Fekete, the appellee’s mother, conveyed both the Collinsville avenue property and the Fifth street property to Charlotte J. Fekete, the appellee’s wife. The appellee continued in the management of the property without rendering any account of the income. On December 4, 1920, Charlotte J. Fekete and the appellee, her husband, conveyed the property to their son, Forrest F. Fekete, by an ordinary quit-claim deed in statutory form. The grantee in the deed was designated as Forrest F. Fekete, trustee, but there were no words in the deed indicating the nature of the trust. Two days later Forrest, as grantor, signed and acknowledged a quit-claim deed of the same property, in which the name of the grantee was left blank. There was no change in the use or management of the property. The appellee continued until January, 1925, in the management of the property as agent and not as owner, just as he had done before. He paid all the expenses for repairs, taxes and insurance and retained the balance of the money for his own use, expending it as he saw fit. He supported Forrest and cared for him, as he had done from the time he was born, giving him $15 a week as spending money. Forrest was afflicted with epilepsy, had never married but had lived with his parents until his mother’s death and afterward lived with his father in an apartment in the Collins-ville avenue property. He. died a few weeks after the beginning of this suit, being thirty-two years old. The appellee had his office in the building on Collinsville avenue, having with his son Thomas a suite of four rooms, each having a private room. The other rooms were used by both. Forrest had a desk in the appellee’s office. None of the appellee’s children ever made any claim of interest in the property until January, 1925.

Charlotte J. Fekete died on April 8, 1923, and on April 12, 1923, her deed to Forrest F. Fekete, trustee, was filed for record. On December 10, 1924, the appellee married Mrs. Emily M. Brown. The appellee, who had been living in an apartment in the Collinsville avenue property, desired to purchase a residence in Signal Hill, a suburb of East St. Louis, and in the course of the negotiation for that purpose arranged to obtain a loan of $2000. On January 2, 1925, at his request, Eorrest executed a note for that amount and six interest notes of $60 each, together with a real estate mortgage securing them on the Eifth street property. The loan was not consummated, because Forrest, after having signed the mortgage and notes, came to the bank and asked for the return of them and said he wanted to withdraw from the transaction. After Forrest’s withdrawal from the effort to obtain the loan the appellee inserted the name of Charles O. Hale, the janitor of the Collinsville avenue building, in the blank left for the name of the grantee in the deed of Forrest of December 6, 1920, and Hale executed a deed on January 14, 1925, to Emily M. Fekete, trustee, and these deeds were filed for record on January 15, 1925. On January 16, 1925, Forrest executed a declaration of trust, stating that he held the property in trust for the children of his mother, Charlotte J. Fekete, being the defendants to the original bill, including himself. A. W. Baltz, vice-president of the bank, who had the negotiation of the loan in charge, having got some information from Forrest in regard to the title, told the appellee that he wanted an opinion of the bank’s attorney before proceeding in the matter, and went with the appellee to the attorney’s office and got an opinion concerning the filling in of the blank in the deed to Hale. Baltz knew there had been a deed from Forrest, as trustee, to Hale, and another deed from Hale to Emily M. Fekete, trustee, but he had never heard of the declaration of trust. The appellee had told him that he could make a valid note and mortgage, but Baltz told him he would like to have it submitted to his attorney. When the attorney for the bank told the appellee that the deed to Hale did not pass the title to the property the appellee pulled out of his pocket the declaration of trust which constitutes the subject matter of this suit.

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Bluebook (online)
154 N.E. 209, 323 Ill. 468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fekete-v-fekete-ill-1926.