Feldman v. City of Chicago

276 Ill. App. 142, 1934 Ill. App. LEXIS 267
CourtAppellate Court of Illinois
DecidedJuly 9, 1934
DocketGen. No. 37,325
StatusPublished
Cited by2 cases

This text of 276 Ill. App. 142 (Feldman v. City of Chicago) 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
Feldman v. City of Chicago, 276 Ill. App. 142, 1934 Ill. App. LEXIS 267 (Ill. Ct. App. 1934).

Opinion

Mr. Presiding Justice O’Connor

delivered the opinion of the court.

October 21,1930, plaintiffs brought an action against the defendant, City of Chicago, to recover $2,762. There was a trial before the court without a jury, a finding and judgment in favor of plaintiffs for the amount of their claim, and the defendant prosecutes this writ of error.

The record discloses that in a condemnation proceeding brought by the City of Chicago for the purpose of widening Clinton street a judgment was entered February 23,1925, awarding plaintiffs $39,000 as compensation for their property taken and $6,000 was assessed against them as benefits, leaving a net amount due them of $33,000. The $33,000 was not paid to plaintiffs until July 22, 1926, and plaintiffs’ claim is that they were entitled to interest at five per cent per annum on the amount of the judgment from February 23, 1925, until July 22, 1926, when they were paid the $33,000.

Plaintiffs’ position is that they were entitled to interest on the judgment by virtue of section 3 of our Interest Act (ch. 74, Cahill’s 1933 Statutes). Reliance is chiefly placed on the cases of University of Chicago v. City of Chicago, 258 Ill. App. 189, and Turk v. City of Chicago, 352 Ill. 171.

On the other side the defendant contends that interest does not run on condemnation judgments under the Local Improvement Act, and that although the two cases just cited hold to the contrary, the question ought to be reconsidered because the decisions are wrong; that they “rest upon a misapprehension of the history and intent of the Local Improvement and Interest Acts ’ ’; that the rule of stare decisis is not so inflexible that it should not be changed where it has been established by a single decision of the Supreme Court of this State by a divided court; and numerous authorities are cited and discussed that sustain the defendant’s contention as to this rule. However, we are clearly of the opinion that we are wholly unwarranted in saying at any time that our Supreme Court is wrong. We have no such authority. The Supreme Court is always right so far as this court is concerned.

We have but the common law record before us, and plaintiffs allege in their statement of claim that when they were paid the $33,000 by defendant they gave a deed to defendant, and accepted the money “under protest” and at the same time demanded payment of the interest which is the basis of this suit. In view of this allegation, defendant contends that “The acceptance by the plaintiffs of the principal of the judgment and the conveyance to defendant of the property condemned constituted an accord and satisfaction which barred any further claim on account of the judgment.” Whether the acceptance of the $33,000, under the circumstances, constituted a technical accord and satisfaction, we think it unnecessary to decide because we are of the opinion that interest is awarded on a judgment rendered in a condemnation proceeding as damages for delay in payment of the award; that it is merely an incident to the debt; that where the principal is paid without interest the right to interest is gone. 22 Cyc. pp. 1516-17; County of Madison v. Bartlett, 1 Scam. 67; Davis v. Harrington, 160 Mass. 278 ; Bassick Gold Mine Co. v. Beardsley, 49 Colo. 275; Stewart v. Barnes, 153 U. S. 456; Graves v. Saline County, Ill., 104 Fed. 61; Southern Cent. Ry. Co. v. Town of Moravia, 61 Barb. (N. Y.) 180; Jamison v. Burlington & W. Ry. Co., 87 Iowa 265; Cutter v. Mayor of New York, 92 N. Y. 166.

In 22 Cyc. pp. 1516-17, it is said that under the common law a judgment did not bear interest but “in actions of debt upon judgments, interest is generally allowed as damages, as in other cases of detention of money; and at the present time interest on judgments as a matter of right is almost universally allowed under statutory provisions.”

In the Bartlett case, supra (1 Scam. 67), it was said that of course where there is an express contract to pay interest, the sum due therefor is an integral part of the debt, but where interest is allowed by statute, on judgments such as allowed under section 3 of our Interest Act, it is in the nature of damages or a penalty for not paying the judgment when entered. The court there stated (pp. 69-71): “Hence statute interest may properly be defined to lie the legal damages or penalty for the unjust detention of money. . . . Interest is not given by the common law, for a failure to pay money when it is due, unless the parties have so agreed, and is only allowed by statute when the party neglects to pay at the time stipulated, and is then given in the nature of a penalty for the violation of a contract. (3 Atkins 636.) ”

In the Davis case, supra (160 Mass. 278), it was held that a lessor who had been paid the full amount of his rent could not have judgment for interest by way of damages for failure to pay the rent when it became due; that it was immaterial that the payment was made after the suit was brought. The court there said (p. 279): “We must therefore treat the case as one in which, after suit brought, the plaintiff accepted payment of his debt, not including a sum to which he was entitled as interest by way of damages for delay in payment. If there had been a contract to pay interest, the interest would have been a part of the debt, which would have stood no differently from the principal. Sparhawk v. Wills, 6 Gray, 163; Andover Savings Bank v. Adams, 1 Allen, 28. But interest which is allowed by way of damages and for the neglect to pay promptly is a mere incident of the debt, which fails when the debt itself is extinguished. It is well settled that in such a case, if the debt is paid, there can be no recovery afterwards for the interest which might have been collected.”

In the Beardsley case, supra (49 Colo. 275), the court said (p. 276): “The second assignment pertains to the interest allowed upon the monthly payments from the dates they were due until paid. These payments had all been made long prior to the bringing of this action, some of them nearly four years prior thereto. As we understand, the law governing such cases, and which the appellant seeks to invoke, is that where interest is due because the debtor has expressly agreed to pay it, the interest is considered as an integral part of the debt, and the right to recover it may remain even after the principal has been paid. But where interest is claimed as damages by virtue of the nonpayment of a debt when due, and for that reason is allowed by law, it is then considered not an integral part of the debt, but merely as an incident to the debt, and in such cases when the principal is paid and accepted without interest, the right to interest is extinguished.”

In the Stewart case, supra (153 U. S. 456), it was held that where a person from whom a tax had been illegally extracted accepted from the government the payment of the sum illegally extracted, he thereby waives his right to sue for interest as damages. The court there said (p. 462): “Interest in such cases is considered as damages, and does not form the basis of the action, but is an incident to the recovery of the principal debt. . . . When he who has this right commences an action for its enforcement, he at the same time acquires a subordinate right, incident to the relief he may obtain, to demand and receive interest.

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276 Ill. App. 142, 1934 Ill. App. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feldman-v-city-of-chicago-illappct-1934.