Gilbert v. Holmes

64 Ill. 548
CourtIllinois Supreme Court
DecidedSeptember 15, 1872
StatusPublished
Cited by31 cases

This text of 64 Ill. 548 (Gilbert v. Holmes) 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
Gilbert v. Holmes, 64 Ill. 548 (Ill. 1872).

Opinion

Mr. Justice McAllister

delivered the opinion of the Court;

This was a bill by Holmes, the defendant in error, brought in the circuit court of Randolph county, against plaintiffs in„ error, in effect for the foreclosure of an instrument in the nature of a mortgage, on the ground of condition broken and forfeiture of estate, and to redeem from what was alleged to have been a senior mortgage. The instrument in the nature of a mortgage, which is the foundation of the suit, was executed January 4, 1864, by one John Preschbaker, in the State of California, where he then resided, and upon the lands in question, situate in Randolph county, and was given not to secure a debt, but the performance of a covenant, and under the following circumstances, appearing in this record:

March 27,1850, Preschbaker, being the owner of the lands, and residing in said Randolph county, gave an absolute deed of them to Teaman & Gilbert, who took immediate possession. The latter, at the same time, executed to Preschbaker their bond, conditioned for the conveyance of the premises back to him, by warranty deed, upon his paying to them, within two years, without interest; the sum of $3000. The deed and bond were, filed for record on the day of their execution. Preschbaker paid no part of that sum, and, as the evidence clearly shows, abandoned the transaction, and, before the two years expired, went to California to reside. After the time expired, and while living in the latter State, he declared that these lands had ruined him once, and he would have nothing more to do with them.

It, nevertheless, appears that, afterwards, Holmes obtained from Preschbaker, in California, May 4, 1858, a letter of attorney, which, in substance and effect, authorized and empowered Holmes to redeem said lands, or any part thereof, for Preschbaker and in his name, and for him and in his name to institute and carry on any suit or suits, in law or equity, for the recovery to Preschbaker of said lands; also, the rents, issues and profits thereof. Preschbaker, at the same time, executed to Holmes an instrument in the nature of a bond, under his hand and seal, whereby he bound himself, in the penalty of $5000, to Holmes; and, referring to said Tetter of attorney, he covenanted to convey to Holmes, in fee simple, one-half of all the lands which the latter might redeem or recover to him, Preschbaker, by virtue of that letter of attorney, and, also,.in case Holmes was successful, to pay one-half of the-court costs, but no lawyer’s fees.

Holmes put neither of these instruments upon record, but keeping his relation to the subject matter concealed, and not being himself an attorney at law, about the 7th of July, 1858, employed a solicitor, and, in Preschbaker’s name, began a suit in chancery, in said circuit court, against Feaman & Gilbert, to have said absolute deed declared a mortgage, and to be permitted to redeem. To this bill, answers were filed, on which issue was joined; and, at the October term, 1859, of said court, said bill was dismissed. On that trial, Holmes was a witness, and testified that Preschbaker had not transferred to him, Holmes, any supposed interest which he, Preschbaker, .had in said bond from Feaman & Gilbert; that decree of dismissal was rendered upon the merits. No appeal was prayed from it, nor writ of error from the Supreme Court brought to it; when, afterwards, August 30, 3861, William M. Morrison and Evelyn H.', his wife, purchased these lands of Gilbert, who «had become the owner of Feaman’s interest, for the .consideration of $8000, $2000 of which they paid in cash, taking Gilbert’s warranty deed to the wife, and she and her husband executing their promissory notes to Gilbert for the balance, payable at specified times in the future, and a mortgage on the premises to secure these notes. This deed was filed for record December 9, 1861, and the purchasers took immediate possession, upon its execution. These purchasers had no notice at the time of their purchase, except the mere constructive notice arising from the recording of the deed from Preschbaker to Feaman & Gilbert, and their bond back to him, giving him the option of obtaining a reconveyance upon the payment of $3000, without interest, within two years.

Holmes, meanwhile keeping silent as to his letter of attorney and agreement from Preschbaker, and, also, as to .any intention to sue out a writ of error to said decree, which remained, in full force at the time of Morrison’s purchase; afterwards, and September 3, 1863, prosecuted a writ of error to that decree out of the Supreme Court, wherein, at the next November term, the decree of the circuit court was reversed, on the ground, in substance, that the latter court came to an erroneous conclusion upon the evidence, and that, by it, it was satisfactorily made to appear that the absolute deed from Preschbaker to Feaman & Gilbert was intended by the parties as a security, and was, therefore, to be regarded as a mortgage, and the cause was remanded.

Nothing having been done in said cause in the circuit court after it was remanded, Holmes, January 4, 1864, obtained from Preschbaker, in California, the instrument in question in the nature of a mortgage. It is not pretended that Holmes gave Preschbaker any valuable consideration for that deed, or that he assumed any responsibilities at that time. The consideration recited is that “of services performed, money expended, and services to be performed, in conformity with the provisions contained in a certain power of attorney executed by him, Preschbaker, on the 4th day of May, 1858, whereby Joseph B. Holmes, of, etc., was empowered to do and perform certain acts in regard to certain lands.” This conveyance covered the lands in question, in the usual form as in a mortgage; then, after the habendum clause, was the following condition: “Subject, however, to the following conditions, to wit: For that, whereas, I, John Preschbaker, did make and execute a certain sealed instrument, in writing, dated the 4th day of May, A. D. 1858, whereby I did agree and bind myself, my heirs and assigns, in the penalty,,of $5000, in consideration of the undertaking and services of said Joseph B. Holmes, to convey to said Holmes, his heirs and assigns, by valid fee simple deed, one-half of all the aforesaid lands which may be redeemed or recovered to me; and, also, one-half of all the rents, issues and profits thereof, which should be recovered by said Holmes, by virtue of the aforesaid power of attorney; also, to pay one-half of all the court costs, but no lawyer’s fees, incurred by said Holmes in the recovery to me of said lands, rents, issues and profits. Now, therefore, if I, my heirs, executors or assigns, shall well and truly keep and perform said agreement made and executed by me as aforesaid, when said lands, rents, issues and profits shall be recovered according to the provisions and intentions of said power of attorney, then the foregoing deed of conveyance shall become void; otherwise, to remain in full force and effect.”

This instrument was put upon record March 24, 1864.

Afterwards, September 14, 1864, Preschbaker, for the consideration of $2500 paid him by said Gilbert, executed to the latter a quit-claim deed of the premises, thereby relinquishing his equity of redemption and all claim to rents, issues or profits, and at the same time, as part of the transaction, also gave Gilbert a stipulation, authorizing him to dismiss said suit in equity pending in Preschbaker’s name in the Randolph circuit court, Gilbert paying all the costs.

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Bluebook (online)
64 Ill. 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-holmes-ill-1872.