Gilbert v. Smith

167 Ill. App. 255, 1912 Ill. App. LEXIS 1253
CourtAppellate Court of Illinois
DecidedFebruary 6, 1912
DocketGen. No. 16,220
StatusPublished
Cited by3 cases

This text of 167 Ill. App. 255 (Gilbert v. Smith) 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
Gilbert v. Smith, 167 Ill. App. 255, 1912 Ill. App. LEXIS 1253 (Ill. Ct. App. 1912).

Opinion

Mr. Justice Clark

delivered the opinion of the court.

A bill in chancery was filed by the appellee, as complainant, against the appellants, as defendants, seeking to set aside and to declare null and void the redemption of the appellant, the Henry 0. Shepard Co., from a sale by a master in chancery of certain described property, formerly owned by the appellant, Dora K. Smith, and a decree requiring the appellant Christopher Strassheim, as sheriff, to sell said premises in accordance with the statute to satisfy a judgment in favor of the appellee and against the appellant Dora K. Smith for $701.51 together with interest thereon, the sale by the master in chancery having been made in a foreclosure proceeding brought by one Charlotte M.. Fischer against the appellant, Dora K. Smith, upon a trust deed theretofore given by the said Dora K. Smith. Answer was filed by the defendants, and after a hearing before the chancellor a decree was entered substantially in conformity with the prayer of the bill. By the decree the complainant was required to pay to the Henry 0. Shepard Co. the sum of $2,490.98, paid to the sheriff by the Shepard Company at the time of the attempted redemption by that company. The decree enjoined the defendants, Dora K. and Edward Q-. Smith, Edward K. Findley and Henry 0. Shepard Co., from interfering with the rights of the complainant, and restrained Christopher Strassheim, as sheriff, from issuing a deed to the holder of the sheriff’s certificate of sale made July 6, 1909, upon an execution issued on a judgment against the said Dora K. Smith. This decree the appellants seek to have set aside by this court.

From the record in the case it would appear that Charlotte M. Fischer filed her bill on May 20, 1907, to foreclose a trust deed on the premises in question, making Dora K. Smith and others parties defendant; that the property was sold on May 25,1908, for enough to satisfy the mortgage indebtedness to the said Fischer; that on June 20, 1908, appellee recovered a judgment against the appellants Dora K. and Edward G-. Smith for $701.51; that Dora K. Smith did not redeem within the twelve months allowed by statute; that about one week prior to the expiration of the twelve months Edward G. Smith, who was the husband of Dora K. Smith, represented to the appellee that he had a bona fide purchaser for the property, and requested appellee to assign his judgment and not to redeem; that afterwards Gilbert agreed to assign his judgment for $475 or $500; that said Edward G. Smith was informed that Gilbert intended to redeem from the master’s sale unless he (Gilbert) should receive the $500 in cash; that on June 1, 1909, Edward G. Smith, who was indebted to the Shepard Company on the balance of a note for $450, and also upon a small open" account, called on the Shepard Company and informed its officers that he would try to get his wife to assume this indebtedness; that on the same day, namely June 1,1909, Smith and his wife called on the officers of the Shepard Company and Mrs. Smith informed them that she was at one time the owner of the property in question and that her right to redeem from the master’s sale had expired May 25, 1909; that the officers of the Shepard Company were informed that it would take about $2,500 to redeem from the master’s sale, and that the property was worth from $3,750 to $4,000; that Mr. and Mrs. Smith advised the officers of the Shepard Company that this was the only property which they had and that they could give no other security for the Shepard debt; that if the Shepard Company would pay Mrs. Smith $650 cash she would sign a judgment note for $1,240, and would also execute another for $1,100 to her son, Edward K. Findley, the judgment upon which, when entered, would be assigned to the Shepard Company as further security; that thereupon Mrs. Smith endorsed the old $450 note of Mr. Smith, and she and her husband executed a new note dated June 1, 1909, for $131.26, the amount of the Open account, the note being payable on demand; that on June 5, 1909, Dora K. Smith executed her two judgment notes as agreed, one for $1,240.33 to the Shepard Company and one for $1,100 to Findley, both due on demand, and delivered said notes to the Shepard Company, which turned them over to its attorney; that on June 9, 1909, judgment was entered on the two notes and an assignment of the $1,100 judgment taken from Findley to the Shepard Company; that the entry of the judgments was attended to by the attorney for the Shepard Company, and an execution on the Shepard Company judgment for $1,240.33 placed in the hands of the sheriff, the sheriff being paid the amount necessary to redeem from the master’s sgle; that thereafter there was paid to the attorney representing Dora K. and Edward Gf. Smith the sum of $650.53. The sheriff’s sale was had on July 6, 1909. The complainant testified that at the time of the sheriff’s sale he told .the purchaser that he (Gilbert) would contest the sale on the ground of fraud. One of the attorneys for the appellants was • called as a witness by the complainant and testified as to the amount paid the sheriff, and further that the balance, “some $650,” was paid to Mr. ITazen (attorney for Mr. and Mrs. Smith) June 9, 1909, after judgment had been taken on the two notes and after redemption from the master’s sale was had.

It is strenuously argued by the appellants that the appellee, Harry S. Gilbert, was at the time of the filing of the bill in no position to redeem. The argument is that because the judgment upon which he claimed the right to redeem was one entered in the suit for foreclosure of the trust deed, in which suit his mechanic’s lien was established and allowed, he was not the possessor of such a judgment as entitled him to redeem the property under section 20 of chapter 77 of the statutes, which provides- for redemption after twelve months and within fifteen months after the sale by decree or judgment creditors, etc. It is asserted that having proved his mechanic’s lien in the foreclosure suit, his right to subject the property to sale in order to satisfy his lien was exhausted when the sale was had in that proceeding, and that the allowance to him hy the final decree in the case of a deficiency decree and judgment did not put him in the class of judgment creditors whose right to redeem is provided for in said section 20. It is argued that for that reason he should have redeemed under section 18 of the same chapter, which provides for redemption within twelve months hy the mortgagor or some one claiming under the mortgagor. The case of DeWitt Co. Bank v. Mickleberry, 244 Ill. 81, is cited as authority upon the proposition. Since the briefs were filed in the case now before us the particular point has been passed upon by the Supreme Court in Strause v. Dutch, 250 Ill. 326. In that case it was held that a mortgagee who has secured a deficiency decree after the sale of the mortgaged property in foreclosure proceedings, is such a decree creditor as is entitled under the statute to redeem the premises sold. It follows necessarily that a mechanic’s lien creditor whose lien is established in a foreclosure suit and who has been given a deficiency decree after the sale is also entitled to enforce his decree or judgment in the same way as any other decree or judgment creditor of the debtor. "Whatever our views upon the question might otherwise be, we are bound by the majority opinion in the case last referred to.

The next question to be considered is as to the relative rights of the appellee, Harry S. Gilbert, and the appellant, the Henry 0.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

BCGS, L.L.C. v. Jaster
700 N.E.2d 1075 (Appellate Court of Illinois, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
167 Ill. App. 255, 1912 Ill. App. LEXIS 1253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-smith-illappct-1912.