Gray v. Natl. Bank of Chicago

57 N.E.2d 363, 388 Ill. 124
CourtIllinois Supreme Court
DecidedSeptember 19, 1944
DocketNo. 27877. Reversed and remanded.
StatusPublished
Cited by25 cases

This text of 57 N.E.2d 363 (Gray v. Natl. Bank of Chicago) 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
Gray v. Natl. Bank of Chicago, 57 N.E.2d 363, 388 Ill. 124 (Ill. 1944).

Opinion

Mr. Justice Murphy

delivered the opinion of the court:

On June 30, 1931, William H. Gray and Orpha Buckingham Gray, his wife, executed a note for $65,000 payable on demand to the First National Bank of Chicago. Other notes secured by first and second mortgages on four parcels of real estate owned by William H. Gray were delivered as collateral to the $65,000 note. Mrs. Gray died October 4, 1931, leaving a will, by which she devised to her sons, Ralph B. Gray and William B. Gray, and her daughter, Ina Gray Cook, in equal shares, a tract of land located in Woodford county. The $65,000 note was not paid, and on January 16, 1932, the bank filed a claim against the estate of Orpha Buckingham Gray for the amount due on said note. It was allowed in the sum of $71,218.34. On or about the same date, the bank made demand on William H. Gray for payment of the note. Negotiations extended over a period of time and finally resulted in the bank entering a credit of $41,409.43 on the note on January 16, 1935. The principal issue on the merits of this cause is as to whether the bank may recover the balance due on said $65,000 note, or did it accept the payments made in accord and satisfaction of the full amount due.

On July 31, 1939, the First National Bank filed a complaint at law in the circuit court of Cook county against William H. Gray, administrator of the estate of Orpha Buckingham Gray, William H. Gray individually, William B. Gray, Ralph B. Gray and Ina Gray Cook, in which it was alleged that the defendants, except William H. Gray, were devisees in the will of Orpha Buckingham Gray, and as such had received the Woodford farm which was now in their possession. The liability of said decedent on the note was alleged and a recovery against the beneficiaries of the unpaid balance, in accord with the Statute of Frauds, was claimed. The amount for which judgment was asked against said beneficiaries was $22,886.33, plus some interest. The bank also asked for judgment against the father, William H. Gray, in the same amount. All defendants were duly served or entered their appearance in the action. The law firm of Weinberg, Kjellander, O’Farrell & Ames appeared in said action on behalf of Ina Gray Cook.

In October, 1939, William H. Gray, individually and as administrator with will annexed of the estate of Orpha Buckingham Gray, Ralph B. Gray and William B. Gray, instituted this action in the circuit court of Cook county, to which they made the First National Bank, Ina Gray Cook and others parties defendants. The plaintiffs in this action alleged the principal facts pertaining to the indebtedness that William H. Gray and wife owed the bank, the negotiations between William H. Gray and the bank, and payment of the amount as aforesaid. The pertinent part of the prayer was that the bank be restrained from prosecuting its action, which was the one above described, that the mortgages held by the bank as collateral to the $65,000 note be released and discharged of record, and that it be decreed that the bank had accepted the $41,409.43 in accord and satisfaction of its debt.

The bank answered and filed a countercomplaint in which the same relief was prayed against William B. Gray, Ralph B. Gray and Iria Gray Cook, as beneficiaries under their mother’s will, that was asked in the action at law which the bank filed against the Grays on July 31, 1939. It also asked for appointment of a receiver for the William H. Gray property described in the mortgages held as collateral and a decree of foreclosure of the same. A summons issued to the sheriff of Cook county was returned as to Ina Gray Cook “not found.”

The pleadings were voluminous and included a large number of attached exhibits. They included writings in form of correspondence which passed between the bank and William H. Gray in reference to said indebtedness, and particularly in regard to the payment made January í6, 1935. After answer was filed by the bank to the Grays’ complaint, and after the Grays had filed an answer to the countercomplaint of the bank, a motion was filed by the bank, asking that part of the Grays’ pleading be stricken and for judgment on the pleadings. The Grays countered with a cross motion to dismiss the bank’s motion, for an order of reference and other relief. William H. Gray died during the pendency of this proceeding and Ralph B. Gray was substituted as administrator de bonis non of the estate of Orpha Buckingham Gray, and became a party as executor of the will of William H. Gray.

On December 19, 1941, the chancellor ruled on the bank’s motion and entered a decree which ordered a judgment against William B. Gray, Ralph B. Gray and Ina Gray Cook, in favor of the First National Bank, in the sum of $20,666.67, and decreed a foreclosure of the mortgages held as. collateral to the $65,000 note, and other relief.

Four days after the entry of said decree, John J. Ames, a member of the law firm of Weinberg, Kjellander, O’Farrell & Ames, petitioned the court for leave to intervene and attached an affidavit in support of the petition. Leave to intervene was granted. The bank answered and intervenor replied. The intervening petition, the answer and reply served to bring to the attention of the court the fact that Ina Gray Cook had not been served with summons and had not filed an entry of appearance. The chancellor dismissed intervenor’s petition and ordered that the decree of December ig stand in full force and effect as to Ina Gray Cook. The Appellate Court affirmed the decree of December 19, 1941, and the order dismissing intervenor’s petition. Leave to appeal was granted and the decree adjudicating the rights of the parties on the merits and the order dismissing the intervenor’s petition are here for further review. *

Inasmuch as the order dismissing the intervening petition raises a question as to jurisdiction of the trial court over the person of Ina Gray Cook, it will be considered first. The importance of the court having jurisdiction of the person of Ina Gray Cook is obvious, for the decree of December 19 awarded a money judgment against her.

As stated, the record shows that Ina Gray Cook was named as a defendant and that she was not served with summons and did not file a written entry of appearance. The bank contends that the law firm of Weinberg, Kjellander, O’Farrell & Ames, referred to herein as the Weinberg firm, was her legal adviser and participated in the proceedings to such an extent as to constitute a general appearance for her. ' It is. not necessary io determine whether the actions of the Weinberg firm would, in a proper case, be sufficient to constitute a general appearance, since there is no evidence to prove that the law firm was authorized by Ina Gray Cook to represent her in this suit in any capacity. The fact that she had authorized the Weinberg firm to appear for her as her counsel in the bank’s action at law would not in itself be sufficient to raise an implied authorization to appear for her in this case, even though the issue in the former action was the same as one issue raised by the bank’s counterclaim in this case.

Reference is made to the fact that the Weinberg firm, by itself or by its office employees, accepted copies of the pleadings, motions, and briefs filed by the other parties and receipted for them. On three separate occasions it joined in a stipulation of parties fixing time for filing pleadings and briefs.

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Bluebook (online)
57 N.E.2d 363, 388 Ill. 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gray-v-natl-bank-of-chicago-ill-1944.