Greenwald v. Lee

252 Ill. App. 184, 1929 Ill. App. LEXIS 672
CourtAppellate Court of Illinois
DecidedMarch 20, 1929
DocketGen. No. 7,978
StatusPublished
Cited by2 cases

This text of 252 Ill. App. 184 (Greenwald v. Lee) 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
Greenwald v. Lee, 252 Ill. App. 184, 1929 Ill. App. LEXIS 672 (Ill. Ct. App. 1929).

Opinion

Mr. Presiding Justice Jones

delivered the opinion of the court.

On January 23, 1928, Joseph Greenwald executed a chattel mortgage on all his personal property to William Greenwald, his brother, to secure the payment of a note for $5,000. The mortgage contains the following certificate of acknowledgment:

“State of Illinois, Livingston County, SS.
“E. A. Jamison, a Justice of the Peace in and for and residing in the town of Pontiac, in said county and state, do hereby certify that this mortgage was duly acknowledged before me by Joseph Greenwald, the mortgagor therein named this 23rd day of January, 1928.
■ Witness my hand and seal.
(Seal)”

The mortgage was entered on the docket of the justice of the peace and filed for record in the recorder’s office of Livingston county on the day of its purported acknowledgment. On January 25,1928, two executions were issued out of the circuit court of Livingston county on judgments against Joseph Greenwald in favor of Caroline Lee and Ealph B. Haas, respectively.

On February 9, 1928, appellee, William Greenwald, foreclosed his chattel mortgage, took possession of the property and advertised it for public sale on February 23,1928. On February 10, 1928, the sheriff levied on the mortgaged property. Notice of a trial of the rights of property was given the parties to this suit. A jury was waived, the causes were consolidated and tried by the county court, and a judgment was entered in favor of appellee.

The controversy in this case arises over the certificate of acknowledgment. The justice of the peace did not sign his name on the blank line provided for that purpose in the printed form, and the words “entered by me” contained in the statutory form are omitted from the certificate. The name of the justice appears in the body of the certificate and over the objection of appellant, he was permitted to testify that the failure to put his signature in the usual place was a clerical error; that he did write his name at the beginning of the certificate; that it appears’ there in his own handwriting and is his signature. He also testified that he wrote the words “this 23rd day of January 1928” in the certificate. The court admitted the docket entry of the mortgage over objection.

No question is raised as to the bona tides of the mortgage transaction. The only issue is whether or not the chattel mortgage is valid and binding as against appellants. The question is not free from difficulty. The general rule adopted by the courts of review in this State is expressed in National Cash Register Co. v. Riley Advertising System, 329 Ill. 403. The opinion in that case states: 6 ‘ Chattel mortgages are in derogation of the common law and must be strictly construed. (Lyons v. People’s Bank, 317 Ill. 44; Kimball Co. v. Polakow, 268 id. 344.) In order that a chattel mortgage be established as a prior lien as against judgment creditors, the holder of such chattel mortgage must prove that it complies with all the technical requirements of the statute. (Talty v. Schoenholz, 323 Ill. 232; Lyons v. People’s Bank, supra.) Unless such chattel mortgage is executed and acknowledged in strict compliance with the statute, it is void as to third persons even though they may have notice of the existence of it. (Blatchford v. Boyden, 122 Ill. 657; Frank v. Miner, 50 id. 444.)”

An examination of the above-mentioned cases will show that in the National Cash Register case the mortgage did not disclose who was the mortgagor. In the Lyons case, the Tally case, and the Frank case the mortgage was not acknowledged before a justice of the peace of the town where the mortgagor resided, as then required by statute. In the Kimball case, the mortgage was acknowledged by an attorney in fact, before the statute made provision for such acknowledgments. The good faith of a transaction was involved in the Blatchford case, where it was claimed that a chattel mortgage had been foreclosed and the property resold to the mortgagor, who made a new mortgage to the same parties.

Appellants insist that a defective acknowledgment cannot be aided by parol, and in support of their contention cite Ennor v. Thompson, 46 Ill. 214. In that case a deed did not convey the homestead. There was an attempt to prove by parol what the grantor’s wife did acknowledge when she was before the justice of the peace. It was held that under the statute, everything essential to an acknowledgment must appear in the certificate, as the statute has declared that in that mode, and that alone, can the wife bar her rights of homestead. The defect in the acknowledgment was one of substance and not a mere clerical error. Obviously, the conveyance of an interest in land cannot be established by parol. In Clark v. Wilson, 127 Ill. 449, a notary public’s certificate of acknowledgment to a deed was unsigned and was held insufficient, but in that case the notary made no attempt to sign or execute the certificate.

Section 2 of the Chattel Mortgage Act before its amendment in 1915 provided: “The certificate of acknowledgment may be in the following form, ’ ’ followed by a blank form. Since the amendment of 1915, Cahill’s St. ch. 95, If 2, the section provides: “The certificate of acknowledgment shall be in the following form.” It is argued by appellants that the statute is mandatory and that the acknowledgment to a chattel mortgage must follow literally the statutory form. Before the amendment of 1915, it was held that the word “may” as used in this statute was imperative. (First Nat. Bank of Chicago v. Baker, 62 Ill. App. 154; Henderson v. Morgan, 26 Ill. 431; Ticknor v. McClelland, 84 Ill. 471.) So the substitution of the word “shall” for the word “may” made no change in the law as interpreted by the courts.

The words “and entered by me” are contained in the statutory form of acknowledgment of chattel mortgages, but-although the word “may” was construed to be imperative in the cases cited, it has been held that the omission of the words “entered by me” does not raise any substantial objection. (Schroder v. Keller, 84 Ill. 46; Harvey v. Dunn, 89 Ill. 585.)

In Durfee v. Grinnell, 69 Ill. 371, a chattel mortgage was in fact executed and acknowledged in 1871, but the justice dated the certificate of acknowledgment in 1872. It was held that it is to be presumed that any person examining the justice’s docket would have found the mortgage described by the proper date. In Cox v. Stern, 170 Ill. 442, an affidavit for the extension of a chattel mortgage was signed by the mortgagors and the agent of the mortgagee. To the affidavit there was a jurat in regular form as to the mortgagee’s agent, but the jurat as to the mortgagors was unsigned. The affidavit was held to be sufficient. A mortgagee is not estopped to show that the mortgagor’s residence is different from that recited in the mortgage, when a creditor did not claim to have relied upon the recital or to have done or suffered anything because of it. (Terhune v. Matson, 40 Ill. App. 296; Gilbert v. Sprague, 196 Ill. 444; Lassen v. Lake, 132 Ill. App. 609.)

Other departures from the literal requirements of the statute have been held not to invalidate a chattel mortgage.

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252 Ill. App. 184, 1929 Ill. App. LEXIS 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenwald-v-lee-illappct-1929.