Hahn v. Gates

102 Ill. App. 385, 1902 Ill. App. LEXIS 531
CourtAppellate Court of Illinois
DecidedJune 5, 1902
StatusPublished
Cited by8 cases

This text of 102 Ill. App. 385 (Hahn v. Gates) 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
Hahn v. Gates, 102 Ill. App. 385, 1902 Ill. App. LEXIS 531 (Ill. Ct. App. 1902).

Opinion

Mr. Presiding Justice Windes

delivered the opinion of the court.

Appellant filed his bill January 4, 1898, against appellees, to prevent the collection of a judgment recovered by ■ the appellee G-ates, on April 21, 1896, of $1,849.85 and costs, which had been affirmed on appeal to the Supreme Court ^November 1, 1897; for an accounting, and to set off against said judgment a claim of appellant against Gates of a note of $400 made by G-ates to appellant, dated December 17, 1887, bearing interest at eight per cent per annum, and on account of $1,615.18 for goods alleged to have been sold and delivered by appellant to Gates. After the bill had been filed and a preliminary injunction issued and served on him, Gates assigned the judgment to appellee Alsever. The injunction was thereafter dissolved, when the bill was amended and another injunction issued; also a supplemental bill was filed, setting up the assignment and other matters not material to be here stated. Answers were filed, and when the issues were made the cause was referred to a master, who reported the evidence heard before him, his conclusions therefrom, and made a recommendation that the bill and supplemental bill be dismissed for want of equity. The chancellor, on a hearing of the report on exceptions thereto, confirmed it in all things, and entered a decree dismissing the bill and amended and supplemental bills for want of equity. Appellant seeks a reversal of this decree. Two principal questions are presented, which, in our opinion, are controlling as to the disposition to be made of this appeal, viz.:

First. Is appellant barred by his negligence and laches from the relief sought as to the note ?

Second. Is he barred from relief as to the account for goods sold and delivered by the statute of limitations?

We will first consider some other questions in the case made by counsel, one of which is as to the jurisdiction of equity.

The master found—and the finding has received the sanction of the chancellor, has evidence tending to support it, and it is not questioned by appellees’ counsel—that G-ates “ is insolvent to such an extent that execution against him would he unavailing.” That mutual demands should be set off against each other and the balance really and justly due. collected, is right, and appeals to conscience. When the law can not give an adequate or complete remedy, a court' of chancery will act and give relief. This principle has been applied in equity where a person against whom a set-off is claimed is insolvent. Gay v. Gay, 10 Paige (N. Y.), 376; Raleigh v. Raleigh, 35 Ill. 512; Doane v. Walker, 101 Ill. 628-43; R. R. Co. v. Field, 86 Ill. 272.

But for appellees it is said that appellant should have reduced his claims to judgment; that he had an opportunity and time to do so, but failed to avail himself thereof. Eo doubt the general rule is that unliquidated or uncertain claims will not be set off in equity, but in this case there are special circumstances which excuse appellant. It appears, from the opinion of the Supreme Court, 169 Ill. 299, that it was through the negligence of his attorney that appellant’s claims were not set off in the suit by Gates against him in which the judgment was recovered. It also appears that appellant was always told by Gates that he could not pay the note.

Appellant being deprived, by the negligence of his attorney, of his defense by way of set-off in Gates’ suit against him, in all probability hoped to reverse the judgment in the Supreme Court, and in that way defeat Gates without incurring the expense of a separate suit against him, which he naturally would have expected to be useless because of Gates’ insolvency.

These circumstances considered, we think are sufficient to give equity jurisdiction, and distinguish the case from the ones cited by appellees’ counsel. Relief in equity was given in case of unliquidated claims by way of set-off against judgments in the Field case, supra, and in Quick v. Lemon, 105 Ill. 578-86.

A further claim is that the evidence fails to show that Gates is indebted to appellant, but we think the record shows the contrary.

The master in effect finds, and the evidence supports the finding, that prior to 1893 Gates was indebted to appellant $1,615 fo,r stone purchased of the latter by Gates, and that in the spring of 1893, he acknowledged to an agent of appellant the correctness of the bills for stone. The master’s report, being affirmed by the chancellor and sustained by the evidence, is controlling.

As to the note, the master makes no findings, except, in substance, that it was executed, that Hahn had a judgment entered upon it against Gates, which was vacated and leave given to plead, a plea in the suit filed by Gates, and the suit subsequently dismissed for want of prosecution, since which time Hahn made no effort to collect the note until the filing of the bill in this case. From these findings, and because, as he says—though there is no special finding to that effect—it was owing to Hahn’s negligence that the suit on the note was dismissed, the master concludes that Hahn is not entitled to equitable relief on the note. These findings as to facts, except as to Hahn’s negligence, of which there is no evidence, so far as we can find, in the record, are supported by the evidence, but the conclusion therefrom, which will be considered later, does not, in our opinion, follow. The decree affirming the report makes no further finding regarding the note. The evidence shows, and it is not denied, that this note was given by Gates to Hahn for money loaned by the latter to the former. From time to time after it was given it is shown to have been in Hahn’s possession, in bank for collection, in the hands of Hahn’s attorneys; that a confession of judgment was entered upon it in 1893, and it was produced and offered in evidence by bis counsel on the hearing before the master. Hahn swears it had never been paid. Gates swears it had been paid, and gives details as to how it was paid, and is corroborated by one witness, but Gates’ evidence in this regard is absolutely discredited by his own affidavit made in the confession case in order to secure a vacation of the judgment. It is unnecessary to state the details. After a careful reading of all the evidence relating to this note, considering the fact that there is no finding in the record by the master nor the chancellor on the question of its payment, which leaves us free to consider it as an original question, and that the burden of proof in this respect is on the appellees, we conclude that this note was not in fact paid by Gates, and was, at the time of the filing of the bill, not barred by the statute of limitations, but was then a subsisting legal obligation from Gates to appellant.

It only remains, as to the note, to consider the conclusions of the master and chancellor that appellant, by reason of his laches and negligence, should be debarred from relief in equity.

The statute of limitations not having run, there was no reason why appellant could not have recovered in a suit at law upon the note, if we are right in our conclusion that it was not paid. A court of chancery, having jurisdiction for the purpose of allowing the set-off, may, in its discretion, proceed to give full relief to the parties. In the Gates suit appellant was not bound to plead the set-off.

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Bluebook (online)
102 Ill. App. 385, 1902 Ill. App. LEXIS 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hahn-v-gates-illappct-1902.