Hannah v. Meinshausen

132 N.E. 820, 299 Ill. 525
CourtIllinois Supreme Court
DecidedOctober 22, 1921
DocketNo. 13842
StatusPublished
Cited by15 cases

This text of 132 N.E. 820 (Hannah v. Meinshausen) 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
Hannah v. Meinshausen, 132 N.E. 820, 299 Ill. 525 (Ill. 1921).

Opinion

Mr. Chief Justice Stone

delivered the opinion of the court:

The probate court of Cook county ordered Alexander W. Hannah, plaintiff in error here, within forty days from the date of the order,- to pay to the estate of Otto C. Meinshausen, deceased, the sum of $9000, as the balance of a bid made by Hannah at the administrator’s sale of real estate to pay debts of Meinshausen. On appeal to the Appellate Court this order was affirmed. The case comes here by certiorari.

The facts upon which the order was entered are these: The administrator of the estate of Otto C. Meinshausen petitioned the probate court for leave to sell the equity of redemption in certain real estate to pay debts of the deceased. It appears that the real estate in question was incumbered with a mortgage, which had been foreclosed and the property sold at foreclosure sale, so that the only interest which might be sold by the administrator was the equity of redemption. The probate court ordered the sale of the equity of redemption in the property in accordance with the prayer of the administrator’s petition. Plaintiff in error was a bidder at the sale and bought the equity of redemption for the sum of $10,000, paying $1000 in cash therefor. He refused to complete his bid, however, and demanded back his payment of $1000 on the ground that while the administrator had advertised the property as unincumbered save for the mortgage that had been foreclosed, the facts were that there were two other judgment liens against the property, held by persons not made parties to the petition of the administrator to sell these lands, it being further contended by plaintiff in error that as the probate court had ordered this sale made subject only to the lien of the foreclosed mortgage, he, plaintiff in error, had a right to rely upon such information and order and should not be required to complete his bid. It appears that considerable time elapsed between the approval of the sale of the property to plaintiff in error and his final refusal to complete the sale, during which time negotiations looking to the satisfaction of the judgment liens were carried on.

We are met at the outset in this case by the contention of plaintiff in error that the probate court does not have power to- compel the completion of the bid by plaintiff in error; that such power rests only in the broad equitable powers of courts of general chancery jurisdiction. On the other hand, it is contended by the defendant in error that section xo 1 of the act in relation to the administration of estates, under which the petition and order of sale were filed, is sufficiently broad to grant to the probate court general chancery power to proceed for contempt against a bidder who refuses or fails to complete his bid.

Probate courts are not courts of general chancery jurisdiction. The jurisdiction of such courts is fixed by section 6 of the constitution and the acts of the legislature passed in pursuance thereof. The constitution provides that said courts, when established, shall have original jurisdiction in all probate matters,—the settlement of estates of deceased persons, the appointment of guardians and conservators and settlement of their accounts, etc. The act of 1877 providing for the establishment of probate courts conferred jurisdiction on those courts in the language of the constitution, and it has been held that while the probate courts may, within the limits of the jurisdiction conferred, exercise chancery powers, they are not given general chancery powers and are not courts of general equity jurisdiction. (People v. Seelye, 146 Ill. 189; Davis, Cory & Co. v. Chicago Dock Co. 129 id. 180; Preston v. Spaulding, 120 id. 208.) If the probate court in this case has jurisdiction to enter the order complained of here, it must be by reason of the provisions of section 101 of the Administration act, as that act was amended in 1887. That section is as follows:

“Sec. 101. Such application shall be docketed as other causes, and the petition may be amended, heard or continued for notice or other cause, and the practice in such cases shall be the same as in cases in chancery. The court may direct the sale of such real estate, disincumbered of all mortgage, judgment or other money liens that are due, and may provide for the satisfaction of all such liens out of the proceeds of the sale, and may also settle and adjust all equities and all questions of priority between all parties interested therein; and may also investigate and determine all questions of conflicting or controverted titles arising between any of the parties to such proceeding, and may remove clouds from the title to any real estate sought to be sold, and invest purchasers with a good and indefeasible title to the premises sold. The court may, with the assent of any mortgagee of the whole or any part of such real estate, whose debt is not due, sell such real estate disincumbered of such mortgage, and provide for the payment of such mortgage out of the proceeds of such sale; and may also, with the assent of the person entitled to an estate in dower, or by the curtesy, or for life or for years, or of homestead to the whole or in part of the premises, who is a party to the suit, sell such real estate with the rest.”

The amendment of 1887 gave to probate courts the power to investigate and determine questions of conflicting or controverted titles arising between the parties to the proceeding and to remove clouds from title. Prior to the amendment of 1887 these courts did not possess such power, though section 101 was otherwise, in substance, as the present act. It was held as early as Moffitt v. Moffitt, 69 Ill. 641, that a petition to sell real estate to pay debts of a deceased person was not a chancery proceeding. It cannot be doubted that prior to the amendment of 1887 a probate court was without power to enforce by contempt proceedings the specific performance of a bid at an administrator’s sale to pay debts. The question arises whether or not the amendment of 1887, giving to that court jurisdiction to settle disputes as to title and to clear title, made the proceeding one of general chancery jurisdiction, so that the court may by contempt proceedings enforce the bid,—in other words, whether or not section 101 as amended confers general chancery powers upon the probate court.

It was held in Lynn v. Lynn, 160 Ill. 307, that by reason of the fact that the amendment of 1887 conferred on the probate court power, in cases of this character, to settle equities and questions of priority and to investigate and determine questions of conflicting titles between parties and remove clouds, an application to sell land to pay debts may properly be regarded as a chancery proceeding within the meaning of section 8 of the Appellate Court act, which provides for appeals to the Appellate Court in “any suit or proceeding at law or in chancery.” In Clayton v. Clayton, 250 Ill. 433, the court, in construing section 101, held that “said section provides that the practice in such cases shall be the same as in courts of chancery, and evidently the legislature has attempted to confer general chancery powers upon the county and probate courts in all proceedings of this character.” In Therens v. Therens, 267 Ill.

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Bluebook (online)
132 N.E. 820, 299 Ill. 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hannah-v-meinshausen-ill-1921.