Head v. Harding

46 N.E. 890, 166 Ill. 353
CourtIllinois Supreme Court
DecidedApril 3, 1897
StatusPublished
Cited by1 cases

This text of 46 N.E. 890 (Head v. Harding) 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
Head v. Harding, 46 N.E. 890, 166 Ill. 353 (Ill. 1897).

Opinion

Mr. Justice Carter

delivered the opinion of the court:

This is an appeal from a judgment of the Appellate Court affirming a decree of the Superior Court of Cook county upon a creditor’s bill, subjecting blocks 14,15 and 16, in Avondale, a subdivision of the west half of the north-east quarter of section 24, in township 38, north, in Cook county, to the payment of a certain judgment against Eli G. Runals, held by appellee Harding, as executor of the last will of Abner 0. Harding, deceased.

On June 8,1870, Richard Campbell and others obtained a judgment in the Superior Court against Eli G. Runals for $22,792.28, and on February 8, 1871, assigned it to Abner C. Harding, who afterward died testate. This judgment was revived May 11, 1889, by scire facias sued out by the executor, who, after the issue and return unsatisfied of execution, filed this bill on May 17,1889. The bill as first filed contained no reference to the property in dispute, but was general and in the usual form of such bills. It alleged, among other things, that he was in some manner beneficially interested in some real estate, etc., and that any assignment or transfer thereof made since June 8, 1870, was wholly colorable and to enable Runals to enjoy the same and the proceeds thereof. But by amendment of June 16 of the same year it was alleged that Daniel Head, the appellant, holds the title in fee to the property in question, describing it, but that it belonged to Runals, and is held and kept in trust for him by Head for the purpose of preventing the same from being subjected to the lien and satisfaction of said judgment, and that in equity and in fact Runals is the owner of said property, and the same should be subjected to the lien and satisfaction of complainants’ judgment. The amended bill was taken as confessed by Daniel Head, Eli G. Runals and Seth Doan in August, 1889, but afterward, in 1891, on petition of Head, the default as to him was set aside and his sworn answer filed. By stipulation the answer was treated as one not under oath.

The defense, as claimed to have been established by appellant under his answer and cross-bill, is in substance this: That appellant and said Runals lived at Kenosha, Wisconsin, where appellant was engaged in the banking business. Runals was a sort of general trader, buying and selling property whenever he thought he saw an opportunity to gain a profit by the transaction. Appellant and Franklin H. Head were executors of the estate of Orson H. Head, and in that capacity loaned Runals $5000 in 1875, taking his notes therefor and a mortgage securing their payment upon lands in Wisconsin, called the “Tolls farm.” They also about the same time sold him a piece of land, for the purchase of which, as evidenced by a bond given, Runals owed them $400 and interest. It was also claimed that there was about $300 due the Heads, as such executors, by virtue of a lease made to Runals in 1876, and that in July, 1878, when Daniel Head, the appellant, received the deed to the three blocks of ground in controversy, Runals owed Head & Go., bankers, about $3000; and the contention is, that while the deed to appellant of the property in question was absolute in form, it was made and delivered, not in fraud of Runals’ creditors or of the Harding judgment, but in good faith as security for the several amounts above mentioned, which Runals owed to the Heads as executors of Orson H. Head, and to the banking firm of Head & Go., aggregating, it is claimed, about $9000, and for other loans and advances which might thereafter be made to Runals.

.The Avondale property originally consisted of the three blocks in question and another called “block 11.” These four blocks wer-e purchased by Runals of one Sawyer by contract bearing date February 10, 1873, for the expressed consideration of $40,000, which was paid in various kinds of property, including eighty acres of land in Wisconsin belonging to Seth Doan, and by the assumption of a mortgage by Runals on the three blocks in controversy for $5000. Later in the same year the four blocks were, by agreement of the parties, conveyed by Sawyer to Seth Doan, who was a brother-in-law of Runals. Subsequently, and in 1876, after having entered into two or more agreements relative to the property, Doan and Runals, by a final agreement between themselves, settled their respective interests in the property, whereby it was agreed that Doan should take and hold block 11 and Runals the other three blocks, and assume and pay the mortgagee thereon of §5000. The legal title to the property, however,—that is, to the three blocks in question,—remained in Doan until by deed dated May 23, 1878, it was, at the request of Runals, conveyed to Daniel Head, the appellant. This deed was not delivered to Head until in the month of July, 1878, and when first executed was blank as to the grantee, Head’s name being inserted shortly before its delivery, and purported upon its face to be for the consideration of §30,000. It was recorded December 3, 1879. Notwithstanding Runals was the equitable owner of the property the legal title never stood in his name, but was first in the name of Doan and next in the name of Head, as above stated.

On October 13, 1879, about eighteen months after the three blocks in question had been conveyed to Head, he and Runals entered into a written agreement which recited the conveyance and also the conveyance of five hundred acres of land in Michigan, together with the receipt of five promissory notes, called in the record the “Downey notes,” belonging to Runals, signed by third parties, and agg'regating §11,544, secured by mortgage on lands in Indiana. This agreement provided that said tracts of land and the notes and mortgage were conveyed to Head as security for any then present or future indebtedness of Runals to Head & Go., or to Daniel Head or Franklin G-. Head, or to the O. S. Head estate, of which said Heads were executors. It provided also that Runals was to have possession of the Michigan land and should collect the rents therefor, and pay the taxes on that tract as well as on the Avondale blocks, and that he should have the privilege, with the written consent of Head, to sell any of said lands by applying the proceeds upon such indebtedness, and to have the remainder reconveyed to him when the Heads should have no demands against him. It cannot be told from this agreement what amount of indebtedness said lands and notes were intended to secure, nor is it made clear by the evidence what the amount of the then existing indebtedness was, nor why the agreement was entered into so long after Head had received the conveyance of the Avondale property. There was never any reconveyance of any of the lands or return of the notes to Runals. But the Avondale property was retained in the name of Head until in May, 1889, he having paid out about §2000 for taxes upon the same, when, by agreement between the Heads and Runals, Runals released his interest in that property and Franklin G-. Head conveyed to one Field, who, it seems, was a friend of Runals selected for the purpose, seven hundred and twenty acres of land in Whiteside county, Illinois, supposed by the parties to be worth §15,000 but from the evidence probably of less value, for Runals’ interest in the Avondale blocks. The Whiteside land had shortly before been conveyed by Daniel Head to Franklin G. Head, his son, without consideration, for the purpose of making the exchange. Runals then procured a loan from Head’s bank of §6000, Field giving a mortgage on the Whiteside land to secure it, and it seems Runals caused Field to give another mortgage for §9000 on the same property.

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Bluebook (online)
46 N.E. 890, 166 Ill. 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/head-v-harding-ill-1897.