Hill v. 1550 Hinman Ave. Building Corp.

282 Ill. App. 109, 1935 Ill. App. LEXIS 630
CourtAppellate Court of Illinois
DecidedNovember 5, 1935
DocketGen. No. 37,896
StatusPublished
Cited by3 cases

This text of 282 Ill. App. 109 (Hill v. 1550 Hinman Ave. Building Corp.) 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
Hill v. 1550 Hinman Ave. Building Corp., 282 Ill. App. 109, 1935 Ill. App. LEXIS 630 (Ill. Ct. App. 1935).

Opinions

Mr. Presiding Justice Scanlan

delivered the opinion of the court.

Plaintiffs filed their complaint to set aside as clouds upon their title to certain premises a 9.9-year lease, certain assignments thereof, and trust deeds, judgments and mechanics’ lien claims derived from or claimed through the lease, and to obtain .other relief under the lease. 1550 Himrian Avenue Building Corporation (hereinafter also called Corporation), Frank W. Cauley and Rosalie Hill Cauley, defendants, appeal from an order entered denying their motion to dismiss the complaint and from the decree entered in the case. The complaint alleges that plaintiffs are the owners in fee simple of certain premises (describing same) and in possession thereof; that on May 12, 1926, they and Libbie B. Hill, the then owners of the premises and in possession thereof, leased the same to Morris E. Feiwell, defendant, and the lease was duly recorded; that on November 28, 1928, Feiwell assigned the lease to Frank W. Cauley, which assignment was duly recorded; that on November 30, 1928, defendants Frank W. Cauley and Rosalie Hill Cauley, his wife, executed a trust deed to Chicago Title and Trust Company, as trustee, mortgaging their interest under the lease to secure the payment of three notes (describing them), which deed was duly recorded and has never been released, canceled or satisfied of record; that on February 11, 1929, Cauley assigned the lease to defendant Corporation, which assignment was duly recorded; that on May 13, 1929, defendant Corporation conveyed to Chicago Title and Trust Company, as trustee, by its trust deed or mortgage, ‘ the right and interest of the Lessee under and by virtue of the said . . . Lease,” to secure two certain notes, which instrument was recorded and has never been released or canceled of record; that on May 14, 1929, defendant Corporation executed and delivered its trust deed or mortgage to Chicago" Title and Trust Company, mortgaging the interest of the lessee under the lease, to secure the indebtedness of the grantor in the principal sum of $51,308.34, which trust deed was made subject to the trust deed executed May 13, 1929, and which second trust deed was recorded and has never been released or canceled of record. The complaint recites certain covenants in the lease That obligated the lessee to construct, before June 1,1931, at Ms own expense, a building not less than 10 stories in height and to cost not less than $125,000, to pay rent, to pay taxes, and to deposit with the Northern Trust Company certain funds to secure the lessors in the performance of the contract by the lessee; alleges the default of defendants in the performance of the said covenants; alleges that defendants commenced the construction of the building and that when the work had progressed to a point where the excavations and foundations of the building were nearly completed, they abandoned the premises and the work, in September or October, 1929; alleges the appearance of record of certain mechanics’ lien claims and judgments which were derived from and constituted liens against only the leasehold interest; alleges defaults in the payment of instalments of rent due under the lease; alleges that on March 6, 1934, plaintiffs gave to defendants a notice in writing of said defaults, and that after the defaults had continued for 60 days after service of the notice of default it became lawful for plaintiffs to declare the term of the lease ended, to re-enter the premises and the buildings thereon, to expel all occupants, and to repossess the buildings thereon “without such reentry and repossession working a forfeiture of the rents to he paid and the covenants of said lease to he performed during the term of said lease”; that about May 8, 1934, plaintiffs declared the lease and the term demised ended, re-entered the premises and put out its occupants, including defendants, and repossessed the premises, and now possess them; that by reason of the defaults plaintiffs are now the absolute owners in fee simple of the real estate, etc., and in possession of the same, free and clear of any and all right, title, interest, lien, claim, demand, incumbrance or cloud on account of, in connection with, or arising from the lease, and any. mortgages, conveyances, deeds of trust, claims of lien or other instruments, whether appearing of record, or otherwise, in any manner derived from or claimed by virtue of the lease or arising by any act of defendants Feiwell, Cauley or Corporation, or any person claiming through or under said defendants; that the amounts due plaintiffs as lessors are greatly in excess of the cash and market value of the securities now in the hands of defendant Northern Trust Company, “as Trustee of Securities under said . . . Lease,” and that plaintiffs are therefore entitled to have delivered to them all cash and securities on deposit with that company, which should be ordered to transfer and deliver to plaintiffs said cash and securities, to be applied by plaintiffs in partial reimbursement of the loss occasioned them by the defaults of said defendants in the performance of the terms and covenants of the lease; that notwithstanding the foregoing, the lease, assignments, trust deeds, claims for liens, judgments and interest of the directors and stockholders of defendant Corporation, “by reason of the same appearing of record . . . , are clouds upon the plaintiffs’ title in fee simple in and to said premises and tend to depreciate the value thereof; and ought, therefore, to be set aside, tobe declared mdl, void, terminated and at an end, and to be delivered up to be canceled under the direction of this Court,” and prays that defendants be required to answer; “that the plaintiffs be decreed to be the absolute owners of said real estate and appurtenances thereto free and clear of any and all claims or interest therein of the defendants hereto and entitled to possession thereof as against the defendants and each and all of them”; that the instruments appearing of record (describing them in detail) be set aside and declared null, void, terminated and at an end, as against plaintiffs, as a cloud on their absolute title in fee simple in and to said real estate and appurtenances, and that the same may be delivered up to be canceled under the direction of the court; that defendants be ordered to execute and deliver such quitclaim deeds, releases, etc., as should be necessary to remove from plaintiffs’ title any apparent right, title, etc., appearing of record, and that on their failure “to execute and deliver said instruments, that the court designate and appoint a commissioner for the purpose of executing and delivering the same; that the defendants and each of them and all persons, firms and corporations claiming by, through or under the said defendants be forever barred and enjoined from having, claiming or asserting any right, title, interest, lien, claim, demand, encumbrance or cloud in or to the said real estate and appurtenances or against the absolute title in fee simple and right of possession of the plaintiffs therein and thereto”; that the Northern Trust Company be directed to deliver all of the cash and securities remaining on deposit in its hands to plaintiffs, and that plaintiffs may have such other and further relief in the premises as may be equitable. The lease, dated May 12, 1926, is attached to the complaint and made a part thereof.

Defaults were taken against numerous defendants. Several defendants, including the original lessee, Feiwell, disclaimed. Chicago Title and Trust Company, the trustee under the several trust deeds, answered.

Defendants 1550 Hinman Avenue Building Corporation, Frank W.

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Related

In re the Accounting of Terry
208 Misc. 197 (New York Surrogate's Court, 1955)
Riley v. State
37 So. 2d 768 (Mississippi Supreme Court, 1948)
Hill v. 1550 Hinman Avenue Building Corp.
6 N.E.2d 128 (Illinois Supreme Court, 1936)

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Bluebook (online)
282 Ill. App. 109, 1935 Ill. App. LEXIS 630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-1550-hinman-ave-building-corp-illappct-1935.