Hurd v. Ascherman

6 N.E. 160, 117 Ill. 501
CourtIllinois Supreme Court
DecidedMarch 27, 1886
StatusPublished
Cited by4 cases

This text of 6 N.E. 160 (Hurd v. Ascherman) 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
Hurd v. Ascherman, 6 N.E. 160, 117 Ill. 501 (Ill. 1886).

Opinion

Mr. Justice Scott

delivered the opinion of the Court:

This ease, as it now comes before the court, is much less complicated than when it was heard either in the circuit or Appellate Court. Many of the questions litigated in those courts have not been assigned for error in this court, and are therefore not now before it for consideration. It will be necessary, however, to state briefly the substance of the record concerning some of them, in order to a clearer understanding of the questions presented for decision.

The bill is the ordinary creditors’ bill, and was brought by Ed. Ascherman and Herman Signitz, in the circuit court of Knox county, against Leander B. Beynolds, E. B. Benton, Walter S. Hurd, and others alleged to have some interest in the subject matter of the litigation, as judgment creditors of the common debtor or otherwise. These creditors of the failing debtor, on petition, by leave of the court, became co-complainants with the original complainants, but it will not be necessary, in the discussion that is to follow, to notice them further. It is- alleged in the bill, as the truth is, that complainant recovered a number of judgments against Leander B. Beynolds, amounting in the aggregate to quite a considerable sum. Executions issued on these judgments to the sheriff, were returned nulla bona. Afterwards this bill was filed by complainants to set aside conveyances shortly before made by the defendant in the execution, of lands .which he had previously owned, as fraudulent and void as to his creditors, a-n'd to subject the same to the payment of the judgments of complainants. One of the deeds alleged to be fraudulent, was the deed of Beynolds and wife to Elizabeth B. Benton, of a quarter section of land situate in Knox county. Another was a deed of a lot or piece of land- situate in the city of Galesburg, made by Beynolds and wife to Walter S. Hurd. On thó hearing, it appears the circuit court dismissed complainant’s bill as to both of these tracts of land, and granted relief on the cross-bills filed by the respective grantees, Mrs. E. B. Benton and Walter S. Hurd. On the appeal of Walter-S-. Hurd, to the Appellate Court for the Second District, from another portion of the decree of the circuit court, complainants assigned cross-errors as to the dismissal of their bill as to Mrs. E. B. Benton, the grantee of the quarter section of land mentioned, and as to the granting relief to her on her cross-bills, but the decree was in all respects affirmed by the Appellate Court, and as complainants have filed no cross-errors in this court' on the decision of the Appellate Court, no questions concerning the fairness or validity of the conveyance of the quarter section of land mentioned can be considered by this court on this appeal. No cross-errors have been assigned by complainants or any one else as to that portion of the decree of the circuit- court that found the conveyance to Walter S. Hurd was fair and valid, nor to the relief granted to him on his cross-bill concerning the tract of land situate in Galesburg that had been conveyed to him. Only Walter S. Hurd has assigned errors on this record, and so far as this decree affects his land, it is in his favor, and as to the tract claimed by Mrs. Benton, he does not, by his pleadings or otherwise, claim any interest in it. It follows, therefore, that all questions made as to those tracts of land must be considered as disposed of by the decisions of the lower courts, and therefore they are not now before this court, and no further reference will* be made to them, unless it may become necessary to do so in considering other questions made on the record.

It is alleged in the bill, the judgment entered up in the Superior Court of Cook county in favor of Walter S. Hurd and against Leander B. Reynolds, was wrongfully confessed, and that the levies made under the execution issued -thereon were made for the purpose of covering up the property of the execution debtor, and keeping it from his bona fide creditors, and as to whom the judgment is fraudulent and void. After the hearing of the cause had been commenced, at the June term, 1884, complainants obtained leave from the court to further amend their bill, which they did, and alleged, that on the 11th day of August, 1879, Leander B. Reynolds, then being indebted in the sum before mentioned in the bill, made, executed and recorded a chattel mortgage to Walter S. Hurd, purporting to secure a debt of $1475, due in fifteen- months from the date of the mortgage, which mortgage-' covered substantially all" the personal property then owned by Reynolds, subject to execution. ' It is charged this chattel mortgage was1 merely" colorable, and made to enable Reynolds to cheat and defraud complainants and other creditors. Afterwards, on the 24th of December, 1884, another amendment to the bill was made, to the effect that after the obtaining of the judgment in the Superior Court, Reynolds delivered to the attorneys of Hurd valuable accounts and claims, the property of Reynolds, of the value of $1000, and that his attorneys collected, by execution issued on such judgment and from the accounts, the sum of $4568.68, which sum the attorneys paid over to him, le'ss their fees. It is charged Hurd holds the money, and property obtained under the chattel mortgage," and "from the accounts and on the judgment, in trust for the creditors of Reynolds, and sliould-be required -to aeeounfrffor the same to complainants. In his original answer, defendant, Hurd, admits he obtained a judgment against Reynolds in the Superior Court, but denies it was obtained by fraud or collusion, or that levies were made on the execution issued on such judgment to cover up the land or other property of Reynolds, to prevent complainants or other creditors from obtaining satisfaction of their judgments. On the contrary, he avers the judgments were obtained for so much money actually due to him from Reynolds. In his answer to the last amendment to the bill, defendant, Hurd, admits the making of the ’chattel' mortgage, as stated in the bill, "but denies it was merely colorable, or that it was made to enable Reynolds to cheat and defraud his creditors.

Among other matters, the court found by its decree that the judgment confessed the 9th of August, 1S79, by Reynolds, in the Superior Court, in favor of Hurd, was and is a fraud upon the creditors of Reynolds, and the judgment note on which the judgment was confessed was without adequate consideration, and void as against complainants and other bona fide creditors of Reynolds, and was executed for the purpose, and was a part of a scheme to defraud, hinder and delay creditors in the collection of their just claims. The court, further found the amount of the judgment so entered is the sum of $4561.68, and after the obtaining of such fraudulent judgment, Reynolds, for the purpose of hindering and delaying and defrauding his creditors, took from his place of business in Chicago, all the books of account, containing a large amount of claims, and delivered the same to the attorneys of Hurd, who accepted the same for him, and that there has been realized upon such claims and judgment, from the assets of Reynolds, for the benefit of Hurd, the sum of $4412, and that sum was realized as early as November 19, 1879. The court also, found the chattel mortgage of the date of August 11, 1879, for the sum of $1475, given by Reynolds to Hurd, was executed as- a part of a scheme to defeat, defraud and hinder and delay creditors of Reynolds, and was without consideration, and was wholly void as to complainants.

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Bluebook (online)
6 N.E. 160, 117 Ill. 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hurd-v-ascherman-ill-1886.