Hyde Park Investment Co. v. Hyde Park State Bank

257 Ill. App. 539, 1930 Ill. App. LEXIS 352
CourtAppellate Court of Illinois
DecidedMay 28, 1930
DocketGen. No. 33,747
StatusPublished
Cited by8 cases

This text of 257 Ill. App. 539 (Hyde Park Investment Co. v. Hyde Park State Bank) 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
Hyde Park Investment Co. v. Hyde Park State Bank, 257 Ill. App. 539, 1930 Ill. App. LEXIS 352 (Ill. Ct. App. 1930).

Opinion

Mr. Justice Holdom

delivered the opinion of the court.

The Hyde Park Investment Company filed its bill to foreclose four certain trust deeds upon certain premises described in the bill, in which Liberty Supply & Lumber Company,and others were made defendants. The cause proceeded to trial and there was a decree in favor of complainant, finding the amount due and ordering a sale of the mortgaged premises to satisfy such degree.

The appeals before us do not seriously challenge the integrity of the foreclosure decree.

Liberty Supply & Lumber Company, Fred M. Heinlcel, George Thomas, Alfred Jones, and James A. Black Hardware Co., a corporation, filed their several answers to the bill of foreclosure in the nature of intervening petitions, claiming mechanics’ liens upon the mortgaged premises for labor and materials furnished in buildings erected upon the mortgaged premises. All of these intervening petitions were dismissed for want of equity, five in number, and the appeals to this court are numbered respectively 33,747, 33,922, 33,923, 33,924 and 33,925, all of which have been consolidated in this court for hearing on complete record and abstract of said record in the case first above entitled.

All of the questions involved in the foregoing appeals will be discussed and disposed of in this opinion.

We make these preliminary observations applicable to all of the five mechanics’ Hen appeals before us..

In dismissing a bill, petition or intervening petition for want of equity, it is not necessary to recite findings of fact in such decree of dismissal. Findings of fact have no place in a decree dismissing a bill or intervening petition for want of equity. Kelly v. Funkhouser, 171 Ill. 205. In State Bank of Chicago v. Christensen, 195 Ill. 496, it was held that the incorporation of findings in a decree dismissing a bill for want of equity is unnecessary. Where there are such findings it is immaterial whether they are findings of fact or conclusions of law and fact.

Peter S. Nielsen, a widower, executed the four trust deeds sought to be foreclosed, to secure his indebtedness therein recited, and conveyed such premises to the Chicago Title & Trust Company as trustee to secure such loan. Nielsen on November 25, 1927, deeded the premises conveyed by the four trust deeds aforesaid to the Hyde Park State Bank as trustee. In and by the conveyance by Nielsen to the Hyde Park State Bank, as trustee, said Nielsen conveyed all of his title, without reservation, to the property conveyed by the four trust deeds foreclosed in this proceeding, and subsequent thereto he died. As Nielsen at the time of his death had no title or claim of title to the real estate theretofore conveyed by him in the four trust deeds in this foreclosure proceeding, it was not necessary for complainant in the foreclosure proceeding to make the personal representatives of said Nielsen, deceased, parties to said foreclosure proceeding.

I. The Claim for a Mechanic’s Lien of the Liberty Supply & Lumber Company.

The decree dismissing the intervening petition of the Liberty Supply & Lumber Company for want of equity at its costs was entered for the sole reason that it presented a claim which in every material particular was fraudulent and grossly exaggerated. Under such circumstances only one inference could be drawn from the evidence on that subject, which was that the fraud perpetrated was by design and with full knowledge on the part of the claimant.

In the first place the answer of the Liberty Company in the nature of an intervening petition for a mechanic’s lien alleged that it entered into a verbal contract with Nielsen, the owner, to furnish lumber for the building then being erected on Lot 6, and that he agreed to pay therefor the reasonable value of such material; that it furnished such material and that its reasonable value was $2,669.51; and further alleged that on March 7, 1928, it filed in the office of the clerk of the circuit court a statement of mechanic’s lien for such unpaid balance, and the same allegations were made in the intervening petition as to the three other lots, making a total claim of $10,689.04, and averred that the material was delivered to that amount for each of the four lots. It attempted to prove by its president categorically the delivery of the lumber on each of the four lots in value the aggregate amount of $10,689.04. This witness testified that he was at the building four or five times a week and that he checked the lumber being used in the construction of the buildings on the four lots; that he saw such lumber used in the construction of such buildings; whereas in truth and in fact the contract was not a verbal contract but was in writing signed by the parties and was for a price fixed by the contract and not otherwise.

While the terms of the written contract between the parties provided for a trade discount which on the statement tendered would amount to $883.81, no such credit was given, and the Lumber Company attempted to collect the gross amount, notwithstanding that the books of the Lumber Company showed on inspection that the account was credited with the discount. This was a bold and fraudulent attempt by the Lumber Company to saddle the property with a lien for that excessive amount. Such conduct was not the result of a mistake or involuntary error, but was a deliberate fraud practiced by the Lumber Company intentionally and with full knowledge by the claimant of the facts. The law will excuse mistakes and honest errors, but not so where fraud, as in the case at bar, permeates the whole transaction, so far as the Lumber Company is concerned, and it is such fraud which under the law deprives claimant Lumber Company and bars it from any relief. Such gross and patent frauds cannot be condoned under the law. Many other fraudulent representations by claimant Lumber Company might be categorically set forth, but we think the foregoing recitations are sufficient, standing alone, to stamp the claim of the Lumber Company as fraudulent in every material particular and amply sufficient to bar it from any relief in a court of conscience.

The answer of the Lumber Company in the nature of an intervening petition for a mechanic’s lien is the pleading of the Lumber Company, under the Mechanics’ Lien Act, Cahill’s St. ch. 82, ft 9; section 9, chap. 82, Smith-Hurd B». S. This provides that all parties may contest each other’s rights without any formal issue made up between them. No special pleadings are necessary. Any proper evidence tending to contest the claim is admissible under such a petition, it being' incumbent upon such petitioner to maintain by adequate proof the material averments of such petition. A failure so to do defeats the relief so sought. All the defendants without any special pleading have the right to put in evidence, all facts material to defeat the claim made by the claimant in his pleadings. If the averments of claimant’s pleadings are not proved or if the proof establishes facts not averred in the pleading, and no amendment is made to support the proof thus made, it would be the duty of the court to dismiss the bill. Tucker v. Powell, 318 Ill. 166. This rule has been applied in a number of cases in this State, among which are Geraghty v. Organ, 67 Ill. App. 263; Ludwig v. Huverstuhl, 108 Ill. App. 461; Belanger v. Hersey, 80 Ill. 70, and also in Wagner v. Hansen, 103 Cal. 104.

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Bluebook (online)
257 Ill. App. 539, 1930 Ill. App. LEXIS 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyde-park-investment-co-v-hyde-park-state-bank-illappct-1930.