J. B. Margolies Grocery Co. v. Kopman

244 Ill. App. 451, 1927 Ill. App. LEXIS 187
CourtAppellate Court of Illinois
DecidedMay 14, 1927
StatusPublished

This text of 244 Ill. App. 451 (J. B. Margolies Grocery Co. v. Kopman) 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
J. B. Margolies Grocery Co. v. Kopman, 244 Ill. App. 451, 1927 Ill. App. LEXIS 187 (Ill. Ct. App. 1927).

Opinion

Mr. Justice Boggs

delivered the opinion of the court.

Judgment by confession was entered in the city court of East St. Louis at the September, 1926, term thereof, for the sum of $3,309.73, in favor of appellant and against appellees. Shortly thereafter, appellees entered a motion, supported by affidavits, to vacate said judgment and for leave to plead. This motion'was allowed. Thereupon, appellees filed a plea of the general issue and a special plea, setting forth that there was no consideration for the execution of the note on which judgment was taken. To said special plea a replication was filed, traversing the allegations thereof. A trial by jury was had, and a verdict was returned finding the issues for the defendants. Thereupon, judgment was rendered against appellant, in bar of action and for costs. To reverse said judgment, this appeal is prosecuted.

The undisputed evidence in the record discloses that in the early part of 1924 appellee S. W. Kopman and his brother M. It. Kopman were engaged in the gasoline and oil business in East St. Louis, and in connection therewith had a storage house at 1300 Walnut Street and a filling station at 3800 State Street, and had leases on a filling station on Fifth Street, one in Madison and one in Venice. Appellee I. L. Kopman is the father and Ida Kopman is the mother of said S. W. Kopman and M. R. Kopman.

In the late summer or early fall of 1924, J. B. Margolies and S. A. Prywitch, officers in appellant grocery company, entered into an agreement with S. W. and M. R. Kopman, in and by which they were to become half owners in said gasoline and oil business. Margolies and Prywitch were to pay into said company so to be formed the sum of $5,000, and were to be equal partners with the Kopmans in said business, while the Kopmans were to have the active control and management thereof. Shortly after the formation of said partnership, there was a sharp drop in the price of gasoline, and some rather severe losses were sustained by said partnership. As to what occurred thereafter, the evidence is conflicting.

The evidence on the part of appellant is to the effect that an agreement was entered into between Margolies and Prywitch with the Kopmans, to the effect that Margolies and Prywitch would withdraw from said business, upon the Kopmans reimbursing them for the amount of money which they had paid into or expended in said business; that the Kopmans did not have the funds with which to make a cash payment, but executed their note, with I. L. Kopman joining them, in the sum of $4,800, dated October 1, 1924, due 15 months after date, payable to the order of J. B. Margolies and S. A. Prywitch, and secured by a chattel mortgage on the property in question. Thereafter some question was raised by the Kopmans as to whether or not Margolies and Prywitch had paid in the sum of $4,800, and the books and accounts were gone over, and after Margolies and Prywitch allowed certain credits, the Kopmans paid $750 to Margolies and Prywitch, and gave them the note here involved, being for $3,309.73, dated December 19, 1925, and signed by “Perfect Motor Fuel Co.,” S. W. Kopman, M. B. Kopman, I. L. Kopman and Ida A. Kopman, and the note for $4,800 was canceled or delivered up. That, in consideration of the making of said notes, Margolies and Prywitch withdrew from said firm and turned over the business and the assets thereof to the Kopmans.

On the other hand, appellees, while conceding that Margolies and Prywitch had paid into said business practically $4,800, and while admitting the making of said $4,800 note and the accounting thereafter to ascertain how much in fact had been paid by said Margolies and Prywitch, and admitting that certain credits were allowed them and that they paid. $750 in cash to Margolies and Prywitch and executed the note here involved as above stated — yet they deny that in so doing they were buying out the interests of Margolies and Prywitch in said business. Appellees insist' that they executed said notes at the request of Margolies and Prywitch, in order to show how much had been paid into said business by Margolies and Prywitch for the purpose of its operation. The testimony of appellees is to the effect that the gasoline and oil were received in carload lots, and as the cars came in, they would procure the money from Margolies to cash the draft accompanying the bills of lading, and that in so furnishing said funds, Margolies had advanced practically $4,800.

S. W. Kopman testified in reference to the transaction involved at the time of giving the note sued on: “We settled it and he (Margolies) told me to give him a new note and new mortgage for the balance that I owed him to be paid in two years after the date of the mortgage. That was done. Neither he nor anyone for the J. B. Margolies Grocery Company paid any money for the note, or for the original note. I paid off the original note and reached the balance.”

The principal ground relied on by counsel for appellant for a reversal of said judgment is the ruling of the court on the instructions. It is seriously contended that appellee’s first given instruction was erroneous, and was of such prejudicial character as to require a reversal of said cause. Said instruction is as follows:

“The Court instructs the jury that the burden rests on the plaintiff to prove its case by a greater weight of the evidence, and unless the plaintiff has proven its case as charged in its declaration by a greater weight of the evidence in the case, you should find for the defendant. If, after a fair and impartial consideration of all the evidence in the case, you do not believe that the plaintiff has established its case as charged in its declaration by a greater weight of the evidence, or if you believe that the evidence in the case is evenly balanced, then you should find the issue for the defendants.”

Counsel for appellees in their brief state: “The issues in the case * * * consisted simply of the one question, whether or not the note was given in return or as evidence for the money paid into the partnership by Margolies and Prywitch, or whether it was given in settlement of their partnership accounts.”

This being the issue, and the evidence being sharply conflicting, it ivas important that the instructions given by the court to the jury should correctly state the law governing the same.

The introduction of the note sued on made the case of the appellant, and, unless some affirmative defense was established, would warrant a verdict in its favor. Appellees admitted the execution of said note on the trial, but insisted that no recovery should be had against them, for the alleged reason that the giving of said note was without consideration. This was an affirmative defense, and raised the only issue in the case. We are therefore of the opinion and hold that the court erred in giving this instruction. Rich v. Naffziger, 248 Ill. 455; Cutter v. Pardridge, 182 Ill. App. 350-353.

Rich v. Naffziger, supra, was an action guare clausum fregit. The plaintiff had made out a record title in himself, and the defendants were claiming said premises under a plea setting up the 20-Year Statute of Limitations. The trial court, at the request of the defendants, gave the following instruction:

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244 Ill. App. 451, 1927 Ill. App. LEXIS 187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-b-margolies-grocery-co-v-kopman-illappct-1927.