Jackson v. Grosser

75 N.E. 1032, 218 Ill. 494
Illinois Supreme Court·Decided December 20, 1905·Published·Cited by 1 cases

Opinion

Mr. Chief Justice Cartwright

delivered the opinion of the court:

The facts necessary to an understanding of the questions involved in this case are as follows: On April 8, 1895, Robert Grosser and wife executed a trust deed on a lot in Chicago to Helge A. Haugan to secure two notes given for money borrowed of the State Bank of Chicago, one for $2500, due in five years, and one for $500, due in one year, and both drawing interest. August Grosser purchased of the bank the note for $500, with an agreement that the lien as to the $2500 note should be prior and superior to the lien as to the $500 note. On May 26, 1900, August Grosser filed his bill in the circuit court of Cook county to foreclose the trust deed as to the $500 note, which was then due, alleging that he did not own the $2500 note and had no interest in it or control over it, and praying that any decree of sale of the premises should be made subject to the lien of the trust deed for the indebtedness secured thereby, except as to the amount that might be found due him on the $500 note. He also' alleged that he owned a note secured by a second trust deed executed by Robert Grosser and wife on April 20, 1896, upon the same lot to him as trustee, for $1004, payable five years after date with interest at six per cent. He made Haugan, the trustee in the first trust deed, and his successor in trust, and himself, trustee in the second trust deed, and other parties, defendants. A decree was entered finding that there was due August Grosser $605.91 and $100 for solicitor’s fees, and it was ordered that the mortgaged premises be sold, and that the sale should be made subject to the continuing lien of the trust deed for the payment of the $2500 note secured thereby, and any other amount that might be due or thereafter accrue on the said trust deed in addition to the amount thereby found due the complainant, August Grosser. It was ordered that the master, after payment of costs and expenses, should pay the complainant the amount so found due him, and if there was any surplus should pay the complainant $1255, with interest from June 23, 1900,—the amount due on the note secured by the second trust deed. A sale was made pursuant to the decree and according to its terms, subject to the continuing lien of the first trust deed as to the $2500 note. The amount realized was not sufficient to pay the amount found due on the $500 note. August Grosser was the purchaser and a master’s certificate of sale was made and delivered to him. After executing the trust deeds Robert Grosser sold and conveyed the lot, and it passed by subsequent conveyances to Arcadius Budda on October 30, 1900. Augusta Jackson, appellant, was a judgment creditor of Arcadius Budda, and no redemption having been made by any of the defendants within twelve months after the sale, she paid to the sheriff on November 4, 1901, $740.67, the amount necessary to redeem from the sale. An execution on her judgment was levied on the lot, and on December 3, 1901, it was sold to her by the sheriff for the amount of the redemption money, interest and costs, and the sheriff conveyed the lot to her in accordance with the statute. On December 2, 1901, Gustav A. Grosser, the appellee, and Helge A. Haugan, trustee, filed their bill in this case in the circuit court to foreclose the trust deed as to the $2500 note, alleging that appellee was the legal holder and owner of the note; that the previous foreclosure proceeding as to the $500 note by August Grosser was had, and that the decree and sale were subject to the continuing lien of the trust deed as to the $2500 note. It was also alleged that appellant had redeemed the lot from the previous sale, and she was made one of the defendants. She answered, denying that her title to the property was subject or subordinate to the rights of the appellee or subject to the lien of the trust deed to secure the payment of the $2500 note. The cause was referred to a master in chancery, who took the evidence and reported his conclusions that appellee had a valid lien on the premises to the amount of $2500 and the unpaid interest thereon; that the rights of appellant were subject to the continuing lien of the trust deed for the payment of the same, but that the bill was prematurely filed for the reason that there had been no default in the payment of said note. The cause was heard on exceptions of both parties, and a decree was entered foreclosing the trust deed and ordering a sale for the amount due appellee on his note with a solicitor’s fee of $100 and costs, and providing that if a surplus should remain the master should bring it into court, and reserving all question of the rights and liens of August Grosser and appellant, as between themselves, for the further consideration of the court. The Appellate Court for the First District affirmed the decree.

Free access — add to your briefcase to read the full text and ask questions with AI

Jackson v. Grosser, 75 N.E. 1032, 218 Ill. 494 (Ill. 1905).

75 N.E. 1032 (Jackson v. Grosser) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Duncan v. Milford Savings Bank
58 A.2d 260 (Supreme Court of Connecticut, 1948)