Jefferson Trust & Savings Bank v. W. Heller & Son, Inc.

280 Ill. App. 399, 1935 Ill. App. LEXIS 394
CourtAppellate Court of Illinois
DecidedMay 1, 1935
DocketGen. No. 8,869
StatusPublished
Cited by2 cases

This text of 280 Ill. App. 399 (Jefferson Trust & Savings Bank v. W. Heller & Son, Inc.) 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
Jefferson Trust & Savings Bank v. W. Heller & Son, Inc., 280 Ill. App. 399, 1935 Ill. App. LEXIS 394 (Ill. Ct. App. 1935).

Opinion

Mr. Presiding Justice Wolfe

delivered the opinion of the court.

This is an appeal from an order of the circuit court of Peoria county denying the defendants’ motion to open up a judgment against the defendants in the sum of $18,602.05, and for leave to the defendants to plead to the original declaration. The action was on a narr and cognovit on account of a promissory .note of the principal sum of $17,261.87, with interest at the rate of seven per cent per annum, due the Jefferson Trust & Savings Bank of Peoria, Illinois. The note is purported to have been signed by W. Heller & Son by Samuel Heller, as secretary and I. M. Heller, as president. The note was indorsed individually by R. A. Heller, Samuel Heller and I. M. Heller. The defendants filed affidavits in support of their motion to vacate and open up the judgment. On January 27, 1934, the court denied the motion to open up the judgment and give defendants leave to plead. To review this order the case is brought to this court on appeal.

The affidavit filed by the defendants is in substance as follows :

No. 1. “That said defendants believe that the defendants have a meritorious defense to the whole of claimant’s demand, and that the defendants and each of them have good legal and equitable grounds for granting a motion to vacate the judgment and set aside and recall the execution in said cause and in support of said affidavit the nature of the defenses and the grounds relied upon were outlined as follows:
“That on December 21st, 1933, was filed in the Circuit Court of Peoria County, Illinois, a certain bill in equity entitled W. Heller & Son, Inc., a corporation, et al. v. Jefferson Trust & Savings Bank of Peoria, a banking corporation, et al., a copy of which bill is as follows:
14-23 “State of Hlinois, County of Peoria.
}
ss.
“In the Circuit Court of Peoria County in Chancery.
“W. Heller & Son, Inc., a Corporation; Rufus Heller, I. M. Heller, vs. Jefferson Trust & Savings Bank of Peoria, a banking corporation; John C. Wynd, individually and as Trustee; Harry A. Frankel, Robert Silberstein, Sam Heller. No
“To the Honorable Judges of the Circuit Court in Chancery Sitting:
“Bill for Reformation, Etc.
“1. Your orator, W. Heller & Son, Inc., respectfully represents that it is a corporation duly organized and existing under and by virtue of the laws of the State of Illinois, having its principal office in - the City of Peoria, State of Illinois; your orators Rufus Heller and I. M. Heller respectfully represent unto this Honorable Court that they are residents of the City of Peoria, County of Peoria, and State of Illinois.
“2. That at various and divers times one of the defendants herein, Sam Heller, purchased certain shares of the common capital stock of the State Trust and Savings Bank, a banking corporation located in the City of Peoria, State of Illinois; that said State Trust and Savings Bank employed Sam Heller to purchase said stock, and the said Sam Heller acted as an agent of the State Trust and Savings Bank for the purchase of said stock; that the said Sam Heller purchased in all a total of one hundred and fifty-five (155) shares of the common capital stock of the said banking corporation ; that as the shares of said stock were purchased, the said stock was taken and held as collateral by the State Trust and Savings Bank to secure certain advances made to the defendant Sam Heller to cover the purchase price of each of the particular transactions involving the acquisition of said shares in the said bank.
“3. That although the facts are peculiarly within the knowledge of the defendants and others, your orators believe that the said State Trust and Savings Bank ceased to do business as a banking institution during the month of February, 1931, and from that day until the day hereof continues to cease from doing business as a banking institution in the State of Illinois.
“4. That following the closing of said bank certain officials of the State Trust and Savings Bank and others, entered into negotiations for the purpose of formulating a plan whereby a reorganization of the affairs of the State Trust and Savings Bank would be accomplished and said bank opened for the purpose of doing business in the City of Peoria, State of Illinois; that your orators have been informed and believe that said plan of reorganization provided that a new banking corporation was to be organized, and that said banking corporation was to assume and pay all deposit liabilities of the State Trust and Savings Bank in full, at the date of the closing of said State Trust and Savings Bank, and said plan further provided that there was to be organized a certain corporation which was to receive certain assets of various description and kind, which were formerly a part of the assets of the State Trust and Savings Bank, and which assets were to have a face value of, to wit, $500,000; that said plan further provided that the stockholders of the State Trust and Savings Bank in lieu of their stock liability to said bank were to subscribe for share and share alike of the common capital stock of a corporation to be formed, and that said stockholders should subscribe and pay in a total sum of two hundred thousand dollars ($200,000.00) in cash; that the total amount of the assets transferred from the State Trust and Savings Bank to the new corporation should act as collateral to reimburse the stockholders for the funds which they were to raise when, as and if said assets were liquidated.
‘ ‘ 5. That pursuant to said plan of reorganization one of the defendants herein, Harry Frankel, and others of the City of Peoria, exerted their efforts towards obtaining from the stockholders the two hundred thousand dollars ($200,000.00) required, and in making such other necessary arrangements to permit the new bank to open.
“6. That on the seventeenth (17th) day of October, A. D. 1931, there was executed by one of the defendants herein, Sam Heller, and delivered to Harry Frankel a certain promissory note in the principal sum of $15,500.00, with confession of judgment clause, the said note being payable to John C. Wynd, trustee, said note appearing more specifically as Exhibit A herein and attached hereto and made a part of this bill of complaint. ■
“ 7. That said note was executed by Sam Heller and delivered to Harry Frankel in lieu of the purchase of one hundred and fifty-five (155) shares of the common capital stock of the corporation to be formed for the purpose of procuring the funds required of the stockholders of the State Trust and Savings Bank; that Sam Heller was unable to pay for his subscription in cash and was permitted to give his note as appears in Exhibit A herein.
“8. That on, to wit, the twenty-seventh (27th) day of October, A. D.

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Related

Stranak v. Tomasovic
32 N.E.2d 994 (Appellate Court of Illinois, 1941)
Jefferson Trust & Savings Bank of Peoria v. W. Heller & Son, Inc.
27 N.E.2d 844 (Appellate Court of Illinois, 1940)

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Bluebook (online)
280 Ill. App. 399, 1935 Ill. App. LEXIS 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-trust-savings-bank-v-w-heller-son-inc-illappct-1935.