Kilpatrick v. Buhlig

13 N.E.2d 799, 294 Ill. App. 304, 1938 Ill. App. LEXIS 590
CourtAppellate Court of Illinois
DecidedMarch 16, 1938
DocketGen. No. 39,966
StatusPublished
Cited by1 cases

This text of 13 N.E.2d 799 (Kilpatrick v. Buhlig) 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
Kilpatrick v. Buhlig, 13 N.E.2d 799, 294 Ill. App. 304, 1938 Ill. App. LEXIS 590 (Ill. Ct. App. 1938).

Opinion

Mr. Justice Hall

delivered the opinion of the court.

In order that a clear understanding may be had of the nature of the issues involved here, we deem it necessary, first, to set forth in full the notice of appeal filed in the superior court of Cook county on December 10, 1937, which is as follows:

“Defendant, Chicago Lawn State Bank as Trustee under the provisions of a certain Trust Agreement known as Trust No. 31, for and on behalf of James A. Pearson, hereby appeals to the Appellate Court of Illinois, First District, from the order rendered and entered in this cause in the Superior Court of Cook County, Illinois, on November 19, 1937, appointing one Ben Cold receiver of the property involved herein, and from the further order entered herein on December 2, 1937, denying the ■ motion to vacate said order.

“Defendant, Chicago Lawn State Bank as Trustee under the provisions of a certain Trust Agreement known as Trust No. 31, for and on behalf of James A. Pearson, prays that the order heretofore entered herein on November 19, 1937, appointing Ben Cold receiver of the property involved in this cause, and the further order entered herein on December 2, 1937, denying the motion to vacate said order, be reversed by said Appellate Court or .reversed and remanded with directions to the trial court to vacate and set aside said orders.”

In a foreclosure proceeding brought to foreclose the lien of a mortgage trust deed on real estate, given to secure certain bonds, a decree of sale was entered, and on August 21, 1937, a sale of the property was had. On October 21, 1937, an order was entered approving the sale. Thereafter, on November 19, 1937, an order was entered vacating the sale. On the same date, to wit: November 19, 1937, the court entered a finding and order, in part, as follows:

“The Court . . . finds that it is provided in the trust deed herein sought to be foreclosed that upon the filing of a bill to foreclose, the Court in which the bill is filed may, before or after sale, and without regard to the solvency or insolvency of the person or persons liable for the payment of the indebtedness at the time of such application for a receiver, appoint a receiver during the pendency of the foreclosure suit, and in case of a sale and a deficiency, during* the period of redemption.

“And the Court having heard evidence, and being fully advised in the premises, finds that it is necessary for the preservation of the premises which are the subject-matter hereof, that a receiver be appointed for said premises, it appearing to the Court that it is probable that there will be a deficiency after sale, and that the grantors in said trust deed are unable to satisfy the same, and that the premises are scant security for the amount due.

“It is therefore ordered, adjudged and decreed that Ben Gold be hereby appointed receiver of the premises described in the complaint in equity filed herein, and legally described as follows: [here follows legal description] upon said receiver giving a bond in form and with surety to be approved by the Court in the amount of $7,500.00,said bond to be filed within ten days from the date hereof, and that plaintiff, upon due cause being shown, is hereby excused from filing a bond herein.

“It is further ordered that said funds collected by said receiver shall be deposited to said receiver’s account, and that the said receiver be and he is hereby given full power and authority to operate, manage and conserve the said premises; to find tenants therefor, and to lease same; to collect the rents, issues and profits therefrom; to insure said premises against loss by fire or other casualty; to employ janitors and other help; to make all necessary expenditures in the operation of said property; to employ counsel; to keep said premises in good condition and repair; and generally to have any and all other powers of receivers in like cases, and subject to the further order of this court. ’ ’

On November 22, 1937, James A. Pearson, named in the notice of appeal, asked leave to file an intervening petition in the cause which was denied, and in the order denying leave, the court made the following finding:

“That James A. Pearson is the record title holder of the property involved in this cause, having acquired title by virtue of a bankruptcy sale in the Federal Court for the Northern District of Illinois, Eastern Division, entitled ‘John Bain Inc.’ and numbered 61137, said conveyance having been made to James A. Pearson on July 27, 1937 and recorded on August 6, 1937 as document numbered 12037373, and upon the statement of attorney for the plaintiff, the Court finds that James A. Pearson, as such title holder, is merely a nominee of John McCarthy, Eugene J. Holland, James Costen and William O’Hare, and that said James A. Pearson is merely an employee in the office of John McCarthy.

“That E. B. Jenness was the purchaser at the Master’s sale heretofore held herein for and on behalf of John McCarthy, Eugene J. Holland, James Costen and William 0 ’Hare, which sale was subsequently disapproved by this court for the reason that no part of the bid was paid and that no further sale has been held in this cause.

“That the said James A. Pearson has offered to operate the property involved in this cause by posting a good and sufficient surety bond as holder of the legal title, upon such terms and conditions as the court shall see fit, accounting for the rentals received from the property in such a manner as the court shall desire, without any compensation to himself or his attorneys; that the said James A. Pearson is in the real estate management business, in the employment of said John McCarthy, his office being located within a short distance of the property in question, and as such, he is familiar with the operation and management of properties in that section of the City of Chicago.” Thereafter, on December 2, 1937, a written motion was made by Pearson to vacate the order just referred to, for the following reasons: (1) That no notice was served upon James A. Pearson, owner of the equity, to support the order appointing the receiver; (2) that no bond was furnished by the complainant as required by statute; (3) That the court did not read the intervening petition, and (4) that the order entered November 22, 1937, contained certain findings of fact, based upon the statement of the attorney for plaintiff only.

After a hearing on this motion, and on December 2, 1937, the court entered a further finding and order to the effect that on November 19, 1937, when the receiver was appointed, James A. Pearson was not a defendant in the cause, that he had not appeared by himself or by anyone for him, that there was no necessity for, nor did any rule of the court require that notice be served upon Pearson. The court further found that with reference to the fact that no bond was furnished by the complainant, that the court, for good cause, had excused such complainant from filing bond, that the court had fully considered the intervening petition filed on November 22,1937, and that the court was fully informed as to all the facts and statements contained therein. The court ordered that the motion of Pearson to vacate and set aside the order entered on November 19, 1937, appointing Gold receiver, be denied, and that the motion to vacate the order of the court denying Pearson leave to file an intervening petition, entered on November 22, 1937, be also denied.

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Bluebook (online)
13 N.E.2d 799, 294 Ill. App. 304, 1938 Ill. App. LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kilpatrick-v-buhlig-illappct-1938.