Kilpatrick v. Schmitt

24 N.E.2d 224, 303 Ill. App. 15, 1939 Ill. App. LEXIS 429
CourtAppellate Court of Illinois
DecidedOctober 25, 1939
DocketGen. No. 40,576
StatusPublished
Cited by1 cases

This text of 24 N.E.2d 224 (Kilpatrick v. Schmitt) 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. Schmitt, 24 N.E.2d 224, 303 Ill. App. 15, 1939 Ill. App. LEXIS 429 (Ill. Ct. App. 1939).

Opinion

Mr. Presiding Justice Denis E. Sullivan

delivered the opinion of the court.

This cause was before this court on a former appeal from an order vacating the first sale of certain premises. An opinion was filed on May 11, 1938, in said cause, being Gen. No. 39,907, 295 Ill. App. 620 (Abst.), dismissing the appeal for want of jurisdiction as no final order had been entered and no showing of damages had been made by the parties bringing the appeal. The facts presented for our consideration at this time are substantially the same as on the former appeal.

Intervening petitioners, Florence M. Woolley and William P. Do err, bring this appeal from the superior court and complain of the action of that court in denying their petition to vacate an order denying the prayer of their petition. The petition sought to have the court set aside an order to vacate the sale of certain premises at a foreclosure held by plaintiff.

The following statement of the case made by petitioners is agreed upon as being a fair statement. Some modifications have been made by the court, conforming to the facts.

Pursuant to the decree of foreclosure, the master in chancery held a sale of foreclosure on November 5, 1936, at which sale the highest bidder was Saul Plast who bid $15,600. The sale was approved by a court order entered on July 7, 1937, and certificate of sale issued to the buyer. Thereafter this sale was set aside and the order of July 7, 1937, approving the same was also set aside, both by court order dated October 8, 1937, and the purchase money ordered returned to the certificate holder and a new sale ordered. A second sale was held on July 15, 1938, at which a bid of $40,000 was made by Joseph Walhala, and approved on September 8, 1938. Florence M. Woolley and William P. Doerr who say they own all of the fee except 3/16 of the fee for the use of Esther Levy, and who also say that they are not liable as mortgagors, bring this appeal to reverse the orders of the superior court entered September 8, 1938 to vacate the sale of July 15, 1938, to reverse the order of October 8, 1937, and to reaffirm the order of July 7, 1937, so that the first sale will stand. Appellants request a reasonable time within which to exercise their right to redemption from said first sale.

It is agreed that the detail of the facts and the proceedings in chronological order with regard to this case are as follows:

On December 7, 1932, Benjamin Gr. Kilpatrick, as successor trustee on behalf of- the holders of first mortgage bonds, executed by Joseph Schmitt and his wife, aggregating an indebtedness of approximately $154,000 and secured by trust deed conveying real property located in Chicago, Illinois, at 5510-12 Cornell avenue, otherwise known as the Cornell hotel, filed his bill of complaint in chancery to foreclose the lien of said trust deed because of defaults in the payment of interest and certain principal prepayments.

A decree of sale was entered June 6, 1936. On November 5, 1936, Saul Plast bid $15,600 at the master’s sale, and this was approved by an order of court dated July 7, 1937.

On August 6,1937, one Helen Wells, by her attorneys, after due notice to all attorneys of record, filed a sworn petition alleging she was the owner of $6,000 of bonds secured by the Cornell hotel property, that the premises were worth $60,000 gross, that delinquent taxes amounted to $25,000 and that a bid of $15,600 over and above the amount of delinquent taxes was inadequate; that she would bid $25,000 if the sale of November 5, 1936 was set aside, and to guarantee said bid, offered to deposit $1,000 with the master in chancery to be forfeited if she failed to make a bid' of at least $25,000. This motion was entered and continued to September 13, 1937, without further notice, and on September 13, 1937, the motion was again continued to September 17,1937. On September 17,1937, the motion was continued to October 15, 1937.

On October 8,1937, an order was entered purporting to be on the petition of said Helen Wells, vacating the order of July 7, 1937, approving the master’s report of sale, and setting aside the sale of November 5,1936. The order of October 8,1937 also provided that the purchase money of $15,600 should be repaid to the holder of the certificate of sale on surrender of said certificate and that said master resell said premises.

On October 13, 1937, said Helen Wells filed a petition to set aside and vacate the order of October 8, 1937, and to reinstate the sale and order approving it. This petition was denied by the court on the day it was presented.

On October 20, 1937, appellants filed a sworn petition alleging ownership of the fee title to the property which they claimed they obtained from one Herbert W. Schmitt, a bachelor; that on May 6, 1937 by quitclaim deed an undivided % of said fee title was conveyed to William P. Doerr and on June 16, 1937 by quitclaim deed said Herbert W. Schmitt conveyed an undivided % fee title to Florence M. Woolley, of which 11/16 is held for her own use and benefit and 3/16 for the use and benefit of Esther H. Levy.

Petitioners further claim that the order of October 8, 1937 had been entered without notice in violation of rule 16 of the superior court rules and that the petition of Helen Wells, dated August 6, 1937, stated no legal grounds on which to vacate a sale; that appellants desired to redeem the property from the sale and prayed the sale be reinstated and the order of October 8, 1937 be vacated.

As before stated an appeal was taken to this court, being Gen. No. 39,907, wherein an opinion was filed by this court on May 11,1938, and said appeal was dismissed for want of a final and appealable order.

The appellants’ or interveners’ theory of the case is, that when the court approved the first sale, the rights of the parties to the litigation became fixed and could not be upset without a clear showing of fraud; accident or mistake in the sale, or in procuring the approval of the sale; that since no attempt was ever made by anyone to show any fraud, accident or mistake, it was error to vacate the sale of $15,600, regardless of how much more some offer 10 months later might be. Since appellants are owners of the right of redemption, but not liable for the payment of the deficiency judgment, the vacation of the first sale and approval of the second sale destroys the equity of redemption for practical purposes, or, at least, reduced its value $24,600. This is inequitable and contrary to the established law of Illinois.

We have made a diligent search of the record and it appears that on June 3, 1936, a decree of sale was entered and pursuant to the provisions thereof a public sale was held on November 5, 1936, at which time the premises were sold to Saul Blast for $15,600. On May 6, 1937, Herbert W. Schmitt, the then owner of the equity of redemption conveyed % of the property by quitclaim deed to William Doerr, one of the appellants, and on June 16, 1937, Herbert W. Schmitt conveyed % of the property by quitclaim deed to Florence M. Woolley the other appellant. No appearance was entered for these petitioners. We do not see how they were injured by the sale of property which was deeded some six or seven months before they even claimed to own it or have any interest in it.

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24 N.E.2d 224, 303 Ill. App. 15, 1939 Ill. App. LEXIS 429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kilpatrick-v-schmitt-illappct-1939.