Kohn v. Miller

97 Ill. App. 487
CourtAppellate Court of Illinois
DecidedOctober 15, 1901
StatusPublished

This text of 97 Ill. App. 487 (Kohn v. Miller) 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
Kohn v. Miller, 97 Ill. App. 487 (Ill. Ct. App. 1901).

Opinion

Mr. Justice Adams

delivered the opinion of the court.

The appellees sued appellant, in assumpsit, for the amount of two bills of goods shipped by them to Stein & Brodeclc, a firm composed of Albert Stein and Albert A. Brodeclc, doing business in Everett, in the State of Washington. The first bill was shipped July 15, 1895, amounting to §129, and the other September 10, 1895, amounting to §491. That the goods were shipped and their value as above stated, and that they have not been paid for, are uncontroverted facts. The only contested question is as to the liability of appellant. The cause was submitted to the court for trial, and the court found the issues for the plaintiffs and assessed the plaintiffs’ damages at the sum of §756.03, and judgment was rendered on the finding.

It appears from the evidence that Stein & Brodeck failed in business and that they had executed to Charles Stein, father of Albert Stein, a chattel mortgage on their stock of goods; that prior to December, 1893, Charles Stein took possession of the stock under the chattel mortgage; that subsequently the creditors of Stein & Brodeck, not including appellees, had a meeting in Chicago, and an arrangement was made by which Charles Stein released his mortgage, and he and Louis H. Kohn were appointed trustees for the creditors. By the arrangement the business of Stein & Brodeck was to be superintended by Charles Stein, at Everett, and goods sufficient to replenish the stock of the firm were to be purchased, but no order for goods were to take effect, or the goods to be shipped, without the approval of appellant, who resided in Chicago. All money received on sales, above expenses, including compensation to Stein & Brodeck, who were to act as clerks, was to be sent to Chicago to appellant. Charles Stein continued to be trustee up to July, 1894, when, as the evidence tends to show, one Taylor became trustee in his place. There is no evidence that Taylor ever did anything as trustee.

The suit was brought against Kohn and Charles Stein, but Stein having ceased to be trustee when the bills in question were contracted, the suit was dismissed against him, and the declaration was amended accordingly.

In a letter from appellant to appellee, of date December 23,1893, the following occurs:

“ Creditors here, whom Stein & Brodeck owed $9,400, had Charles Stein release his mortgage and place affairs in the hands of myself and Charles Stein, as trustees for creditors. The goods at the other store, a few goods to replenish their stock, were to be bought as they did business. Trade has not been very brisk there, and you can be well satisfied that you get your money so early. Herewith check $178.Gi>. Please receipt in full for bill to me here.” Signed, “ Louis H. Kohn, trustee.”

The following letters passed between the parties:

“Chicago,'January 6, 1894.

Messes. Jacob Milleb, Son & Co., Philadelphia, Pa.

Gentlemen: Tour favor of the 26th sent to Stein & Brodeck, was forwarded here. This business is in the hands of Charles Stein and L. H. Kohn, trustees. They expect by the first of February to have paid all their new bills contracted for the fall, and to start paying on the old accounts. The new bills contracted for are to be paid before any of the old bills are paid, so that after you ship these goods your claim, as well as those of the other parties who are willing to continue business under this style, will be paid first. You are not taking any risk, but your account is as good as if it was against the best firm you have on your Books. If you should not desire to do any business with them, please advise us here so that we can inform them. So far as the risk is concerned, you are not taking any chances at all. Would thank you to advise what your position is, so we can notify them, if they did not buy your goods, to buy those of some other firm.

Yours truly,

L* H. Kohn.”

“November 26.

Hr. Louis H. Kohn, care Messrs. Ederheimer, Stein & Co., Chicago, Ill.

Dear Sir: We are to-day in receipt from Messrs. Stein & Brodeck, Everett, Wash., for spring shipment, clothing amounting to $786.75 and shirts $506.50. In receiving the same it reminds us that we had the expression from Messrs. Stein & Brodeck that their fall bill of July 19th as October 1, $129, Sept, as Nov. 1, $491, that the same should be discounted. Accordingly, we did send you in due time a statement of this account. Kindly take notice of the same and give us your expression by return mail, and oblige.

Yours respectfully,

Jacob Miller, Sons & Co.”

“Chicago, November 30, 1895.

Messrs. Jacob Miller & Son, Philadelphia.

Gentlemen: Your favor of the 26th inst. is at hand. I am one of the trustees who have the affairs of Stein & Brodeck in charge, and all orders before being shipped should receive my O. K. I do not understand how you can ship goods to them under the circumstances as you did this bill, without having my consent to do so. You will please not do it again, with orders for next spring delivery, before having my O. K. on them, and it will be better for you not to consider them as ordered until then. The arrangement is that I am to know what goods they buy, and the bills are then paid by me as trustee; and while I consider the account all right now, as we are doing all we can to help them to pay their old debts in full, you have no right to send them any goods unless you first confer with me. The bills that they are owing now that you ship will not be discounted promptly, as there is no money on hand to do it Avith; but when your turn comes for payment you Avill no doubt receive the money as quickly as' any of the other parties whom the goods were bought from.

Louis H. Kohn.”

The letter of December 28, 1893, is evidence that Kohn paid the bills for goods shipped to Stein & Brodeck. He sent a check and requested a receipt sent to him. Leon Freedman, bookkeeper of appellees, also testified that appellees’ bills, except those sued for, were paid by Kohn. In appellant’s letter of November 30, 1895, he writes: “ All orders, before being shipped, should receive my O. K.” In this letter he also approves the purchases referred to in appellees’ letter of November 26th, which are the purchaseso in suit, saying: “ I consider the account all right now.” About the end of the year 1895, appellant, as he testified, directed attorneys in EAmrett to have the stock sold out. This Avas done. The proceeds of goods sold by Stein & Brodeck, and also the proceeds of the sale of the entire stock, as directed by appellant, Avere deposited Avith the banking firm of Stein, Ederheimer & Co., of Avhich firm appellant Avas a member. An account AA-as kept on the books of the firm in the name of Louis II. Kohn, trustee, and shoAvs a balance to his credit, as trustee, of $1,482.31, and appellant, himself, testified on the trial, that there Avas on deposit Avith the firm of Ederheimer & Go., subject to his order and control, “ some $1,500,” proceeds of the sale of goods formerly of Stein & Brodeck. The evidence tends to show that duplicates of bills of goods shipped to Stein & Brodeck were sent to appellant.

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97 Ill. App. 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohn-v-miller-illappct-1901.