Landfield Finance Co. v. Feinerman

279 N.E.2d 30, 3 Ill. App. 3d 487, 1972 Ill. App. LEXIS 1826
CourtAppellate Court of Illinois
DecidedJanuary 6, 1972
Docket54683
StatusPublished
Cited by23 cases

This text of 279 N.E.2d 30 (Landfield Finance Co. v. Feinerman) 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
Landfield Finance Co. v. Feinerman, 279 N.E.2d 30, 3 Ill. App. 3d 487, 1972 Ill. App. LEXIS 1826 (Ill. Ct. App. 1972).

Opinion

Mr. JUSTICE DEMPSEY

delivered the opinion of the court:

The Landfield Finance Company filed suit against Albert and Lula Feinerman, alleging that they converted items of personal property in which the plaintiff had a prior and perfected security interest. Following a trial without a jury the court found for Landfield and entered judgment in tire sum of $4,115.63, from which the defendants appeal. They contend that Landfield failed to prove that a conversion had taken place and that the testimony of the company’s president, concerning the market value of the collateral, should have been excluded.

In 1955 the Feinermans entered into an agreement with Arthur and Anna Rossmiller, husband and wife, under which the Rossmillers contracted to purchase The Carroll House, a hotel in Macomb, Illinois, together with all its furnishings. Under a 1959 refinancing arrangement the Feinermans became holders of a chattel mortgage upon the furnishings and equipment of the hotel. In a pleading filed by them the Feinermans indicated that the chattel mortgage had been recorded, but the mortgage was not introduced into evidence and, in any event, it had expired prior to the onset of the events which resulted in the present litigation.

Subsequently, during the latter months of 1966, the Rossmillers applied for a loan from Landfield, and in November 1966 the company’s president, George Landfield, traveled to Macomb to arrange the loan. Before making the loan he made a title search on the property, and he thereby confirmed the Rossmillers’ statements that they were purchasing the hotel from the Feinermans. The loan was secured by a promissory note from the Rossmillers and a security agreement listing as collateral over 12,000 items of personal property located in The Carroll House. The documents were properly recorded as provided in the Uniform Commercial Code. The Rossmillers gave Landfield an affidavit stating that the Feinermans had no interest in the items of collateral listed in the security agreement. At the trial Feinerman testified that he had a conversation with Landfield at the time of the loan in which he told Land-field that he had a mortgage on the furnishings and the equipment in the hotel. Landfield denied that this conversation took place.

In October 1967 the Rossmillers decided that they would no longer operate The Carroll House, and at a meeting with Mrs. Feinerman on October 26th, they signed an agreement in which they surrendered all their rights to the hotel and consented to give up possession of the premises in 30 days. The Rossmillers moved their belongings to a new location during the weekend of November 11, 1967. Virgil Payne, who supervised the Feinermans’ real estate holdings in Macomb, informed Feinerman that the Rossmillers were taking many items of personal property out of the hotel. Upon receiving this information, Feinerman decided to transfer all the movable property in The Carroll House to a building he owned in Macomb. Although the 30 days in which the Ross-millers were entitled to vacate the premises had not expired and although they had not surrendered the keys to The Carroll House, the chattels were removed on November 13th at Payne’s direction. On several occasions George Landfield telephoned Payne and demanded possession of the collateral, but to no avail. Thereafter, the Landfield company instituted the present action for conversion against the Feinermans.

The Feinermans assert that the trial court erred in holding that a conversion took place. They admit that their chattel mortgage on tire property in dispute had expired at the time Landfield took a security interest in the property. They contend, nevertheless, that Landfield did not prove any action on then part which wrongfully deprived it of possession; that no demand for the goods was made and the items in Landfield’s security agreement were fixtures, to which they had a prior right.

The essence of conversion is the wrongful deprivation of property to the owner or the person entitled to possession. (First Finance Co. v. Ross (1966), 75 Ill.App.2d 403, 221 N.E.2d 37; Genslinger v. New Illinois Athletic Club (1923), 229 Ill.App. 428.) In an action for conversion relief may be had without establishing malice, culpability or conscious wrongdoing. All that is required is the exercise of control by the defendant over the chattel in a manner inconsistent with the plaintiff’s right of possession. (Associates Discount Corp., v. Walker (1963), 39 Ill.App.2d 148, 188 N.E.2d 54.) However, one who knowingly takes possession of personal property which belongs to another is hable to the person whose property has been appropriated whether or not a demand is made for the return of such property. (Puerto Rico Industrial Development Co., v. J. H. Miller Mfg. Co. (1959), 173 F.Supp. 596 D.C. S.D. Ill.) In the present case Landfield made a sufficient demand for the return of the property and, therefore, it need not be determined whether failure to make such a demand would have been fatal to’ its case.

In his testimony Feinerman identified Payne as his agent and stated that Payne had worked for him for years. He further indicated that the property was taken from The Carroll House because of Payne’s suspicions, which were communicated to him, that the RossmiUers were removing items to which they had no right. George Landfield testified that he made several phone caUs to Payne demanding the coUateral; and, although he did not talk to Feinerman, the instructions Feinerman gave to Payne concerning the property plus his admission of Payne’s agency, provide sufficient reason to hold that a demand upon Payne constituted a demand upon Feinerman.

The Feinermans also contend that Landfield’s conduct throughout the transaction manifested a lack of good faith. Such a finding was properly for the trial court, as in a non-jury trial the court must determine the credibility of the witnesses. (Dvorson v. City of Chicago (1970), 119 Ill.App.2d 357, 256 N.E.2d 59.) No bad faith was found to exist and the Feinermans have not shown that the trial court was in error.

The Feinermans next urge that the property which was removed and upon which Landfield claims a superior right, actually constituted fixtures, and under Ill. Rev. Stat., 1967, ch. 26, par. 9 — 313, as purchasers of the real estate, their own interest took priority. The once inflexible rule that when personal property is attached by some permanent method to the realty it loses its identity as personalty and becomes part of the realty, has been replaced in Illinois by a more liberal doctrine holding that the property remains personalty where such intent can be gathered from the conduct or the action of the parties. (In Re Mígala's Estate (1952), 348 Ill.App. 547,109 N.E.2d 261.) The use of the articles claimed to be fixtures and the purposes for which they were made are also important in determining intent; thus benches in a church as well as the chandeliers have been held to be personalty. (Chapman v. Union Mutual Life Insurance Co. (1879), 4 Ill.App. 29.) Tavern equipment has been specifically held to constitute personalty rather than fixtures. (Davis Store Fixtures, Inc., v.

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

Related

Allied Health Group, Ltd. v. Nakhshin
2019 IL App (1st) 190037-U (Appellate Court of Illinois, 2019)
Hartford Fire Insurance v. Taylor
903 F. Supp. 2d 623 (N.D. Illinois, 2012)
Harrisburg Community Unit School District No. 3 v. Steapleton
553 N.E.2d 76 (Appellate Court of Illinois, 1990)
Pillsbury Co. v. Midland Enterprises, Inc.
715 F. Supp. 738 (E.D. Louisiana, 1989)
State Farm Fire & Casualty Co. v. Rixecker
540 N.E.2d 436 (Appellate Court of Illinois, 1989)
Rybak v. Dressler
532 N.E.2d 1375 (Appellate Court of Illinois, 1988)
Lindstrom v. Houzenga
531 N.E.2d 1096 (Appellate Court of Illinois, 1988)
Arcadia Upholstering, Inc. v. 165 Restaurant, Inc.
516 N.E.2d 523 (Appellate Court of Illinois, 1987)
In Re Reeves
65 B.R. 898 (N.D. Illinois, 1986)
Shacket v. Philko Aviation, Inc.
590 F. Supp. 664 (N.D. Illinois, 1984)
Douglass v. Wones
458 N.E.2d 514 (Appellate Court of Illinois, 1983)
Borrowman v. Howland
457 N.E.2d 103 (Appellate Court of Illinois, 1983)
Hoffman v. Allstate Insurance Co.
407 N.E.2d 156 (Appellate Court of Illinois, 1980)
Porter v. County of Cook
355 N.E.2d 561 (Appellate Court of Illinois, 1976)
Dickson v. Riebling
333 N.E.2d 646 (Appellate Court of Illinois, 1975)
FIRST NATIONAL BK. OF MT. PROSPECT v. York
327 N.E.2d 400 (Appellate Court of Illinois, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
279 N.E.2d 30, 3 Ill. App. 3d 487, 1972 Ill. App. LEXIS 1826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landfield-finance-co-v-feinerman-illappct-1972.