Lawrence v. Thatcher

75 N.E.2d 777, 332 Ill. App. 444, 1947 Ill. App. LEXIS 357
CourtAppellate Court of Illinois
DecidedNovember 13, 1947
DocketGen. No. 43,802
StatusPublished

This text of 75 N.E.2d 777 (Lawrence v. Thatcher) 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
Lawrence v. Thatcher, 75 N.E.2d 777, 332 Ill. App. 444, 1947 Ill. App. LEXIS 357 (Ill. Ct. App. 1947).

Opinion

Me. Presiding Justice Friend

delivered the opinion of the court.

On October 25,1945, plaintiff confessed judgment on a chattel mortgage note for $2,190.50, upon which execution was issued, and served on defendant. Thereafter,' pursuant to notice duly served, defendant presented and filed his petition to open judgment with leave to defend. On November 16, 1945, the court sustained the petition and set the matter for hearing on December 6, 1945. Testimony was adduced by both parties, and on J annary 18, 1946, the court entered its order finding that defendant had proved the material allegations of the petition, that he was entitled to the relief prayed for, and ordered that the judgment by confession be vacated and held for naught. Plaintiff has taken an appeal from that order.

The petition to vacate, set forth in plaintiff’s brief, embraces some nine printed pages. It alleges in detail the salient facts underlying the transaction in which the judgment note and chattel mortgage were given, states that petitioner has a good and meritorious defense to the whole of plaintiff’s claim by reason of the facts and circumstances set forth, that .he is not indebted to plaintiff in any sum whatsoever, that the sum of $2,000 and the chattel mortgage note upon which judgment had been entered were obtained by plaintiff through fraud and false representation, and accordingly defendant asked that the judgment be opened up and on hearing thereof be vacated, and that the execution issued thereon be stayed.

Upon the hearing the following testimony, as to which there was substantially no dispute, was adduced in support of the allegations of the petition. Defendant was an undertaker engaged in business at 4141 Cottage Grove avenue, and was desirous of securing another undertaking establishment. Plaintiff was also an undertaker, located at 7509 Stony Island avenue, and had been engaged in business at that address for about 20 years. Negotiations .for the sale of plaintiff’s business to defendant were-started early in July 1945. About that time plaintiff received an offer to go to Oklahoma, called defendant to tell him about the offer, and asked if he would be interested in buying his undertaking business if he decided to leave Chicago. Within a day or two defendant came to plaintiff’s place of business, and they began to discuss the terms of the sale. Plaintiff testified that defendant “asked me what kind of lease I had. I told him I had a year-to-year lease; that my lease would expire on the 30th of next April [1946]; he wanted to know how much rent I paid. I told him it was $150 a month.” Defendant wanted a long-term lease and inquired of the plaintiff as to the names of the owner and the agent of the building. Plaintiff told him that Swan-Lorish on 71st street managed the building, and called Mr. Monaghan, who was in charge of the Swan-Lorish office, told him that he expected to go to Oklahoma, that he had a tentative deal with Mr. Thatcher, the defendant, which was contingent upon his getting a long-term lease, that Thatcher was also an undertaker and would come over to see him. Subsequently defendant told plaintiff that he had tallied to Monaghan, who informed him the rent would be raised but indicated they would give defendant a lease such as he desired. The parties then discussed" the question of possession. Plaintiff wanted to fix the time as of December 1, 1945, but defendant wanted an earlier date so that he could make alterations before the cold weather set in, and they finally compromised on October 1, 1945. Soon thereafter defendant and his wife called at plaintiff’s place of business and took an inventory, and later defendant called plaintiff, told him that he thought everything was settled about his getting a lease, and agreed to meet him on July 30 to close the deal.

The parties met in the office of defendant’s attorneys, Cochrane & George, on that date. Plaintiff was accompanied by his counsel. Before proceeding to consummate the transaction defendant said that he again wanted to check on the lease. Accordingly he called Mr. Monaghan, was assured that he would obtain a lease, and announced that he was ready to go ahead. The parties had agreed on the amount to.be paid at that time ($2,000) and the date of possession, but the terms as to the balance were still undecided. In compliance with plaintiff’s request a note for $2,000, secured by a chattel mortgage, was signed by defendant, and a Bulk-Sales affidavit and bill of sale conveying the itemized list of goods and chattels, were executed by plaintiff. Shortly thereafter defendant had an architect draw plans for a new front to be installed and for alterations in the interior of the building.

The issue of fact upon which the evidence was conflicting was whether defendant had knowledge of one McCarthy’s interest in the premises. Up to the time the transaction was consummated on July 30, 1945, plaintiff had apparently not told defendant that McCarthy was a co-lessee or that he had the right to the use of the furniture until April 30, 1946, when the lease expired. Defendant testified that the first information he had on this subject came to him early in September 1945, when a salesman in his office told him that he had heard McCarthy was on the lease with plaintiff and was threatening to make trouble. Defendant went to see plaintiff, told him what he had heard, and asked whether it was true that McCarthy had an interest as lessee, to which plaintiff replied that he had, but assured defendant that McCarthy would not “make any trouble,” that “he will go along” and “he will do anything I say.” After learning that McCarthy was a co-lessee defendant contacted Monaghan, who asked plaintiff for a copy of the lease, but plaintiff was unable to comply with this request because the lease was in McCarthy’s possession. Plaintiff, however, called on Monaghan September 6 and requested that he write a letter to him and McCarthy, stating that their lease was canceled as of September 30, 1945, because a new lease had been made to defendant. Monaghan complied with this request and wrote such a letter the same day. Upon receipt of the letter McCarthy referred it to his attorney, Edward H. Enright, who on September 13, 1945, advised Monaghan in writing that McCarthy would not consent to a cancellation of his lease and had not authorized plaintiff to do so for him. In the light of this development defendant’s counsel, Edgar George, wrote plaintiff on September 15 advising that his present lease must be turned in and canceled at once; otherwise defendant would rescind the transaction, expect plaintiff to return the $2,000 paid to him and cancel the chattel mortgage, and defendant on his part would reconvey to plaintiff title to the furniture, fixtures, etc.

On October 1, 1945, defendant and his attorney, George, went to plaintiff’s establishment. McCarthy and his counsel, Enright, were there, and plaintiff and his attorney were also present. McCarthy refused to give up possession or to permit defendant access to the premises or the furniture and fixtures, and his attorney advised McCarthy to keep defendant out and if necessary to call the police. The next morning he advised McCarthy to change the locks on the place. Several days later Enright and his client met with the parties in George’s office, and an effort was made to come to an understanding. Enright took the position that his client should receive $1,500 of the $4,000 purchase price. Plaintiff characterized this request as “absolutely ridiculous,” and nothing was accomplished.

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Bluebook (online)
75 N.E.2d 777, 332 Ill. App. 444, 1947 Ill. App. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-v-thatcher-illappct-1947.