Lutt v. Grimont

17 Ill. App. 308, 1885 Ill. App. LEXIS 336
CourtAppellate Court of Illinois
DecidedSeptember 24, 1885
StatusPublished
Cited by3 cases

This text of 17 Ill. App. 308 (Lutt v. Grimont) 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
Lutt v. Grimont, 17 Ill. App. 308, 1885 Ill. App. LEXIS 336 (Ill. Ct. App. 1885).

Opinion

Pillsbury, P. J.

The errors assigned upon the record, question the jurisdiction of the court below in three particulars :

1st. In making the order appointing a receiver.

2d. In making the order of April 14, 1884, requiring Lutt to pay over the money to the receiver.

3d. In making the order of May 8, 1885, adjudging Lutt in contempt and committing him to jail.

It is urged in support of the first point that the bill is insufficient upon its face to authorize the appointment of a receiver, and especially should this not be done where, as in this case, the answer denies the equities of the bill.

Our statutes, § 49, Chancery Code of 1874, provide that “Whenever an execution shall have been issued against the property of a defendant, on a judgment at law or in equity, and shall have been returned unsatisfied in whole or in part, the party suing out such execution may file a bill in chancery against such defendant and any other person, to compel the discovery of any property or thing in action, belonging to the defendant, and of any property, money or thing in action due to him or held in trust for him, and to prevent the transfer of any such property, money, or thing in action or the payment or delivery thereof to the defendant, except when such trust has in good faith been created by, or the fund so held in trust has proceeded from, some person other than the defendant himself. The court shall have power to compel such discovery, and to prevent such transfer, payment or delivery, and to decree satisfaction of the sum remaining due on such judgments, out of any personal property, money or things inaction, belonging to the defendant or held in trust for him, with the exception above stated, which shall be discovered by the proceedings in chancery, whether the same were originally liable to be taken in execution at law or not.”

Here is direct authority for the court to prevent a transfer of any property held in trust for the debtor, and empowers the court to employ any method consistent with the practice of courts of equity to accomplish such object. If, in the opinion of the court, a seizure of the property is necessary to the end that it should be forthcoming to answer the debt of complainant, this can be done by the appointment of a receiver, and indeed it is said “ that in cases of creditor’s bills where the return of the execution unsatisfied pre-supposes that the property of the defendant, if any he has, will be misapplied, and entitles the complainant to an injunction in the first instance, it seems to be almost a matter of course to appoint a receiver to collect and preserve the property pending the litigation.” Bloodgood v. Clark, 4 Paige, 574.

So where a debtor makes a .fraudulent assignment of his' property for the purpose of hindering and delaying his creditors, receivers are frequently appointed in behalf of judgment creditors, and especially will the relief be granted in such case where the defendant continues in possession of the property and exercises acts of ownership over it. Cannah v. Sedgwick, 1 Barb. 210.

It was held in Gage v. Smith, 79 Ill. 219, that in cases of creditor’s bills, the court had power to apepoint a receiver, and that our statutes should be construed as liberally as that of the State of New York, from which it was adopted.

It is thus seen that in cases like the present ample power is conferred upon the court of chancery to appoint a receiver when in the judgment of that tribunal the case before it is a proper one for the exercise of such jurisdiction.

And whether the circumstances are such as to require the court, in the exercise of a wise judicial discretion, to act in the premises, must in the first instance be determined by itself, and its determination of this question is conclusive in all collateral proceeding’s if enough apjpears up>on the face of the record to give the court px>wer to act at all in the pn-emises.

The facts alleged in the bill in the chancery cause are in our opinion sufficient to give the court jurisdiction to act upon the pu-ayer of the bill asking for the apjpointment of a receiver, but whether, up>on the motion to appoint one over the ansxver of the defendants, the proof was such as to justify the court in granting the motion, we have no means of knowing, and it is not material we should, for although the court may have committed error in that regard we can not correct it in this proceeding.

The court having acquired jurisdiction to'act in the matter, its action can not be reviewed up>on this writ of error.

It is claimed in support of the second assignment of errors, that the cause was finally disposed of by the order dismissing the bill entered Sep>t. 8,1883, upoon a hearing upon the merits, and no further proceedings could be had in the cause, and that the order of April 14, 1884, was made without notice to Lutt, and was therefore void. Had the court adjourned for the August term without making any further order in the cause, the decree would undoubtedly have been final and the result contended for would have followed, but at the same term of court the complainant entered his motion for a rehearing of the cause, and the motion was continued to the next term, and an order entered continuing the receiver in the discharge of his duties until the further order of the court.

What effect did these orders have upon the jurisdiction of the court over the cause ?

What the petition contained upon which the motion for a rehearing was based does not appear in the record, but we must presume it was sufficient to call upon the court to further consider it, and to make the order continuing its hearing to the next term, and to retain its control over the property then in the hands of its receiver. The practice of courts of equity to grant reliearings of causes before them upon a proper case being presented, has prevailed from the earliest times. Indeed, it was considered the proper practice in Eng1 and to set a canse down for a rehearing whenever two counsel should sign the petition and certify that the cause ought to be reheard, (Ambler’s Rep. 91,) and that it was a matter of course to rehear the cause upon such petition; and it was not considered improper practice to order a second or even a third rehearing, if sufficient cause be shown as in the case of Porter and Hubert, 3 Chan. Rep. 78, where the decree was made by a judge sitting in place of the lord keeper who, upon petition, reheard the cause himself, and there was afterward a second rehearing before the chancellor assisted by the judges. So in the case of Parker v. Dee, 2 Chan. Cas. 210, a decree was entered at the rolls and defendant appealed to the lord keeper, who entered a decree and another hearing was allowed upon plaintiff’s petition and the cause was heard by the chancellor, assisted by a judge; and a decree being entered different from both of the other decrees, the complainant prayed for and obtained another rehearing. So it was hekl in Land v. Wickam, 1 Paige, 256, that where a decree of one chancellor is reversed by his successor in office, a rehearing will be granted by a third chancellor upon cause shown.

It is said in Daniels v. Mitchell, 1 Story, 198, that rehearings in equity after a decree are not matter of right, but rest in the sound discretion of the court.

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Cite This Page — Counsel Stack

Bluebook (online)
17 Ill. App. 308, 1885 Ill. App. LEXIS 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lutt-v-grimont-illappct-1885.