McKenna Steel Working Co. v. Harris Bros.

228 Ill. App. 363, 1923 Ill. App. LEXIS 235
CourtAppellate Court of Illinois
DecidedMarch 16, 1923
DocketGen. No. 7,090
StatusPublished

This text of 228 Ill. App. 363 (McKenna Steel Working Co. v. Harris Bros.) 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
McKenna Steel Working Co. v. Harris Bros., 228 Ill. App. 363, 1923 Ill. App. LEXIS 235 (Ill. Ct. App. 1923).

Opinion

Mr. Justice Jett

delivered the opinion of the court.

This is a suit in assumpsit by McKenna Steel Working Company, appellee, against Harris Brothers Company, appellant, in which the appellee obtained a judgment in the circuit court of Will county for $12,536.

The case was originally instituted against Harris Brothers Company and Chicago House Wrecking Company, but subsequently the Chicago House Wrecking Company ivas dismissed out of the suit by appellee. Appellee is a Wisconsin corporation, Harris Brothers Company is a Delaware corporation and Chicago House Wrecking Company was an Illinois corporation.

The appellee corporation is owned and managed very largely by the same oEcers who own the American McKenna Process Company, a Wisconsin corporation having mills in Joliet, Illinois, and in the State of New Jersey. E. J. Tapping, general manager and treasurer of both of the McKenna companies, had a conversation with Frank Harris, of the appellant company, which was formerly the Chicago House Wrecking Company, and is engaged in purchasing manufacturing plants, machinery, merchandise, abandoned railroads and other heavy equipment. It does an extensive business and has its principal place of business in the City of Chicago.

The appellee company claimed to be the owner of a large locomotive crane, which it had but little use for during the World War. The McKenna companies were largely engaged in the rolling of railroad rails, which is a process by which old rails are repaired and made suitable for use. The war affected the business of the McKenna companies quite seriously, and it appears that this was the cause for the offer of sale made by Tapping to the appellant company. The negotiations for the sale of this crane were conducted partly orally and partly in writing. The correspondence is quite voluminous, too much so to set out in an opinion, but from an examination of it, together with the oral testimony, we are of the opinion that the appellant purchased the said locomotive crane from appellee for the sum of $25,000.

At the time of the sale by appellee and the purchase by appellant of the said crane, it was leased to the Bock Island Bailroad Company and in use in the State of Kansas. It appears that the lease was terminable on short notice. It was terminated by appellee, and it was a part of the agreement between the appellee and appellant that the crane should be taken to the yards of appellee in Kansas City, where it should be inspected by appellant. The crane was so delivered and was inspected by appellant. Before any report was made by appellant upon the condition revealed by this inspection, rumors were abroad in the land that an armistice might soon be declared.

A report was made of such inspection to the effect that the crane was not in such condition as had been represented by appellee and that therefore appellant would decline to complete the purchase. The record discloses in fact that other inspections were made at the same time by the navy department and a favorable report of the condition of the crane was made. There is other evidence in the record which in our judgment tends to show a good condition of the crane at the time it was delivered into the yards of appellee in Kansas City. We have reached the conclusion that appellant’s report was not made in the best of faith, and that the jury were justified in finding that the crane was in the condition represented by appellee.

Because of appellant’s refusal to complete the transaction and purchase, the crane was left in the possession of the appellee for quite a length of time. Appellee, becoming convinced that it was for the best interests of both appellee and appellant that the crane be sold, made a sale thereof for $12,500; $500-of this sum was paid for brokerage commissions reducing the net price to $12,000, but inasmuch as appellant had paid $500 down at the time the purchase was made, the total paid by appellee was $12,500.

On December 11, 1918, appellee filed its declaration which consisted only of the common counts, and with the declaration appellee filed a bill of particulars.

Appellant, Harris Brothers Company, filed its petition and bond in the circuit court of Will county for a removal of the cause to the District Court of the United States, Northern District of Illinois, Eastern Division thereof, on the ground that the eontroyersy was a separable one and that joining the Chicago House Wrecking Company (a resident corporation) with appellant, Harris Brothers Company was not sufficient to bar appellant company to have the cause removed to the federal court on the ground that Harris Brothers Company was not a resident of the State of Illinois.

The federal court held that as appellee and appellant were foreign corporations the cause was not removable, and the case was remanded to the circuit court of Will county. On April 7, 1920, appellee filed an additional count alleging that on October 18, 1918, appellant bought from appellee a locomotive crane for $25,000 which appellee refused to accept to the damage of appellee of $30,000.

To the additional count filed April 7, 1920, several pleas were filed by the Harris Brothers Company and the Chicago House Wrecking Company, in addition to the general issue. They filed a plea denying the jurisdiction of the court on account of the insufficient service of process and also denying that they jointly promised as alleged in appellee’s original declaration and in the additional count. The plea to the jurisdiction of the court was withdrawn by the Chicago House Wrecking Company and it filed the general issue. On January 20, 1922, the said Chicago House Wrecking Company was by appellee dismissed out of the suit. On said last date, January 20, 1922, appellee filed three additional counts, alleging the contract of sale, refusal of appellant to accept, resale of locomotive crane by appellee and laying the ad damnum at $30,000.

January 24, 1922, appellant filed the general issue to the amended counts of January 20,1922, also a special traverse which in effect amounted to the general issue, and a plea of set-off for $500. The common counts and the count filed April 7, 1920, were dismissed by appellee on the 24th of January, 1922. Trial was had by jury on the counts filed by appellee January 20, 1922, the general issue, special traverse and set-off filed by appellant January 24,1922, resulting in a verdict for appellee for $12,500. On February 24, 1922, motion of appellant for a new trial was denied and judgment was rendered upon the verdict of the jury for the amount of the verdict together with interest thereon amounting to $12,536, and from which said judgment appellant prosecutes this appeal.

It is insisted by appellant that appellee cannot maintain its suit in the courts in the State of Illinois because of its being a foreign corporation, and had not complied with the statute of the State, and was not therefore authorized to do business in Illinois.

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Cite This Page — Counsel Stack

Bluebook (online)
228 Ill. App. 363, 1923 Ill. App. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenna-steel-working-co-v-harris-bros-illappct-1923.