McKennan v. Mickelberry

89 N.E. 717, 242 Ill. 117
Illinois Supreme Court·Decided October 26, 1909·Published·Cited by 20 cases

Opinion

Mr. Justice Carter

delivered the opinion of the court:

This is a bill filed in the circuit court of McLean county by plaintiffs in error, seeking the specific performance of a contract and other relief. That court at a former term sustained a demurrer and dismissed the bill. The matter having then been brought here by writ of error, we reversed the finding of the lower court and remanded the case, with directions to overrule the demurrer. (McKennan v. Mickelberry, 228 Ill. 460.) Under the directions of this court the trial court thereupon re-docketed the cause, overruled the demurrer and referred the case to a master in chancery, who, after taking testimony, reported in favor of plaintiffs in error. Upon exceptions being filed to the report the court sustained a portion of them and overruled others and entered a decree dismissing the bill for want of equity. To review that decree this writ of error has been sued out.

The allegations of the bill were stated at some length in connection with the former decision, and we shall not attempt to set them out here.

It appears from the evidence in the record that defendant in error Ziemens is a man some sixty-six years old, who came to this country from Germany in 1861 and engaged in various lines of business, including that of lumber and coal, and also as a building contractor, with a considerable degree of financial success. Plaintiff in error McKennan is an attorney, and had acted in business deals in connection with Ziemens for some time before the events involved in this litigation took place. In 1902, on McKennan’s advice, Ziemens entered into a 'real estate deal whereby they acquired a 960-acre farm in Iroquois county, Illinois. The farm was encumbered for some $33,000. Ziemens contends that he advanced about $11,100 to be paid for the farm and that McKennan, personally, paid practically nothing; that thereafter he became surety for McKennan’s indebtedness to the amount of over $6000, and that according to a statement signed by McKennan, made some time in 1905, the latter owed Ziemens $31,635. Counsel for McKennan claim that testimony showing some of these figures is not in evidence. It appears that it was offered before the master and he sustained objections to its introduction. We find no ruling of the trial court as to the admission or exclusion of this testimony, though it is found in the evidence reported by the master. We are disposed to hold that this evidence was admissible as the basis of the agreement that was thereafter sought to be entered into between Ziemens and McKennan.

In 1905 Ziemens, being dissatisfied with his business arrangements with McKennan, employed Mr. Welty, of the firm of Welty, Sterling & Whitmore, (who represent McKennan in this litigation,) and in the process of negotiation obtained from McKennan statements of account between Ziemens and McKennan which counsel for Ziemens offered in evidence before the master, but, as we have said, the master sustained an objection to their being received. On account of these negotiations between Welty and McKennan a contract was executed by McKennan and Ziemens May 15, 1905, stating that they owned said land in Iroquois county and that there was a certain indebtedness on it; that McKennan and wife should quit-claim to Ziemens all interest in said land and Ziemens should make a trust deed on said land to Welty, as trustee, to secure a loan for $10,000, and that this money should be used, as far as it would go, to pay off the partnership obligations of Ziemens and McKennan, including the ditch and general taxes, and that the balance should be used to pay so much as it would of the individual indebtedness of McKennan for which- Ziemens was surety; that the farm should be sold as soon as consistent with the best interests of both parties, and that from the proceeds of the sale all sums due to the respective parties on account of moneys advanced should be first paid and the balance divided equally between the parties, or that each should bear one-half of the deficit, if any; that McKennan should, within a few days after the execution of the contract, pay off a certain judgment against him which was a lien on said property. This contract was introduced by plaintiffs in error. The deed from' McKennan and wife to Ziemens was executed as agreed. We do not consider it necessary for the decision of this case to decide whether or not the evidence as to the actual amount of McICennan’s indebtedness to Ziemens at the time they entered into the foregoing contract was considered in evidence by the chancellor who heard this case. Said contract between Ziemens and McKennan of- May 15, 1905, shows, beyond question, that McKennan was indebted for sums of money for which Ziemens was surety, and also that there was a judgment against McKennan which was a lien on the land and which he agreed to pay, and the evidence in this record proves that McKennan never paid the judgment in question before the beginning of this litigation, and that while the trust deed mentioned in said contract was executed, with Welty as trustee, the $10,000 planned to be secured thereby was never raised to pay off the indebtedness.

It further appears from the evidence that some time after the foregoing contract was executed, Reed & Welch, real estate agents in Bloomington, informed McKennan that they represented E. R. Mickelberry for the purpose of selling or trading a store building and stock of goods in Clinton, Illinois, and proposed a trade for the Iroquois county farm. Out of these negotiations a proposition was secured from Mickelberry by which the latter agreed to trade for the farm, and finally the following contract was entered into between the parties:

“This agreement, made and' entered into this gth day of May, 1906, by and between E. R. Mickelberry, as party of the first part, and John Ziemens and Frank B. McLennan, as parties of the second part, all of the city of Bloomington, Illinois:

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McKennan v. Mickelberry, 89 N.E. 717, 242 Ill. 117 (Ill. 1909).

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