Middaugh v. Fox

25 N.E. 584, 135 Ill. 344
CourtIllinois Supreme Court
DecidedOctober 31, 1890
StatusPublished
Cited by5 cases

This text of 25 N.E. 584 (Middaugh v. Fox) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middaugh v. Fox, 25 N.E. 584, 135 Ill. 344 (Ill. 1890).

Opinion

Mr. Justice Bailey

delivered the opinion of the Court:

This was a bill in chancery, brought by Charles H. Fox, a-grandson and one of the heirs at law of William H. Price, deceased, against Henry W. Price, the son and only other heir at law of said decedent, and Louisa Middaugh and others, the heirs at law of George W. Noble, deceased, to establish and enforce a trust alleged to have been created in the year 1849,. between said William H. Price and said Noble. The original bill was filed June 29,1886, and a demurrer thereto having been sustained, an amended bill was filed November 30,1886. The defendants appeared and answered, and Henry W. Price filed a cross-bill, setting up substantially the same matters alleged in the amended bill, and praying, in his own behalf, the same relief. The cross-bill was answered, and the cause being heard on pleadings and proofs, a decree was rendered in accordance with the prayer of the amended and cross-bills, and the defendants, the heirs of said Noble, bring the record to this court by appeal.

The case made by the bill and cross-bill, when relieved of much of its verbiage, is substantially as follows: In the year 1836, William H. Price became a resident of Chicago, and succeeded in accumulating a considerable amount of real and personal property, so that in 1847, he was in possession of certain lots of land in Chicago to which he had an equitable title, and on which were situated several dwelling-houses and a planing-mill. Sometime during the year 1847, said dwelling houses, planing-mill and a large amount of machinery and lumber were totally destroyed by fire. In the spring of 1848, he erected on lots four and five, in block forty-six, in the Original Town of Chicago, those being the lots which are now the principal subject of controversy, a large brick four-story building, worth not less than $20,000, and furnished it with the necessary machinery, and during that year and up to1 October in the year following, carried on successfully and profitably in said building the planing-mill business, and the-manufacture of sash, doors and blinds. Out of the profits of said business he was enabled to pay and discharge most of the-indebtedness arising from the construction of said building, the procurement of said machinery, the purchase of lumber and other expenses incident to carrying on said business, so-that in October, 1849, his indebtedness amounted to comparatively a small sum of money, and might have been fully paid and satisfied out of the profits of said business for the year-then next ensuing.

Sometime in 1848, Price determined to go to California, where gold had then recently been discovered, with the intention of being absent about one year. In anticipation of his absence on said trip, he sought to leave his property matters and business in such situation, that said business might be-carried on, his remaining indebtedness provided for, and his-property and thé good will of said business preserved, so that-on his return he might receive the same back with all accruing profits.'

Noble, who was Price’s brother-in-law,. had come on from the east the year previous, and since his arrival in Chicago-had been employed by Price in some capacity in his business. Noble was poor and substantially without means, but 'was a person in whom Price reposed very great confidence, and who-had become familiar with Price’s property and business. Price, accordingly, entered-into some arrangement or agreement with-Noble, the precise terms of which the complainants are unable to give, but which was in substance and effect that Price should turn over to Noble his said property and business, in trust, to hold, manage and control said property and carry on said business, as Price’s trustee, during his absence, and on his-return, to restore the same to him, and render to him an account of the use, increase and profits thereof. In pursuance of this arrangement, Price, sometime before his departure for California, transferred to Noble the equitable title he held to various parcels of real estate in Chicago, and among them to the south thirty-five feet of said lot four and said lot five, his title as to those lots being that of a vendee under certain ex-ecutory contracts of purchase, the purchase money having then been already paid by Price, or being subsequently paid by Noble out of means put into his hands for that purpose by Price, and the title under said contracts of purchase being afterwards taken by Noble in his own name as trustee for Price. Price’s departure for California was delayed until some time in October, 1849, and up to that time he remained in possession, control and management of said property and business. Upon his departure Noble at once entered into possession of it as trustee for Price, under said arrangement, and continued thereafter to carry on said business.

Price, after he left, was heard from once while crossing the isthmus, since which he has never been heard from, the supposition being that he died either there or somewhere else on the way. Soon afterward Noble conceived the plan of privately and clandestinely converting said property and business to his own use, and of claiming them as his own, and of secretly and quietly suppressing and destroying all evidence of the manner in which he had received and was holding them, and of creating color of title in himself to the same. In furtherance of said plan he obtained from Price’s wife the books and papers relating to Price’s business affairs in her possession, pretending that he needed them in carrying on the business, and refused afterwards to return them. He also sought to conceal not only his acts and doings under said trust but the trust itself, and to propagate the belief that he had bought out Price arid was the owner of said property in his own right. Among other things, he suffered said lots four and five, as well as the other real estate derived from Price, to be sold under execution on judgments against Price for certain small amounts, when he had in his hands as trustee sufficient funds to satisfy said judgments, or to redeem said lots from such sales, and instead of making such redemption, he allowed the title under such sales to be perfected in the purchaser, and then bought in such title, using the trust funds for that purpose, and took conveyances to himself. From the business and property placed in his hands, he also paid off all liens, indebtedness and claims against Price and perfected title in himself, and bought other real estate and accumulated a large personal property, all of which came from said trust fund and property, and was a part of the income and increase thereof. Said real estate largely increased in value, and said Noble, at his death, which occurred on or about December 15, 1885, left in bank about $80,000, which is now in the hands of his administrators, and is covered by said trust. At the time of his death he still held the title to said lots four and five, and to the other parcels of real estate above mentioned, without having ever accounted with said Price or his legal representatives in the matter of his said trust, and without disclosing said trust or his acts and doings under and by virtue thereof.

The family left by Price at the time of his departure consisted of his wife, who has since died, and two children, a son .and a daughter, the oldest of whom was not more than thirteen years of age. The son was Henry W. Price, the complainant in the cross-bill, and the daughter was afterwards married to Joseph H.

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Bluebook (online)
25 N.E. 584, 135 Ill. 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middaugh-v-fox-ill-1890.