Mitchell v. Robinovitz

272 Ill. App. 414, 1933 Ill. App. LEXIS 147
CourtAppellate Court of Illinois
DecidedNovember 21, 1933
DocketGen. No. 36,544
StatusPublished
Cited by4 cases

This text of 272 Ill. App. 414 (Mitchell v. Robinovitz) 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
Mitchell v. Robinovitz, 272 Ill. App. 414, 1933 Ill. App. LEXIS 147 (Ill. Ct. App. 1933).

Opinion

Mr. Justice Gridley

delivered the opinion of the court.

This appeal is prosecuted by complainants to reverse a decree of the circuit court of Cook county, entered December 9, 1932, and amended December 12, 1932, in a foreclosure proceeding, in which the four cross complainants were mechanics’ lien claimants. The controversy arises over those portions of the amended decree which award to the cross complainants prior liens, over that of the holder of certain bonds secured by the first mortgage, as to the building or improvements on the property.

A bill was filed in the circuit court by Alexander T. Spare and Chicago Title & Trust Co., as trustee, for the foreclosure of- a second mortgage recorded ¡as document No. 9904612. Among the parties made defendants were the four lien claimants, who severally filed intervening petitions or cross-bills seeking a foreclosure of their liens. Subsequently in the same court complainants filed their bill for a partial foreclosure of the first mortgage, recorded December 28, 1927, as Document No. 9882519, making said lien claimants and others parties defendants, and they filed answers and cross-bills. Thereafter the two causes were consolidated as Mitchell et al. v. Robinovitz et al., No. B-194087, and the consolidated causes were referred to a master to take proofs and report his conclusions. The master’s lengthy report was filed on December 16, 1931. There was also a supplemental report.

The complainant, Mitchell, owned and held certain matured bonds and coupons, secured by the first mortgage, which had not been paid, and the master found what was the amount due to him. The master also found the respective amounts due to said four lien claimants, but recommended that the question of their “right to priority against improvements” be reserved “until after the entry of the decree herein and the sale of the premises.” The master also found that numerous other parties had furnished labor and materials in the erection of the building which had enhanced the value of the premises, that some had valid liens and that others had waived their liens, etc. Complainants filed exceptions to the master’s report to the effect (a) that he had “failed to find the order of priority of the liens of various parties upon the. premises, ’ ’ and (2) that he had failed to find that the liens of the four lien claimants “are prior on the improvements on the property . . . only to the extent that their respective work and labor had enhanced the value of said improvements.” In the decree as amended, which was entered after argument upon the exceptions, it is recited that no exceptions to the master’s reports were taken except those of the complainants, and it is ordered that such exceptions be overruled and that the reports of the master be approved and confirmed. And the court found the particular amount that was due to the complainant, Mitchell, as the owner and holder of certain bonds secured by the first mortgage, and also the amounts that were due respectively to said four lien claimants, for which each “has a lien hereinafter more particularly defined.” And among other findings of the court are the following:

• “8. That by agreement of Edmund W. Froehlich, assignee of the claim of Oscar F. Peterson, and by agreement of the other parties to the cause, said Froehlich stipulates that its priority be found to coordinate with that found in favor of Floor-it Company and other liens hereinafter found to be co-ordinate with that of the lien of Floor-it Company.

“9. That to secure the sums, respectively, found due the defendants (naming said four lien claimants), they have, without priority or preference between them, valid and subsisting liens upon said premises, which liens are, as to the vacant land, subordinate and inferior to, first, the lien of trust deed Document No. 9882519, hereinafter found, and second, to the lien hereinafter found of trust deed Document No. 9904612, and which liens are, as to the entire improvement erected and now standing on said premises prior and superior to the claim and lien on said improvement of each and every of the remaining parties to this cause, including said ‘Unknown Owners.’

“10. That to secure the sums found due Samuel Mitchell, he has a valid and subsisting lien on said premises, including the land and improvements, as to the vacant land only subordinate and inferior, .first, to the continuing lien of said trust deed Document No. 9882519, as security for the payment of all bonds and coupons maturing subsequent to December 1,1930, and of all costs and charges accruing thereunder, and as to the improvements on said premises subordinate and inferior only to the liens on said improvements hereinabove found in favor of the defendants (naming said four lien claimants), and to the continuing lien of said trust deed Document No. 9882519, as security for the payment of all bonds and coupons maturing subsequent to December 1, 1930, and to all costs and charges accruing thereunder, but prior to the rights of all other parties to the above entitled cause.”

And the court ordered and decreed inter alia that, unless the several amounts found due to Mitchell, and also to said four lien claimants, and also to certain other named parties, are paid to them within 10 days from the date of the entry of this decree, then the said real estate, building, etc. shall be sold at public auction for cash to the highest and best bidder; that the master execute the decree, give notice of the time and place of the sale and give to the purchaser a certificate of sale, recording a duplicate thereof; and that out of the proceeds of the sale the master retain his disbursements and commissions and pay the taxed costs, and hold the entire remainder subject to the further order of the court, “the court hereby expressly reserving jurisdiction to ascertain the relative value of the land and improvements . . . and to direct distribution accordingly.”

Counsel for complainants, in urging a reversal or modification of the decree, state in their printed brief and argument here filed the opposing theories of the parties substantially as follows: That complainants’ theory is that under section 16 of the Mechanics’ Liens Act, Cahill’s St. ch. 82, 16, the lien creditor is preferred as against the prior mortgagee “only as to the value of the improvements erected on the premises by him, and not to the value of the entire improvement erected by himself and the other contractors”; and that the theory of said four lien claimants is that they are “to be. preferred to the value of the entire improvement erected by all contractors and not merely to the value of the particular improvements erected by them.” In another part of their brief complainants’ counsel state their contention as follows:

“As against a prior mortgagee a contractor is preferred only to the value of the improvements erected by him, and the mortgagee is preferred to the extent of the value of the land, including in that term, the-enhanced value produced by labor and materials furnished by other contractors who have been paid, or who have waived, released or failed within the necessary time to assert their liens.”

In section 16 of the present Mechanics’ Liens Act, which became in force on July 1, 1903, it is provided in part as follows: (Cahill’s St. 1931, ch. 82, 16, p.1800):

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Cite This Page — Counsel Stack

Bluebook (online)
272 Ill. App. 414, 1933 Ill. App. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-robinovitz-illappct-1933.