Munn v. Burges

70 Ill. 604
CourtIllinois Supreme Court
DecidedSeptember 15, 1873
StatusPublished
Cited by23 cases

This text of 70 Ill. 604 (Munn v. Burges) 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
Munn v. Burges, 70 Ill. 604 (Ill. 1873).

Opinion

Mr. Justice Scholpield

delivered the opinion of the Court:

This is an appeal from a decree of the Superior Court of Cook county, allowing the complainants to redeem from a certain mortgage.

The substance of the bill is, that on the 30th day of May, 1856, Burges, one of the complainants, executed a mortgage to Munn, one of the defendants, on lots 16 and 28, of the subdivision' of the south-west quarter of section 12, township 39 north, range 13 east, in Cook county, to secure the payment of $19,000, evidenced by six promissory notes : one for $1100, due in thirty days, one for $1100, due in sixty days, and four others for $4200 each, due, respectively, in one, two, three and four years from date; that all of the notes were paid except the note last due, and a small balance on the one due three years from date; that on December 1, 1858, Burges sold and conveyed the undivided half of his equity of redemption to the complainant Payton; that in 1862, defendants Munn, Fitch and Page confederated together and agreed to defraud complainants of their equity of redemption, by pretending the property was sold under the terms of the mortgage, and bought-by Fitch, who was to receive a deed therefor, in his own name, and subsequently reconvey to Munn ; that, in pursuance of such confederation and agreement, they did pretend the property was sold on the 10th day of July, 1862, by Munn to Fitch; that Munn, on the 22d day of September, 1862, executed and delivered to Fitch a deed for the property, bearing date August 8, 1862, falsely pretending and reciting, that, for default of payment of the balance due on the mortgage, he had, on the 10th day of July, 1862, made sale of the property to Fitch, for the sum of §5000, bid for the same and paid to him by Fitch, and conveying the property to Fitch, and thereby purporting and pretending to cut off the equity of redemption therein of complainants, and vest in Fitch an absolute title; that Fitch, at the same time, executed and delivered to Munn his quitclaim deed, bearing date September 8, 1862, reconveying the property to him, for the consideration, as expressed in the deed, of one dollar and other valuable considerations; that both deeds were taken to the recorder’s office in Cook county, and there filed for record by Page, and, after they were recorded, they were taken out of the office by Fitch, and either retained by him or sent to Munn. It is denied that any sale was, in fact, made of the property, and is averred that the deeds were executed and delivered in pursuance of the fraudulent agreement to defraud complainants of their equity of redemption. It is claimed that, after the execution and delivery of the deeds, the title remained in Munn as mortgagee simply, and that complainants were entitled to redeem-.

Subsequent purchasers of the property are made parties defendant with Munn, Fitch and Page, and charged with notice of the real character, as claimed, of Munn’s title.

The prayer is, that complainants be allowed to redeem from the mortgage, and, in case redemption is not allowed, that Munn, Fitch, Page and Watkins, or some one or more of them, pay to complainants the present value of the property, less what would be required to redeem, etc.

By an amendment to the bill, made subsequent to filing, it is alleged that complainants have resided without the State of Illinois ever since, as well as at the time of the execution of the mortgage, and for the greater part of the time in the State of Rhode Island; that Burges has not been in Chicago since long prior to 1862, and that Payton was not there, until within a year prior to the filing of the bill, at any time after 1861; that after the year 1857, and up to and during the year 1862, times were hard, and it was difficult to raise money, and although Munn had pressed them upon the mortgage indebtedness, they had not found themselves able to pay the same; that Payton, upon whom devolved the duty of paying one-half of the indebtedness, failed, and conveyed away his interest in the property, by way of mortgage, and also by assignment for the benefit of his creditors ; that neither of the complainants was advised of the deeds from Munn to Pitch and Pitch to Munn, until within less than a year prior to filing the bill, and were not earlier advised that an invalid or pretended sale of the mortgaged property had been made or was claimed to be made, and that suit was brought as soon thereafter as Payton could remove the incumbrances from his interest. Complainants dismiss the bill as to Pitch, Page, Watkins and Abbersjand the amendment concludes by repeating that no sale has been made of the mortgaged property whereby complainants’ equitable interest or right of redemption was cut off, and prays as in the original bill.

A further amendment was made, but it is not necessary to state its substance, as it in nowise affects the merits of the case, as we understand them.

Answers were duly filed, putting in issue the material allegations of the bill and amendments, claiming that the present owners had purchased the property in good faith, without notice of the complainants’alleged equities, and insisting that complainants were guilty of laches in not sooner prosecuting their claim, and that they are barred by lapse of time, and also claiming the benefits of the several statutes of limitations.

On hearing, the court found that complainants were entitled to redeem, and decreed that they be allowed to do so, upon paying the amount due on the mortgage, together with the amount paid for taxes, improvements, etc., after deducting rents.

Before proceeding to notice the principal questions which have been discussed by the respective counsel, it may be well to observe that the evidence preserved in the record wholly fails to sustain the charge made in the bill, of conspiracy and confederation between Munn, Fitch and Page, to defraud complainants of their equity of redemption; and this is tacitly conceded by complainants, by their dismissal of the bill as tó Fitch and Page.

It is claimed by defendants, that the property was sold in good faith on the 10th of July, 1862, in strict conformity with the power contained in the mortgage; that Fitch bid it off in good faith; that the deed from Munn to Fitch was executed and delivered in like good faith, and that the agreement whereby Fitch consented to reconvey the property to Munn was subsequent to the sale, and, therefore, in nowise affected its validity.

It is not claimed by the complainants that proper notice of the sale was not given, or that the sum bid by Fitch was grossly inadequate to the then value of the property. His bid was $5000, and it is conceded that the full cash value of the property, at the time, did not exceed $6000. Nor is it claimed that there was any combination to prevent bidding at the sale, or any other fraudulent devices or practices resorted to for the purpose of preventing or discouraging those who might have desired to become purchasers from attending the sale and bidding on the property, or for the purpose of depreciating the value of the property.

The objection urged is, there was no sale in fact, because: first, it was never consummated between the parties, and secondly, Munn was not present at the time of the sale, and the power delegated to him by the mortgage could not be exercised, by an attorney in his absence.

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Bluebook (online)
70 Ill. 604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munn-v-burges-ill-1873.