Noel State Bank v. Blakely Real Estate Improvement Corp.

53 N.E.2d 621, 321 Ill. App. 594, 1944 Ill. App. LEXIS 642
CourtAppellate Court of Illinois
DecidedFebruary 28, 1944
DocketGen. No. 42,181
StatusPublished
Cited by8 cases

This text of 53 N.E.2d 621 (Noel State Bank v. Blakely Real Estate Improvement Corp.) 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
Noel State Bank v. Blakely Real Estate Improvement Corp., 53 N.E.2d 621, 321 Ill. App. 594, 1944 Ill. App. LEXIS 642 (Ill. Ct. App. 1944).

Opinions

Mr. Justice Niemeyer

delivered the opinion of the court.

On May 29, 1930 a foreclosure decree was entered finding $354,254.96 due the plaintiff Noel State Bank, trustee, for the use and benefit of the Noel Securities Corporation, the legal holder and owner of the bonds and interest coupons secured by the trust deed being foreclosed, and also finding a valid lien against the premises involved in favor of Dominic Cuzzone in the sum of $5,980, for labor and material for sewer work, but reserving the question of the priority of the Cuzzone lien as against the lien of the plaintiff for further hearing and until after the sale of the premises. The master filed his report of sale and distribution, reciting that on June 25, 1930 he sold the premises to the Noel Securities Corporation for the full amount under the decree and that out of the sum realized from the sale he had retained $5,980, “subject to the adjudication of the question of priority, if any, of the lien claim herein of Dominic Cuzzone, which question was reserved for further hearing,” and that he had disbursed and retained the expenses and fee of the sale and paid over the balance received to the solicitors for plaintiff. The report was approved by order entered July 11, 1930, in part, as follows: . . . and it further appearing to the Court and from the said Master’s Report, that the Master has retained in his hands the sum of $5,980.00, subject to the adjudication of the question of priority, if any, of the lien claim of Dominic Cuzzone herein, as against the Complainant (plaintiff) herein, and as to the application to be made as between the said parties of the sum of $5,980.00 retained by said Master as aforesaid, and that the said Master hold the said sum subject to the further Order of this Court.” A certificate of sale was issued to the purchaser; the master retired at the expiration of his term of office January 3, 1933; no redemption having been made, the successor to the master issued a deed in 1936; June 18, 1931 the plaintiff, Noel State Bank was closed by the State Auditor and a receiver appointed ; Cuzzone died May 10,1935.

Nothing was done in the cause until April 11, 1941 when, on notice to the master and the attorneys of record for the plaintiff and Cuzzone, petitioners, as the only heirs at law of Cuzzone and as assignees of the administrator of Cuzzone’s estate of the lien claim involved, filed their petition seeking to be .substituted as defendants in the place and stead of Cuzzone and praying that the master be ordered and directed to pay over to his successor or such officer as the court may designate, the sum of $5,980, to be held subject to the further order of the court, and that the question of priority of lien between petitioners and plaintiff be determined. Petitioners were substituted as defendants in the place of Cuzzone and upon hearing, after answer by the master and by the attorneys for plaintiff, who filed an answer as attorneys for the plaintiff “until the appointment of the receiver,” the petition was dismissed as to the master for want of equity, the court finding that the Cuzzone lien was wholly inferior to that of the plaintiff and that, contrary to the recitals of the master’s report of sale and distribution, the master had not been paid and did not receive or retain the $5,980 in controversy.

Petitioners appeal, contending that the court erred in receiving evidence contradictory of the master’s report and order of court approving the same, and in finding that the Cuzzone lien was inferior to that of plaintiff. Objection is also made to the participation of plaintiff’s attorneys in the proceedings in their own behalf and also on behalf of plaintiff.

The master in his answer asserted that no part' of the bid for the premises was ever paid, except $1,284.15 paid to him on account of fees, disbursements and commissions on the sale, totaling $3,284.15, leaving $2,000 thereof unpaid; that the attorneys for Cuzzone “knew at the time of the approval of the report of said sale, and knew at all times thereafter and during the lifetime of said Dominic Cuzzone, that nothing had been paid on account of the sum of $5,980, reported in the report herein of this respondent as having been retained by this respondent subject to the adjudication of the question of any priority arising under the mechanic’s lien claim of said Dominic Cuzzone”; that he, the master, delivered to counsel for plaintiff (such counsel representing the buyer at the master’s sale) a certificate of sale upon the understanding that same would be held and no disposition made thereof unless adequate provision were made for the payment of the fees, disbursements and commissions on sale of respondent, and for the payment of such sums as might be payable out of the proceeds of the sale to Cuzzone, the mechanic’s lien claimant; that it may be the sale should be set aside, but if not, he, the master is ready and willing to make such payment in respect to the sums as may be due petitioners as the court may direct. In this court the master takes the position that the trial court properly amended its record to speak the truth, contrary to the representations in his, the master’s report, and that the Cuzzone lien, being inferior to plaintiff’s lien, petitioners are not entitled to any relief.

The attorneys of record for the plantiff, .Noel State Bank, upon whom notice of the filing of the petition had been served, answered stating that they represented the plaintiff until June 18, 1931, when the bank was closed and the receiver appointed; that no notice had been served upon the bank receiver or other parties in interest, and that by reason thereof they, the attorneys, were answering the petition. In their answer the attorneys asserted that no cash at all was paid to the master on account of the bid at the sale, and that no actual cash was involved in the sale, and “whatever reports were filed in the said proceeding were filed with full knowledge of all the parties and attorneys representing the same in the said proceedings.” In this court the attorneys have presented a brief and argument for plaintiff and for themselves. In support of their right to represent plaintiff they assert that as attorneys for plaintiff at the time of the foreclosure decree they were obliged to render “such additional services as were necessary to complete the foreclosure proceedings, including attendance before the court upon the question concerning any priority of the lien claim in question.”

From the testimony of the master, called by the court as a witness, and the testimony of one of the attorneys for the plaintiff, both of whom testified over objection of petitioners, it appears that no> money was in fact paid to the master except the sum of $1,000 plus certain expenditures by and fees of the master, on the sale. The master also testified that prior to the filing of his report the attorney for Cuzzone knew that no cash had been received, and that several days after the sale he, the master, had told Cuzzone’s attorney that, the attorneys for the plaintiff had prospective purchasers for the property and that it. was represented to the master that if a sale was made the Cuzzone claim would be taken care of in some manner, and that Cuzzone’s attorney said he would go along. The attorney for Cuzzone was called by the court and testified over objection. This witness on examination by the court stated that he did not have any discussion with the master prior to the approval of the sale, and then, that he had no recollection of any discussion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lyons Savings v. Gash Associates
665 N.E.2d 326 (Appellate Court of Illinois, 1996)
Brown v. State
816 P.2d 818 (Wyoming Supreme Court, 1991)
County of Cook v. Patka
405 N.E.2d 1376 (Appellate Court of Illinois, 1980)
People v. Robinson
310 N.E.2d 652 (Appellate Court of Illinois, 1974)
Elward v. Peabody Coal Co.
257 N.E.2d 500 (Appellate Court of Illinois, 1970)
Lewis v. Atlas Corp.
158 F.2d 599 (Third Circuit, 1946)
Lewis v. Atlas Corp.
63 F. Supp. 217 (D. New Jersey, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
53 N.E.2d 621, 321 Ill. App. 594, 1944 Ill. App. LEXIS 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noel-state-bank-v-blakely-real-estate-improvement-corp-illappct-1944.