Northwestern Yeast Co. v. City of Chicago

22 N.E.2d 781, 301 Ill. App. 303, 1939 Ill. App. LEXIS 625
CourtAppellate Court of Illinois
DecidedOctober 3, 1939
DocketGen. No. 40,625
StatusPublished
Cited by4 cases

This text of 22 N.E.2d 781 (Northwestern Yeast Co. v. City of Chicago) 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
Northwestern Yeast Co. v. City of Chicago, 22 N.E.2d 781, 301 Ill. App. 303, 1939 Ill. App. LEXIS 625 (Ill. Ct. App. 1939).

Opinions

Mr. Presiding Justice Matchett

delivered the opinion of the court.

City of Chicago appeals from a judgment entered on the finding of the court. The pleadings disclose that the action was brought for interest claimed to be due upon a judgment obtained by the owners in an action brought by the City to appropriate certain premises under the Local Improvements Act [Ill. Rev. Stat. 1937, ch. 24, § 698 et seq.; Jones Ill. Stats. Ann. 76.003 et seq.]; that the judgment was obtained July 26, 1927, and after allowing for benefits was for the net amount of $231,737; that on September 27, 1930, defendant paid to plaintiff by check $231,737, being the net award, and plaintiff at the same time conveyed the condemned premises to defendant by deed; that interest at 5 per cent from July 26, 1927, to September 27, 1930, amounts to $36,723.88, for which amount judgment was entered against the City in this action.

The pleadings disclose only one issue of fact, in this, that plaintiff claims that on September 27, 1930, when the City paid the judgment rendered in the condemnation proceeding, it protested because of nonpayment of interest, while the City contends the payment was received without protest. On this issue the court took evidence and found for the City. Plaintiff contends this finding is against the clear preponderance of the evidence.' Three witnesses testified for plaintiff, one for defendant, on this issue. The testimony of two of plaintiff’s witnesses is quite indefinite and uncertain. One witness, the general superintendent of plaintiff, who was present when the payment was made, asked by the court what the attorney for plaintiff said to the representative of the City, replied, “We thought we were entitled to interest. He said, the City doesn’t pay interest. We said we would accept it as it is. As it ivas.” Another witness for plaintiff was one of its attorneys, who withdrew his appearance as attorney before testifying. He testified positively to a protest against nonpayment of interest but in the course of his cross-examination said that the decision in Turk v. City of Chicago, 352 Ill. 171 (the first case in which the Supreme Court held that judgments rendered under section 32 of the Local Improvements Act would draw interest) was handed down a few years after the settlement was made. The Turk case, 264 Ill. App. 619 (Abst.), was decided in this court December 28, 1931, and followed 10 similar cases decided by this court June 30, 1930. University of Chicago v. City of Chicago, 258 Ill. App. 189. On the other hand, the supervisor of condemnation awards for the City, who made payment in its behalf, states positively that there was no conversation relative to a claim for interest at the time the voucher was signed and the check delivered to plaintiff. The transaction occurred September 27, 1930. This suit was not begun until May 21, 1935. The voucher, indorsed by plaintiff, does not indicate that the matter of interest was under consideration. The trial judge saw and heard the witnesses. We cannot say that his finding of fact is clearly and manifestly against the weight of the evidence.

However, assuming no formal protest was made, we agree Avith the trial judge that, as a matter of law, the issue of fact made was immaterial. The question of whether judgments in condemnation proceedings under the Local Improvements Act, as provided for in section 32 thereof, draw interest has been the subject of much litigation in the courts during recent years. This court granted a certificate of importance in the Turk case (University of Chicago v. City of Chicago, 258 Ill. App. 189) and the Supreme Court upon a rehearing granted affirmed the judgment of this court in Turk v. City of Chicago, 352 Ill. 171. The opinion reviews at length the Illinois cases, and holds that a judgment rendered pursuant to section 32 of the Local Improvements Act is a quod recuperet judgment to which section 3 of the Interest Act is applicable, and that the owner may recover interest even though the defendant is a municipality. It was argued the Supreme Court was committed to the rule that the Interest Act allowed interest in such condemnation cases only after possession had been taken.. The Supreme Court said that such a judgment bore interest by virtue of the statute, and that cases holding possession must first be taken were not applicable. To the same effect is the later case of Blaine v. City of Chicago, 366 Ill. 341.

In Feldman v. City of Chicago, 276 Ill. App. 142, the question was whether the interest on such a judgment could be collected after the judgment itself had been paid. This court, relying on Davis v. Harrington, 160 Mass. 278, and similar cases in many jurisdictions (all of which are cited in the opinion), held that interest on such a judgment was awarded as damages for delay in the payment of the award, was merely incidental to the debt, and that where the principal had been paid without interest the right to collect interest was lost, even though the payment was accepted under protest. In conformity with this view this court reversed the judgment of the municipal court of Chicag’o. Appeal was allowed by the Supreme Court and in 363 Ill. 247, the judgment of this court was reversed and that of the municipal court affirmed. The Supreme Court said (p. 254):

“The decision of the Appellate Court that the city was not liable for interest in this case was based largely upon an ingenious argument of counsel, repeated here, that when the owners accepted payment of the principal of the judgment they abandoned whatever claim they might have had to interest. This argument, however, finds no support either in the admitted facts before us, in the provisions of the statutes or in the decisions of this court. It ignores the essential fact that here the interest is purely statutory, and arises neither from an agreement, express or implied, nor by way of damages or penalty for delay in payment of the principal. None of the necessary elements of accord and satisfaction exist here, as the claim was for a sum certain, the amount was not in dispute, and there was no offer to pay or accept less than the judgment in full settlement. On the contrary, it is conceded that when the city paid the judgment the owners then demanded interest and accepted under protest the payment of the judgment without interest. Under these circumstances there was no waiver of the interest.”

In the later case of People v. Kelly, 368 Ill. 164, the Supreme Court held that the question of whether the City might set off the beneficial use of the property against the claim for interest on the judgment did not raise a constitutional question for the reason (quoting from the Turk case) that “it [the argument] ignores the essential fact that here the interest is purely statutory, and arises neither from an agreement, express or implied, nor by way of damages or penalty for delay in payment of the principal.” The opinion again cites the Turk and Feldman cases with Blaine v. City of Chicago, 366 Ill. 341, and Kamberos v. City of Chicago, 366 Ill. 471.

In People ex rel. Wieboldt Stores, Inc. v. City of Chicago, 368 Ill. 421, there was for the first time presented to the Supreme Court the question of whether the City could set off against a claim for interest the value of the beneficial use of the property by the judgment creditor who was allowed to remain in possession.

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Cite This Page — Counsel Stack

Bluebook (online)
22 N.E.2d 781, 301 Ill. App. 303, 1939 Ill. App. LEXIS 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwestern-yeast-co-v-city-of-chicago-illappct-1939.