Oconto National Bank v. Weber

240 Ill. App. 222, 1926 Ill. App. LEXIS 234
CourtAppellate Court of Illinois
DecidedApril 3, 1926
DocketGen. No. 7,550
StatusPublished
Cited by3 cases

This text of 240 Ill. App. 222 (Oconto National Bank v. Weber) 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
Oconto National Bank v. Weber, 240 Ill. App. 222, 1926 Ill. App. LEXIS 234 (Ill. Ct. App. 1926).

Opinion

Mr. Justice Jett

delivered the opinion of the court.

During the summer of 1920 John H. Hazier was living in Oconto, Wisconsin, engaged in promoting in that city a corporation known as the Montana Tractor Company. On October 20 of that year he presented to appellant a check for $2,300 signed by himself and Caroline Hazier and drawn on Moon’s Bank of Leonora, Illinois, payable to the order of appellant and the amount thereof was paid to Hazier by appellant upon his representation that he had this amount of money in the bank upon which it was drawn. This check went to protest as there were no funds in the Moon bank to the credit of either of the drawers.

On December 20, 1920, the cashier of appellant procured in Oconto a warrant for the arrest of Hazier and early in January, 1921, two of its directors (one an attorney) came to Streator, consulted with the Assistant State’s Attorney and Hazier was arrested. Appellee, Emma Selby, is a sister of Hazier, and appellee, Franklin Weber, is the husband of another sister. Hazier, when arrested, called appellees and also an attorney who, at Hazier’s request, communicated with his mother and thereupon the following day appellees and the mother of Hazier came to the hotel in Streator where the representatives of appellant were staying and in reply to their inquiry whether the matter could not be straightened up were told by the directors and representatives of appellant that appellant did not desire to prosecute Hazier but all it wanted was its money. Appellees expressed their willingness to repay appellant in full but were unable to secure the cash and it was finally agreed that appellant would accept a note of appellees and thereupon a note for the full amount due appellant was executed by appellees at the office of the. attorney with whom Hazier first communicated. This note became due in July, 1921, but at the request of appellees, who paid appellant the interest thereon, it was surrendered and a new note executed. This renewal note became due in October, 1921, and subsequently two more payments of interest were made by appellees and on January 22, 1922, they executed another note to replace the one executed in the previous July. This last note not having been paid, judgment was confessed thereon in September, 1923, which, upon motion, was opened up and appellees pleaded the general issue and gave the following notice:

“The plaintiff will hereby take notice that upon the trial of said cause the defendants will prove and show that the alleged note declared upon in the plaintiff’s declaration is the only cause of action upon which said suit was brought; that said alleged note was signed by these defendants and came into the hands of the plaintiff without any good or valuable consideration whatever, and that there was and is no consideration for the giving of said alleged note.

“That said alleged note was procured to be signed by these defendants by means of fraud and moral duress, and was given in no other manner and for1 no other purpose.

“That one John H. Hazier was a brother-in-law of this defendant, Franklin H. Weber, and that said Hazier was placed under arrest and held in custody by the agents of the plaintiff upon a false and malicious charge of' embezzlement, or for the alleged giving of a fraudulent check which was thereafter dishonored, and that -said Hazier was not then indebted to said plaintiff; that while so deprived of his liberty these defendants were advised that said Hazier would be kept in custody until he gave a note signed by these defendants, and that if such a note was given, he, the said Hazier, would be discharged and set at liberty; that these defendants were so grieved and distressed by the arrest and keeping said Hazier in custody as aforesaid, and believing that his release could only be obtained by the giving of said note, they, through fear and by means of so being under duress as aforesaid, signed said note. That said Hazier, upon said note being given, was discharged and never re-arrested or tried upon said charge.

“That said note was given for such purpose and no other.”

Issue was joined and a trial had before the court without the intervention of a jury, and the judgment theretofore rendered in favor of appellant was vacated and set aside and a judgment entered in bar of the action and in favor of appellees, for costs, from which judgment an appeal has been perfected to this court.

In addition to the foregoing facts the attorney, who was called by Hazier immediately after his arrest, testified that at the time the original note of appellees was executed in his office in January, 1921, Hazier conveyed to his two sisters his undivided interest in certain land in Iowa which he had inherited from Ms father. Appellees sought to deny that such a deed was executed but we are satisfied from a reading of the record that such a conveyance was made by Hazier for the purpose of securing appellees in executing the original note given appellant. Both appellees testified that no consideration passed from appellant to them at the time the original note was executed and that they executed it solely to get Hazier out of jail and they contend that inasmuch as Hazier was thereafter immediately released from custody and not prosecuted that the only consideration was compounding’ a criminal offense and their contract was void as against public policy. Appellant admits that a note given solely to avoid a criminal prosecution is without a valid consideration, contrary to public policy and void, but insists that in this case the amount of the indebtedness of Hazier to appellant was not in dispute but was conceded; that Hazier desiring to pay appellant the amount justly due it conveyed his property to appellees and they in turn executed the original note, the consideration therefor being the conveyance to them by Hazier of his undivided interest in his Iowa land which he inherited from his father; that no agreement was made by anyone not to prosecute the criminal charge against Hazier but appellant was free to withdraw its complaint against him if it so desired and his discharge from jail was a mere incident.

The use of criminal process as a means of collecting private indebtedness is illegal and contracts so obtained are contrary to public policy and unenforceable. Shenk v. Phelps, 6 Ill. App. 612. All the authorities hold that an agreement to compound a felony will not be enforced and that any security based upon such consideration is void. 3 R. C. L. 957. And if the original note or security is void, its- surrender could be no consideration for a new note between the same parties. 3 R. C. L. 964-65. But it is not illegal merely to compromise the civil injuries resulting from a criminal act where it is. not expressly or impliedly agreed that ther prosecution for the crime is to be prevented or suppressed and a note given in consideration of moneys embezzled is valid and enforceable, there being no agreement to conceal or suppress a prosecution for the offense. 3 R. C. L. 958. The true rule seems to be that notwithstanding the pendency of criminal proceedings against a wrongdoer one whose money or property has been fraudulently obtained may contract for repayment of the money or satisfaction for the-loss sustained and take security therefor, without invalidating the contract, unless there be included therein, as a part of the consideration therefor, some promise or agreement, express or implied, that such prosecution shall be suppressed, stifled or stayed. Northfork Board of Educartion v. Angel, 75 W. Va.

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Cite This Page — Counsel Stack

Bluebook (online)
240 Ill. App. 222, 1926 Ill. App. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconto-national-bank-v-weber-illappct-1926.