Odell v. Levy

138 N.E. 608, 307 Ill. 277
Illinois Supreme Court·Decided February 21, 1923·No. No. 14728·Published·Cited by 14 cases

Opinion

Mr. JusTicR Dunn

delivered the opinion of the court:

Emanuel Levy and Sarah Levy, his wife, executed a mortgage to E. B. Odell to secure the payment of an indebtedness of $8400. Emanuel Levy died, and Odell as owner, and the Chicago Title and Trust Company as trustee, filed a bill to foreclose the mortgage, alleging that the heirs of Levy were unknown, that the title to the mortgaged property was held in joint tenancy by Emanuel and Sarah Levy and therefore passed to Sarah upon Emanuel’s death. Sarah Levy and the unknown heirs of Emanuel Levy were made parties to the suit, but on motion of complainants the cause was dismissed as to the heirs. Other lienholders were made parties but their interests do not now require consideration. A decree of foreclosure was rendered at the May term, 1917, and the mortgaged premises were sold by the master on June 25, 1917, to Orra W. Russell, to whom a certificate of sale was issued and the sale was approved by the court. On April 22, 1918, by leave of the court granted on their petition, Odell and Russell filed a supplemental bill, alleging the filing of the original bill against Sarah Levy and others, the dismissal of the unknown heirs of Emanuel Levy, and the subsequent proceedings resulting in the decree of foreclosure and the sale to Russell. The supplemental bill also averred that the complainants therein were led to believe that Emanuel and Sarah Levy held the premises described in the bill as joint tenants, and for that reason the bill was dismissed as to the unknown heirs of Emanuel Levy, but that the complainants in the supplemental bill had been informed that there was some doubt as to whether or not Sarah and Emanuel Levy at the time of the latter’s death held the premises in joint tenancy, for the reason that as it is now revealed, Frank C. Rathje, who is a defendant, held title by virtue of a deed to him from Emanuel and Sarah Levy in trust for Emanuel Levy. It is further alleged that Emanuel Levy died leaving his wife surviving him and three daughters, Katherine Levy Goldman, Ruth Levy and Julia Levy, the latter being a minor, his only heirs; that these heirs had served notice on the complainants that as the heirs of Levy they claimed the mortgaged property. The supplemental bill prayed that Katherine Levy Goldman, Ruth Levy and Julia Levy be made defendants; that their interests* if any, might be determined, and their right to redeem, if any, might be limited to the time of the period of redemption from the master’s sale, and that an injunction issue restraining actions at law for possession and for general relief. The heirs of Emanuel Levy appeared and answered, admitting that they gave the notice alleged in the supplemental bill; averring that they were the children of Emanuel and Sarah Levy and sole heirs of Emanuel Levy, and that he was the owner, at the time of his death, of the equitable title in fee simple to the mortgaged premises by virtue of a declaration of trust made by Rathje, who was then the legal holder of the title to the premises in fee. A copy of this declaration was attached to the answer. On July 26, 1918, a decree was entered reciting a hearing upon the supplemental bill, the answer of the defendants thereto and the complainants’ replication, and upon proofs and exhibits and with no further finding than that all the material allegations in the supplemental bill of complaint are proved, it was ordered that the previous decree and the sale be made binding and with like effect on the defendants to the supplemental bill as though they had been made defendants to the original bill, except that they be given the right to redeem the premises from the sale on or before October 31, 1918, and in case of their failure to redeem by that“time they should be forever barred from all equity of redemption. The defendants in the supplemental bill, the heirs of Emanuel Levy, sued out a writ of error from the Appellate Court, which affirmed the decree, and upon the petition of the plaintiffs in error a writ of certiorari was awarded to bring the record to this court for review.

The decree of foreclosure-as to the plaintiffs in error was void. They were not parties to it. They were the equitable owners of the equity of redemption, and it is well settled that a decree of foreclosure in a proceeding to which the person having the equity of redemption is not a party is a nullity as to him. (Rodman v. Quick, 211 Ill. 546.) There was no authority for making them parties to the decree of foreclosure and binding them by the sale made under it by means of a supplemental bill. Since the decree was void as to them, the court could not in any kind of a proceeding give it any validity against them. Their land was subject to the mortgage debt in accordance with the terms of the mortgage, which could be enforced against them only in accordance with the usual and ordinary process of foreclosure. A decree to which they were not parties was not even prima facie evidence against them of anything and they could not through any proceeding be bound by its terms. The purchaser at a foreclosure sale upon a decree to which the owner of the equity of redemption is not a party and which is therefore void as to him becomes the equitable "assignee of the mortgage and acquires the legal title to the land which was in the mortgagee, but the right of the owner of the equity of redemption to redeem will be unaffected by the decree. (Cutter v. Jones, 52 Ill. 84; Kelgour v. Wood, 64 id. 345; Alsup v. Stewart, 194 id. 595; Rodman v. Quick, supra.) If the supplemental bill can be maintained as an adjunct or addition to the original suit, it must be regarded, so far as the plaintiffs in error are concerned, as an original suit, constituting, together with the original bill, one case, which the complainants were bound to prove in its entirety against the defendants from the beginning.

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Odell v. Levy, 138 N.E. 608, 307 Ill. 277 (Ill. 1923).

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