Parlin & Orendorff Co. v. Galloway

95 Ill. App. 60, 1900 Ill. App. LEXIS 420
CourtAppellate Court of Illinois
DecidedMarch 11, 1901
StatusPublished
Cited by4 cases

This text of 95 Ill. App. 60 (Parlin & Orendorff Co. v. Galloway) 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
Parlin & Orendorff Co. v. Galloway, 95 Ill. App. 60, 1900 Ill. App. LEXIS 420 (Ill. Ct. App. 1901).

Opinion

Mr. Justice Bigelow

delivered the opinion of the court

The unusual facts claimed to exist by the contending parties to this record, make it proper for us to advert to them in more extended detail than otherwise would be necessary for the decision of the questions which we deem to be properly before us for review, and we do this without expressing any opinion as to the merits of the respective controversies between the parties.

Originally the suit was a bill in chancery brought by appellant Parlin & Orendorff Company to foreclose a certain mortgage made by appellee T. I. Galloway to Parlin & Orendorff Company.

The mortgage was executed and recorded on the 14th of March, 1896, and it was made to secure two notes of $1,690.86 and $656.56 respectively. The genuineness of the notes and- mortgage is admitted, and so is the indebtedness. All of the parties defendant to the suit except T. I. Galloway, were made defendants to the bill, with the allegation against them “ that they have, or claim to have, some interest in said mortgaged premises, or some part thereof, as purchasers, mortgagees or otherwise, which interests, if any, have accrued subsequent to the lien of your orators and are subject thereto.” This is the only allegation drawing in question any of the rights or supposed rights of the defendants in the bill.

On the 19th of September, 1895, Moses Hutson, by a purported deed, conveyed the mortgaged premises to T. I. Galloway; the deed is signed by a mark, and was recorded March 14, 1896. Moses Hutson claims that he never executed the deed and that it is a forgery. After the claimed conveyance to Galloway, Hutson remained in possession of the lands described in the deed, and the evidence shows that he has been in possession of them all of the time since 1844, when he bought them from the government, and that he was in possession at the time of the hearing of the cause.

On the 6th of October, 1897, there was filed in the recorder’s'office what purported to be a release of the mortgage to Parlin & Orendorff Company, the release having apparently been made on the 13th of September previous, in St. Louis, Missouri. It seems to be admitted by all parties except Galloway, that this release is a forgery, and he does not appear to dispute it.

On the 9th day of October, 1897, Gallowa)7 being able to exhibit by an abstract of title, the release of appellant’s mortgage, mortgaged some of the lands in controversy to Carrie Rogers to secure the sum of $500; and on the 26th of October, 1897, he mortgaged other of the lands to Harry C. Miller, to secure the sum of $600. On the 3d of December, 1897, Galloway mortgaged the lands in controversy in this case, with other lands, to A. 0. Terhune, to secure the sum of $1,100. It seems that about this time a rumor arose as to the validity of the Galloway title to the premises; and appellants Miller and Rogers employed appellant Spilman, who is a lawyer, to look after their interests. Pursuant thereto, I. R. Spilman had an interview with Moses Hut-son, and the conclusion of that interview was, that Hutson executed a deed to Spilman for the premises, on the 16th of December, 1897, and it was recorded on the same day. This deed Moses Hutson claims was obtained from him by fraud and misrepresentation, but Mr. Spilman resists that claim. At all events, Mr. Spilman on December 18, 1897, executed a mortgage which ■ was recorded a day or two thereafter, for the sum of $1,100, to Carrie Rogers and H. C. Miller, to secure the two Galloway notes to his clients, the Galloway mortgages to Miller and Rogers being permitted to remain of record-and in force for what they may be worth. As we have heretofore stated, Moses Hutson remained in possession of the lands all of the time while these various deeds and mortgages were being executed and recorded.

There was personal service on all of the defendants to the bill, and all of them except Galloway filed answers, and Moses Hutson filed a cross-bill; there was a default decree as to Galloway. Moses Hutson, in his answer, set up title to the lands in himself; he also filed a cross-bill asking that the Galloway and Spilman deeds be set aside as clouds on his title; the former because it was a forgery, and the latter because it was obtained by fraud and misrepresentation of his co-defendant Spilman, and that accordingly the mort- • gages to Parlin & Orendorff Company, the Galloway mortgages to Miller and Rogers, the Spilman mortgage to the same parties, and the Terhune mortgage, are invalid and should be removed as clouds on the title. To the answer of Moses Hutson, appellant Parlin & Orendorff Company excepted, because it brought the claimed adverse title of Hutson into the controversy. To the cross-bill the company demurred. The court overruled the exceptions and the demurrer and the company answered the cross bill. Appellants Spilman, Miller and Rogers, also answered the cross-bill, and appellee Terhune answered the original bill, admitting its allegations and setting up his rights under his mortgage from Galloway. Before the cause was at issue, appellant Parlin & Orendorff Co. amended its original bill; this amendment, however, in no way admits or denies the validity of the deed from Moses Hutson to Galloway. The entire scope of the amendments is that for fear the court, on 'Hutson’s cross-bill, may declare the Galloway deed to be invalid, and appellant’s mortgage thereby void, as against the title of Hutson, a decree may be equitably íri ven against Moses Hutson for the amount of the Galloway mortgage debt, because Hutson is shown to have owed appellant Parlin & Orendorff Company, this very indebtedness, and the Galloway mortgage took up this debt of Hut-son to appellants, substituting the Galloway notes for Hut-son’s notes, in the same amount. The court decreed that the Galloway and Spilman deeds were invalid, and that therefore all of the mortgages were invalid, and accordingly all of said instruments were removed as clouds on the title to the lands; all relief prayed for by appellant Parlin. & Orendorff Company in its original and amended bills was denied.

It is claimed by appellant Parlin & Orendorff Company that the court erred in allowing Moses Hutson to file his cross-bill, because it could not, on a mere bill to foreclose a mortgage, be compelled to litigate the adverse title of Moses Hutson; that it had a right to foreclose its mortgage "whether in the end it got a good or bad title to the lands.

To this proposition appellee Hutson replies that the Galloway deed is a forgery, and that inasmuch as he is in possession of the land, he has the right to remove the deed and the dependent mortgages as clouds on his title; that, being in possession, he could not use his legal title .to the lands in vindication of his rights, and that therefore he has an unquestioned equitable remedy both against the Galloway deed and the Galloway mortgages, to have them canceled as clouds.

Some preliminary and perhaps elementary considerations will, we think, assist in arriving at a true solution of these apparently conflicting contentions. The Galloway deed may or may not be valid; Moses Hutson’s possession of the lands may or may not be in privity with the mortgage held by appellant Parlin & Orendorff Company.

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Bluebook (online)
95 Ill. App. 60, 1900 Ill. App. LEXIS 420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parlin-orendorff-co-v-galloway-illappct-1901.