Patterson v. Northern Trust Co.

132 Ill. App. 63, 1907 Ill. App. LEXIS 107
CourtAppellate Court of Illinois
DecidedApril 4, 1907
DocketGen. No. 12,485
StatusPublished
Cited by3 cases

This text of 132 Ill. App. 63 (Patterson v. Northern Trust Co.) 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
Patterson v. Northern Trust Co., 132 Ill. App. 63, 1907 Ill. App. LEXIS 107 (Ill. Ct. App. 1907).

Opinion

Mr. Presiding Justice Brown

delivered the opinion of the court.

In the opinion in the cause No. 12,420 in this Court, Patterson v. The Northern Trust Company et al., post, p. 208, will he found a statement of the facts concerning a litigation antecedent to the one at bar, which resulted in a decree of the Circuit Court of Cook county on June 25, 1902, establishing a lien in favor of the Northern Trust Company, trustee, as lessor under a lease originally made between Pullman and Matthews, trustees, as lessors, and H. H. Kohlsaat, as lessee of certain premises in Chicago, on which, after the lease was made, the Stewart Building, so-called, was erected. By conveyances, before the bill to foreclose a lessor’s lien was filed by the Northern Trust Company as trustee for Hannah M. Williams, Helen W. S. Johnson, Fannie M. Johnson, Stewart Patterson and the plaintiff in error in this cause, John C. Patterson, that company. had become possessed of the lessor’s interest in the lease and the Merrimac Building Company had become entitled to the lessee’s. The decree of June 25, 1902, after establishing the lien, found that the amount due from the Merrimac Company to the Trust Company was $199,359, and ordered the leasehold estate and building sold unless the amount so found due was paid on or before March 15, 1904. This time having expired, the Northern Trust Company, on May 20, 1904, filed a bill in the Circuit Court of Cook county, setting forth the provisions of the decree of June 25, 1902, and representing that, while the other beneficiaries under the trust deed to it had requested and directed it to cause a sale to be made under the terms of that decree, and to bid for the property to be sold the full aggregate sum due and payable under the decree, and had agreed to a credit of any sum so bid, and for which the Northern Trust Company as trustee might buy the property, on the amount of the decree, John C. Patterson had refused to join in said request, direction or agreement, and had threatened to object to any action it might take as trustee in regard to the sale of the leasehold and building before described, and to "seek to impose a personal liability on it, whatever action it might take. Therefore it asked as trustee the direction of the court as to its rights and duties as trustee. This bill was the commencement of the cause at bar.

To the bill all the beneficiaries under the trust deed to the Northern Trust Company were made parties defendant. All but John C. Patterson answered, admitting all the allegations of the bill. John 0. Patterson, who was the beneficial owner of a life estate in one-twelfth interest in the property, filed his answer June 9, 1904. The most material part of this answer was an allegation that a certain agreement entered into between the Northern Trust Company, as trustee and lessor, and the Merrimae Building Company, as lessee, dated March 15, 1898,' which agreement all the beneficiaries, including John C. Patterson himself, signed, in connection with the Trust Company, was invalid and ineffective to relieve the Merrimac Building Company from a forfeiture of its leasehold estate and of its interests in the building, which in consequence of default in the payment of rent, and by the action of the Northern Trust Company thereon, on March 1,1898, had already occurred when the agreement aforesaid was executed.

The answer alleged that the trustee had been in possession of the premises, but had improperly yielded said possession to a receiver appointed in a suit brought by certain mortgage bond holders of the Merrimac Company. It also alleged that the suit brought to foreclose the lessor’s lien August 10, 1900, in which the plaintiff in error was one of the parties complainant, and in which the said decree of June 25, 1902, was .entered, was brought under a mistake of law and fact, and that the decree entered therein-ought to be set aside and should not be enforced, the leasehold being, as a matter of fact, already terminated and'the building already the property of the trustee.

January 24, 1905, the plaintiff in error filed a cross-bill in the cause. In that cross-bill he made the same allegations about the litigation between the Northern Trust Company and its beneficiaries and the Merrimae Building Company that he had made in his answer; asserted that the beneficiaries joined in the agreement of March 15, 1898, and in the bill for foreclosure, filed August 10, 1900, at the request of the Northern Trust Company, without having any “independent or competent legal advice,” and trusting in the Northern Trust Company to do nothing to the prejudice of their rights. The cross-bill also made allegations that the said bill of August 10,1900, was filed wholly in the private interest of the Northern Trust Company and its attorneys, and to enable them to obtain a private profit wrongfully at the expense of the trust fund, and that, in the conduct of the cause, the actions of the Northern Trust Company were unjust to the beneficiaries and in conflict with its duty as trustee.

To this cross-bill the Northern Trust Company and the other beneficiaries were made parties, and also all the defendants to the foreclosure bill of August 10, 1900.

The prayer of the cross-bill, besides the prayer for summons and answers, was that the decree of June 25, 1902, might be set aside and declared to be void and of no effect, and that it might be decreed that no further proceedings should be had thereon.

To this cross-bill the other beneficiaries under the Northern Trust Company trust deed, and the Illinois Trust & Savings Bank, filed general demurrers, and the Merrimae Building Company filed a general and special demurrer, for cause of demurrer setting forth that it appeared on the face of the cross-bill that the cross-complainant had been guilty of laches which should bar him from relief, that there was no denial in the cross-bill that the cross-complainant had received rents and profits collected by the trustee and receiver under the decree he sought to set aside, and that he had not set up facts sufficient to release him from the binding force of his consent to the agreement of March 15, 1898, and to the proceedings in which said decree was entered and to the decree actually entered.

As the transcript of the record is per praecipe and only the demurrers filed to the cross-bill are ordered to be incorporated by the praecipe, we cannot tell what answers may have been filed nor what they may have-contained. Nor can we tell what other proceedings may have been taken in the case, for only two orders are incorporated in the transcript, and these were specifically described in the praecipe.

While it does not appear in this record, it does in the record in No. 12,420, that on February 21, 1905, the decree of June 25, 1902, in the original litigation, was satisfied in open court by payment, and that cause only retained for the purpose of settling and adjusting all accounts of the Northern Trust Company, as receiver, in and to said premises.

March 20, 1905, the following order was entered in the cause at bar:

"This cause coming on to be heard upon the motion of the complainant to dismiss the original bill herein, and upon the demurrers to the cross-bill herein, and after arguments by counsel, and the court being fully advised in the premises, it is ordered that the demurrers to the cross-bill herein be, and hereby are, sustained upon the ground that the matters therein set forth are not germane to the original bill herein.

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Related

Shedd v. Patterson
230 Ill. App. 553 (Appellate Court of Illinois, 1923)
Johnson v. Northern Trust Co.
184 Ill. App. 549 (Appellate Court of Illinois, 1914)
Patterson v. Northern Trust Co.
139 Ill. App. 681 (Appellate Court of Illinois, 1908)

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Bluebook (online)
132 Ill. App. 63, 1907 Ill. App. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-northern-trust-co-illappct-1907.