Pease v. Frank

263 Ill. 500
CourtIllinois Supreme Court
DecidedApril 23, 1914
StatusPublished
Cited by5 cases

This text of 263 Ill. 500 (Pease v. Frank) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pease v. Frank, 263 Ill. 500 (Ill. 1914).

Opinion

Mr. Justice Cartw'right

delivered the opinion of the court:

Upon the hearing in the superior court of Cook county of exceptions to- the report of a master -in chancery the chancellor dismissed at the cost of the appellant, Frank B. Pease, the bill filed by him against the appellees in aid of an execution issued on a judgment against Havilah Davis, one of the appellees, in which it was alleged that the interests of the appellees in certain real estate were subject to a lien created by the levy of an attachment writ and perfected by the rendition of the judgment. The Appellate Court for the First District affirmed the decree and granted a certificate of importance and an appeal.

David L. Frank was the owner of lots 13 to 19, inclusive, in block 2, in Snowhook’s subdivision of a tract of land in Cook county, and, under an arrangement with Havilah Davis to' construct buildings on the property, conveyed the lots to Susan M. Davis, wife of Havilah Davis. Susan M. Davis and her husband, Havilah Davis, executed seven trust deeds on the property to Francis B. Peabody, which were recorded on June 3, 1899. Susan M. Davis paid no consideration for the conveyance to her but it was procured by Havilah Davis, and she held the legal title in trust for his use and benefit. On July 5, 1899-, a writ of attachment in aid of a suit in assumpsit in the circuit court of Cook county, in which J. W. McGraw, for the use of Frank B. Pease, was plaintiff and Havilah Davis was defendant, was levied upon all the lots and the certificate of the levy was filed in the recorder’s office. At the time of levying the writ Havilah Davis was the owner of the equitable title to the premises, subject to the lien of the Peabody trust deeds. There was personal service in the suit upon Havilah Davis on July 6, 1899. On August 28, 1899, Susan M. Davis and Havilah Davis conveyed the lots to David D. Frank, who executed a declaration of trust declaring that he held the title in trust for Susan M. Davis, subject to the Peabody trust deeds, amounting to- $32,000, and subject to the amount due him, and agreeing to convey the whole or any portion of the premises at any time, upon the request of Susan M. Davis, to any person whom she might elect, upon the payment to him of a proportionate amount of the indebtedness due him. On February 1, 1900, Susan M. Davis and Havilah Davis conveyed all interest in the premises to David L. Frank, who executed a quit-claim deed the same day to Emily B. Dobbs, and she afterward quit-claimed the premises to Wellington I. Wilson, under whom the appellees claimed title by sundry conveyances. On October 10, 1901, judgment was rendered in the suit against Havilah Davis for $734.42 and costs, and a general and special execution was ordered. On November 30, 1901, an execution, which was special as to the property levied upon and also general against the property of Havilah Dav'is, was issued and delivered to the sheriff of Cook county, and on the same day the bill in this case was filed, alleging that at the time of the levy of the attachment writ Havilah Davis was the equitable owner of the premises and that they were held in trust for him by Susan M. Davis, and seeking to enforce the lien created by the attachment. The master in chancery found and reported these facts, and also that the defendants who had acquired title to the premises at the time of and prior to their respective purchases caused to- be made an examination of an abstract of title upon which there appeared a notation of the levy of the writ of attachment, and they thereby had notice of the levy and recording of the certificate. He found that Havilah Davis was the equitable owner of the premises subject to the lien of the trust deeds, but concluded, as a matter of law, that the defendants who acquired the legal title held by Susan M. Davis subsequent to David L. Frank, having no actual notice that Havilah Davis was the equitable owner, were not required to take any notice of the levy and recording of the certificate thereof, although it was also- brought to their attention by the abstracts, and that their titles were free from the lien. . The chancellor took the same view of the law, and the Appellate Court decided that the levy and recording of the certificate did not operate as notice to- anyone claiming under the holder of the legal title.

By section 8 of the act in regard to attachments in courts of record, equitable interests in real estate are made subject to attachment, and section g provides as follows: “When a writ of attachment is levied upon any real estate, in any case, it shall be the duty of the officer making the levy to-file a certificate of such fact with the recorder of the county where such land is situated; and from and after the filing-of the same, such levy shall take effect, as to creditors and bona fide purchasers, without notice, and not before.” The statute authorizes a levy upon an equitable interest, and provides that from and after the filing of a certificate the levy shall take effect as to creditors and bona fide purchasers without notice. If the view which has prevailed in this case is correct and a levy does not take effect as to subsequent purchasers "unless the writ is against the holder of the legal title, an attachment of an equitable interest can never have any effect as to creditors and purchasers. If a levy on an equitable interest is to take effect at all it must take effect as to purchasers of the property from the legal owner, and if 'it does not, the statute means nothing so- far as equitable interests are concerned, and although the statute says that the levy shall take effect, the holder of the legal title may make a transfer carrying the equitable title of the true owner, free from the lien, to anyone willing to purchase. This court considered the effect of such an interpretation •of a statute not distinguishable from this one, in Brown v. Niles, 16 Ill. 385. Niles recovered a judgment.agaipst Jenks in the circuit court of Jo Daviess county, and execution was issued to Stephenson county and levied on lands in that county as the property of Jenks. Section 25 of the statute of 1845 provided that when an execution was issued from the circuit court of one county to another county, it should be the duty of the officer making the levy to make a certificate thereof and file the same in the recorder’s office of the county where the real estate was situated, and until the filing of the certificate the levy should not take effect as to creditors or bona üde purchasers without notice. Before the levy Jenks had executed a deed to Brown to defraud, delay and hinder his creditors, and Brown, to defraud his creditors, executed a deed to Watson and took from Watson an agreement to convey the land to Jenks. Brown continued in possession until after the levy of the execution and filing the certificate, and while Watson held the title Jenks executed to Watson a release of his interest, after which Watson re-conveyed the lands to* Brown, who conveyed a portion to Sills after the levy was made and the certificate filed. The circuit court of Stephenson county, upon a bill filed to subject the lands to the satisfaction of the execution, granted the relief prayed for, and this court, on the appeal of Sills and Brown, considered the question whether Sills could be treated as a purchaser without notice. Sills contended that he purchased upon exhibit of a perfect chain of title of record showing title in Brown and that he could not be affected by the levy. The court refused to uphold his claim and held that the lien attached at the time of filing the certificate, and that any other construction would tend to encourage, instead of prevent, fraud.

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Bluebook (online)
263 Ill. 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pease-v-frank-ill-1914.