Peiffer v. Newcomer

157 N.E. 240, 326 Ill. 189
CourtIllinois Supreme Court
DecidedJune 22, 1927
DocketNo. 18131. Decree affirmed.
StatusPublished
Cited by7 cases

This text of 157 N.E. 240 (Peiffer v. Newcomer) 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
Peiffer v. Newcomer, 157 N.E. 240, 326 Ill. 189 (Ill. 1927).

Opinion

Mr. Justice Dunn

delivered the opinion of the court:

On October 30, 1925, Thomas E. Newcomer filed for record in the recorder’s office of Cook county an affidavit stating that he had purchased from Frances E. Peiffer on September 28, 1925, a certain forty-acre tract of land in Coolc county for the sum of $45,000 on terms which were stated, but that after entering into the contract she received an offer of a larger price for the property and refused to comply with her contract; that affiant claimed to be the equitable owner of the contract and was ready, willing and able to carry out its conditions and insisted on the carrying out of the contract as it was made. On November 23 Frances E. Peiffer filed a bill of complaint in the superior court of Cook county showing that she was the owner of the property in question and that on October 30, 1925, Newcomer and John A. Carroll caused to be filed in the office of the recorder of deeds of Cook county the affidavit which has been mentioned; that Newcomer was acting on behalf of Carroll, and that the complainant did not sell to Newcomer the jjremises in question and did not enter into any contract for the conveyance of them; that the recorded affidavit is a cloud on her title, and she therefore prays that Newcomer and Carroll be required to answer the bill, but not under oath, and that the cloud upon her title be removed. Newcomer filed an answer to the bill, alleging that the contract of sale was entered into between the complainant and Newcomer; that the latter holds the equitable title and is entitled to the legal title to the premises, and that the affidavit is not false but is true in every particular. Newcomer also filed a cross-bill asking for the specific performance of the contract. Afterward by leave of the court the cross-bill was amended so as to make Carroll and Edward J. McMullen parties complainant, and McMullen was also made a defendant to the original bill and permitted to join in the answer of the other defendants. Mrs. Peiffer’s answer to the cross-bill denied that she agreed to sell the land to the cross-complainants for any price or upon any terms or authorized any other person to enter into any such agreement on her behalf or that any such contract or agreement was ever entered into; that the contract alleged was not in writing, nor was there a sufficient memorandum or note thereof signed by her or some other person thereunto by her lawfully authorized in writing, and she claimed the benefit of the Statute of Frauds. The cause was referred to a master, who reported the evidence together with his finding of fact that there was no contract in writing executed by Mrs. Peiffer or anyone as her agent authorized in writing to bind her, and his conclusion that the cross-complainants had no interest in the real estate and were not entitled to the relief prayed for in the cross-bill but that the affidavit was a cloud upon the title of the complainant, which should be removed. Objections by the cross-complainants to this report were overruled by the master and their exceptions were also overruled by the court, and a decree was entered dismissing the cross-bill for want of equity and removing the cloud caused by the affidavit upon the complainant’s title.

There is no serious conflict as to any question of fact. Mrs. Peiffer, a resident of Denver, Colorado, had corresponded with a firm of real estate brokers in Chicago with reference to the sale of the land and had written a letter to them saying that she would consider an offer of $1000 an acre. On August 17, 1925, they wrote her that they had received an offer of $35,000 for the land upon terms which they stated. On August 26 she telegraphed to P. E. Leonard, a member of the firm, that her son would leave for Chicago shortly and would see him with reference to the property. Her son, John Peiffer, left Denver on September 2. He had no authority to sell the land and so informed all with whom he dealt in Chicago with reference to it. He spent several days investigating the value of the property, visited brokers and called upon John D. Wild, who was a member of the bar but had not been in general practice for several years, who was secretary and treasurer of the First Realty Company. Peiffer wanted him to take care of any legal work he might want done, to draw up and pass upon the contracts if any offers for the property were received, so that Peiffer would know they were all right before he sent them to his mother. He visited several brokers but put no price on the land and informed them that any price which had been made was withdrawn. On September 28 Peiffer went to Wild’s office to meet Leonard and was introduced to Newcomer, who made an offer for the property of $45,000, — one-third cash and the remainder on or before five years after date, — which Peiffer was willing to send to his mother for her consideration. Peiffer agreed to recommend it to his mother, and Wild drew the contract and sent it to her, inclosing a letter from Peiffer recommending its acceptance and a letter written by Wild explaining its terms, in which he stated that Newcomer was the personal agent of John A. Carroll, president of the Hyde Park Trust and Savings Bank, and that Wild considered that he was thoroughly responsible and able to carry the contract out promptly. When Mrs. Peiffer received the contract she submitted it to D. W. Strickland, her attorney, for his advice and for such action as he saw fit to take, who thereupon wrote to Wild on October 5 that he had been worrying over the possible income tax of Mrs. Peiffer in connection with the sale, as well as about the sale itself, but was in hopes that it could be concluded, and wanted to submit for Wild’s consideration a change in the contract by dividing the cash payment into two or three payments, so that the first would be smaller than one-fifth of the purchase price, so as to make the contract come within “deferred payment sales,” as defined in certain articles of the income tax regulations. The letter stated: “Such contract, in fact, could be prepared, and when the second payment after the down payment is due it could be submitted to the purchaser and he could see that the contract in no way changed his obligations, and he could probably agree to use the new form instead of the old one. Such a contract, you can see, will lessen the taxes very materially, and it practically all depends on making the first payment less than one-fourth of the purchase price.” Wild answered this letter on October 8, saying in regard to the income tax: “I have examined the regulations and Corporation Trust Company reference you gave and also the books of the Commerce Clearing Service. One of the decisions describes a sale with a twenty per cent cash payment and the balance secured by purchase money mortgage, payable on or before five years, in annual installments of six and two-thirds per cent of the price, or more. This was held to be a sale on the installment plan. I have learned of one or two recent sales in acre property involving rapid increase in value similar to this, in which the details were worked out with a cash payment of twenty per cent and the balance in quarterly installments spread over a five-year period. It seems clear that this method will bring Mrs. Peiffer within the regulations and I have no doubt that I can arrange with the purchasers to consent to such a change. The one difficulty with this arrangement which bothers me is the probability of the purchasers exercising the on-or-before privilege of payment. If within a year or two this should be done, of course Mrs. Peiffer would have to account for all cash received in any one year.

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157 N.E. 240, 326 Ill. 189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peiffer-v-newcomer-ill-1927.