People ex rel. Chicago Title & Trust Co. v. Kowalski

138 N.E. 634, 307 Ill. 378
CourtIllinois Supreme Court
DecidedFebruary 21, 1923
DocketNo. 14961
StatusPublished
Cited by7 cases

This text of 138 N.E. 634 (People ex rel. Chicago Title & Trust Co. v. Kowalski) 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
People ex rel. Chicago Title & Trust Co. v. Kowalski, 138 N.E. 634, 307 Ill. 378 (Ill. 1923).

Opinion

Mr. Justice Cartwright

delivered the opinion of the court:

In a suit in equity pending in the circuit court of Cook county on a bill filed by shareholders of the St. Joseph Building and Loan Association praying for the appointment of a receiver, the Chicago Title and Trust Company was appointed and qualified as such receiver. On May 14, 1922, the court entered an order requiring a number of named parties to the suit', among whom were the appellants, except K. B. Czarneclci, to assign, transfer and deliver over to the receiver all assets, estate, moneys, securities, effects, equitable interests, real estate and other property of the association. Oil June 27, 1922, the receiver filed its petition for a writ of attachment against the appellants, A. J. Kowalski, Albert Rostenkowski, Felix Wilkowski, Joseph A. Okon, Leo Rammell, Frank Socki, Frank Puciaty, K. B. Czarnecki, their solicitor, and Joseph Grabowiecki, to show cause why they should not be adjudged guilty of contempt for a failure and refusal 'to comply with the order. The petition alleged service of a copy of the order, and that the appellants had in their possession or control assets and property belonging to the association and had failed and refused to surrender the same to the receiver. The appellants filed a demurrer to the petition and four pleas, and there was a hearing at which Grabowiecki was discharged and the appellants were adjudged guilty of contempt. The appellants, except Czarnecki, were fined $500 each and committed to jail until payment of the fine and compliance with the order or until otherwise discharged in due course of law. As to Czarnecki, the court found that he, with the other appellants, stood in open defiance of the court, and that his conduct and demeanor in open court during the proceedings was calculated, intended to and did tend to embarrass and obstruct the court and the judge thereof in the administration of justice and to bring the administration of law into disrespect and disregard. He was committed to jail for thirty days, and in addition thereto was fined $1000 and committed to jail in default of payment and until he should comply with the order, unless sooner discharged in due course of law. The appellants alleging that there were constitutional grounds for a review of the judgment by this court, prayed an appeal, which was allowed and perfected.

The brief and argument for the appellants is of very great length, does not conform to the rules of the court, and mingles statements concerning the litigation and questions relating thereto with the proceeding for contempt. What is entitled “Brief of Points” contains nineteen separate and distinct propositions consecutively numbered, with alphabetical subdivisions, and nearly all of them are intended to apply to alleged errors in the equity suit or supposed irregularities not affecting the jurisdiction to make the order which the appellants refused to obey, — and that is the question to be considered. If the court had jurisdiction the appellants were not entitled to set up their judgment that the order was erroneous against the judgment of the court, and any alleged error would not justify disobedience. Tolman v. Jones, 114 Ill. 147; Clark v. Burke, 163 id. 334; Swedish-American Telephone Co. v. Fidelity and Casualty Co. 208 id. 562; Christian Hospital v. People, 223 id. 244; Flannery v. People, 225 id. 62.

The facts appearing in the record from which the jurisdiction of the court is to be determined are as follows: The St. Joseph Building and Loan Association was organized as a corporation on November 4, 1895, for a term of twenty-five years and had a board of directors of nine members. On February 5, 1920, a bill was filed in the circuit court of Cook county in the name of the association, with the appellants and Joseph Grabowiecki as complainants, by K. B. Czarnecki, their solicitor, alleging that the complainants had been elected directors of the association and praying for an injunction against former officers from interfering with them in the management of the association, and a mandatory injunction commanding the secretary to surrender to them possession of the books, papers and other property and the seal. The bill alleged that there had been a meeting of the shareholders and complainants had been elected directors. The bill was answered and a cross-bill was filed by the defendants. The amended and supplemental cross-bill alleged that the complainants therein were regularly elected directors at a meeting of the shareholders in January, 1919, and had continued to discharge their duties; that at a meeting of the shareholders on January 31, 1920, a question arose about the regularity of certain proxies, and great confusion was created, chiefly by Czarnecki, and the disorder became so great that it became necessary to call in the police to quell the same; that the meeting was adjourned for one week, and the complainants in the original bill and defendants in the cross-bill held a meeting at five o’clock the next morning and with a few shareholders declared themselves elected; that the defendants had intentionally permitted the charter of the association to expire, and in June, 1920, before such expiration, organized a like corporation with the name of St. Joseph Loan Association, of which they were directors and officers, and that they had seized and appropriated the property of the St. Joseph Building and Loan Association. On May 13, 1921, nine shareholders of the St. Joseph Building and Loan Association filed their bill under section 43 of the act in relation to mutual building, loan and homestead associations, (Laws of 1919, p. 298,) praying for the appointment of a receiver. This bill was substantially the same as the amended supplemental cross-bill, and on June 2, 1921, the suits were consolidated.

While any error of a court having jurisdiction will not justify disobedience of its orders, if a court is without jurisdiction to make an order it is void and may be disregarded by persons sought to be affected thereby, since no court can punish as for a contempt disobedience of an order made without jurisdiction. (People v. Barrett, 203 Ill. 99; People v. McWeeney, 259 id. 161; People v. Clark, 268 id. 156; 6 R. C. L. 505; 13 Corpus Juris, 13.) That being the law, it is contended that the court was without jurisdiction to appoint a receiver and order the property and assets of the association turned over to it, because one of the complainants in the bill praying for such appointment was a minor. Section 43 provides that receivers may be appointed whenever nine or more shareholders of any association shall file a petition in the circuit court setting forth the facts relied upon for the appointment of a receiver, and the argument is that Irene Pejza, one of the complainants, was seventeen years and four months of age when she signed the bill, and therefore there were not nine shareholders who were complainants. Disregarding the question whether the court would be without' jurisdiction because one who was a shareholder in fact was an infant, and the fact that upon attaining her majority Irene Pejza confirmed in open court her act in signing the bill and the bond filed in connection therewith, the statute was complied with. The question at what age one otherwise qualified to enter into a contract shall have the right to make lawful contracts and be entitled to their benefits and bound by their obligations is within the control of the legislature.

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Bluebook (online)
138 N.E. 634, 307 Ill. 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-chicago-title-trust-co-v-kowalski-ill-1923.