People Ex Rel. Jones v. Chicago Lloyds

63 N.E.2d 479, 391 Ill. 492, 1945 Ill. LEXIS 385
CourtIllinois Supreme Court
DecidedSeptember 19, 1945
DocketNo. 28664. Order affirmed.
StatusPublished
Cited by13 cases

This text of 63 N.E.2d 479 (People Ex Rel. Jones v. Chicago Lloyds) 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. Jones v. Chicago Lloyds, 63 N.E.2d 479, 391 Ill. 492, 1945 Ill. LEXIS 385 (Ill. 1945).

Opinion

Mr. Justice Gunn

delivered the opinion of the court:

The controversy in this case arises out of the disallowance of a claim of Charles B. Mortis, appellant, by the Director of Insurance of Illinois, the liquidator of Chicago Lloyds, hereinafter referred to as “liquidator,” appointed by the decree of the superior court of Cook county upon the petition of the Director of Insurance and the Attorney General of the State of Illinois.

As finally amended appellant’s claim consists of a judgment rendered in the circuit court of the city of St. Louis, Missouri, against Chicago Lloyds, three years after the liquidator of Chicago Lloyds had been confirmed by the decree of the superior court. The claimant contended the full-faith-and-credit clause of the constitution of the United States (art. IV, sec. 1,) and the acts of Congress enacted pursuant thereto, required that such judgment be recognized in the Illinois liquidation proceeding and allowed as a claim against the assets of Chicago Lloyds for the full amount of such judgment.

Appellant’s claim involves a construction of the constitution of the United States, and authorizes a direct appeal to this court. Groome v. Freyn Engineering Co. 374 Ill. 113; VanDyke v. Illinois Commercial Men’s Ass’n, 358 Ill. 458. •

Many of the questions arising under this provision of the United States constitution have been so thoroughly settled that as to such questions an appeal to this court would not be entertained, because the question involved is no longer debatable, and w.e do not entertain appeals when the constitutional question is settled so as to be no longer debatable. First Nat. Bank v. Village of South Pekin, 371 Ill. 605; Dean v. Board of Education, 386 Ill. 156; Wilson v. Prochnow, 354 Ill. 98.

The question here presented, as set out in the report of the master, is as follows: “Had the liquidator of an insurance company, organized and doing business under the laws of Illinois, or the court - appointing him, the right to pass upon the merits or the amount of a claim, arising out of a suit instituted in another forum before the appointment of the liquidator and consummated by a judgment of such foreign court after such appointment?” This presents a -new application of the full-faith-and-credit clause, which is still debatable, or at least questionable, and therefore is subject to review by this court on direct appeal from the superior court of Cook county. (Atkins v. Atkins, 386 Ill. 345.) Incidentally the question is also in the case under such clause of the constitution as to what effect the prior decree of the Illinois court, appointing a liquidator for Chicago Lloyds, has upon a subsequent judgment rendered in another State seeking satisfaction from the same assets. These questions, as presented, we believe have never been decided .by the United States Supreme ' Court as the final arbiter of such questions arising under the full-faith-and-credit clause.

The facts as applicable to the questions involved are comparatively simple. Chicago Lloyds, an unincorporated association recognized and authorized by the laws of Illinois to transact insurance business in Illinois, and in other States, upon compliance with the laws of such other States, obtained a license to transact business in the State of Missouri March 1, 1932, and continued to have such authority for some years thereafter. Associated Underwriters, Inc., was the attorney in fact for Chicago Lloyds in said State, and one Roessel was. attorney for Chicago Lloyds, and its agent. The claimant, Charles B. Morris, became the agent handling such business in Missouri, under a contract. A dispute arose as to whether he had accounted for all premiums paid to him, which resulted in his being arrested upon the complaint of Roessel, charged with embezzlement, indicted, tried and acquitted.

August 24, 1934, Morris brought suit in the circuit court of the city of St. Louis against Chicago Lloyds, Associated Underwriters, Inc., and attorney Roessel, for malicious prosecution and false arrest. The cause was removed to the United States court, and afterwards, January y, 1938, remanded to the circuit court of the city of St. Louis. February 9, 1938, the People of the State of Illinois, upon the relation of the Director of Insurance, filed in the superior court of Cook county a petition praying for the entry of an order finding sufficient cause existed for the liquidation of Chicago Lloyds, and on the same day a decree was entered adjudging and decreeing that the Director of Insurance take possession of its property, and liquidate the same in accordance with the Illinois Insurance Code. February 15, 1938, an order fixing the- time and procedure for the filing of claims was made, requiring claims' tó’ be presented to the liquidator on or before November 15, 1938.

Before, the liquidation proceeding Chicago Lloyds had questioned the jurisdiction of the circuit court of the city of St. Louis by a plea and demurrer which were overruled, and later filed an answer on the merits, as did also Associated Underwriters, Inc. After the order of the superior court of Cook county appointing a liquidator was entered, an injunction was issued restraining the claimant and others from prosecuting claims, (of which claimant concedes he had notice,) and counsel for Chicago Lloyds, upon the requirement of the liquidator, withdrew, and the St. Louis court was advised that the reason of such action was the liquidation proceedings in Illinois, with the consequent vesting of the title to, all of the property and assets of Chicago Lloyds in the liquidator. Nevertheless, the claimant persisted in prosecuting his suit at law in the circuit court of the city of St. Louis, and April 7, 1941, such court entered a judgment in favor of the claimant against Chicago Lloyds and others in the amount of $50,000.

September 21, 1938, before obtaining judgment Morris filed his claim with the liquidator in the amount of $100,000, claiming damages for false imprisonment and malicious prosecution, and attached as an exhibit the complaint filed in the circuit court of the city of St. Louis. After he had obtained judgment he amended his claim by filing an exemplified copy of the judgment rendered by the circuit court of the city of St. Louis. The amended claim shows it arose from the same state of facts as the original. The only evidence presented by claimant was the record of this "judgment obtained in the circuit court of the city of St. Louis.

In disposing of the issues presented and argued in this case it »is first necessary to examine the status, rights and title of the liquidator of the insolvent insurance company under the laws of the State of Illinois. Article XIII of “An Act to revise the law relating to insurance,” referred to as the Insurance Code, (Ill. Rev. Stat. 1943, chap. 73, pars. 799 et seq.,) among other things provides for the liquidation of insolvent insurance companies. Section 188 of the Insurance Code, (Ill. Rev. Stat. 1943, chap. 73, par. 800,) specifies the grounds upon which the Director of Insurance and the Attorney General may petition a circuit or superior court for an order to show cause why an insurance company should not be liquidated. Section 189, (par. 801,) of the Insurance Code provides the court may issue an injunction to protect the assets of such insolvent company. Section 190, (par.

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Bluebook (online)
63 N.E.2d 479, 391 Ill. 492, 1945 Ill. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-jones-v-chicago-lloyds-ill-1945.