Personal Loan & Savings Bank v. Schuett

20 N.E.2d 329, 299 Ill. App. 421, 1939 Ill. App. LEXIS 743
CourtAppellate Court of Illinois
DecidedMarch 28, 1939
DocketGen. No. 40,289
StatusPublished
Cited by2 cases

This text of 20 N.E.2d 329 (Personal Loan & Savings Bank v. Schuett) 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
Personal Loan & Savings Bank v. Schuett, 20 N.E.2d 329, 299 Ill. App. 421, 1939 Ill. App. LEXIS 743 (Ill. Ct. App. 1939).

Opinion

Mr. Justice John J. Sullivan

delivered the opinion of the court.

This appeal seeks to reverse an order entered by the municipal court of Chicago, which denied the motion of the Advance Cleaners & Dyers, Inc., garnishee defendant, to vacate a garnishment judgment rendered against it by default.

On April 27, 1937, Mrs. Eleanor Sehuett and four other persons executed their promissory note to the Personal Loan & Savings Bank, beneficial plaintiff herein, for $435. The makers of this note defaulted in the payment of same. October 7, 1937, the beneficial plaintiff confessed judgment thereon for $424.35 against Mrs. Sehuett and her cosigners of said note. October 22, 1937, a garnishment proceeding predicated on said judgment was instituted against the Advance Cleaners & Dyers, Inc., as garnishee. Theretofore, October 17, 1937, two garnishment demands, one directed to the Advance Cleaners & Dyers, Inc., as the employer, and the other to Mrs. Eleanor Sehuett, as the employee, were caused to be served by Roy Peterson, plaintiff’s agent, at the store owned by the garnishee upon Mrs. Sehuett, who was the sole employee in said store and who also was, as heretofore shown, one of the defendants and a judgment debtor in the original action. Likewise the garnishment summons directed to the Advance Cleaners & Dyers, Inc., was served by the bailiff of the municipal court upon Mrs. Sehuett as the agent of the garnishee. She did not deliver the garnishment demand or the summons to any other employee or official of the garnishee nor inform any other employee or official of the garnishee of the service thereof, and said garnishee consequently failed to appear or answer on the return date specified in said summons. The court then entered a conditional judgment against garnishee by default. Pursuant to the conditional judgment a writ of scire facias was issued against garnishee to show cause why the conditional judgment should not be made final. A bailiff of the municipal court served the writ of scire facias upon Mrs. Sehuett as the agent of the garnishee and she failed to give such writ of scire facias to any other employee or official of the garnishee nor did she inform any other employee or official of the service thereof. The garnishee, not having received the writ of scire facias and having no knowledge of the service thereof, failed to appear November 15, 1937, the return day of said writ, and the court entered a final judgment by default against it for $424.35.

March 16, 1938, about four months after the final default judgment had been entered against it, the garnishee filed a verified petition to vacate said judgment, which petition after averring the facts heretofore set forth alleged inter alia that it had no notice or knowledge of the entry of the judgment against it until about March 5, 1938; that on that date an unknown individual called at Bellwood, Illinois, at the plant where garnishee sends its work and where the president of garnishee is employed, and informed said president of the entry of the judgment and requested payment thereof; and that “at no time did Mrs. Eleanor Sehuett have authority to act for your petitioner to receive service of summons of any sort. In fact, at the time of the service of both of these summonses, ill-feeling existed between your petitioner and Mrs. Eleanor Sehuett. Tour petitioner had trouble with her. She was misplacing garments and failed to account accurately for funds entrusted to her possession at the store at 5527 West Chicago avenue. This occurred on or about November 6, 1937. Mrs. Sehuett wilfully and intentionally failed to notify your petitioner of the service of said garnishment summons because of the resentment she had against your petitioner. At no time, from October 20,1937, to the date hereof was there any funds due from your petitioner to Mrs. Eleanor Sehuett, nor did your petitioner pay her any funds whatsoever from October 20,1937, to the date hereof. At no time from October 20, 1937, to the date hereof did your petitioner have any property in its possession belonging to or owned by Mrs. Eleanor Sehuett. That on November 6, 1937, said defendant, Mrs. Eleanor Sehuett was discharged from petitioner’s employ. ’ ’

Plaintiff filed an answer to garnishee’s petition, which alleged in substance that the garnishment summons and the scire facias were properly served upon the garnishee; that proper returns were made by the bailiff of the municipal court; that the garnishee did not appear or answer either on the return date of the garnishment summons or of the scire facias; that the garnishee was properly defaulted; that there is no error in the record “in the nature of error coram nobis”; that the judgment having been entered more than 30 days before the filing of the petition to vacate, the court was without jurisdiction to vacate, alter or amend its judgment; and that “the petition being without equity and not exhibiting any grounds for relief and the Court being without jurisdiction” said petition should be stricken from the files.

During the course of the hearing upon garnishee’s petition and plaintiff’s answer thereto all material evidence offered by the garnishee in support of the allegations of its petition was excluded, apparently on the theory that the bailiff’s return of service could not be contradicted and the motion to vacate the judgment was denied.

Of the grounds urged for reversal it is only necessary to consider garnishee’s contention as stated in its brief that “service of garnishment notice and process on Mrs. Eleanor Sehuett as the agent of the garnishee was void and the Court secured no jurisdiction over the garnishee because Mrs. Sehuett was a judgment defendant in the same case who suppressed the fact of service and she was unfriendly, antagonistic and adverse to appellant’s interest.” It was not the purpose of the petition to vacate to question or discredit the several returns of service of process by the bailiff of the municipal court but to show the existence of facts rendering such service void. The service of process on the garnishee corporation upon its agent Mrs. Schuett, was in compliance with the letter of the statute authorizing such service (ch. 110, par. 141, sec. 17, Ill. Rev. Stat. 1937 [Jones Ill. Stats. Ann. 104.017]), but in violation of the spirit of same. She was one of the defendants and judgment debtors in the original action, as well as a nominal plaintiff in the garnishment proceeding. Furthermore, the petition to vacate alleged and it was not denied that Mrs. Sehuett was unfriendly and antagonistic to the garnishee, and its president, who was the only official of the company actively engaged in the management of its stores.

Service of process against a corporation on an officer or agent whose relation to the claim in suit is such as to make it to his or her interest to suppress the fact of service, is unauthorized, though the person served is within the terms of the statute authorizing the service. (People ex rel. Lafferty v. Feicke, 252 Ill. 414; Atwood v. Sault St. Marie Light, Heat & Power Co., 148 Mich. 224.)

In the Feicke case, supra, where the service of a petition and written notice was made upon the clerk of a board of school directors, as required by statute, but the clerk was also one of the petitioners in the cause, after citing and discussing several analogous cases, the court said at p. 420:

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Bluebook (online)
20 N.E.2d 329, 299 Ill. App. 421, 1939 Ill. App. LEXIS 743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/personal-loan-savings-bank-v-schuett-illappct-1939.