Phelps v. City of Chicago

162 N.E. 119, 331 Ill. 80
CourtIllinois Supreme Court
DecidedJune 23, 1928
DocketNo. 17769. Decree affirmed.
StatusPublished
Cited by22 cases

This text of 162 N.E. 119 (Phelps v. City of Chicago) 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
Phelps v. City of Chicago, 162 N.E. 119, 331 Ill. 80 (Ill. 1928).

Opinions

On June 12, 1923, defendant in error, George H. Phelps, filed his bill for partition in the superior court of Cook county against the city of Chicago and Ida Phelps Wyman, also praying for the removal of certain tax deeds as clouds on the title. Ida Phelps Wyman defaulted, an answer was filed by the city, upon a hearing a decree was entered as prayed, and a writ of error has been prosecuted from this court by the city.

The bill alleged that defendant in error and Ida Phelps Wyman were the owners of certain real estate in Chicago which was vacant and unoccupied. On various dates from 1909 to 1914 five tax deeds were issued to the city for the non-payment of assessments levied against the property, which deeds were recorded. On October 28, 1913, defendant in error began an action of ejectment in the circuit court of Cook county against the city and others alleging that he was the owner of the premises in fee simple. On May 1, 1919, a verdict was returned in his favor and judgment was entered. On May 22, 1920, the judgment was vacated, and on November 11, 1920, on a second trial, a verdict was returned and judgment entered in favor of defendant in error, finding that he was the owner in fee simple. The city was served with summons in the ejectment suit and appeared and pleaded to the declaration. The judgment in the ejectment suit made no provision for reimbursing the city on account of the tax deeds, by reason whereof it was alleged that the city was barred from asserting any claim to reimbursement for taxes unpaid, as evidenced by the tax deeds. The bill alleged that the city gave *Page 82 out and pretended that the judgment in the ejectment suit was not a final adjudication barring all claims of the city and that the city had a lien on the premises for the amount of the tax deeds, with interest, and was entitled to be reimbursed; that said false claims by the city constituted a cloud upon the title, tending to depreciate the value of the real estate and render it unsalable. The prayer was that the interest of the parties be determined and the city be perpetually enjoined from claiming that the judgment in the ejectment suit was not a final adjudication of all claims of the city under the tax deeds, that the cloud created by the false claim of the city be set aside and that commissioners be appointed to make partition. The city filed its answer to the bill, alleging that it had five tax deeds; that the proceedings upon which they were based were regular, valid and legal, and that $1467.23 was then due the city on said deeds. It denied having made any false claims as to its lien or right to reimbursement and asked for strict proof of the ownership. The case was referred to a master, who found that the tax deeds were duly issued; that on November 11, 1920, a final judgment was rendered in the ejectment suit, finding that defendant in error was the owner in fee simple of the premises, which finding and judgment were still in full force and effect; that no part of the amount due the city on the tax deeds had been paid, and there remained due and unpaid to the city on February 1, 1924, $1423.87; that said tax deeds were issued upon tax sales; that in the ejectment suit the city was served with summons, appeared and pleaded to the declaration, and by reason of the fact that the final judgment in the ejectment suit made no provision for reimbursement to the city on account of the tax deeds the city was forever barred from asserting any claim for reimbursement; that the city could not in an affirmative manner maintain its action against defendant in error or against the premises for reimbursement; that any claim it had should have been, and presumably was, presented upon *Page 83 the trial of the ejectment suit, and that judgment is resjudicata against the city and it cannot be heard in this proceeding to show otherwise. The chancellor sustained the report of the master and a decree was entered affirming his findings. The cloud upon the title arising by reason of the claim of the city for reimbursement was removed and the city was perpetually enjoined from claiming or asserting any title or interest in the premises or any claim for reimbursement on account of any of the tax deeds. Defendant in error and Ida Phelps Wyman were decreed to be the fee simple owners in equal parts and the costs were assessed against the city. Later defendant in error conveyed all his interest in the premises to Ida Phelps Wyman, and an order was entered December 5, 1924, waiving execution of the decree appointing commissioners.

The principal question for determination is whether the judgment in the ejectment case was res judicata as to the validity of the tax deeds and relieved defendant in error in the partition suit of the necessity of paying to the city the amount due thereon as a condition precedent to the entry of the decree removing the tax deeds as clouds on the title.

The removal of tax deeds as clouds on the title to real estate is governed by section 224 of the Revenue act. This section was amended July 1, 1919. The ejectment suit was filed prior to the amendment but the final judgment was entered over sixteen months after the amendment. In an action of ejectment only legal titles can be considered, and unless the plaintiff shows a good legal title in his favor he is not entitled to a judgment regardless of any question of equities. (McFall v. Kirkpatrick, 236 Ill. 281.) In Glos v. Patterson,195 Ill. 530, it was held that it is not necessary in an action of ejectment that the judgment in favor of the plaintiff be conditioned upon the re-payment of taxes to the holder of a tax deed. Section 224 before its amendment has been held to have no application to an action of ejectment, but it relates to equitable proceedings instituted for *Page 84 the purpose of setting aside tax deeds; that it was not the purpose of that section of the statute to change an action of ejectment into a chancery proceeding or to confer any new or enlarged jurisdiction upon courts of law. (Riverside Co. v.Townshend, 120 Ill. 9.) Before the amendment it was held that the holder of an invalid tax deed is only entitled to reimbursement when his tax title is attacked and the deed set aside in a proceeding brought for that purpose by the owner of the land. (City of Chicago v. Pick, 251 Ill. 594; Gage v. Eddy, 186 id. 432; Miller v. Cook, 135 id. 190.) Under these authorities, if the judgment in the ejectment suit had been rendered before the amendment of section 224 on July 1, 1919, the tax deeds could not have been set aside and the judgment could not have been conditioned upon defendant in error reimbursing the city for the amount due on the deeds, hence such a judgment could not have been res judicata in the partition proceeding.

The amendment of 1919 is as follows: "No final judgment or decree of court in any case, either at law or in equity or in proceedings under the Eminent Domain act involving the title to or interest in any land in which such party holding such tax deed shall have an interest or setting aside any tax deed procured under this act shall be entered until the claimant shall make reimbursement to the party holding such tax deed and payments as herein provided in so far as it shall appear that the holder of such deed or his assignors shall have properly paid or be entitled to in procuring such deed." (Laws of 1919, p. 762.)

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Bluebook (online)
162 N.E. 119, 331 Ill. 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-v-city-of-chicago-ill-1928.