Phillips v. O'Connell

73 N.E.2d 864, 331 Ill. App. 511, 1947 Ill. App. LEXIS 308
CourtAppellate Court of Illinois
DecidedMay 20, 1947
DocketGen. No. 43,837
StatusPublished
Cited by10 cases

This text of 73 N.E.2d 864 (Phillips v. O'Connell) 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
Phillips v. O'Connell, 73 N.E.2d 864, 331 Ill. App. 511, 1947 Ill. App. LEXIS 308 (Ill. Ct. App. 1947).

Opinions

Mr. Justice Scandan

delivered the opinion of the court.

This was a suit to foreclose a trust deed wherein plaintiff also sought a personal deficiency decree against the signers of an extension agreement. Defendants Agnes Dunne O’Connell (sometimes known and referred to as Agnes D. O’Connell), individually and as Executrix and Trustee under the last will of Eva Fitch Dunne, deceased, and Edith Fitch Dunne (sometimes known and referred to as Edith E. Dunne or Edith Dunne), individually and as Trustee under the last will and testament of Faith Dunne Kirkley, deceased, have appealed from a deficiency decree entered May 27, 1946, against defendants “ J. Paul Dunne, Edith Fitch Dunne (sometimes known and referred to as Edith F. Dunne) and Agnes D. O’Connell (sometimes known and referred to as Agnes Dunne O’Connell), individually and as trustee under the will of Eva Fitch Dunne, deceased, ’ ’ in the amount of $10,705.40.

For a partial history of the proceedings in this cause we quote from the opinion of the First Division of this court in Phillips v. O’Connell, 326 Ill. App. 15, 16, 17, 18, 19, 20, 23, 24, 25:

“By this appeal plaintiff seeks the reversal of an order denying a deficiency decree in a trust deed foreclosure proceeding against certain defendants, successors in interest to the mortgaged property, upon an agreement which the court held to be. a contract of guaranty. Plaintiff claims that it is an extension agreement in which the defendants assumed and agreed to pay the mortgage indebtedness.

“The trust deed being foreclosed was executed January 14, 1927 by Frederick T. Ployt and Bettie F. Hoyt, his wife, to secure the payment of their principal promissory notes aggregating $37,500; March 29, 1927 the Hoyts conveyed the mortgaged property to Eva Fitch Dunne, subject to the trust deed securing the indebtedness above mentioned, ‘which indebtedness the grantee herein assumes and agrees to pay.’ Eva Fitch Dunne died April 14, 1930, and by her last will the mortgaged premises were devised to her daughter Agnes D. O’Connell, defendant, as trustee for herself, J. Paul Dunne, Edith Dunne and Faith Dunne Kirkley, children of the testatrix. The balance of $28,500 of the principal indebtedness secured by the trust deed coming due and payable January 14, 1932, the four beneficiaries of the trust, individually, and Agnes Dunne O’Connell, as executrix and trustee under the will of Eva Fitch Dunne, deceased, under date of December 31, 1931 executed the agreement in controversy, hereinafter called the extension agreement. It recited the execution of the trust deed, the holding.of the notes secured thereby by The Northern Trust Company, the payment of $9,000 on the principal of said notes, and (in typewriting) that ‘Whereas, Agnes Dunne O’Connell individually and as executrix and trustee under the will of Eva Fitch Dunne, deceased, Edith E. Dunne, Mary Faith Kirlcley, J. Paul Dunne have requested of The Northern Trust Company an extension of the above indebtedness and in consideration for said extension hereby guarantee payment of the same.’ The operative part (mostly printed) provided that, in consideration of the mutual promises and agreements thereinafter made by and between the parties, The Northern Trust Company agrees to extend the payment of the balance due on said indebtedness for one year, namely, until January 14, 1933, and the said beneficiaries under the trust, and Agnes Dunne O’Connell, as executrix and-trustee, agree with The Northern Trust Company that they will pay to the legal owner of the notes the sum of $28,500 January 14, 1933, with interest at six per cent, and further, that the parties mutually agree that ‘all of the provisions, stipulations, powers and covenants in the said principal note, and in the said Trust Deed contained, shall stand and remain unchanged and in full force and effect for and during said extended period . . . except as changed or modified in express terms by this agreement. ’

“Default having been made in the payment of the mortgage indebtedness as provided in the agreement for an extension of the time of payment, suit was instituted against the signers of the extension agreement and The Northern Trust Company, trustee. Faith Dunne Kirkley having died before the complaint was filed, James M. Kirkley, Sr., her divorced • husband, James M. Kirkley, Jr., her son, and Edith Dunne, as trustee under her last will and testament, were made defendants. The complaint consisted of two counts: Count 1, being the ordinary foreclosure complaint in equity asking for a deficiency decree against those personally liable therefor; and Count 2, setting up an action at law for the mortgage indebtedness. Defendants Agnes O’Connell and Edith Dunne, individually and in their representative capacities, filed answers denying execution of the extension agreement in its final form, and alleging alteration of the agreement by striking from the body of it the name of Josephine Dunne, wife of J. Paul Dunne, and the failure of Josephine Dunne to sign it.

“A decree of foreclosure was entered directing a sale of the mortgaged premises and reserving jurisdiction for the purpose of determining the personal liability, if any, of the defendants for a deficiency. A sale of the premises was had and a decree approving same was entered June 14, 1938, finding a deficiency of $14,170.24, together with interest at five per cent from June 1, 1938. Shortly thereafter an order was entered referring the cause to a master in chancery ‘on the question of what persons, if any, are personally liable for the deficiency found in the former decree of this court,’ and denying defendants’ counter-motion that the matter be transferred to the law side of the court for a trial by jury. The master to whom the cause had been referred having been elected to the office of judge, a special commissioner was appointed who filed his report February 11, 1943. Plaintiff then moved for a decree against J. Paul Dunne, who had been defaulted, Agnes O’Connell, individually and as executrix and trustee, and Edith Dunne, individually, for the deficiency, then computed to be $9,945. He did not ask for a deficiency decree against the defendants substituted for Faith Dunne Kirkley. Plaintiff’s objections to the report were permitted to stand as exceptions, and on hearing before the chancellor he, disregarding the commissioner’s report, held that the extension agreement was a contract of guaranty and not one in which the defendants, successors in interest to the mortgaged property, assumed and agreed to pay the indebtedness secured by the trust deed being foreclosed, and, by an order entered July 16, 1943, as amended July 28, 1943 (hereafter, referred to as the 1943 orders), denied plaintiff’s motion for a deficiency decree and, on defendants’ motion, transferred the cause to the law side of the court for a trial by a jury of the issues under count 2 of the complaint. The special commissioner’s report was stricken from the files and jurisdiction in chancery retained for the purpose of determining the fees of the special commissioner after determination and disposition of the issues under count 2 on the law side of the court. From these orders plaintiff appealed, and on defendants’ motion we dismissed the appeal, holding that the orders were not final and appealable orders so long as the issues under count 2 were pending and undisposed of. (322 Ill. App.

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Bluebook (online)
73 N.E.2d 864, 331 Ill. App. 511, 1947 Ill. App. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-oconnell-illappct-1947.