Potter v. Peeples

92 Ill. 430
CourtIllinois Supreme Court
DecidedJune 15, 1879
StatusPublished
Cited by2 cases

This text of 92 Ill. 430 (Potter v. Peeples) 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
Potter v. Peeples, 92 Ill. 430 (Ill. 1879).

Opinion

Mr. Chief Justice Walker

delivered the opinion of the Court:

In the year 1871 one Orval Pool died, leaving his widow, three married daughters and a son surviving him, and who were entitled to his property, which amounted to several hundred thousand dollars. Soon after his death disagreements and controversies arose between his children as to the division of this property. After various efforts had been made to settle these disputes the parties finally agreed, about the 2d day of November of that year, as to the manner in which the matter should be settled, which agreement was embodied in a written contract of that date, which was executed by them under their hands and seals, together with the husbands of the daughters. It provided that one-half of the estate should be placed in the hands of a trustee, to be held, used and controled by him in trust for the benefit and use of two of the daughters, and upon their decease to be conveyed and paid over to their respective heirs absolutely.

The agreement further provided, in case the parties thereto should be unable to agree as to who should act as a trustee, in that event the judge of the Gallatin circuit court should appoint the trustee to manage the trust fund. It also provided that the trustee should execute a bond, as such, to be approved by the judge of that court. The parties failed to agree upon a person to become the trustee. The Hon. A. D. Duff was at that time presiding judge of the circuit court of that county, and was applied to, and appointed appellant. Appellant thereupon, as principal, and appellees as his sureties, executed a bond which was duly approved and filed in the office of the circuit cleric of Gallatin county.

Appellees, on the 16th day of October, 1877, filed a petition in the Gallatin circuit court, praying that they be relieved and discharged as sureties on the trustee’s bond, and that appellant be required to give a new bond and sureties for the faithful discharge of the trust. The bond is in the penal sum of $400,000, and a copy is filed as an exhibit with the petition.

Appellant filed a demurrer to the petition, which was overruled by the court, and appellant filed an answer and made the agreement an exhibit, to which appellees filed exceptions. The court, on a hearing of the exceptions, sustained them, and appellant not answering further, the court ordered him to give a new bond as trustee, in the sum of $400,000, and to settle his account as such trustee before the court; which bond, and a statement of his account, were ordered to be filed by nine o’clock the. next morning. He having failed to file a new bond and a statement of his account as trustee, as required by the order of the court, appellees applied for his removal, and the court thereupon entered an order removing him as trustee. And he thereupon prayed and perfected an appeal to this court, and has filed a transcript of the record, and assigned errors thereon.

This proceeding was instituted, and the relief sought and granted, under the act of May 11, 1877. (Sess. Laws, p. 142.) The act provides, “That whenever any surety on the bond of any guardian, conservator of any idiot or insane person, or the trustee of any fund or property, appointed by any court, or the heir, executor or administrator of such surety, desires to be released from further liability upon any such bond, he may petition the court in which said bond is filed for that purpose, and upon notice being given to such guardian, conservator or trustee, in such manner as the court may direct, the court shall compel such guardian, conservator or trustee, within a reasonable time, to be fixed by the court, to appear and settle his accounts, and file in such court a new bond, with such penalty and security as may be approved by the court, which being done, the surety may be discharged from all liability on such bond.”

The second section provides that if such guardian, conservator or trustee shall fail to comply with such order within the time required, the court shall order such person to be removed from his office or position, and appoint some other fit person guardian, conservator or trustee, in his stead, who is required to give bond as required by law. This section further provides that the person thus appointed shall, in case his predecessor shall fail to settle and pay over to him the moneys and other property and effects in his hands, bring suit on his predecessor’s bond, and when collected the sureties on such bond shall be discharged.

The third section provides that the act shall apply to all such bonds then in existence, as well as such as might thereafter be entered into; but nothing therein should be construed to release or in anywise impair the liability on such bond until a new bond should be filed.

The whole controversy in this case turns upon the true meaning of the first clause of the first section of this act. Appellant insists that it only embraces cases of trustees of funds in court, and for the management of which a trustee has been appointed by the court, and has no application to other trust funds; that in this case the trustee Avas appointed in the first instance by force of tiré Avritten agreement of the parties, and as they agreed it should be by the person Avho was judge, as an individual, and not by the court, or by force of or in the exercise of any official or judicial function; that no case was pending in court, nor Avere the parties in court as litigants or contestants, and hence the court, Avhen appellant was appointed as such, had no jurisdiction of the person of the parties, or of the subject matter; that in the appointment of appellee as trustee there was no actor reus and judex, and hence no adjudication.

But on the other side it is contended that the appointment was by the court under a regular order made in and by the court, and not by the person Avho held the office of judge, as an individual or private person; that the parties submitted the matter in open court, and to the court, and that the order was made, accepted and acted upon by appellant.

The petition states that appellant was appointed “ by the presiding judge of the Gallatin circuit court, as trustee, on behalf of certain persons, and certain funds and property, as mentioned and provided for in a certain instrument in writing, referred to in the recitals of the bond hereinafter mentioned” in this petition.

One of the recitals in the bond referred to, and made an exhibit, is in these words: “Whereas the above named obligees did, on the 2d day of November, A. D. 1871, execute and deliver, in duplicate, under their respective hands and seals, a certain instrument in writing, providing for a division of the estate, both real and personal, of Orval Pool, deceased, and the appointment of a trustee to execute and carry into effect certain duties and trusts therein created and defined; and whereas, the above named George H. Potter has been duly appointed trustee under the provisions of said instrument in writing.”

The agreement which the petition mentions, and which is made an exhibit to the answer, has this provision: “A trustee shall be chosen by the parties to this agreement, whose duty it shall be to carry out and execute the trust hereby created, and shall enter into good and sufficient bond, to be approved by the judge of the circuit court of Gallatin county, for the faithful performance of his duties as such trustee.

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Related

Walker v. Pratt
55 Ill. App. 297 (Appellate Court of Illinois, 1894)
Ridgeway v. Potter
114 Ill. 457 (Illinois Supreme Court, 1885)

Cite This Page — Counsel Stack

Bluebook (online)
92 Ill. 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-peeples-ill-1879.