Reed v. Behm

4 N.E.2d 844, 364 Ill. 399
Illinois Supreme Court·Decided October 14, 1936·No. No. 23462. Decree affirmed.·Published·Cited by 2 cases

Opinion

Mr. Justice Stone

delivered the opinion of the court:

Appellant seeks the reversal of a decree of the circuit court of Lake county dismissing for want of equity his bill to establish a resulting trust in certain real estate in his favor, or, in the alternative, to enforce an oral contract for the redemption of the property on foreclosure.

Appellant’s complaint alleges that on September 9, 1932, the Chicago Joint Stock Land Bank filed its bill to foreclose a mortgage on certain real estate executed by Michael Lenzen and others to secure the payment of $15,000. Appellant, a resident of Chicago, was made and summoned as a party defendant. He held a beneficial interest in the property under a certain deed of trust. On October 5, 1932, appellant had appellee R. W. Churchill, an attorney, enter his appearance in said suit. Churchill testified that this was done to comply with a rule of the circuit court of Lake county that a resident attorney must appear for the purpose of service of notices. Appellant is a lawyer, and Churchill appears to have had nothing further to do with the suit. Apparently no answer was filed, and on October 17, 1932, a decree of foreclosure and for sale was entered and the premises were on November 13, 1933, sold by the master in chancery. A certificate of purchase was issued to John B. Gallagher, receiver of the Chicago Joint Stock Land Bank. On May 14, 1934, Gallagher assigned that certificate of purchase to appellee R. W. Churchill for the sum of $10,350. On July 20, 1934, Churchill assigned the certificate of purchase to appellees Isador and Anna C. Behm.

The bill charges that at the time Churchill took an assignment of the certificate he did so as appellant’s attorney and agent, and when he later assigned the certificate to the Behms he did so with full knowledge of his relationship to appellant and without authority to assign to the Behms. This was one of the controverted issues of fact. The chancellor found that Churchill was not representing appellant when he purchased the certificate, and the record shows by the preponderance of the evidence that he was representing the Behms in that transaction as he did thereafter throughout. Appellant demanded that the Behms convey the premises described in said certificate of purchase to him. He declares in his bill that he is ready, willing and able to pay to the Behms the sum of $11,000, or such amount as the court shall direct, for such deed.

The complaint alleges that later the Behms made an oral agreement with appellant to convey said premises to him for the sum of $12,000 if he should pay for it within thirty days from tire date of the promise. It is conceded that there was such an agreement made after the Behms had received the master’s deed. This they plead, however, was an oral agreement and was voided by the Statute of Frauds. There is a dispute as to when the thirty days was to begin to run. Appellant charges it was from March 14 while appellees say it was from March 10. Appellant also alleges in his bill that he was to pay part of the $12,000 and was to have time to pay the balance, while appellees say the agreement was that he was to pay the entire amount either in currency or by certified check within or at the end of the thirty-day period. Appellant in his bill avers that before the end of the thirty-day period he tendered the sum of $1000 and offered to deposit the balance in escrow pending the preparation of a deed from the Behms, but that the latter refused to accept that offer. It is averred in the bill that this agreement was for an extension of the period of redemption. The prayer of the bill is that the Behms be required to convey in accordance with the terms of said agreement, and for further relief.

The answer of the Behms denied that Churchill, as attorney for appellant, purchased the certificate of purchase for his benefit, and averred that in so doing he was acting as agent and attorney for them; that the full consideration therefor was paid by the Behms, and the assignment to Churchill was made for convenience, only, and the latter never had any title or interest therein except as agent and trustee for the Behms. The answer also pleaded the Statute of Frauds, and averred that neither appellees, nor any person for them, ever signed any contract or agreement in writing, nor any memorandum or note in writing, for the conveyance of said premises to appellant, and denied that appellant was entitled to any relief.

The separate answer of appellee Churchill admitted certain allegations of the bill; denied that the relation of attorney and client in said foreclosure suit ever existed between him and appellant; alleges that appellant is a lawyer, with offices in Chicago; that the rules of the circuit court of Lake county require that where an attorney is not a resident of and has no office in Lake county he is required to name in writing some attorney on whom notice may be served; that appellant asked him to, and he did, enter his appearance in said foreclosure suit for the sole purpose that notices might be served upon him; that appellant gave him no directions as to said suit, and that he performed no services for appellant therein other than the entering of his appearance as aforesaid, and that he received no fee for any service in the suit.

At the close of appellant’s testimony the Behms moved that it be stricken as obnoxious to the Statute of Frauds. This motion was denied. On Churchill’s motion the case was dismissed as to him.

The chancellor found that appellant had failed to establish any agreement with the Behms; that the equity of redemption had expired and a deed had issued to the Behms before the alleged oral agreement to convey, and that appellant had failed to prove any definite and certain contract not subject to the Statute of Frauds, and dismissed his bill for want of equity.

Appellant contends that the chancellor erred in dismissing the suit as to appellee Churchill for the reason that the latter was his attorney in the foreclosure suit, and the court should have found and decreed that Churchill and his assignees in buying the certificate of purchase held it in trust for appellant and for his benefit and should convey the land to him upon the payment of the amount paid therefor by Churchill, with legal interest, and that it was error to find that appellant had not fully performed his agreement with the Behms to purchase the property in thirty days.

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Reed v. Behm, 4 N.E.2d 844, 364 Ill. 399 (Ill. 1936).

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