Reynolds v. Burns

170 N.E.2d 122, 20 Ill. 2d 179, 1960 Ill. LEXIS 406
CourtIllinois Supreme Court
DecidedSeptember 29, 1960
Docket35564
StatusPublished
Cited by36 cases

This text of 170 N.E.2d 122 (Reynolds v. Burns) 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
Reynolds v. Burns, 170 N.E.2d 122, 20 Ill. 2d 179, 1960 Ill. LEXIS 406 (Ill. 1960).

Opinion

Mr. Justice Hershey

delivered the opinion of the court:

This is an action to quiet title to the oil, gas and other minerals, except coal, in and under some 14 parcels of land in Saline County. The plaintiffs, by their amended complaint, sought to remove certain instruments as clouds upon their title and further sought a declaratory judgment that they were entitled to all of the oil and gas produced or to be produced from the described premises.

The circuit court of Saline County entered a decree granting the relief prayed in the complaint and dismissed the counterclaim of one group of defendants who are appellants in this court.

The plaintiffs claim a fee-simple title to the mineral estate, as do the defendants. A freehold being thus involved, this court has jurisdiction on direct appeal.

A determination of the issues here involved requires a somewhat detailed statement .of the history of the title to the land involved over a period of many years. In substance, the parties are in accord as to the factual matters in the record of title but reach different conclusions as to the legal effect of the stated facts.

In November of 1910, A. J. Webber, the then owner of the property here involved, died testate. By his will, which was duly admitted to probate in the county court, a trust was created to last for a period of 15 years from the date of his death. The named trustees-executors were to have control of the property and to continue to operate certain businesses and divide the net income among named beneficiaries. At the expiration of the 15 years, the trust was to terminate and the trust property was to be distributed. J. H. Webber and May O. Burns, children of the testator, were to receive the property on the basis of the terms and conditions of the will and the conditions of survivorship existent at the time of the expiration of the 15-year period.

The named executors-trustees qualified as such and proceeded to the administration of the estate. An inventory of the estate, which included the land involved in this litigation, together with considerable other real estate and personal property, was duly filed.

In 1915 one of the two named executors died and J. H. Webber was selected as successor pursuant to the selection provisions in the A. J. Webber will. In 1923 the executors-trustees instituted a proceeding in the circuit court to construe the will and to ascertain the authority of the executors-trustees to borrow money and pledge the assets of the estate or trust as security therefor. A decree was entered in that proceeding construing the will and authorizing the executors-trustees to borrow money and to pledge the assets of the estate as security therefor. In that proceeding the executors and trustees were parties, as were the beneficiaries, although the proceeding has been described by the parties as an ex parte proceeding.

Thereafter, in accordance with the decree of construction, the executors-trustees borrowed certain money and gave notes to secure the same. Included among the obligations thus incurred was a note for $6,000 to J. M. Reynolds.

In January of 1927, after the expiration of the 15-year trust term, the executors-trustees filed a final account in the county court proceeding, to which was appended an agreement signed by May O. Burns and J. H. Webber, reciting a complete and full settlement of the trustees’ account, and, by this agreement, the beneficiaries agreed to assume all outstanding obligations of the estate in consideration of the transfer to them of the assets of the estate or trust. The final report and the agreement were thereupon approved on January 29, 1927.

On June 9, 1927, the beneficiaries, as the then legal titleholders, made an assignment for the benefit of creditors. By this assignment all property belonging to each of them, including the property acquired from the estate of their father, was assigned and transferred to one W. W. Mc-Creery as trustee. The assignment was for the benefit of all creditors, including J. M. Reynolds and other creditors whose obligations had been incurred during the 15-year term of the trust.

All creditors joined in the execution of the assignment, which provided that the creditors were to accept the assignment in satisfaction of their debts. The trustee was to administer the trust until the debts were all paid and any property thus assigned then remaining was to be returned to J. H. Webber and May O. Burns.

The assignors thereupon executed a deed to W. W. Mc-Creery, as trustee, conveying some 3,000 acres of land, including the land involved in this case. The deed of conveyance recited essentially the terms of the assignment above detailed.

The record before us demonstrates that McCreery, as trustee, thereafter proceeded with his duties as trustee for the benefit of the creditors. He executed several deeds, conveyed the coal to certain of the lands, and executed oil- and-gas leases. In this connection, it is important to note that certain of the plaintiffs in this proceeding dealt with McCreery as trustee in connection with conveyances of the coal in and under certain of the property.

The amended complaint of plaintiffs and the decree of the court recognized as valid these deeds executed by Mc-Creery both to themselves and to other parties who were originally named defendants but whose interests as acquired from McCreery as trustee were not disturbed in the trial court proceedings.

In 1949, W. W. McCreery, as trustee, conveyed the land remaining in the trust to the heirs of May O. Burns and J. H. Webber. Those heirs and their oil-and-gas lessees are the appellants here and were one group of defendants below.

On May 3, 1937, Austin Reynolds, one of the plaintiffs in this case, filed a petition in the circuit court of Saline County for the appointment of a trustee de bonis non of the estate of A. J. Webber. The petition recited the history of the estate, the probate proceedings, and that the executors and trustees of the estate did on May 5, 1922, pursuant to their powers, borrow $6,000 from J. M. Reynolds, evidenced by their promissory note of that date, due November 15, 1922, with interest at 6 per cent, upon which note the trustee paid interest until May 5, 1927, and that interest from that date was due together with the full amount of the principal, which note was assigned by J. M. Reynolds to the petitioner. The petition then alleged, on petitioner’s information and belief, that certain property of A. J. Webber, deceased, was never inventoried nor administered in the probate proceeding. Lloyd Reynolds, another plaintiff in this case, who was sought to be appointed as trustee, was, as such trustee de bonis non, to take full charge of any property belonging to the estate and administer the same according to law. The trustee was appointed on the same date the petition was filed and, likewise, on that same date, a claim on the $6,000 note, plus accrued interest, was filed. The docket entry appointing the trustee was by a city judge, signed as acting circuit judge.

Thereafter, in the circuit court proceedings, the trustee, Lloyd Reynolds, filed an oath and bond, and a claim date was fixed and publication was made.

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Cite This Page — Counsel Stack

Bluebook (online)
170 N.E.2d 122, 20 Ill. 2d 179, 1960 Ill. LEXIS 406, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-v-burns-ill-1960.