Roby v. Title Guarantee & Trust Co.

46 N.E. 1110, 166 Ill. 336
CourtIllinois Supreme Court
DecidedNovember 11, 1896
StatusPublished
Cited by9 cases

This text of 46 N.E. 1110 (Roby v. Title Guarantee & Trust Co.) 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
Roby v. Title Guarantee & Trust Co., 46 N.E. 1110, 166 Ill. 336 (Ill. 1896).

Opinion

Mr. Justice Cartwright

delivered the opinion of the court:

The circuit court of Cook county entered a decree June 12, 1890, finding and declaring the respective interests of Charles W. Colehour, William H. Colehour and plaintiff. in error in lands in said county. The lands had been sold for taxes and at master’s sales, but the time for redemption had not expired. By that decree the defendant in error, the Title Guarantee and Trust Company, was appointed receiver of said lands, and for the purpose of redeeming the same was directed to proceed to properly advertise them for sale, either at public auction or private sale, and to sell sufficient to pay and discharge the debts and liens as therein recited, and, if necessary so to do in order to perfect the title, was authorized to pay and discharge a certain judgment of about §1500 rendered against Charles W. Colehour and others, in favor of Loviza Thunman. The receiver was ordered to report the sales it might make, to the court for approval, and to give at least one day’s notice of the application for approval to said plaintiff in error and the Colehours, by leaving notice at the office of said plaintiff in error and the office of the solicitors of said Colehours. A bond in the sum of §100,000 was required from the receiver before entering upon the discharge of its duties, and the parties were each directed to convey the property to said receiver. Prom that decree plaintiff in error prayed an appeal to this court, and was allowed twenty days to perfect the same, but did not complete the appeal. After the expiration of that time the receiver’s bond was filed, and it entered upon its duties as receiver. Plaintiff in error, however, sued out a writ of error from this court to reverse the decree, but it was affirmed. (Roby v. Colehour, 135 Ill. 300.) The judgment of this court was subsequently affirmed by the Supreme Court of the United States. (Roby v. Colehour, 146 U. S. 153.) Orders were entered from time to time by the circuit court in the subsequent administration of the receivership created by the above mentioned decree, and the writ of error in this case is prosecuted to reverse fifty such orders.

An objection which plaintiff in error seeks to apply to all these orders is, that the defendant in error the Title Guarantee and Trust Company could not be legally appointed receiver, and a lengthy argument is made on the propositions that the act under which it was organized is unconstitutional and void and its organization illegal. The appointment of the receiver was made by the original decree, which was affirmed as above stated, and it is now too late to question its validity. If it was desired to dispute the capacity of the corporation, as organized and acting, to receive the appointment and act as receiver, it should have been done before that decree became conclusive. Besides, plaintiff in error recognized the capacity of the acting corporation by consenting to an order providing for the advancement of money by it to protect the estate in its possession as receiver. The money was advanced, and he is now estopped from claiming that the receiver was not lawfully appointed or competent to act.

The above mentioned order is first to be noticed as being distinguished from the others by the consent to its entry. It was entered July 18, 1890., upon a petition of the receiver, stating that a map of the real estate had been made, that the receiver was procuring a valuation and abstracts of the property so as to properly place it upon the market; that the taxes and assessments for the year 1889 were due and unpaid; that among the liens ordered to be paid were liens for taxes upon which the lands had been sold and certificates of sale issued, upon which the purchasers would soon be entitled to deeds, and that sales could probably not be made in time to redeem the lands. The order authorized the receiver to pay the taxes and assessments for 1889, and to settle with the holders of tax certificates or redeem the land, and that it should be allowed six per cent interest on moneys so paid, the advances to be a first lien on the lands, subject to the liens provided for in the original decree, and to be paid out of the moneys received from the sale of the lands by the receiver. Plaintiff in error objects to this order on the ground that the method of discharging the tax liens adopted was improper, as different from the plan of the original decree, and amounted to a change of such decree after the term at which it was entered, and also because under that order the receiver became the creditor of the parties and disqualified to act. The order recites that he was present and consenting, and he seeks to accomplish a reversal by disputing this recital. To this end he testified that he was present when the order was entered and did not make any objection to its being entered, but did not give any other consent than being so present and not objecting. The record cannot be contradicted in that way, but is conclusive of the fact. Having consented he cannot impeach the order on any ground. If it was an alteration of the original decree, he agreed to the alteration and cannot complain. He also consented that the receiver should advance money to protect the property in its charge and reimburse itself from sales to be made in the future, and therefore he cannot object that the receiver became a creditor by making such advances.

There were other orders entered, however, which do not recite any consent of plaintiff in error, about which practically the same questions are raised as above mentioned. These orders were entered for the purpose of redeeming the lands from the master’s sales. The time of redemption from the larger portion of these sales expired December 30, 1890, and the remainder in January, 1891, and it was expected that about §190,000 would be required. The receiver, finding it impracticable to sell lots enough to redeem within the time allowed, applied to the court, by petition, for leave to issue interest-bearing receiver’s certificates. The order was made but the money could not be obtained from the banks nor realized from the estate, and the property" was about to be lost, when, on December 30, 1890,—the last day for redemption of most of the land,—the receiver succeeded in getting §110,000 from Hetty H. R. Green, upon twenty-two certificates of $5000 each. To do this it was compelled to guarantee the payment of the certificates and obtain the guarantee of William C. Goudy, solicitor for William H. Colehour, and also to pledge its own mortgage securities for the amount. With the money so obtained redemptions were made. In January, 1891, the receiver borrowed from the Chicago Public Library $10,000 upon two receiver’s certificates, and used the money, with about $26,000 of its own, to complete the redemptions contemplated by the decree. By the order these claims were made first liens on the premises, which were thereby saved to the estate. The receiver paid to Mrs. Green the amount of one certificate November 16, 1891, and on December 23, 1891, the court, on petition of the receiver, authorized it to take up the remaining certificates issued to her. They were drawing eight per cent interest. The receiver wanted possession of its mortgages pledged for their payment. By taking up the certificates the rate of interest was reduced to seven per cent, which it was provided should be allowed to the receiver on the amount advanced, which was to be a first lien on the property.

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Bluebook (online)
46 N.E. 1110, 166 Ill. 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roby-v-title-guarantee-trust-co-ill-1896.