Royal Neighbors of America v. Chicago Title & Trust Co.

17 N.E.2d 336, 297 Ill. App. 80, 1938 Ill. App. LEXIS 633
CourtAppellate Court of Illinois
DecidedOctober 26, 1938
DocketGen. No. 40,029
StatusPublished
Cited by2 cases

This text of 17 N.E.2d 336 (Royal Neighbors of America v. Chicago Title & Trust Co.) 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
Royal Neighbors of America v. Chicago Title & Trust Co., 17 N.E.2d 336, 297 Ill. App. 80, 1938 Ill. App. LEXIS 633 (Ill. Ct. App. 1938).

Opinion

Mr. Justice Hebel

delivered the opinion of the court.

This is an appeal by the Royal Neighbors of America, as a beneficiary, and the Chicago Title and Trust Company, as trustee, in twenty-five liquidation trusts, from a decree entered on November 30, 1937, ordering the Chicago Title and Trust Company, as trustee, to pay out of the trust estates to Harold R. Schradzki, Sims & Stransky, Arthur W. Sprague, Earle G. Fallen and Joseph Robinson, attorneys for certain other beneficiaries, $7,500 for their services as attorneys in this case.

The bill of complaint was filed on March 13, 1937, by the Royal Neighbors of America, alleging in substance as follows:

It was one of the beneficiaries under thirty-four certain liquidation trusts and a majority beneficiary in thirty-three of the trusts, and Chicago Title and Trust Company was the trustee in each instance; that the Royal Neighbors of America desired to readjust its interests and the interests of the other beneficiaries and to that end had formulated and submitted a “plan of readjustment” which, by an exchange of securities, would leave the Royal Neighbors of America as the sole owner of twenty-five of the trust estates and leave the other beneficiaries as the sole owners of the nine remaining trust estates; that the allocation of the trusts was based on independent appraisals of the values of the trust estates made by the Chicago real estate board, Ross & Browne and Paul Steinbrecher, realtors; that as an inducement to the other beneficiaries, Royal Neighbors of America had offered in its proposed plan of readjustment to surrender $44,785.65 more in value of securities than it was to receive; that the plan of readjustment had been submitted to and approved by the trust managers of the various trusts, and copies of the plan, together with audits and schedules, had been mailed to all known beneficiaries for their assent or dissent, and the holders of less than 4% per cent in amount of the outstanding beneficial units in all the trusts had dissented to the plan; that although the provisions of the trust agreements required the trustee to adopt the plan unless 50 per cent of the beneficiaries dissented in writing, nevertheless the trustee failed and refused to adopt the plan of readjustment or to execute the contract for the exchange therein provided.

The plaintiff made Chicago Title and Trust Company, as the trustee, defendant, also certain beneficiaries of each trust, as representatives of various classes, and prayed for a construction of the trust agreements and for a determination that the plan of readjustment was fair and reasonable and the consummation thereof advantageous and to the best interests of all parties, and for a decree directing the trustee to execute the contracts provided for the plan.

On April 17,1937, the Chicago Title and Trust Company, as trustee under each of the trusts and as representative of all the beneficiaries, filed an answer to the complaint, denying the right of the plaintiff to the relief prayed for. Similar answers were filed by certain beneficiaries of the various trusts, named as defendants. The court on its own motion appointed William Feldman as attorney for all unnamed beneficiaries and he filed a similar answer. Thereafter, Harold R. Schradzki, Sims & Stransky, Arthur W. Sprague, Earle G. Kallen and Joseph Robinson, attorneys of record for certain other beneficiary-defendants, filed motions to strike the complaint for certain defendants and filed answers for others. All the motions to strike raised only one question, namely, whether the Chicago Title and Trust Company, as trustee under the various trusts, had the power to adopt, consent to or consummate the plan of readjustment proposed by the Royal Neighbors of America— which was one of the very questions raised in the answer of the Chicago Title and Trust Company, trustee.

On April 21, 1937, an order was entered consolidating an independent complaint,'filed February 8, 1937, by Earle G-. Kallen, as attorney for Martin J. True-man, with the case of Royal Neighbors of America. The Trueman complaint prayed to enjoin the trustee from adopting the plan, although the trustee had already indicated its refusal to adopt it.

On July 16, 1937, an order was entered sustaining the motions to strike and dismissing the complaint for want of equity.

The court found that it has jurisdiction of the parties and subject matter and that petitioners, Harold R. Schradzki, Arthur W. Sprague, Sims & Stransky, Earle Gr.

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Related

Continental Illinois National Bank & Trust Co. v. Kelley
76 N.E.2d 820 (Appellate Court of Illinois, 1948)
Arndt v. Arndt
72 N.E.2d 718 (Appellate Court of Illinois, 1947)

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Bluebook (online)
17 N.E.2d 336, 297 Ill. App. 80, 1938 Ill. App. LEXIS 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-neighbors-of-america-v-chicago-title-trust-co-illappct-1938.