Savit v. Chicago Title & Trust Co.

68 N.E.2d 472, 329 Ill. App. 277, 1946 Ill. App. LEXIS 322
Appellate Court of Illinois·Decided February 14, 1946·No. Gen. No. 43,206·Published·Cited by 3 cases

Opinion

Mr. Justice Scanlan

delivered the opinion of the court.

After foreclosure proceedings and in accordance with a reorganization agreement, the property commonly known as 5000 Cornell avenue, Chicago, Illinois, was conveyed to the Chicago Title and Trust" Company, as Trustee under a liquidation trust agreement dated June 1, 1935. Defendants Aldis J. Browne, John B.. Magill and Charles H. Ehrlich are Trust Managers under the agreement. Selma Savit, as administratrix of the estate of her husband, holds certificates of beneficial interest in the trust. On April 27, 1944, two of the Trust Managers, Browne and Ehrlich, Magill being ill, accepted an offer of Theodore J. Ticktin, defendant, to purchase the property for the sum of $471,000, subject to certain commissions. On the same day hut shortly before the acceptance the instant complaint was filed. Prior to the acceptance the Trustee was notified that the complaint would be filed. After the acceptance the Trust Managers notified Ticktin to deposit the balance of the purchase price by May 8, 1944, but he did not deposit said balance at any time thereafter. The purpose of plaintiff’s complaint was to prevent the sale of the premises to Ticktin;

After the pleadings had been settled the chancellor, Judge Miner, after hearing evidence entered, on June 2, 1944, a decretal order, which contains the following :

“1. That this court has jurisdiction of all of the parties hereto and of the subject matter.

“2. That the premises involved herein are located at 5000 Cornell Avenue, Chicago, Illinois, and consist of a lot fronting 100 feet on said Cornell Avenue and having a depth of 106 feet 4% inches, improved with a 21-story and basement brick building, approximately fifteen years old, containing 38 5-room apartments, 38 6-room apartments, one 5-room janitor’s apartment and a bungalow apartment of nine rooms, appraised by the Appraisal Committee of the Chicag’o Real Estate Board as of March 29, 1944 at a fair market value of $438,000.00. Said property is held in trust by Chicago Title and Trust Company, as Trustee, under a liquidation trust agreement dated June 1,1935, and known as Trust No. 30993, of which the defendants Aldis J. Browne, John R. Magill and Charles H. Ehrlich are the Trust Managers.

“3. That the object of the trust is the sale, liquidation of the trust property and the distribution of the net proceeds thereof to the beneficiaries, who are numerous and widely scattered. The trust agreement vests in the Trustee, Chicago Title and Trust Company, full power to grant options, to contract to sell, and to sell and convey the trust property, provided that prior to the termination of the trust the Trustee shall not sell or convey unless not less than twenty days prior to such sale the Trustee shall mail to the beneficiaries notice of the receipt of an offer to purchase, and unless the holders of less than 50% of the units outstanding shall lodge with the Trustee written objections to such proposed sale. The trust agreement further provides that the Trustee shall not contract to sell or convey the trust property, except upon the written direction of the trust managers, but the Trust Managers have no power to contract to sell, sell or convey the trust property, this power being vested solely in the Trustee.

“4. That prior to April 4,1944 the Trust Managers received several offers from prospective purchasers and that the highest offer was made by the defendant, Theodore J. Ticktin, who offered $443,000.00 in cash for the said premises, which offer was $5000.00 more than the appraised fair market value of the property ; that the offer of Ticktin was in writing and was subject to the payment of a broker’s commission at the Chicago Real Estate Board rate amounting to approximately $14,290.00. The brokerage commission was to be split equally between Ross, Browne and Fleming, of which firm the defendant, Aldis J. Browne, was a member, and the broker representing the purchaser. The beneficial interest in the trust is divided into two classes of units, one known as Series ‘A’ and one known as Series ‘B’, and the above offer would amount to approximately $48.00 on each of the Series ‘A’ units, and approximately $2.60 on each of the Series ‘B’ units outstanding. The sum of $22.35 per unit of beneficial interest had been theretofore distributed to the beneficiaries.

“5. There was a provision in an instrument attached to the offer but not made a part thereof, that the , Trust Managers had the right to receive higher offers for a period of twenty-one days from the date the notice of the offer was mailed to the certificate-holders; that said instrument further provided if higher bids would be obtained by the Trust Managers, then the said Theodore J. Ticktin would have the privilege of meeting such higher bids within three days after the expiration of the time for the beneficiaries to dissent from such sale. The Trustee was not advised of the giving of the foregoing option to said Ticktin, nor was it advised of the division of the commission.

“6. On April 4, 1944, at the direction of the Trust Managers, Aldis J. Browne, John R. Magill and Charles H. Ehrlich, The Chicago Title and Trust Company, as Trustee, mailed to all beneficiaries, otherwise known as certificate-holders, a letter prepared by the Trust Managers bearing said last-mentioned date, notifying them of the Ticktin offer of $443,000.00 cash, subject to a broker’s commission, as aforesaid, and containing considerable other pertinent information. The notice was silent on the right of said Ticktin to the higher bid within the three day period and on the division of the commission, nor was the name of the brokerage firm, of which one of the Trust Managers was a member, disclosed.

“7. Upon the expiration of the aforesaid twenty-day period the holders of certificates of beneficial interest representing less than 50% of the units outstanding, lodged with the Trustee objection to said offer, which information the Trustee, thereupon, communicated to the Trust Managers. The Trust Managers, within said twenty-one day period, received higher offers, the highest being $471,000.00; that the Trust Managers notified said Ticktin within the three-day period, that the highest bid which they had received was $471,000.00, out of which there was to be paid the brokerage commission and thereupon, the said Ticktin met said bid, offering to pay $471,000.00 in cash, subject to the payment of the brokerage commission as aforesaid. The Trust Managers purported to accept the said bid of Ticktin about one-half hour after the filing of the complaint herein, and to sell the premises to him. Plaintiff offered in her complaint to guarantee a net bid of $465,000.00 and to make good this offer, her attorneys deposited with the Trustee, pursuant to the order of the court, the sum of $15,000.00.

“8. The beneficiaries, by their failure to object to the sale, have approved a sale at less than the guaranteed bid of the plaintiff and the property might bring more at a sale to be held in open court, with no possible loss to the beneficiaries, but with benefits to them in that they will participate in the proceeds realized from a higher bid.

“9.

Free access — add to your briefcase to read the full text and ask questions with AI

Savit v. Chicago Title & Trust Co., 68 N.E.2d 472, 329 Ill. App. 277, 1946 Ill. App. LEXIS 322 (Ill. Ct. App. 1946).

68 N.E.2d 472 (Savit v. Chicago Title & Trust Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Pacific Realty Trust v. APC Investments, Inc.
651 P.2d 163 (Court of Appeals of Oregon, 1982)
Kortenhof v. Messick
309 N.E.2d 368 (Appellate Court of Illinois, 1974)
Watson v. Watson
82 N.E.2d 671 (Appellate Court of Illinois, 1948)