Siegel ex rel. American Glass Co. v. Liberty Trust & Savings Bank

272 Ill. App. 43, 1933 Ill. App. LEXIS 101
CourtAppellate Court of Illinois
DecidedOctober 10, 1933
DocketGen. No. 36,461
StatusPublished
Cited by3 cases

This text of 272 Ill. App. 43 (Siegel ex rel. American Glass Co. v. Liberty Trust & Savings Bank) 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
Siegel ex rel. American Glass Co. v. Liberty Trust & Savings Bank, 272 Ill. App. 43, 1933 Ill. App. LEXIS 101 (Ill. Ct. App. 1933).

Opinions

Mr. Justice Gridley

delivered the opinion of the court.

In a garnishment proceeding, commenced April 24, 1931, in which two claimants of the fund intervened, there was a trial of the issues without a jury in September, 1932, resulting in the court finding in substance as follows: That there is a fund in the hands of the garnishee (hereinafter called the Liberty Bank) as shown by its additional answer, in the sum of $2,920.03; that of this fund the beneficial plaintiff (American Glass Co.) is entitled to $1,360.50; and that Hyman J. Rosenberg, intervening claimant, is entitled to the balance of the fund, or $1,559.53. On September 9, 1932, judgments were entered upon the findings against the garnishee and in favor of the beneficial plaintiff and said Rosenberg, and a judgment for costs was entered against the First National Bank (hereinafter called the First Nat. Bank), the other intervening claimant. The present appeal by the First Nat. Bank followed.

On March 3,1931, the American Glass Co. recovered a judgment against Siegel for $1,360.50, and, execution on the judgment having been returned “no property found, ’ ’ the present garnishment proceeding was commenced by the filing of an affidavit and the usual interrogatories. The garnishment writ was served on the Liberty Bank on April 25, 1931, and on April 27, it filed its answer, in substance that neither on the date of the service of the writ nor since did it have in its possession or control moneys, credits, rights, etc., belonging to Siegel.

On November 17, 1931 (additional interrogatories having been filed), the Liberty Bank filed an amended answer to interrogatories, Nos. 12 and 13, as follows:

“No. 12. Said garnishee, further answering, says that it has made the following payments out of the one-tenth beneficial interest of H. L. Siegel in trust No. 770, which said one-tenth interest has been assigned by said Siegel, under date of March 20, 1930, to the Foreman-State National Bank (hereinafter called the Foreman Bank):

July 10, 1930, — Foreman Bank, assignee of Siegel, $1,000

Sept. 4, 1930, “ “ “ “ “ 1,000

Oct. 15, 1930, “ “ “ “ “ 1,000

Dec. 4, 1930, “ “ “ “ “ 200

Dee. 19, 1930, “ “ “ “ “ 400

Jan. 30, 1931, “ “ “ “ “ 1,000

Mar. 5, 1931, “ “ “ “ “ 403.35

May 8, 1931, “ “ “ “ “ 507.15

on hand the sum. of accumulated from the “And further 2,310.97, which that it has amount has date of service of the above writ to the present date, and which funds are the property of the-Foreman Bank, assignee of Siegel.

“No. 13. Said garnishee, further answering, says that it has on hand in the above trust account at the present time contracts for the purchase of real estate, on which one-tenth of the present unpaid balance, due to the Foreman Bank, assignee of Siegel, is the sum of $36,673.51.”

It will be noted in the above tabulation of payments, made by the Liberty Bank to the Foreman Bank, that the last payment of $507.15, on May 8, 1931, was made after the service of the garnishment writ.

On January 19, 1932, by order of court, the First Nat. Bank filed its intervening petition in the cause, in which it is alleged in substance that on March 19, 1930, Siegel executed and delivered a certain written assignment, by which he conveyed to the Foreman Bank, “as security for a loan of $35,000, all of his right, title and interest in and to a certain trust, wherein the Liberty Bank was trustee under a trust agreement dated January 22, 1926, known as its Trust No. 770”; that in the assignment it is provided that the same shall be held “unto the Foreman Bank, its successors and assigns, as collateral security as aforesaid, and subject to all the rights, powers and privileges granted to said Bank under the terms of said collateral note, or any extensions or renewals thereof”; that “on May 9, 1931, Siegel executed a renewal note in favor of the Foreman Bank in the sum of $32,373.88, due June 10, 1931, with interest, which said note was secured by said assignment of Siegel’s beneficial interest under the Liberty Bank’s Trust No. 770”; that the note was thereafter indorsed by the Foreman Bank over to petitioner, and at the same time the Foreman Bank in writing assigned to petitioner the Siegel assignment ; that the note was not paid by Siegel or by anyone in his behalf; that there is now due to petitioner on the note the sum of $32,373.88, together with interest; that it was provided in Siegel’s assignment to the Foreman Bank that “one-half of the moneys received thereunder shall be retained to apply on the aforesaid indebtedness (of Siegel to the Foreman Bank), and the remaining onerhalf shall be paid to said Siegel so long as he is not in default in the performance of any of his obligations” (to the Foreman Bank); that on June 11, 1931, Siegel “was in default under said note, so executed by him and secured by said assignment,” and that accordingly petitioner, as assignee of the Foreman Bank, notified Siegel that in accordance with the terms of said written assignment, “it would apply the entire amount received from the Liberty Bank under said assignment to the indebtedness of said Siegel as evidenced by said note.” The petition prayed for the entry of an order “finding the issues in favor of petitioner with reference to the interest of said Siegel in the afore-described trust,” etc.

On the trial the assignment to the Foreman Bank, dated March 19, 1930, and signed and sealed by Siegel, was introduced in evidence by the beneficial plaintiff (American Glass Co.), and, for convenience the material parts of the assignment are here set forth, as follows:

Whereas, the undersigned, H. L. Siegel, desires to borrow the sum of $35,000 from the Foreman Bank, to be evidenced by his principal collateral note of even date herewith due four months after date, and said bank is willing to loan him said sum “provided the payment thereof and of all sums which may hereafter be loaned by the bank to the undersigned shall be secured as hereinafter set forth,” and

Whereas, the Liberty Bank, as trustee under a trust agreement dated January 22, 1926, and known as trust No. 770, holds title to the real estate described in said trust agreement, viz. (real estate described), “for the benefit of the beneficiaries therein mentioned, — the interest of the undersigned under said trust agreement, and in and to said property, being an undivided l/10th beneficial interest.”

Therefore, in consideration that the Foreman Bank has simultaneously herewith loaned to the undersigned the sum of $35,000, evidenced by his principal collateral note of even date herewith, due 4 months after date, and to secure the payment of said note “and any extensions or renewals thereof,” the undersigned, H. L. Siegel, does hereby sell, assign, transfer, convey and deliver unto the Foreman Bank, “its successors and assigns,” all his right, title and interest “in"and to and under said trust agreement above described and in and to the land and property held by the trustee thereunder, and his beneficial interest therein. ’ ’

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
272 Ill. App. 43, 1933 Ill. App. LEXIS 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/siegel-ex-rel-american-glass-co-v-liberty-trust-savings-bank-illappct-1933.