Smith v. Lincoln-Catalpa Building Corp.

182 N.E. 774, 349 Ill. 530
CourtIllinois Supreme Court
DecidedJune 24, 1932
DocketNo. 21273. Reversed and remanded.
StatusPublished
Cited by3 cases

This text of 182 N.E. 774 (Smith v. Lincoln-Catalpa Building Corp.) 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
Smith v. Lincoln-Catalpa Building Corp., 182 N.E. 774, 349 Ill. 530 (Ill. 1932).

Opinions

Mr. Justice Duncan

delivered the opinion of the court:

Appellee, Clayton F. Smith, registrar of titles of Cook county, filed on June 8, 1931, a verified petition in the circuit court of Cook county asking for authority to enter upon certificates of title for certain real estate in that county memorials of two trust deeds which it was alleged had been erroneously and inadvertently omitted from said certificates of title. One of the certificates of title had been issued to appellant the Lincoln-Catalpa Building Corporation, the owner of the real estate, and another to appellant Olaf A. Johnson, the grantor in the deed of the real estate to the corporation. Those appellants and appellant Elmer J. Lavine, who had also owned the property after it had been registered, and Evin L. Huffman and Esther M. Huffman, were made parties defendant to the petition. The three appellants demurred to the petition and their demurrers were overruled, and they then filed separate answers to the petition. On motion of appellee an order of default was entered against appellants because their answers were not under oath, and a decree pro confesso was entered in accordance with the prayer of the petition. This appeal is from that decree.

The property for which the certificates of title to appellants Olaf A. Johnson and the Lincoln-Catalpa Building Corporation were issued, was, with other real estate, first registered under the Torrens act on the application of Ered W. Brummel and others by decree of the circuit court on July 18, 1923. The real estate registered under that decree included lots 23 and 24 in block 2 in Fred W. Brummel & Co.’s Lincoln-Bryn Mawr Western subdivision, in the city of Chicago. The petition of appellee was entitled and filed not as an original petition or bill in equity but as a petition under the Torrens act in the proceedings for the registration of the title to said real estate, and the allegations of the petition are, after an allegation of the initial registration, in substance the following: By sundry mesne conveyances and transfers of title the title to lots 23 and 24 passed to Elmer J. Lavine and Ellen M. Lavine as joint tenants and was registered in their names. They conveyed the lots to John Turnquist, a bachelor, and a certificate of title was issued to him. He conveyed the lots to John S. Johnson, to whom a certificate of title therefor was issued. While Johnson held title to the lots, he on October 15, 1928, executed a trust deed thereon to Louis D. Glanz to secure the payment of notes for $35,000, and that trust deed was registered as document No. 430604. John son and his wife conveyed the lots to Evin L. Huffman and Esther M. Huffman, his wife, as joint tenants, and a certificate of title was issued to them. They on November 14, 1929, executed to the Chicago Title and Trust Company a second trust deed on the lots to secure the payment of $3000, which trust deed was filed in the office of the registrar of titles as document No. 486548. Subsequently the Huffmans conveyed a part of the lots to the city of Chicago for a consideration of $5526, and the two trust deeds on the lots were released as to the part conveyed to the city of Chicago but were not released as to the part not conveyed to the city. A certificate of title was issued to the city of Chicago for the portion of the lots conveyed to the city, and certificate of title No. 259076 was issued to the Huffmans, as joint tenants, for the lots, except the part conveyed to the city. ' On January 31, 1931, the Huffmans conveyed the property so registered in their names to Olaf A. Johnson and certificate of title No. 261632 was issued to him. On February 13, 1931, Johnson, a widower, conveyed the property so registered in his name to the Lincoln-Catalpa Building Corporation and certificate of title No. 266142 was issued to the corporation. Through an error and inadvertence the trust deeds, documents Nos. 430604 and 486548, after being released as to the part of the lots conveyed to the city of Chicago, were not carried forward as memorials on the certificates of title Nos. 259076, 261632 and 266142, issued to the Huffmans, Olaf A. Johnson and the Lincoln-Catalpa Building Corporation, respectively. It was further alleged in the petition, on information and belief, that from the time the certificate of title to the lots was issued to Elmer J. Lavine and Ellen M. Lavine to the present time, La-vine “has been, and now is, the actual equitable owner of, or largely interested in, the premises described in said certificates of title;” that John S. Johnson is a cousin, Evin L. Huffman is a brother-in-law and Olaf A. Johnson is the father-in-law of Lavine, and that they, and each of them, held title to the premises for appellants; that Olaf A. Johnson is the owner of 498 of the 500 shares of the capital stock of the Lincoln-Catalpa Building Corporation and said shares are held for and are the property of Lavine, and that no consideration was paid by the holders of the other two shares of stock of the corporation for said shares.

Other allegations in the petition were, in substance, the following: In all of the conveyances and transfers of title to the premises above mentioned, Elmer J. Lavine represented all of the title holders. He delivered the deed to part of the lots to the city of Chicago and to George Keefe for the board of local improvements of said city, delivered to the owners duplicate certificates of title issued to the Huffmans and exhibited a power of attorney from the Huff-mans to himself and received the check for $5526 payable to the Huffmans, which was issued in payment for the part' of the lots conveyed to the city. Lavine, as attorney for the Huffmans, indorsed the check to the holder of the notes secured by the trust deed to Glanz on the lots and received one of the notes secured by the trust deed and used the balance due on the check “to pay accrued interest, taxes then due, insurance premiums and a small portion on a junior encumbrance.” Lavine has at all times had in his possession the various owners’ duplicate certificates of title to the real estate. Before the registration of the deed from the Huffmans to Olaf A. Johnson, Lavine mailed the deed and the owner’s duplicate certificate of title issued to the Huffmans to an attorney, with a request that he register the deed. When the certificate of title to Johnson had been made out, the attorney met Lavine and advised him that the certificate would not be delivered until the signature card of Johnson was prepared and delivered to the registrar. Within thirty minutes thereafter Lavine delivered to the attorney the signature card of Johnson, which was subscribed and sworn to before a notary public of Cook county on February 13, 1931, and the attorney then called for and obtained the certificate of title to Johnson. By deed dated February 13, 1931, Johnson conveyed the property to the appellant corporation, and the deed purports to have been acknowledged by Johnson before a notary public of Price county, Wisconsin, on February 13, 1931, the same date the signature card was sworn to by Johnson in Cook county, Illinois. From the time of the filing of the trust deeds on the lots to Glanz and to the Chicago Title and Trust Company, Lavine has had full knowledge of their existence as liens on the real estate, and has also had full knowledge of the fact that the release of the trust deeds as to the part of the lots conveyed to the city of Chicago did not affect the lien of the trust deeds as to the balance of the lots.

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Bluebook (online)
182 N.E. 774, 349 Ill. 530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-lincoln-catalpa-building-corp-ill-1932.