Stough v. Brach

70 N.E.2d 585, 395 Ill. 544, 1946 Ill. LEXIS 474
CourtIllinois Supreme Court
DecidedNovember 20, 1946
DocketNo. 29685. Decree and order affirmed.
StatusPublished
Cited by11 cases

This text of 70 N.E.2d 585 (Stough v. Brach) 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
Stough v. Brach, 70 N.E.2d 585, 395 Ill. 544, 1946 Ill. LEXIS 474 (Ill. 1946).

Opinion

Mr. Justice Fulton

delivered the opinion of the court:

A freehold being involved, this is a direct appeal by the plaintiff-appellant from a decree of the superior court of Cook county dismissing for want of equity count III of her amended complaint and from an order previously entered granting the defendant’s motion to strike counts I and II of the amended complaint.

The appellant and appellee were formerly husband and wife and at the time of their separation, in 1931, a property settlement involving a trust agreement was entered into by them. Under this agreement the income from approximately $1,000,000 of personal property, together with the use of valuable residential real estate at 175 Sheridan Road, Winnetka, Illinois, known as the “Homestead Estate,” was given appellant. She was given the right to reside in the real estate and during her occupancy was required to pay all taxes levied and assessed against the premises and to pay one half of any special taxes and assessments. Likewise she was to pay all of the expenses of operation of said premises and was to keep the same in repair. This agreement provided that in the event appellant should elect not to reside in the residence and should give written notice to the trustee and appellee, Brach, of such intention, Brach was to have the right to obtain a re-conveyance of the real property from the trustee upon depositing with the trustee the sum of $75,000, which was to be paid over by the trustee to appellant. In the event Brach did not elect to obtain a reconveyance by payment of the $75,000, the trustee was to sell the real property and divide equally between appellant and Brach the proceeds of such sale, the trust agreement also providing “that no sale of said Homestead Estate shall be made during the joint lives of the parties hereto for less, than One Hundred Fifty Thousand Dollars ($150,000) without obtaining the written consent of the parties hereto, and provided, always, that said party of the second part [appellant] shall be entitled to receive one-half of the net proceeds of any sale of said Homestead Estate made by said Trustee, but in no event less than Seventy Five Thousand Dollars ($75,000.)” The agreement also provided that in the event Brach predeceased appellant, the property was to be conveyed to her, and if appellant predeceased Brach, the property was to be conveyed to him.

On June 26, 1941, by an agreement of the parties amending the trust agreement, all of the property in the trust, with the exception of the “Homestead Estate” and its furnishings, were withdrawn from the trust and distributed to appellant and Brach. Appellant received in excess of $750,000 in cash and securities. At this same time appellant and Brach executed written instructions to the trustee regarding distribution of the personal property and the retention of the “Homestead Estate” in the trust, containing the following provision: “With respect to the ‘Homestead Estate’ and the ‘Homestead Personal Property,’ said trust shall remain in full force and effect and the said Eunice Essig Brach hereby for herself, her heirs, executors, administrators, and assigns, agrees to pay all taxes, assessments, and other charges incident to the ownership of said property and keep the buildings, comprising the ‘Homestead Estate,’ insured against fire in an amount not less than Fifty Thousand Dollars ($50,000) and to keep the ‘Homestead Personal Property’ insured against fire in an amount not less than Twenty Thousand Dollars ($20,000.)”

Subsequent to the distribution of the personal property in the trust, appellant gave notice of her intention-to remove from the “Homestead Estate,” and on November 12, 1942, appellant moved therefrom. Brach did not exercise his right to obtain the conveyance of said property by payment of $75,000, whereupon appellant requested the trustee to sell the same. The property could not be sold for any amount near $150,000. Brach refused to consent in writing to the. sale of the property for any smaller amount, and appellant brought this suit to compel the sale thereof and obtain the first $75,000 of the proceeds thereof. By count I of the complaint she seeks to compel the sale of this property without the written consent of Brach on the theory that the sale of the property is necessary to prevent the destruction of the trust res. In this count she described the property and alleged that in 1931, at the time of the original agreement, the “Homestead Estate” had a cash market value in excess of $200,000, but that at this time, due to economic conditions, the property is worth only about $85,000. She further alleged that the cost of maintenance amounts to $6000 per year, in addition to the taxes which exceed $1700 per year. She further alleged that the taxes for the year 1942 were in default and that it was impossible to rent the property for an amount which would be sufficient to pay the taxes thereon and provide for the necessary maintenance thereof. She alleged that if the “Homestead Estate” were not sold within the near future it would be entirely lost to both the plaintiff and the defendant.

Count II of the amended complaint adopted, by reference, the allegations of count I and was predicated on the theory that by the execution of the supplemental agreement of June 27, 1941, appellant became vested with the full beneficial interest in the “Homestead Estate,” subject only to the right of Brach to acquire it for $75,000 at such time as appellant might no longer care to reside therein. In this count she further alleged that inasmuch as she agreed to pay the taxes and assessments against the property by the supplemental agreement of 1941, and since Brach was relieved of any responsibility whatsoever in connection with the same, it was the intention of the parties that she was, in fact, the beneficial owner thereof and could sell the same free from any rights of Brach therein.

Count III adopted, by reference, the paragraphs of count I and further alleged that Brach was estopped to hold up the sale because he had made statements to appellant that he desired the property sold for the best price, obtainable, that he would consent to the sale at less than $150,000 and that he urged appellant to move out of the ^property, buy herself a smaller house, and list the property for sale. Based upon these representations, appellant alleged she had purchased a new home of her own for $60,000 and had moved out of the house, both of which she would not have done if she had not believed Brach would abide by his representations.

The appellee filed his motion to strike the amended complaint. This motion was sustained as to counts I and II thereof and denied as to count III. He answered count III denying that he had made any representations to the appellant and denying that the appellant was entitled to any relief.

The First National Bank of Chicago filed its answer and counterclaim by which it denied that the plaintiff was entitled to any relief as against it, and asserted that as long as it continued as trustee it would comply with the instructions of the court with reference to the leasing, sale, or disposition of the property. By its counterclaim the trustee asked that it be permitted to resign as trustee and that it might be relieved and released from any further liability or responsibility as trustee. Both appellant and appellee answered the counterclaim of the trustee and denied that it should be permitted to resign as trustee.

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Bluebook (online)
70 N.E.2d 585, 395 Ill. 544, 1946 Ill. LEXIS 474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stough-v-brach-ill-1946.