White v. Central Trust Co.

259 Ill. App. 68, 1930 Ill. App. LEXIS 744
CourtAppellate Court of Illinois
DecidedOctober 14, 1930
DocketGen. No. 34,201
StatusPublished
Cited by1 cases

This text of 259 Ill. App. 68 (White v. Central 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
White v. Central Trust Co., 259 Ill. App. 68, 1930 Ill. App. LEXIS 744 (Ill. Ct. App. 1930).

Opinion

Mr. Justice Barnes

delivered the opinion of the court.

The judgment under review was entered against the plaintiff to the suit for want of prosecution after his motion to strike defendant’s amended affidavit of merits was denied. The sole question presented is the sufficiency of the defense set up in said affidavit.

The declaration consisted of the common counts, to which was attached a statement of the claim and an amended affidavit of claim. The defense consisted of the plea of general issue supported by the said amended affidavit of merits.

The nature of plaintiff’s claim, as set forth in his affidavit, is for the sum of $752,633.84, with interest, alleged proceeds from a foreclosure sale of certain premises under a trust deed to Greenebaum Sons Bank & Trust Company, a corporation, as trustee (to which defendant in error, Central Trust Company of Illinois, has become successor in trust), for the benefit and use of White, the owner of all the bonds secured by said deed.

Plaintiff’s affidavit of merits sets forth the decree with the usual findings and orders of such a decree for sale of the premises in default of payment, at public vendue “for cash in hand,” etc., by the master in chancery, with usual provisions for delivery of the certificate of sale and disposition of the proceeds to the trustee for the benefit of said White.

The affidavit then sets out that the sale was made to one Charles A. Pfingsten (not a party to this suit) for the sum of $757,088.07 (a sum less than the aggregate indebtedness), and that the master’s certificate of sale was issued to him, and a duplicate thereof recorded in . the office of the recorder of deeds, which recited that in pursuance of the decree the master duly advertised and sold the premises “for cash,” and that said Pfingsten made the highest bid therefor of said sum “in cash.”

The affidavit further sets forth in substance the master’s report of sale and distribution, reciting that he had paid out of the proceeds to said trustee, the sum of $752,633.84, for which the trustee receipted, and that after the usual notices the report was confirmed finding that the master had complied in all respects with the terms and conditions of the decree of sale. The affidavit then alleges that a demand was made upon the trustee to pay the last mentioned sum with interest from the date of sale and was refused.

The nature of the defense set up in the affidavit of merits is as follows:

That about March 1, 1926, plaintiff White had numerous conferences with the officers of Greenebaum Sons Bank & Trust Company, and its subsidiary, Greenebaum Sons Investment Company, and stated that he was desirous of obtaining title to the property conveyed by the trust deed and for that purpose desired to purchase all of the outstanding bonds secured by it; that in pursuance of said desire said bonds were purchased for him and he paid the purchase price therefor; that shortly thereafter he directed said Trust Company as trustee, because of existing defaults, to institute in his name for his benefit, foreclosure proceedings under said deed, and to use the amount found due under the decree of sale, so far as necessary, to purchase the property at the sale; that thereupon said Trust Company, pursuant to his directions and the terms of the deed, instituted and prosecuted the foreclosure' to a sale as aforesaid, at which, pursuant to plaintiff’s directions to bid in the property, it bid in the same in the name of said Pfingsten, and caused him immediately after receiving the master’s certificate of sale to indorse the same in blank and deposit it for plaintiff White in safe-keeping with said Investment Company, which immediately gave its receipt for the safe-keeping thereof and delivered the same to plaintiff, which he has ever since retained; that the bonds became merged in the decree of sale and were represented by the amount found due to the Trust Company as trustee, and pursuant to plaintiff’s instruction to use said amount, as far as necessary, to purchase said property at the sale, it did, after paying the master’s fees, etc.,.apply so much of the amount found due, as necessary to complete such purchase, “by receipting to said master as trustee for the amount thereof to be applied as a credit on the amount due under said decree, pursuant to the universal practice and custom followed in courts of chancery in this State in similar cases”; that no cash was received by the master or Trust Company on account of said sale (except that said company paid'the master the expense of sale), and that the certificate so held by plaintiff represents and is the proceeds of the bid made at said sale.

It is first urged that said amended affidavit of merits does not comply with the requirements of section 55 of the Practice Act, Cahill’s St. ch. 110, H 55, because the affiant does not swear to the truth of the matters set forth as constituting a good defense. The contention is somewhat technical and goes to matter of form instead of to the merit of the affidavit, on which alone, as appears from the record, the motion to strike was argued and denied. Objection to a formal defect should be made specially and not by a general motion to strike. (American Hard Rubber Co. v. Howe, 280 Ill. 431.) While plaintiff cites Hunter v. Troup, 226 Ill. App. 343 (2d Appellate District), as sustaining his contention, the form of the affidavit in question has frequently received approval in other Appellate Court cases. (Wolfort v. David Lipsey Co., 189 Ill. App. 34; F. N. Matthews & Co. v. Lilienthal, 215 Ill. App. 160; First Nat. Bank of Hayward, Wis. v. Gerry, 195 Ill. App. 513; Cooper v. Anderson, 246 Ill. App. 1.) The affidavit is in the language of the statute, which prior to the amendment of 1907, adding the words, “and specifying the nature of the defense,” was held sufficient. And in Harrison v. Rosehill Cemetery Co., 291 Ill. 416, the court said that that being the only change in the statute, the construction to be given to it is the same, except that the defendant “must specify the nature of his defense,” and that that requires stating “the ldnd or character of the defense,” and necessarily a legal defense. Apparently the purpose of the amendment was to apprise the plaintiff of its nature that it might appear from the statement of it whether the defense so believed to be meritorious is in fact a legal defense, instead of leaving the defense undisclosed and resting solely on the defendant’s sworn belief of its merits. The statute does not require that the defendant should specifically swear to the truth of the facts upon which the nature of the defense rests, although we think it may be said that the affidavit in such form fairly implies that they are true. If the legislature intended otherwise, direct and appropriate language to make such intent clear could, and probably would, have been employed. If, therefore, it can be said that the question of form has been preserved for review we think neither a proper construction of the statute nor that placed on it in previous practice and decisions supports plaintiff in error’s contention.

The question, then, is, does the affidavit of merits state a legal defense?

The contention that it does not rests mainly on the theory of judicial estoppel.

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Bluebook (online)
259 Ill. App. 68, 1930 Ill. App. LEXIS 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-central-trust-co-illappct-1930.