Woodward v. Donovan

167 Ill. App. 503, 1912 Ill. App. LEXIS 1303
CourtAppellate Court of Illinois
DecidedFebruary 14, 1912
DocketGen. No. 16,086
StatusPublished
Cited by7 cases

This text of 167 Ill. App. 503 (Woodward v. Donovan) 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
Woodward v. Donovan, 167 Ill. App. 503, 1912 Ill. App. LEXIS 1303 (Ill. Ct. App. 1912).

Opinion

Mr. Justice Graves

delivered the opinion of the court.

On April 27,1908, appellant, claiming that one Nellie D. Driver, otherwise called Nellie D. Smith, owed him $3,500 for rent past dne for premises owned hy him and occupied hy her, known as No. 101 Cass street in /the city of Chicago, issued his distress, warrant and took possession under it of a large amount of personal property belonging to her.

On July 31, 1908, appellee filed her bill in chancery in the Circuit Court against Nellie D. Smith, the American Trust and Savings Bank, trustee of Nellie D. Smith, and appellant, wherein she alleges that Nellie D. Smith, then Nellie D. Driver, on October 15,1907, being indebted to appellee for money that day loaned to her in the sum of $1,800, executed and delivered to appellee her promissory note for that amount, payable in installments of various amounts and due respectively on the 15th day of the months of November and December, 1907, and January, February, March, April, May, June and July, 1908, and on the same day made, executed, acknowledged and delivered to appellee a chattel mortgage on the property therein described to secure the payment of the note; that appellee was the legal owner and holder of that note; that the mortgagor was in default in all the payments except the first two, which had been paid; that appellant had seized the property described in the mortgage and was then in possession of the same under some claim of right; that whatever that claim of right was it was subordinate to the rights of appellee under the mortgage. The prayer of the bill asks that the mortgage be foreclosed and the property sold to satisfy the balance due on the note.

Appellant answered this hill setting up his interest in the property by virtue of his relation to Nellie D. Driver as her landlord; setting up the lease and the indebtedness accrued and due him thereunder for rent; setting up his distress proceedings and denying the rig'hts of complainant under the mortgage as against him. The other defendants also answered the bill, hut there is nothing in their answers material to the issues presented here. The cause was referred to a master in chancery to take the evidence and report his conclusions. The master found the issues for complainant and that she was entitled to a foreclosure of her mortgage and to have the property sold and the mortgage debt paid out of the proceeds of such sale. From this decree James Donovan alone appealed.

Appellant claims the decree was not warranted, because there is no evidence that the complainant was a real person then in existence; because there was no evidence outside of the note and mortgage that at the time the same were given Nellie D. Driver was indebted to complainant, or that the same were bona fide; because the mortgage was not acknowledged before the clerk of the Municipal Court as it purports to have been; because the mortgage was acknowledged before a deputy clerk of the Municipal Court, and such deputy did not certify to that fact under his own name and his own seal, but did sign the name of the clerk of the Municipal Court and did attach the seal of that court; because there is no evidence that the officer who took the acknowledgment entered in his docket or book kept for that purpose the memorandum required by statute; because the evidence shows that when the note and mortgage were executed, Nellie D. Driver was a married woman; that the goods mortgaged were household goods then in use as such in their dwelling which was rented by her from appellant; that she was in arrears $3,500 in her rent; that appellant had taken possession of the mortgaged property under a distress warrant for the purpose of collecting the rents due; and because, if the mortgage was valid, the mortgagee had waived her right to foreclose the same as against appellánt by failing to take possession of the same upon default being made in the payment of the installment due January 15,1908.

In a suit in chancery to foreclose a mortgage or in a suit at law on a promissory note, where there is no issue made by the pleadings, as to the validity or bona fides of the instrument or the consideration on which it is based or the right of the party to sue, the introduction in evidence of the instruments or instrument sued on, regular on the face, shows prima facie the right of the party suing thereon to recover. Brown v. McKay, 151 Ill. 315; Boudinot v. Winter, 190 Ill. 394; Mantonya v. Martin Emerich Outfitting Co., 69 Ill. App. 62.

The mere possession of a promissory note or bond is prima facie evidence of the legal title to the instrument and of the right of the one in possession to sue thereon, and in the case of an instrument of that character made payable to some person other than the one in possession, the presumption arising from possession is that the one in possession may sue thereon in the name of the person to whom it is made payable. Ransom v. Jones, 1 Scam. (Ill.) 291; Martin v. Martin, 174 Ill. 371; Curtiss v. Martin, 20 Ill. 557.

An attorney of record who has possession of a promissory note and who brings suit thereon is presumed to have authority from the payee of the note to conduct such suit. Harris v. Galbraith, 43 Ill. 309; Williams v. Butler, 35 Ill. 544; Ransom v. Jones, 1 Scam. (Ill.) 291.

The fact that an attorney at law prepares a bill in chancery in a party’s name and signs the party’s name and his own name to it is unmistakable evidence of the relation of client and attorney. Burnham v. Roberts, 70 Ill. 19. The presumption of the authority of an attorney to act for a party in bringing a suit in the name of such party necessarily carries with it the presumption of the existence of such party. The note and mortgage were in the possession of the solicitor for complainant who filed the bill. They were regular on their face and were offered and introduced in evidence by him. Under the issues in this case the introduction of them in evidence made a prima facie case for appellee.

Cases from New York and Nebraska have been cited in support of the contention that appellant was bound to prove in the-first instance the bona, fides of the transaction. These authorities are not in point here. The statutes under which these decisions were made provide, in substance, that mortgages of personal property, when the possession of the property remains with the mortgagor, shall be presumed to be fraudulent and void as against creditors of the mortgagor unless such possession is provided for by the terms of the mortgage. Such presumption, however, may be rebutted by proof that the transaction was bona fide and without intent to defraud creditors. Under our statute such mortgages under the same conditions are' absolutely void as against creditors of the mortgagor.

The New York and Nebraska cases cited hold that under the provisions of the statutes of those states, upon the. foreclosure of such a mortgage, it is necessary in order to overcome the presumption of invalidity arising from the retention by the mortgagor of the possession of the mortgaged property, when the mortgage did not provide for his so retaining possession, that proof of the bona fides of the transaction be made, and that upon such proof being made the presumption of invalidity is overcome and the rights of the mortgagee are paramount to those of a creditor of the mortgagor.

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Bluebook (online)
167 Ill. App. 503, 1912 Ill. App. LEXIS 1303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodward-v-donovan-illappct-1912.