Yoelin v. Kudla

24 N.E.2d 67, 302 Ill. App. 413, 1939 Ill. App. LEXIS 537
CourtAppellate Court of Illinois
DecidedDecember 5, 1939
DocketGen. No. 40,484
StatusPublished
Cited by1 cases

This text of 24 N.E.2d 67 (Yoelin v. Kudla) 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
Yoelin v. Kudla, 24 N.E.2d 67, 302 Ill. App. 413, 1939 Ill. App. LEXIS 537 (Ill. Ct. App. 1939).

Opinion

Mr. Presiding Justice John J. Sullivan

delivered the opinion of the court.

This proceeding, instituted by the filing of a complaint in the nature of a creditor’s bill, resulted in the entry of a decree and the appointment of a receiver, who took possession of the premises at 3856-58 South Kedzie avenue.

For a clearer understanding of the issues it is necessary to state the facts somewhat fully. Michael Gorski sustained injuries while working as an employee of John Kudla on a building at 2459 South Whipple street, Chicago, which property is not involved in this proceeding. On May 16, 1924, the industrial commission made an award in favor of Gorski against John Kudla. After somewhat protracted litigation the award was affirmed by the Supreme Court.

On November 23, 1925, Walter Waishwell sold the premises here involved to one Rozalia Kudla, wife of the aforesaid John Kudla, for $14,000, of which $5,000 was paid in cash and the balance of $9,000 by a purchase money mortgage in that amount secured by a trust deed to Helen Doberstein, trustee.

On December 16, 1930, Michael Gorski filed the complaint in this cause in the nature of a creditor’s bill to enforce payment of his award against John Kudla out of the property at 3856-58 South Kedzie avenue, 3848-50 South Kedzie avenue and other property, all of which he asserted belonged to John Kudla, although legal title to said property was in Rozalia Kudla. Plaintiffs named Helen Doberstein, the trustee in the trust deed securing the Waishwell mortgage a party defendant, and attempted to establish in this proceeding that the mortgage to Waishwell was not a purchase money mortgage and to have it canceled and removed as a cloud upon the title to the property at 3856-58 South Kedzie avenue. Subsequent to the commencement of this suit Gorski died and Matilda Yoelin, his administratrix with the will annexed (hereinafter for convenience referred to as Matilda Yoelin), was substituted as a plaintiff in his stead. Kudla died March 13, 1934. On July 9, 1935, a decree was entered herein which ordered the cancellation of the Doberstein trust deed and the removal of same as a cloud on the title to the property at 3856-58 South Kedzie avenue, and further ordered a sale of such property, as well as the property at 3848-50 South Kedzie avenue and other property to satisfy the G-orski award. An appeal was taken to this court from said decree, which decree was affirmed in so far as it ordered the sale of the properties but reversed as to that portion thereof which ordered the cancellation of the Waishwell mortgage. [Yoelin v. Kudla, 287 Ill. App. 618 (Abst).] Relative to the Waishwell mortgage and the Doberstein trust deed securing same, we held on that appeal as follows:

“As to the finding of the decree that the trust deed from John Kudla and his wife, Rozalia Kudla, to Helen Doberstein, as trustee, was executed without consideration and as part of the scheme of the Kudlas ‘to avoid paying compensation to Michael Gorski,’ we think that the chancellor was clearly in error. When the property at 3856-58 Kedzie was purchased from Waishwell in the name of Rozalia, Kudla on November 23, 1925, for $14,000, $5,000 was paid in cash and the balance of $9,000 by the execution of a purchase money mortgage in that amount secured by the trust deed to Helen Doberstein. There is not a scintilla of evidence in the record that Helen Doberstein ever had any interest in this $9,000 mortgage indebtedness except as trustee, but the record does show that Waishwell, from whom this property was purchased, took back this mortgage as part payment of the purchase price and later sold it to one Rybinski [Lapinski] for $9,000. The trust deed to Helen Doberstein securing the $9,000 indebtedness against the property is a valid lien upon same and John Kudla and Rozalia Kudla never at any time had any right, title or interest in or to the said trust deed or the principal note secured thereby. That portion of the decree setting aside and cancelling this trust deed and removing it ‘as a cloud from the title’ to the property in question must, therefore, be reversed. ’ ’

The mandate of the Appellate Court issued pursuant to its judgment, which became a final determination that the mortgage given by the Kudlas to Waishwell was a purchase money mortgage and that the Doberstein trust deed given to secure same constituted a valid lien against the property in question.

On November 20, 1936, after the judgment of this court was entered on the appeal from the decree entered in this cause on July 9,1935, and pursuant to said decree, James Gr. Barsaloux was appointed receiver of the property located at 3856-58 South Kedzie avenue, “to take charge and possession of the . . . described premises, collect the rents, issues and profits therefrom, manage and operate the same, keep the buildings insured against fire hazard, and apply the net sums after paying all necessary expenses and repairs, from the said rentals and income, to the sums due under the decree herein, upon the order of Court, and present his reports to this Court for approval at regular intervals of each three months . . . and said Receiver shall hold the surplus of the income, issues and profits over and above the expenses and necessary disbursements for repairs, insurance premiums, and other necessary expenses, for payment to the complainants, or their attorneys for them upon order of Court herein to apply on the sums found due to the complainants by the decree hereinbefore entered. ’ ’

On May 21,1937, Walter Waishwell filed a complaint in the circuit court in cause No. 37C 6151 to foreclose his trust deed on the property at 3856-58 South Kedzie avenue, and named Matilda Yoelin, and the receiver, James G-. Barsaloux, parties defendant thereto. On May 25, 1937, Waishwell filed his intervening petition in this creditor’s suit, alleging that he had filed a complaint in the circuit court in cause No. 37C 6151 for the foreclosure of the trust deed indebtedness, which said trust deed indebtedness was secured by a first lien upon the property at 3856-58 South Kedzie avenue; that said trust deed, dated December 1,1925, which was duly recorded February 2,1926, was executed by Bozalia Kudla and John Kudla, her husband, to Helen Doberstein, to secure their note for $9,000, payable to the order of themselves on or before five years after date; that the trust deed was extended by two certain extension agreements and the principal amount of the indebtedness secured thereby was reduced from $9,000 to $5,000, which is the present unpaid balance due thereon; that no interest has been paid upon the unpaid balance due on the principal indebtedness since December 1, 1935, and that various taxes were past due and delinquent upon the premises in question; and that the trust deed, to foreclose which Waishwell filed his complaint in circuit court case No. 37C 6151, contained the following provision:

“The grantors waive all right to the possession of, and income from, said premises pending a foreclosure thereof, and until the period of redemption from any sale thereunder expires, and agree that a Beceiver shall be appointed to take possession of and charge of said premises, and collect such income, —.”

The intervening petition concluded with the prayer that an order be entered in this cause extending the receivership herein of James Gr. Barsaloux to the Waishwell foreclosure proceeding.

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Bluebook (online)
24 N.E.2d 67, 302 Ill. App. 413, 1939 Ill. App. LEXIS 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yoelin-v-kudla-illappct-1939.