127 N.E. 169 (Ill. 1920), 12606, Scholbe v. Schuchardt
| Citation | 292 Ill. 529,127 N.E. 169 |
| Docket Number | 12606. |
| Date | 21 April 1920 |
| Parties | SCHOLBE v. SCHUCHARDT et al. |
| Court | Illinois Supreme Court |
Page 169
Suit by M. A. Scholbe against Max Schuchardt and another. A judgment for defendant rendered by the municipal court was reversed by the Appellate Court and judgment rendered for plaintiff (212 Ill.App. 663), and defendants appeal.
Judgment of Appellate Court reversed, and judgment of municipal court affirmed.
[292 Ill. 530] Appeal from First Branch Appellate Court, First District, on Appeal from Municipal Court of Chicago; William N. Gemmill, Judge.
Judgment was rendered against appellee, M. A. Scholbe, in the municipal court of Chicago in a suit against appellants, Max Schuchardt and Frieda E. Schuchardt, his wife, on a promissory note signed by Max Schuchardt and indorsed by Frieda E. Schuchardt for $1,250, with 6 per cent. interest, payable on demand to the appellee and bearing date January 28, 1907. The note, when delivered, had the following marginal memorandum written on its face just below the signature of the maker: 'This note is given to secure 5,000 shares of Regina stock.' Previous to the entry of the judgment, the court overruled motions for a new trial, in arrest of judgment, and for judgment non obstante veredicto. On appeal the Appellate Court for the First District reversed the judgment and entered its judgment[292 Ill. 531] in favor of appellee in the sum of $2,125 and costs upon the same facts found by the municipal court and a jury and granted a certificate of importance and this appeal.
Appellants filed an affidavit of defense, in which they set up, and on the trial established, the following facts in substance: Appellee purchased of appellant Max Schuchardt, as agent of the Regina Mining & Milling Company, a mining corporation, 5,000 shares of stock of that corporation at the price of 25 cents per share; the stock being treasury stock belonging to the corporation Schuchardt, as an inducement to appellee to purchase the stock, stated to him that the corporation was a bona fide one, actually formed to engage in the business of mining and smelting lead, zinc, and other metals. and that he believed and expected that it would earn and make profits in the business, and that if appellee would purchase and pay for said shares Schuchardt would agree and guarantee to repurchase from appellee the 5,000 shares of stock at the same aggregate price of $1,250 in case the corporation did not pay any dividend on the stock thereafter; Schuchardt to be released and absolved from such agreement and guaranty if at least one dividend on such stock should
Page 170
thereafter be paid by the corporation. Appellee accepted that offer and purchased and paid for the 5,000 shares upon said terms. Simultaneously with the delivery of the stock, Schuchardt signed and delivered to appellee the note, with the further agreement between them that if at any time thereafter any dividend was paid to appellee, or if no such dividend was ever paid and Schuchardt should thereafter repurchase or cause some one else to repurchase from appellee the 5,000 shares of stock for not less than $1,250, then in either of such contingencies appellee would cancel and surrender to Schuchardt the note, and all liability thereupon should cease and determine. The foregoing agreements and transactions constitute the sole and only consideration which moved or passed to either of appellants for the note, and neither of them received the [292 Ill. 532] $1,250, nor any part thereof, as commissions or otherwise; but the same was paid to the corporation for its stock, and the note, with the memorandum, was delivered to the appellee as the only written evidence of the...
To continue reading
Request your trial