Chicago Joint Stock Land Bank v. McCambridge, 20579.

• Decision Date: 23 April 1931
• Docket Number: No. 20579.,20579.
• Citation: 175 N.E. 834,343 Ill. 456
• Parties: CHICAGO JOINT STOCK LAND BANK v. McCAMBRIDGE et al.
• Court: Illinois Supreme Court

343 Ill. 456

175 N.E. 834

CHICAGO JOINT STOCK LAND BANK

v.McCAMBRIDGE et al.

No. 20579.

Supreme Court of Illinois.

April 23, 1931.

Error to Appellate Court, Second District, on Appeal from the Circuit Court, Grundy County; Frank H. Hayes, Judge.

Suit by the Chicago Joint Stock Land Bank against Daniel P. McCambridge, the First Trust & Savings Bank of Morris, and another, in which defendant bank and third defendant filed a cross-bill, and a receiver was appointed. To review a judgment (258 Ill. App. 574) affirming an order approving the receiver's report and ordering distribution, plaintiff brings error.

Reversed and remanded, with directions.John A. Dougherty, of Chicago (Byron Tyler and John F. Denissen, both of Chicago, of counsel), for plaintiff in error.

Arley Munts, of Morris, for defendant in error.

DUNN, C. J.

This is a writ of error to the Appellate Court for the Second district to review its judgment affirming an order of the circuit court of Grundy county approving the report of a receiver and ordering distribution.

The Chicago Joint Stock Land Bank was the holder of a note for $24,000 executed by Daniel P. McCambridge and his wife and secured by a mortgage on land in Grundy county. The First Trust & Savings Bank of Morris was the owner of four notes of the same makers of the aggregate amount of $3,000, secured on the same land by a trust deed subsequently executed which was subject to the lien of the mortgage. The land bank filed a bill in the circuit court of Grundy county for the foreclosure of the mortgage, making parties the savings bank and the trustee, who filed a cross-bill, and on June 2, 1928, a decree was entered foreclosing both the mortgage and the trust deed, finding the latter to be a junior lien. Previous to the entry of the decree on motion of the trustee and the savings bank, with the consent of the grantors in the trust deed, a receiver was appointed, without bond, to receive, collect, and enforce payment of the rents during the pendency of the action. The land was sold under the decree on July 14, 1928, to the land bank for the full amount of its debt and interest and the costs, and the sale was reported to the court the same day and approved, Afterward, on August 25, 1928, the receiver filed a petition alleging that Vincent McCambridge was a tenant in possession of the premises under a lease from Daniel P. McCambridge dated March 1, 1928, for the farming year from March 1, 1928, to February 28, 1929; that the receiver had assumed the position of landlord and gone into possession of the premises, and that Vincent McCambridge had attorned, as tenant, to the receiver; that the period of redemption from the master's sale would expire October 14, 1929, before which all crops for the farming year 1929 would be harvested, and the petition prayed the court to authorize the receiver to lease the premises to Vincent McCambridge for the farming year from March 1, 1929, to February 28, 1930, on the basis of $5 an acre cash rent for pasture land, payable October 1, and share-rent of half the corn and two-fifths of the small grain (lessee to furnish the seed), harvest and thresh it at his own expense, and deliver the sharerent at the elevator to the order of the lessor, free and clear of all charges and expenses. On the same day the court entered an order authorizing the receiver to enter into a lease of the premises in accordance with the petition, and thereupon adjourned the term.

On January 13, 1930, the receiver filed a report covering his acts from the time of his appointment, showing receipts of $1,943.43 from crops harvested during 1928 and a balance on hand of $1,563.99, $379.44 having been expended for certain itemized purposes. He further reported his lease of the premises on August 25, 1928, in accordance with the order of that date; that he had on hand 706 bushels of oats in a bin on the premises, received as his share-rent of the oats for 1929, and had also on hand one-half of the corn raised on ninety-eight acres of the premises as his share-rent of the corn for 1929, which was fully matured before October 14, 1929, but only a portion of which had been picked before October 28, 1929, though all of the corn had been picked and husked and was in a crib on the premises when the report was filed; that he had not received from the tenant the cash rent for the pasture land due October 1, 1929, at the rate of $5 an acre for approximately twenty acres; that, with the consent of the Chicago Joint Stock Land Bank, the purchaser of the premises, he entered into a lease of them on September 16, 1929, for the year from March 1, 1930, to February 28, 1931, to Vincent McCambridge on the same terms and conditions as provided by the leases under which the tenant farmed the premises during the period of the receivership.He prayed the court to approve his report, fix his fees, direct him as to the grain on hand and the cash rent, order distribution, and generally direct him in the premises. The land bank filed objections on the same day to the receiver's report, alleging that the crops not severed from the realty on October 14, 1929, became the property of the land bank as the purchaser at the foreclosure sale and the grantee in the master's deed. Objections were also filed by the First Trust & Savings Bank of Morris, alleging, among other things, that the lease for 1929 was made by order of the court, and the receiver was ordered to collect the rents for the year from March 1, 1929, to February 28, 1930, and therefore he was entitled to the rents, and they should be applied on the decree indebtedness owing to the cross-complainant.

The court entered an order approving the receiver's report, allowing him $150 for his compensation, directing him to pay the taxes for the year 1929, to collect from the tenant his share of the oats and corn and the cash rent, and sell the crops received as sharerent, and charge himself with the proceeds as well as the cash rent, and make distribution of the net funds remaining in his hands, charging to the complainant, the Chicago Joint Stock Land Bank, the prorated amount of the insurance premium from October 28, 1929, to the expiration of the policy, computing the net income for the farming year from March 1, 1929, to February 28, 1930, after deducting therefrom the prorated amount of the insurance premium from January 22, 1929, to October 28, 1929, and the receiver's fees and 1929 taxes in full, as well as any other expenses of the receivership during said farming year, and directing him to pay one-third of the net income for the farming year, less the charged...