Lancaster v. Springer

• Decision Date: 23 April 1909
• Citation: 239 Ill. 472,88 N.E. 272
• Parties: LANCASTER et al. v. SPRINGER et al.
• Court: Illinois Supreme Court

239 Ill. 472

88 N.E. 272

LANCASTER et al.

v.SPRINGER et al.

Supreme Court of Illinois.

April 23, 1909.

Appeal from Circuit Court, Cook County; Julian W. Mack, Judge.

Bill by John E. Lancaster and another against Frank G. Springer and others. Judgment for defendants, and plaintiffs appeal. Affirmed.

Leslie A. Needham and Curtis H. Renny, for appellants.

James B. Keogh, for appellees.

DUNN, J.

Appellants and others filed their bill in the circuit court of Cook county to establish a resulting or constructive trust as to certain lands in Cook county, and for an accounting, discovery, and general relief. A demurrer having been sustained to the original bill, it was amended. The amended bill was demurred to, and the demurrer was sustained. The amended bill was dismissed for want of equity, and an appeal has been taken to this court.

The amended bill alleges that Nimrod Lancaster was born in 1810, and came to Chicago in 1850 with about $1,000, but without business experience. He went to California, where he accumulated about $5,000, and returned to Chicago in 1852. He left this money with George A. Springer, and authorized him to purchase, bargain, sell, and convey any real estate in the name of Lancaster. From 1852 to 1871 Lancaster was engaged in mining in various places, and accumulated a large fortune, which he turned over to Springer for the purchase of real estate. In 1872 he executed a power of attorney to Springer to buy or sell and convey, in the name of Lancaster, any real estate or personal property Springer might deem proper; to borrow money and execute notes and mortgages to secure them, in Lancaster's name, and to lease lands and houses and collect rents. Lancaster then went to the diamond fields of South Africa, where he secured $40,000 worth of uncut diamonds. He then went to South Dakota, where he located valuable mining claims. In 1880 Springer organized the Lancaster Mining Company, with $1,500,000 capital, to operate and exploit Lancaster's mining claims, the title to which Springer caused to be conveyed to said mining company. One-third of the capital stock of said company was issued to Springer, and the rest to others, who paid nothing for it except about $30,000, expended in purchasing and installing machinery. Lancaster received no consideration for the conveyance of his mining claims to the corporation, and the stock issued to Springer was, in fact, held in trust for Lancaster. From 1880 to 1889 a great deal of ore was shipped from the mines to Springer for which he never accounted. In 1889 Lancaster sustained a severe and permanent injury to one of his hips through an accident, and about a year later went to San Diego, Cal., to live. In the fall of 1893 he was run down by a horse and carriage in crossing a street, and so injured that his lower limbs were paralyzed, and until his death, in June, 1895, he remained in an enfeebled and helpless condition, and was moved about in a wheel chair. After his death his last will and testament was admitted to probate in the probate court of Cook county. By it he disposed of his estate to 13 persons, 2 of whom are the appellants. Springer died testate in 1899, leaving the residue of his estate, after making certain specific devises, in trust for the payment of his debts, the payment of the income to his widow and children during his widow's life, and, after her death, for distribution among his children.

It is alleged that in 1871 Springer procured a conveyance from Lancaster to himself, for the nominal consideration of $1, though he really paid nothing, of a certain 5-acre tract, of which he took the title really as trustee for Lancaster; that he afterward exchanged the west half of this tract for a 2 1/2-acre tract adjoining the east half, and these latter two tracts now constitute block 2 in Springer & Lancaster's subdivision, the title to which, except the south 90 feet thereof, is vested in the trustees under the will of George A. Springer in trust for the devisees of Nimrod Lancaster, which trustees are liable to account for all the rents received by them, or by George A. Springer in his life-time, and for the amount realized from the sale of the south 90 feet of said block, being in excess of $50,000. It is also alleged that Springer procured from Lancaster, in 1872, a warranty deed of certain lots in N. Lancaster's subdivision for a purported consideration of $53,707.50, to which he took title as trustee for the benefit of Lancaster, and that the trustees under his will should account for all moneys received from the sale of any portion of said real estate, and convey to the devisees of Lancaster the portions remaining unsold. The bill alleges that at various dates, running from 1874 to 1894, Springer procuredLancaster to execute notes and mortgages on various parts of his real estate to secure the same, for various sums of money, ranging in amounts from $10,000 to $40,000, all of which moneys were received by Springer as trust funds, but never accounted for. The bill also alleges that in 1888, 1890, and 1892 Springer advised, and by reason of his fiduciary relation procured, the execution by Lancaster of three long-term leases to Springer's sons covering three parcels of land owned by Lancaster; that 39 residences were afterwards erected on the premises at a cost of $110,000, which amount was paid by Springer out of the funds of Lancaster; that the making of these leases was a scheme of Springer to cause it to appear that the improvements were made and paid for by Springer's sons, the leases each containing a provision for the reimbursement of the lessees for money so expended, together with a certain percentage of the cost of the buildings in addition, which cost was made to appear to exceed $150,000; also that Springer procured Lancaster to execute certain trust deeds in 1892 and 1894, whereby the leased premises were mortgaged for $113,000, and the proceeds of these mortgages, evidenced by the notes of the lessees, were received by Springer, and never accounted for. The bill seeks to have a resulting or constructive trust declared in the lots described in Lancaster's and in Springer & Lancaster's subdivisions; an accounting of the rents of this real estate, and the purchase price of such part as has been sold; of the proceeds of the sale of gold ore shipped by Lancaster to Springer from 1880 to 1889; of the $500,000 worth of stock of the Lancaster Mining Company received by Springer in 1880, and over $5,000 received as dividends upon said stock; of rents in excess of $500 per month from Lancaster's real estate, collected by Springer, as his agent, from 1852 to 1895; of $155,000 received by Springer on the mortgages procured by him to be executed by Lancaster upon his real estate; and of the loss in connectionwith the three leasehold estates, and the mortgages thereon.

So far as the real estate is concerned, there is no theory on which the bill can be sustained. Lancaster conveyed the premises to Springer by deeds absolute in terms, without condition or reservation. Under such circumstances there can be no resulting or constructive trust in favor of the grantor. Mayfield v. Forsyth, 164 Ill. 32, 45 N. E. 403;Biggins v. Biggins, ...