People ex rel. Nelson v. Ridgeway State Bank

• Decision Date: 27 November 1936
• Docket Number: Gen. No. 38779.
• Citation: 4 N.E.2d 647,287 Ill.App. 112
• Parties: PEOPLE EX REL. NELSON, AUDITOR OF PUBLIC ACCOUNTS, v. RIDGEWAY STATE BANK. JAFFIE v. O'CONNELL.
• Court: United States Appellate Court of Illinois

287 Ill.App. 112

4 N.E.2d 647

PEOPLE EX REL. NELSON, AUDITOR OF PUBLIC ACCOUNTS,

v.RIDGEWAY STATE BANK.

JAFFIE

v.O'CONNELL.

Gen. No. 38779.

Appellate Court of Illinois, First District, Third Division.

Nov. 4, 1936.

Rehearing Denied Nov. 27, 1936.

Appeal from Superior Court, Cook County; Walter T. Stanton and Walter P. Steffen, Judges.

Action by the People, on the relation of Oscar Nelson, Auditor of Public Accounts, against the Ridgeway State Bank, wherein Louis Jaffie filed a petition against William L. O'Connell, successor receiver of the Ridgeway State Bank. From an order dismissing the petition, petitioner appeals.

Affirmed. Ode L. Rankin and Louis Jaffie, both of Chicago, for appellant.

Jetzinger & Quinn, of Chicago, for appellee.

DENIS E. SULLIVAN, Presiding Justice.

This is an appeal from an order entered by the trial court dismissing the petition of Louis Jaffie which was filed against William L. O'Connell, successor receiver of the Ridgeway State Bank.

As near as we can gather from the limited information given to us from the briefs and abstract, it appears that on October 21, 1935, a petition was filed by William L. O'Connell as receiver of the Ridgeway State Bank, stating that he was engaged in the liquidation of the assets, properties, and effects of said corporation pursuant to the statutes; that among the assets of said bank in possession of the receiver is a judgment obtained upon a note of Nathan Weiner, in the amount of $2,000 signed by the Congregation Bnai Zion, a religious corporation, also a $3,000 subordinated mortgage note signed by one A. Menle, which latter note is in default and had been foreclosed upon and is of no value; that with respect to the $2,000 split mortgage note the same is a portion of a $10,000 mortgage indebtedness, which was issued subject to a first mortgage secured by the premises of the religious corporation; that recently he is in receipt of an offer which has been made to purchase a $2,000 default note, which is evidenced by bonds Nos. 28 and 29, each for the sum of $50, and bonds Nos. 121 to 130, inclusive, and Nos. 132 to 140, inclusive, each in the sum of $100, for the sum of $800 in full payment of said note.

The receiver's petition further states that upon receipt of the offer he investigated the advisability of the acceptance thereof, and, after due examination of the facts surrounding the same, he is of the opinion that the said Nathan Weiner is financially insolvent and is unable to pay his indebtedness, and that the offer herein made is the best one that can be obtained and, based upon these facts, has decided to accept same, subject, however, to the approval of the court and the auditor of public accounts.

Continuing, the receiver's petition prays the court to enter an order authorizing and directing him to sell a $2,000 split mortgage note evidenced by bonds Nos. 28 and 29, each in the sum of $50 and bonds Nos. 121 to 130 and 132 to 140, inclusive, each in the sum of $100, said mortgage note having been executed by the Congregation Bnai Zion, and heretofore deposited amongst other collateral as security to the indebtedness of one Nathan Weiner for the sum of $800 in cash.

There is then presented a letter addressed to William L. O'Connell as receiver of the Ridgeway State Bank and signed by Edward J. Barrett, auditor of public accounts, in which it is stated: “* * * Please be advised that based on your recommendation this office will approve your action in accepting eight hundred ($800.00) dollars in cash, in full payment of the said notes.”

Thereafter, on October 21, 1935, an order was entered by Judge Walter P. Steffen on motion of the solicitors for William L. O'Connell, in which order, after reciting the facts and circumstances hereinbefore set forth in the petition, it was stated: “It is therefore Ordered, Adjudged and Decreed that leave is hereby granted William L. O'Connell, as receiver for...