Beach v. Bestor (45 Ill. 341, 1867)

Mr. Justice Walker

delivered the opinion of the Court:

It appears, that George C. Bestor recovered a judgment in the Peoria Circuit Court, at the May Term, 1857, against Richard P. Morgan on a promissory note for $1,664. The note recites that it was given “ for two second mortgage bonds of the Peoria and Oquawka Eailroad company.” It appears that Morgan held a claim on the Peoria and Oquawka Eailroad company, upon which he had brought suit in the United States Circuit Court; that, pending the action, he assigned the claim to Peter W. Peckham, who agreed to prosecute it to a recovery and at the same time transferred to him various claims. Peck-ham agreed that out of the proceeds he would pay a portion to Morgan, specifying the amount, and would pay a number of persons having debts against Morgan, among whom Bestor is named. This agreement bears date the 6th of February, 1857. The suit against the railroad company resulted, after several trials, in a judgment in favor of Morgan for §50,000, on the 28th of October, 1858.

On the 11th of November, 1858, a new arrangement was entered into between Morgan and Peckham, when the former assigned this judgment to Dennis Beach and Peckham. They at the time gave their notes to Morgan for a portion of the consideration, and they claim that prior and existing indebtedness from Morgan to them constituted the remainder of a full and fair consideration for its purchase. It does not appear that Bestor consented to this sale of the judgment; this assignment was placed on the records of the court in which the judgment was recovered. Subsequently a bill was filed in the McLean Circuit Court by Beach and Peckham against the railroad company and Cruger, Sekor & Co., for the purpose of reaching funds for the payment-of the judgment. In September, 1860, a decree was rendered by that court requiring Cruger, Sekor & Co. to pay the money due on the judgment, and making the decree a lien on a part of the railroad. Orme was made a receiver, but Prince subsequently succeeded him as receiver by appointment of the court.

Afterward, Beach filed a bill against the Logansport, Peoria and Burlington Eailroad company, formerly the Peoria and Oquawka Eailroad company, to reach funds for the satisfaction of this judgment and decree; and there was paid by the company to Prince $3,657.85 thereon. Osborne & Perkins, who held a junior lien to the judgment, recovered by Morgan against the railroad company, filed a bill of interpleader in the Supreme Court of Mew York, against divers persons, including Beach and Beckham, and in January 1864, a decree was rendered limiting Osborne & Perkins’ liability to satisfy the decree of the 11th September, 1860, to the sum of $59,454.14, requiring them to pay to Beach and Beckham, $12,454.14, and to deposit in the United States Trust company, in Mew York city, the remaining $47,000, to the credit of Prince, as receiver, and required this latter sum to be invested in United States 5-20 coupon bonds, to be drawn and delivered to the receiver or his successor in office, or order, upon an order of the Circuit Court of Macon county, Illinois, which orders were only to be made after ten days’ notice to several persons who were the attorneys of Beach and Beckham. Osborne