APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, FOURTH DIVISION
542 N.E.2d 77, 185 Ill. App. 3d 1023, 134 Ill. Dec. 77 1989.IL.1029
Appeal from the Circuit Court of Cook County; the Hon. Myron T. Gomberg, Judge, presiding.
JUSTICE LINN delivered the opinion of the court. JIGANTI, P.J., and McMORROW, J., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE LINN
Plaintiff, Abner Harris, deposited $250,000 in a bank as security for the debts of the Handmacher Company, Inc. Defendants, Philip and Betty Handmacher and Irving and Sandra Waxman, also secured the debts of the corporation. The business subsequently petitioned for bankruptcy and the bank seized Harris' deposit.
Harris brought an action in the circuit court of Cook County against defendants. Harris sought, inter alia, contribution from all defendants. The trial court granted summary judgment for Harris on his contribution claim and subsequently entered judgment against Irving and Sandra Waxman totaling $67,342 as their contribution.
Harris thereafter claimed that the Waxmans were insolvent and sought a redetermination of Philip Handmacher's proportionate share. The trial court denied Harris the motion for redetermination and Harris appeals from the denial.
We affirm the order of the trial court.
The record contains the following pertinent facts. Beginning in 1959, Harris and Philip Handmacher sold ladies' clothing and accessories in and around Chicago under the name of "Handmoor." At first they were co-owners in a partnership, then later became shareholders of the Handmacher Company, Inc. In 1981, Harris sold his shares in the corporation and thereafter served the corporation occasionally as a consultant.
The Handmacher Company, Inc., borrowed money from the Continental Illinois National Bank. By February 1984, the corporation owed the bank $2,773,603. Continental refused to lend more money to the corporation unless it received sufficient collateral. On February 21, 1984, Harris deposited and pledged $250,000 with the bank, which in turn loaned the corporation additional funds.
On August 10, 1984, the corporation filed a petition for bankruptcy. (See 11 U.S.C. § 1101 et seq. (1982).) The outstanding balance on the corporation's debt to the bank was $2,321,751. On that day, the parties made several agreements with the bank regarding the debt. Harris repledged his $250,000; Philip Handmacher and Irving Waxman each signed an unlimited guaranty; Philip and Betty ...