A & a ACOUSTICS, INC. v. Valinsky

559 N.E.2d 1180, 202 Ill. App. 3d 516, 1990 WL 126767
CourtAppellate Court of Illinois
DecidedSeptember 4, 1990
Docket1-88-2169
StatusPublished
Cited by5 cases

This text of 559 N.E.2d 1180 (A & a ACOUSTICS, INC. v. Valinsky) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & a ACOUSTICS, INC. v. Valinsky, 559 N.E.2d 1180, 202 Ill. App. 3d 516, 1990 WL 126767 (Ill. Ct. App. 1990).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Appellant, Adler & Adler (Adler), a law firm, appeals from orders entered by the trial court assessing attorney fees and costs against Adler as sanctions pursuant to section 2—611 of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2—611). The sole issue before this court is whether the trial court properly imposed section 2—611 sanctions. For the following reasons, the judgment of the trial court is affirmed and the cause is remanded for further proceedings consistent with this opinion.

The record indicates that on December 24, 1985, Adler filed a complaint for foreclosure of a mechanics’ lien on behalf of A & A Acoustics, Inc. (A & A), against defendants Dr. Mark Valinsky; Aaron Podiatry Associates, P.C. (Aaron Podiatry); Capitol Bank and Trust Co. of Chicago (Capitol), as trustee; E.P. Hale Lumber, Inc.; John Mandel, d/b/a Glacier Title; Ceren Plumbing & Heating Co.; Richard Shorba, d/b/a Shorba Construction Co.; R.G.C. Construction Corp. (R.G.C.); and unknown owners and unknown lienholders. This appeal relates only to defendants Valinsky, Aaron Podiatry and Capitol. 1 The two-count foreclosure complaint alleged, inter alia, that on or about February 12, 1985, Valinsky and Aaron Podiatry were authorized by Capitol to enter into a contract with A & A for the purchase and installation of acoustical ceiling and drywall soffets at the podiatry offices; that the work was completed on April 13, 1985; and that the sum of $1,859 remained due and owing. Count I of the complaint sought foreclosure of a mechanics’ lien, and count II sought damages under the theory of quantum meruit.

In response, Capitol moved to dismiss on the ground that count I failed to allege that any named defendant had entered into a contract with A & A and count II set forth only conclusory allegations. Thereafter, Adler amended A & A’s complaint to include the language, “and did in fact enter'into said contract.” Capitol then withdrew its motion to strike and leave was granted for Capitol to file its answer.

In their answer filed on April 16, 1986, Valinsky, Aaron Podiatry and Capitol (collectively, defendants) raised the affirmative defense that on or about November 15, 1984, Valinsky had entered into a construction contract with R.G.C., as general contractor, for remodeling of the podiatry offices. Defendants further alleged that A & A’s relationship to the construction contract was subcontractor or sub subcontractor, and A & A, as a subcontractor, had failed to timely serve the statutorily required 90-day notice of lien. Defendants then moved for summary judgment on the grounds that: (1) A & A, as subcontractor, had failed to serve a 90-day notice of lien on defendants; (2) defendants never had entered into a contract -with A & A; and (3) R.G.C.’s affidavit had not contained A & A’s name or the amount A & A would be paid. Defendants attached a copy of their construction contract with R.G.C. and Valinsky’s affidavit to the motion. The affidavit stated that: Valinsky, as president of Aaron Podiatry, contracted with R.G.C., as general contractor, to remodel the podiatry offices; neither Valinsky, Aaron Podiatry, nor Capitol had entered into a written or oral contract with A & A; no work was performed on the offices after March 27, 1985; and A & A did not serve notice of its lien on defendants within 90 days of completing its work.

In reply, A & A alleged that its status as a subcontractor or contractor is a factual matter which must be decided by a trier of fact. A & A further alleged that on or about February 12, 1985, A & A had met with Valinsky and they had entered into an agreement for A & A to do the work. In addition, Valinsky had paid A & A $2,600 partial payment. A & A attached the affidavit of Burton Ames, a principal of A & A, to its reply. In the affidavit, Ames stated that he had met with Valinsky on February 12, 1985, to discuss the improvements and had reached an agreement, and Valinsky had been at the jobsite almost daily and had directed and accepted A & A’s work. As a result, the trial court denied defendants’ motion for summary judgment.

Thereafter, on September 18, 1987, following A & A’s case in chief, the trial court granted defendants’ motion for a directed verdict on the grounds that: (1) A & A had failed to establish that it was a contractor with any of defendants; and (2) A & A had failed to establish that it was in privity with any of defendants. On that same date, A & A moved orally for leave to file an amended complaint. The trial court granted A & A leave to file a written motion for the request within 30 days. There is no indication in the record that this motion was ever filed.

On October 16, 1987, defendants moved for imposition of sanetions on A & A and Adler pursuant to section 2—611 of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2—611), on the ground that “plaintiffs complaint contained untrue allegations that plaintiff and its counsel knew were not well-grounded in fact or warranted by existing law.”

In response, A & A argued that defendants improperly sought sanctions for a situation where A & A had merely sought the wrong remedy. A & A stated that the trial court had found that there was sufficient evidence to proceed with an action as a subcontractor. 2 Further, A & A argued that it had investigated the case and had interviewed Robert Cimo of R.G.C., the general contractor, several times. Each time, Cimo had stated that A & A worked directly with defendants as a general contractor and was not a subcontractor of R.G.C. In addition, A & A alleged that it had established in court that defendants had paid A & A directly 3 and that the affidavit filed by R.G.C. had not listed A & A as a subcontractor. Also, at the summary judgment hearing, defendants failed to produce any documents to establish that A & A was a subcontractor. As a result, A & A and Adler pursued the cause of action with a reasonable belief that A & A was a general contractor.

On December 28, 1987, following a hearing on defendants’ section 2 — 611 motion, the trial court granted defendants’ motion and awarded defendants $2,364.60 in attorney fees and $31 in costs. As the basis for its ruling, the trial court stated in its order:

“This court finds that the sworn allegations made by, and on behalf of, the plaintiff in the three pleadings aforementioned were made without reasonable cause and found to be untrue. The plaintiff abused its right to free access to the courts by pleading untrue statements of fact which it knew or reasonably should have known were untrue. One of the purposes of [section 2 — 611] is to prevent litigants from being harassed by actions brought against them which by their nature are vexatious, based upon false statements or brought without legal foundation. There would have been no trial but for plaintiff’s untrue pleadings. The allegations made in the pleadings were not minor misstatements, but were without factual foundation.”

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Bluebook (online)
559 N.E.2d 1180, 202 Ill. App. 3d 516, 1990 WL 126767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-a-acoustics-inc-v-valinsky-illappct-1990.