American National Bank & Trust Co. v. Dozoryst

628 N.E.2d 1072, 256 Ill. App. 3d 674, 195 Ill. Dec. 608
CourtAppellate Court of Illinois
DecidedDecember 29, 1993
Docket1-92-0184
StatusPublished
Cited by8 cases

This text of 628 N.E.2d 1072 (American National Bank & Trust Co. v. Dozoryst) 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
American National Bank & Trust Co. v. Dozoryst, 628 N.E.2d 1072, 256 Ill. App. 3d 674, 195 Ill. Dec. 608 (Ill. Ct. App. 1993).

Opinion

JUSTICE RIZZI

delivered the opinion of the court:

Plaintiff, American National Bank & Trust Company of Chicago (American National Bank), filed an action against defendants, Nicholas Dozoryst, Abraham Brustein, Reid S. Neuman, and Jeffrey Marks, individually and as partners in the law firm of Dozoryst, Brustein, Neuman & Marks (the partnership). Peter Zullo was later added as a partner and a defendant. The action was filed by plaintiff in an effort to collect on promissory notes signed by defendants. The trial court dismissed defendant Brustein as a party and declined a request by plaintiff to conform the pleadings to the proof and find defendant Neuman liable for a certain note. The trial court found the obligations to be solely those of defendant Dozoryst and it entered judgment against plaintiff and in favor of defendants Marks, Neuman and Zullo and the partnership. Plaintiff appeals. We reverse and remand.

The issues before this court for review are (1) whether the trial court erred in precluding plaintiff from conforming the pleadings to the proof regarding defendant Neuman; and (2) whether the trial court erred in ruling that the note obligations to plaintiff were the sole obligation of defendant Dozoryst and not of the partnership.

From May 29, 1985, through February 7, 1987, plaintiff received promissory notes signed by each of the individually named defendants. Defendants Dozoryst, Brustein and Neuman executed notes dated May 27, 1985, June 28, 1985, and August 20, 1986. Defendants Dozoryst, Brustein, Neuman, Marks and Zullo all executed notes dated November 1, 1986, and February 1, 1987. Each renewal note funded a prior note.

The firm was dissolved in February of 1987. Subsequent to the dissolution of the firm, plaintiff sued defendants for the amount due on outstanding notes. The action was stayed as to defendant Brustein because he filed for bankruptcy. Brustein was eventually dismissed as a party defendant. During the trial, defendant Brustein testified for plaintiff as an adverse witness. Brustein testified that defendant Dozoryst was the managing partner and that, as such, he was primarily responsible for the finances of the partnership. Brustein further testified that defendant Dozoryst had the authority to deal with plaintiff and that he was the only partner who interacted with plaintiff. Brustein further testified that prior to May 1985, defendant Dozoryst asked him if the debt could be converted into a partnership obligation. Brustein admitted that he signed the notes dated May 29, 1985, and June 28, 1985, and that he knew that by his execution of said notes, the obligation would become a partnership liability. Brustein further testified that around August of 1986, defendant Dozoryst also asked the other partners to sign new notes dated August 20, 1986, and November 1, 1986. Brustein testified that he indicated to defendant Dozoryst that he had promissory notes signed by the other partners in his possession and that defendant Dozoryst would be given the notes on the condition that he brought his time and billing records up to date. Brustein maintained, however, that he did not authorize defendant Dozoryst to deliver the notes dated August 20, 1986, and November 1, 1986, to plaintiff, because defendant Dozoryst failed to bring his time and billing records current.

Subsequently, defendant Neuman testified as an adverse witness on behalf of plaintiff. Defendant Neuman testified that he became a partner with defendants Dozoryst and Brustein in September of 1985. Like Brustein, defendant Neuman testified that defendant Dozoryst was the managing partner of the law firm and that he was in charge of firm finances. Defendant Neuman also identified his signature on all five of the notes, but he maintained that he did not "recall” signing any of them. With respect to the notes dated May 29, 1985, and June 28, 1985, defendant Neuman testified that although he did not recall signing them, he would have signed them if defendant Dozoryst, a senior partner, had asked him to. Defendant Neuman further testified that he would not have signed the notes dated November 1, 1986, and February 1, 1987, because he was no longer a member of the partnership as of October 1986, and that it was never his intention to give plaintiff said note until defendant Dozoryst completed his bills and time sheets.

Defendant Marks testified that he became a partner with Dozoryst, Neuman and Brustein in October of 1985. Defendant Marks testified that he did not sign any partnership agreement and that, at the time he joined the firm, he was not aware of a business relationship with plaintiff. Defendant Marks further testified that in August of 1986, he learned that defendant Dozoryst had prior loans with plaintiff and that he was asked to sign the loan documents. Defendant Marks stated that he initially refused to sign the notes but then agreed to sign after Brustein told him that signing said documents was a "bargaining chip” needed to induce defendant Dozoryst to complete his time sheets and bills. Defendant Marks further stated that he told Brustein that he would sign the documents so long as they would never be delivered to plaintiff. Defendant Marks testified that he did sign a number of loan documents that were clipped together.

Patrick Hickey, a loan officer for plaintiff, assumed responsibility for plaintiff’s account with defendant Dozoryst in January of 1985. Hickey recalled that at that time, defendant Dozoryst was the sole signatory on his promissory note. Hickey further testified that in May of 1985, defendant Dozoryst asked Hickey if his law partners (defendants Brustein and Neuman at that time) could sign the note because the funds loaned by plaintiff related to the partnership in that the funds helped the firm "carry cases and account receivable.” Hickey testified that he never had personal contact with the various signatories of the promissory notes other than defendant Dozoryst. Hickey further testified that in a partnership account, it was customary to deal with only one individual.

At the close of the evidence, plaintiff requested permission to conform the pleadings to the proof. Plaintiff’s motion was denied. The trial court found that defendant Dozoryst was solely liable for the debt in question. The trial court entered a judgment against plaintiff and in favor of the partnership and defendants Marks, Neuman and Zullo.

Plaintiff contends on appeal that the trial court erred in precluding plaintiff from amending the pleadings to the proof with respect to defendant Neuman. We agree. Although it is within the trial court’s discretion to allow or preclude an amendment to the pleadings, we find that the interests of justice would have been furthered if the trial court had permitted plaintiff to amend the pleadings.

Defendant Zullo joined the partnership as a partner in February 1986. At the time he joined the firm, he was only aware of a firm banking relationship with North Bank. In May of 1986, Zullo was asked by defendant Dozoryst’s secretary to sign documents in order that the firm could obtain a loan. Defendant Zullo testified that he signed the documents, believing them to be for the Boulevard Bank. On the next day, after signing the documents, he learned from defendants Brustein and Marks that the documents were for plaintiff and not Boulevard Bank.

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Cite This Page — Counsel Stack

Bluebook (online)
628 N.E.2d 1072, 256 Ill. App. 3d 674, 195 Ill. Dec. 608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-national-bank-trust-co-v-dozoryst-illappct-1993.