Bank of Viola v. Nestrick

418 N.E.2d 515, 94 Ill. App. 3d 511, 49 Ill. Dec. 661, 1981 Ill. App. LEXIS 2307
CourtAppellate Court of Illinois
DecidedMarch 25, 1981
Docket80-389
StatusPublished
Cited by24 cases

This text of 418 N.E.2d 515 (Bank of Viola v. Nestrick) 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
Bank of Viola v. Nestrick, 418 N.E.2d 515, 94 Ill. App. 3d 511, 49 Ill. Dec. 661, 1981 Ill. App. LEXIS 2307 (Ill. Ct. App. 1981).

Opinion

Mr. JUSTICE ALLOY

delivered the opinion of the court:

Defendant, Donald Nestrick, appeals from the denials of his petition to set aside an order of default and denial of his motion to vacate judgment by default. A default judgment had been entered by the circuit court in favor of the plaintiff, Bank of Viola (hereinafter Bank). The question on appeal is whether the court erred in not vacating the default judgment and thereby permitting Nestrick to proceed with a defense on the merits. An examination into the background of the case, which has been before us previously (Bank of Viola v. Nestrick (1979), 72 Ill. App. 3d 276, 390 N.E.2d 636), is necessary to an understanding of the issue raised on this appeal.

The Bank filed suit to recover the balance due on a promissory note executed by Donald Nestrick. The note, executed in 1975, was for a principal sum of $15,884.54, plus eight percent per annum interest. A trial was held, and the circuit court found that the note was a conditional note to be repaid from a particular fund. The court also found that crediting payments from that fund toward the note resulted in the complete repayment of the note. (See 72 Ill. App. 3d 276, 277.) Accordingly, the circuit court entered judgment for the defendant, Nestrick. The Bank appealed that decision, and we reversed. (72 Ill. App. 3d 276.) We found insufficient support in the record for the court’s conclusion that the note was conditional. We remanded for further proceedings on the merits because no determination had been made on certain of Nestrick’s other affirmative defenses. (72 Ill. App. 3d 276, 280.) Our opinion in that case was filed on May 31,1979. The mandate in the case was filed in the circuit court on July 30,1979.

Prior to the time that the mandate was filed in the circuit court, that is, prior to the time that the case was reinstated in the circuit court and while this court still retained jurisdiction over the case, certain actions were taken by the circuit court with respect to the case. In June 1979, the circuit court entertained a motion by defense counsel to withdraw as counsel for the defendant. Hearing was held on June 25, 1979, and the court entered its order granting the motion to withdraw. On July 3, 1979, the Bank filed a notice of hearing to schedule a trial date and requested a hearing thereon on July 18, 1979. The notice of hearing was served on Nestrick. On July 18, 1979, a hearing was held, without the defendant being present, at which time the court set September 12,1979, as the date for the trial on the merits. Nestrick had, on July 7, 1979, apparently in response to the notice sent by the Bank, sent a letter to the court in which he requested that no further hearings be held in the case until after October 15, 1979. In requesting what was, in effect, a continuance, the letter gave as reasons a scheduled surgery date in August with September therapy, private difficulties in obtaining counsel, and an intention to file a countersuit. The letter was filed in the case as of July 11, 1979.

Nothing further was received from the defendant after the hearing on July 18,1979, at which a court trial was set for September 12,1979. On July 30,1979,12 days after the court had set a trial date, the mandate from this court was filed with the circuit court, remanding the cause for further proceedings. That the circuit court had proceeded with the withdrawal motion and with the motion to set a trial date at a time prior to the return of the mandate was apparently the result of clerical error. Someone in the clerk’s office at the circuit court docketed the reception of the opinion as the filing of the mandate. The opinion in the case was received on June 14, 1979. As already noted, the mandate was not filed until July 30, 1979.

Nothing whatsoever was done either by the court or by the Bank’s counsel with respect to the actions taken by the court during the time it was without jurisdiction in the matter. Instead, the cause was called for hearing on the merits on September .12,1979, which date had been set by the trial court on July 18, 1979, at the Bank’s request. Nestrick did not appear at the trial on September 12, 1979, and a default judgment was entered against him. A copy of the judgment was mailed to him on September 21, 1979, receipt of which he acknowledged. Thereafter, on October 15, 1979, 33 days after entry of the default judgment, Nestrick filed a pro se petition to set aside the default and judgment order that had been entered on September 12, 1979. On December 17, 1979, after securing counsel, defendant Nestrick filed a supplemental motion to set aside the judgment of default, which motion was supported by affidavit. In that motion he alleged due diligence in his defense in this matter and asserted factual matters in support thereof. Nestrick alleged that he had made a telephone call to inform the Bank’s counsel that he could not appear on September 12, 1979, the day of the trial, because of surgery scheduled for that date. Nestrick, in his motion, further pleaded that his letter to the court in early July requested a continuance until October 15, 1979. Finally, he alleged that he had made efforts to file his pro se petition within the required 30 days, but that he had been thwarted in those attempts through no fault of his own. All of these matters were supported by affidavit and were offered to support Nestrick’s claim of due diligence. Nestrick also alleged the existence of a meritorious defense.

The Bank responded to the motion to vacate judgment by counter-affidavit, denying any phone call by Nestrick to them, and by motion to strike the petition and motion to set aside and vacate the judgment. The trial court denied the motion to strike the section 72 pleadings (Ill. Rev. Stat. 1979, ch. 110, par. 72), and a hearing was held. After considering the matter, the trial court entered its order denying Nestrick the relief requested. The court, in its order, recited the previous history of the case, including the notices sent to Nestrick between June and July 30, 1979, in finding that Nestrick had failed to show due diligence. The court indicated that Nestrick ought to have telephoned the clerk’s office or the presiding judge to request the continuance. In addition to finding a lack of due diligence, the court also indicated that there was considerable doubt about the existence of any meritorious defense.

From the denial of his petition to set aside the default judgment Nestrick appeals. We reverse and remand for a new trial on the merits.

Reversal is required because crucial matters were decided by the circuit court in this case at a time when it had no jurisdiction over the case. The appellant Nestrick asserts the court’s lack of authority to set a trial date as the first issue on appeal. There is no dispute or question that the circuit court lost jurisdiction over the case when the notice of appeal was filed from the first judgment in favor of Nestrick. As noted in Rickard v. Pozdal (1975), 31 Ill. App. 3d 542, 545, 334 N.E.2d 288:

“It is undisputed that upon filing a notice of appeal, the circuit court is divested of jurisdiction to enter any order involving a matter of substance, and the jurisdiction of the appellate court attaches instan ter.”

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Bluebook (online)
418 N.E.2d 515, 94 Ill. App. 3d 511, 49 Ill. Dec. 661, 1981 Ill. App. LEXIS 2307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-viola-v-nestrick-illappct-1981.