Bosch Die Casting Co. v. Lunt Manufacturing Co.

603 N.E.2d 546, 236 Ill. App. 3d 18, 177 Ill. Dec. 476, 1992 Ill. App. LEXIS 244
CourtAppellate Court of Illinois
DecidedFebruary 21, 1992
Docket1-90-0724
StatusPublished
Cited by8 cases

This text of 603 N.E.2d 546 (Bosch Die Casting Co. v. Lunt Manufacturing Co.) 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
Bosch Die Casting Co. v. Lunt Manufacturing Co., 603 N.E.2d 546, 236 Ill. App. 3d 18, 177 Ill. Dec. 476, 1992 Ill. App. LEXIS 244 (Ill. Ct. App. 1992).

Opinion

JUSTICE MURRAY

delivered the opinion of the court:

A judgment in favor of defendants Lunt Manufacturing (Lunt), Helmut Brandt, Ilse Brandt, George Hirsch, Barbara Hirsch and G & M Die Casting Company, Inc., and against the plaintiff, Bosch Die Casting Co., Inc. (Bosch), was entered in this case on August 2, 1988, and a post-trial motion was entered on August 30, 1988. On September 1, 1988, the defendants filed a motion for attorney fees and costs. On May 22, 1988, the trial court entered an order finding Bosch and Bosch’s counsel liable for attorney fees and costs. On February 7, 1989, a judgment was entered against the plaintiff for attorney fees and costs (and not against plaintiff’s former counsel). Plaintiff’s post-trial motion to modify and clarify was denied on March 9, 1990. This is an appeal from the trial court’s granting of the defendants’ motion for sanctions pursuant to section 2 — 611 of the Illinois Code of Civil Procedure. Ill. Rev. Stat. 1983, ch. 110, par. 2 — 611 (effective July 1, 1982); Ill. Rev. Stat. 1987, ch. 110, par. 2 — 611 (effective November 25,1986).

The judgment on the merits of the underlying case was the subject of a separate appeal (No. 1—88—2904) by the plaintiff to this court. On March 26, 1991, this court denied a motion to consolidate the two appeals. This court dismissed the appeal on the merits (No. 1 — 88—2904) on April 24, 1991, and on October 2, 1991, the Illinois Supreme Court denied Bosch’s petition for leave to appeal in that matter, under Illinois Supreme Court No. 72016.

Facts

In September of 1980 Bosch filed a complaint in chancery against defendants Lunt, Helmut Brandt, Ilse Brandt, George Hirsch, Barbara Hirsch and G & M Die Casting Company, Inc. The complaint concerned the ownership of stock in Lunt. Bosch contended that it owned two-thirds or 50 of the 75 outstanding shares of Lunt. Defendants all contended that Bosch had never owned any Lunt stock. Discovery and other trial preparation continued for over seven years. Trial finally commenced in the case on November 9, 1987.

On that date, new counsel for Bosch filed a motion for partial summary judgment, contending that the ultimate issue of the ownership of Lunt had been previously decided by a jury in another case. Bosch’s counsel represented to the trial court that he had been “charged by my client’s president [Mr. Bork], to present our case relying on this motion for summary judgment based on res judicata and collateral estoppel and our testimony in this case would or should take no longer than an hour, upon which time we will rest.”

The basis for the motion was a Georgia case entitled Wyco, Inc. v. Bosch Die Casting Co., Inc. & Lunt Manufacturing Co., Inc. The Wyco case was tried in the superior court of Fulton County, Georgia (Civil Action No. C. 9008). The trial court took all pending motions under advisement and conducted a trial on various dates between December 9, 1987, and March 21, 1988. At the close of the plaintiff’s case, plaintiff renewed its motions for partial summary judgment and motions in limine, and defendants filed their motion for judgment at the close of plaintiff’s case pursuant to section 2 — 1110 of the Illinois Code of Civil Procedure. Ill. Rev. Stat. 1987, ch. 110, par. 2 — 1110.

On July 12, 1988, the trial court denied Bosch’s motion for summary judgment and rejected its res judicata theory. The court found that Bosch’s representation that there had been an actual finding by the Georgia jury on the issue of ownership of Lunt was not true:

“THE COURT: *** I don’t think there’s any question from the statements of both parties from the record that has been submitted to me in the trial of this case that there is no specific finding by the [Georgia] jury as to the ownership.
What we are endeavoring to have this court do is to guess or second guess or third guess what the [Georgia] jury based its findings upon. That is something that this court is not going to take into consideration.
* * *
There is no specific finding by a jury[.]”

On August 12, 1988, the trial court granted defendants’ section 2 — 1110 motion, finding that “the evidence was overwhelmingly in favor of the defendant at the close of the plaintiff’s case.” On August 30, 1988, the trial court issued a memorandum opinion and order. Subsequently, the plaintiff sought clarification as to the finality of that order.

On September 1, 1988, defendants filed a motion for costs and fees pursuant to the original version of section 2 — 611 (Ill. Rev. Stat. 1983, ch. 110, par. 2 — 611) on the grounds that, after almost eight years of discovery, plaintiff had failed to prove a prima facie case for ownership of defendant Lunt’s stock at trial. Defendants also moved for sanctions under the 1986 revised version of section 2 — 611 (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 611) based on the fact that the motion for summary judgment filed on the first day of trial was not well-grounded in fact or warranted by existing law. Defendants asked to recover as a sanction “the full amount of the expenses they have incurred in this case.” Defendants’ initial request was for actual attorney fees and costs totalling $336,673.15.

Plaintiff filed pleadings in opposition to defendants’ motion. Their pleadings alleged that defendants had failed to meet their burden of proving that either version of section 2 — 611 was applicable. Plaintiff alleged that the motion for summary judgment was presented to the court “after reasonable inquiry and with the belief that the motions were well founded in fact and warranted by existing law.” Plaintiff further contended that defendants had failed to prove that the complaint, or any pleading filed before the 1986 version of section 2 — 611 became effective, was “untrue and made without reasonable cause.” Plaintiff’s opposition to defendants’ motion did not contest or address in any way defendants’ claim that $336,673.15 was the appropriate amount to be awarded as a sanction.

On May 22, 1989, the trial court issued a memorandum opinion and order granting defendants’ motion for sanctions. The court held, first, that plaintiff’s filing of its motion for summary judgment based on res judicata and collateral estoppel violated the 1986 version of section 2 — 611, stating:

“[Plaintiff’s counsel signed this motion even though the transcript from the Georgia case had not yet been received or reviewed, and further represented to this court that an ‘actual finding’ had been made in the Georgia case, when that was proven to be false. Therefore, plaintiff’s counsel should not have represented to this court that an actual finding had been made until a review of the Georgia record confirmed that such statements were well grounded in fact.
The record of the Georgia case contained a transcript of the jury verdict. The transcript clearly showed that the jury made no specific finding on the issue of ownership of Lunt Manufacturing Company. That 1980 transcript should have put the plaintiff on notice that no definite jury finding on the ownership of Lunt was made in the Georgia case.

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Cite This Page — Counsel Stack

Bluebook (online)
603 N.E.2d 546, 236 Ill. App. 3d 18, 177 Ill. Dec. 476, 1992 Ill. App. LEXIS 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bosch-die-casting-co-v-lunt-manufacturing-co-illappct-1992.