Capital One Bank, N.A. v. Czekala

884 N.E.2d 1205, 379 Ill. App. 3d 737, 318 Ill. Dec. 934, 2008 Ill. App. LEXIS 138
CourtAppellate Court of Illinois
DecidedFebruary 25, 2008
Docket3-07-0395
StatusPublished
Cited by17 cases

This text of 884 N.E.2d 1205 (Capital One Bank, N.A. v. Czekala) 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
Capital One Bank, N.A. v. Czekala, 884 N.E.2d 1205, 379 Ill. App. 3d 737, 318 Ill. Dec. 934, 2008 Ill. App. LEXIS 138 (Ill. Ct. App. 2008).

Opinion

JUSTICE WRIGHT

delivered the opinion of the court:

Plaintiff, Capital One Bank (Capital One), filed a complaint against “Joseph Czekala DBA SEALAND FOODS” and served Joseph Czekala by substitute abode service. The circuit court entered a default judgment against “Joseph Czekala, Defendant.” Five years later, plaintiff issued a wage deduction notice and order naming Joseph Czekala, individually. Defendant filed a petition to vacate the default judgment and dismiss the wage deduction order. The trial court denied the petition to vacate and a subsequent motion to reconsider. Defendant appeals from the court’s ruling denying the petition to vacate the default judgment and the motion to reconsider that order. We reverse and remand.

FACTS

Capital One filed a complaint against defendant “Joseph Czekala DBA SEALAND FOODS” on July 18, 2001. Prior to filing the complaint, plaintiffs attorneys sent the first collection demand letter, on law firm letterhead, to “FOODS INC SEALAND.”

When the demand letter directed to the corporation did not generate payment, plaintiffs counsel filed this lawsuit naming “Joseph Czekala DBA SEALAND FOODS” as defendant. However, the affidavit attached to the complaint designated the corporation, “Sealand Foods, Inc.,” as the debtor “justly” indebted to Capital One in the sum of $23,063.07 for credit card charges. The court issued an alias summons directed to “Joseph Czekala DBA SEALAND FOODS,” at 17712 Larkspur Court, Lockport, Illinois. The process server served the alias summons at this location on: “Mrs. Czekala, Wife,” by substitute service. The process server also mailed a copy to “Joseph Czekala DBA SEALAND FOODS,” at the same address in a sealed envelope, postage fully prepaid, completing the substitute service. The alias summons listed the appearance date for “Joseph Czekala DBA SEALAND FOODS” as October 31, 2001.

Joseph Czekala attended the court proceedings on October 31, 2001. According to Czekala, on that date, he told the court that he had retained attorney Corsino to represent the corporation, Sealand Foods, Inc., in a bankruptcy proceeding. Corsino was not present in the courtroom. The minute order from October 31 shows the judge gave Czekala 21 days to file an appearance or answer. The common law record shows that “Joseph Czekala DBA SEALAND FOODS” did not appear personally, file an answer, or file a written appearance within 21 days of October 31. On December 5, 2001, the trial court entered a default judgment against “Joseph Czekala.”

The judgment order signed by the judge reads, in part, “Judgment to enter by default in favor of Capital One Bank and against Joseph Czekala.” Czekala’s name was handwritten twice in this judgment order with no reference to “DBA SEALAND FOODS” or “Sealand Foods, Inc.” The record does not show that counsel for plaintiff presented any sworn testimony to the trial judge in support of the request for a default judgment.

Five years later, plaintiffs counsel filed an affidavit and notice for wage deduction against “Joseph Czekala.” The court issued the wage deduction summons. Plaintiff served the wage deduction summons on Frito Lay and Affiliated Companies, Czekala’s employer. After his employer received the wage deduction summons and affidavit for the withholding of wages, Czekala filed an “Emergency Petition to Vacate Default Judgment and Dismiss Wage Deduction” pursuant to section 2 — 1401 of the Code of Civil Procedure (735 ILCS 5/2 — 1401 (West 2006)). Defendant attached exhibits to this petition that included an affidavit signed by Czekala.

In his affidavit, Czekala stated under oath that he did not discover the existence of the default judgment against him, individually, until his current employer received the wage deduction summons issued by the court on October 12, 2006. The affidavit also claimed Czekala believed attorney Corsino disposed of the pending case and that a judgment, if any, would be entered against the corporation. Additionally, defendant attached the original letter from Capital One approving the corporation, Sealand Foods, Inc., for a Visa “Business Platinum Card” and monthly billing statements issued to “Sealand Foods, Inc.” for the Visa “Business Platinum Card” account. Czekala submitted his affidavit and additional documentation from the Illinois Secretary of State’s office showing that the corporation, Sealand Foods, Inc., created on May 3, 1994, was involuntarily dissolved on October 1, 2003.

The trial court rejected defendant’s petition to vacate judgment. The trial court found the previous default judgment was not void, but voidable. The trial judge shared plaintiffs view that the petition was untimely. The court concluded the petition to vacate did not comply with the requirements of a section 2 — -1401 motion (735 ILCS 5/2— 1401 (West 2006)). Accordingly, the court denied the petition without reaching the merits. On a later date, the judge also denied defendant’s request to reconsider the ruling.

Defendant appeals the decision of the court which denied the original “Petition to Vacate Default Judgment” and the court’s ruling denying defendant’s motion to reconsider.

ANALYSIS

In support of his request to vacate the default judgment, defendant submits that the default judgment was obtained against him in his personal capacity by fraud. In essence, Czekala claims that plaintiffs failed attempt to obtain jurisdiction over the true party in interest, Sealand Foods, Inc., did not create personal jurisdiction over Czekala individually. Defendant claims the default judgment and resulting wage deduction order were improper because the underlying judgment was void for lack of personal jurisdiction and fraud. Plaintiff argues Czekala’s section 2 — 1401 motion to vacate judgment was not timely because it was filed more than two years after the date of judgment and Czekala did not demonstrate due diligence by failing to challenge the default judgment sooner. The court found the section 2 — 1401 petition was not timely.

1. Timeliness of the Section 2 — 1401 Petition

The trial court denied the petition for relief from judgment on procedural grounds as a matter of law. Therefore, the standard of review is de novo. Ford Motor Credit Co. v. Sperry, 214 Ill. 2d 371, 379 (2005); People v. Najera, 371 Ill. App. 3d 1144, 1145 (2007). The case law provides that a judgment, order or decree entered by a court which lacks personal jurisdiction of the parties or the subject matter, or which lacks the inherent power to make or enter the particular order involved, is void and may be attacked at any time or in any court, either directly or collaterally. Sawant & Co. v. Allied Programs Corp., 111 Ill. 2d 304, 309 (1986); Sarkissian v. Chicago Board of Education, 201 Ill. 2d 95, 103 (2002). Significantly, our supreme court stated an allegation that the judgment is void for lack of personal jurisdiction substitutes for and negates the need to allege a meritorious defense and due diligence. Sarkissian, 201 Ill. 2d at 104; see also Sperry, 214 Ill. 2d at 379.

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Cite This Page — Counsel Stack

Bluebook (online)
884 N.E.2d 1205, 379 Ill. App. 3d 737, 318 Ill. Dec. 934, 2008 Ill. App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-one-bank-na-v-czekala-illappct-2008.