Cavalry SPV, LLC v. Bernard

CourtAppellate Court of Illinois
DecidedJune 26, 2026
Docket1-25-1248
StatusUnpublished

This text of Cavalry SPV, LLC v. Bernard (Cavalry SPV, LLC v. Bernard) 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
Cavalry SPV, LLC v. Bernard, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 251248-U No. 1-25-1248

SIXTH DIVISION June 26, 2026

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ____________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ____________________________________________________________________________

CAVALRY SPV I, LLC, ) Appeal from the Circuit Court ) of Cook County. Plaintiff-Appellee, ) ) v. ) No. 20221115534 ) JAMES K. BERNARD JR., ) ) The Honorable Defendant-Appellant. ) Martin Paul Moltz, ) Judge, presiding. ) ) ____________________________________________________________________________

JUSTICE PUCINSKI delivered the judgment of the court. Presiding Justice C.A. Walker and Justice Gamrath concurred in the judgment.

ORDER

Held: We affirm the dismissal of appellant’s section 2-1401 petition (735 ILCS 5/2-1401 (West 2022)) because appellant failed to demonstrate due diligence in presenting his defense. We further find that we lack jurisdiction to review the circuit court’s denial of appellant’s motion to set a hearing on bystander’s report.

¶1 Plaintiff, Cavalry SPV I, LLC (“Cavalry”), filed a complaint against James K. Bernard, Jr.

(“Bernard”) stating a claim for account stated, to recoup a balance of $10,432.50 due on a

revolving line of credit issued by Citibank, N.A. (“Citibank”) that was charged off and 1-25-1248

subsequently acquired by Cavalry in 2021. Bernard filed an appearance through counsel, but no

answer to the complaint was filed. Default judgment was entered in favor of Cavalry on May 7,

2024.

¶2 Claiming that his attorney, Douglas K. Morrison (“Morrison”), had failed to communicate

the default judgment to him, and that his attorney had acted negligently in representing him in the

suit, Bernard had his attorney withdraw and brought a number of post-judgment motions pro se.

Pertinent to this appeal, Bernard filed a petition under section 2-1401 of the Code of Civil

Procedure (735 ILCS 5/2-1401 (West 2024)), seeking to vacate the judgment. On Cavalry’s

motion, the court dismissed the section 2-1401 petition. The circuit court later denied Bernard’s

request to reconsider its denial of his petition as well as his motion to set a hearing on a proposed

bystander’s report.

¶3 Because Bernard failed to demonstrate due diligence in raising his defense, and because

we lack jurisdiction over the circuit court’s denial of his bystander’s report motion, we affirm.

¶4 I. BACKGROUND

¶5 In an Illinois Supreme Court Rule 280.2 affidavit (Ill. S. Ct. Rule 280.2 (eff. Nov. 1, 2019)

signed by a designated representative of Cavalry, plaintiff set forth the following facts. On

February 19, 2018, Citibank issued Bernard a revolving line of credit. At some point, Bernard

failed to make the minimum payment. His last payment on the account was made on, or about,

February 21, 2020. On January 26, 2021, the account was charged off. The charge-off balance on

that date was $10,432.50. On March 25, 2021, Citibank assigned Bernard’s consumer debt to

Cavalry.

¶6 On August 9, 2022, Cavalry filed an action for account stated, seeking payment of the

$10,432.50 debt plus court costs.

-2- 1-25-1248

¶7 Although defendant filed an appearance through counsel on May 5, 2023, no answer was

ever filed. On May 7, 2024, the circuit court entered default judgment against defendant, awarding

$10,432.50 plus costs. A memorandum of judgment was subsequently recorded on September 10,

¶8 Several months later, on February 7, 2025, Bernard, pro se, 1 filed his first motion to vacate

the default judgment pursuant to “Rule 60(b) of the Illinois Code of Civil Procedure.” 2 Bernard

claimed that the default judgment entered against him was the result of his attorney (Morrison’s)

negligence, specifically his failure to communicate important court filings, deadlines, or the entry

of default judgment to Bernard.

¶9 Bernard’s motion outlined several attempts by Bernard to reach out to Morrison to find out

the status of the case between November 2024 and January 2025. Despite hearing from Morrison

on two occasions, Bernard claimed his attorney did not advise him of the default judgment before

January of 2025, and that he had only found out about the judgment when he called the court

directly on January 23, 2025. Bernard claims that his attorney’s failure to communicate prevented

him from filing an answer and thus resulted in the court holding him in default. Bernard asserted

that his attorney’s actions constituted excusable neglect, and that the circuit court should vacate

the judgment to allow him to reply.

¶ 10 Bernard also asserted that he had a meritorious defense to the suit. Bernard argued that

Cavalry failed to submit sufficient evidence to establish the existence of an assignment agreement

1 Bernard had his attorney withdraw from the case. The withdrawal was recorded in an order entered February 25, 2025. 2 From context, we believe Bernard is actually referring to Federal Rule of Civil Procedure, Rule 60(b), which allows for vacatur of a judgment based on “excusable neglect.” See Fed. R. Civ. P. 60(b). This error is not material to this appeal as our ruling concerns Bernard’s 2-1401 petition, which properly arises under the Illinois Code of Civil Procedure (735 ILCS 5/2-1401 (West 2024)).

-3- 1-25-1248

from Citibank to Cavalry. Because Cavalry had not established their interest in the underlying

debt, Bernard argued they lacked standing to bring the action against him.

¶ 11 Prior to the presentment date of the first motion to vacate (February 25, 2025), Bernard

submitted an amended petition that asserted similar arguments under section 2-1401 of the Illinois

Code of Civil Procedure. 735 ILCS 5/2-1401 (West 2024). The amended petition additionally

argued that Bernard had acted diligently in bringing his section 2-1401 petition. Bernard’s

amended petition was filed a little over a month after he claims to have learned of the default

judgment against him.

¶ 12 The section 2-1401 petition was supported by an affidavit. Bernard attested that he did not

know of the judgment until he contacted the court in January of 2025, and that his attorney had

failed to inform him of court filings despite Bernard’s attempts to contact him. Bernard also

attested that he had a meritorious defense because plaintiff failed to provide sufficient

documentation to prove ownership of the debt including a valid assignment agreement showing a

complete chain of title or the original signed credit agreement between Bernard and Citibank.

¶ 13 On May 15, 2025, after receiving briefing on the motion, the court denied Bernard’s section

2-1401 petition. Bernard subsequently filed a motion to reconsider that was also denied.

¶ 14 Bernard then filed a notice of appeal. He also filed a motion to set a hearing on a

bystander’s report since there was no transcript or explanatory written ruling for the court’s denial

of his section 2-1401 petition.

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