Central Production Credit Ass'n v. Kruse

509 N.E.2d 136, 156 Ill. App. 3d 526, 108 Ill. Dec. 710, 1987 Ill. App. LEXIS 2594
CourtAppellate Court of Illinois
DecidedJune 3, 1987
Docket2-86-0930
StatusPublished
Cited by22 cases

This text of 509 N.E.2d 136 (Central Production Credit Ass'n v. Kruse) 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
Central Production Credit Ass'n v. Kruse, 509 N.E.2d 136, 156 Ill. App. 3d 526, 108 Ill. Dec. 710, 1987 Ill. App. LEXIS 2594 (Ill. Ct. App. 1987).

Opinion

JUSTICE WOODWARD

delivered the opinion of the court:

Defendant, Duane L. Kruse, appeals from a finding of the circuit court of Carroll County that he was in contempt of court. This finding of contempt arose out of a civil action in which plaintiff, Central Production Credit Association (hereinafter CPCA), sought to foreclose a mortgage against the defendants and to, among other things, take possession of certain collateral.

Defendants are farmers who own approximately 500 acres in Carroll County, Illinois. Throughout the initial stages of litigation, they represented themselves pro se in a zealous, if not particularly able, manner.

On November 22, 1982, defendant executed and delivered to CPCA a promissory note in the amount of $372,321.99. On May 23, 1986, CPCA filed a complaint alleging that the individual defendants were indebted to CPCA on a promissory note, that the defendants had refused to pay the balance due under the note which amounted to $237,628.07 as of April 30, 1986, that CPCA held a valid and perfected security interest in all the assets described in the security agreement, and that CPCA was entitled to possession of those assets. The complaint requested an order of replevin and other relief. Certain deficiencies in its original pleading caused CPCA to file an amended complaint on July 7, 1986.

A hearing regarding CPCA’s motion for order of replevin was held on August 14, 1986. Plaintiff sought possession of assets described in the security agreement which had been appraised at $95,600. At this hearing, the court found that the CPCA had established a prima facie case to a superior right to possession of the collateral and had demonstrated that it would ultimately prevail on the underlying claim to possession. The court entered an order of replevin.

On August 15, 1986, the sheriff took possession of some pieces of farm equipment valued at approximately $13,000. The value of the equipment to be possessed was estimated at $95,600.

On August 19, 1986, the court heard CPCA’s petition for rule to show cause and a petition for injunctive relief. At this same hearing, the court denied defendants’ motion for rehearing of replevin and a motion for stay of execution of the order for replevin. Both defendants exercised their fifth amendment right to remain silent regarding their alleged failure to comply with the order of replevin. The court issued a rule to show cause.

A hearing of the rule to show cause was held on September 9, 1986. Defendants, present pro se, were to show cause why they had ignored the order of replevin dated August 14, 1986, why they should not be held in contempt of court for failing to provide the court and CPCA with the location and condition of the collateral, and, finally, why they should not be held in contempt of court for failing to gather the collateral not found by the sheriff on August 15 and delivering it to the sheriff or CPCA. On the previous day, September 8, 1986, defendants had turned over or divulged the location of most of the missing collateral. The principal issue in the hearing was the location of five items: a 1981 I.H.C. 1486 tractor, a 1980 Graham chisel plow, a set of dual wheels, a Century sprayer, and a gravity wagon. Mrs. Kruse demanded a jury, and the court denied the jury demand, stating that defendants were not subject to being jailed for a specific period of time but only until there was compliance with the court’s order of replevin. Mr. Kruse told the court that he had no idea where the 1981 I.H.C. tractor was. The court held the defendant in contempt of court for failure to disclose the location or produce the missing collateral or offer a sufficient reason why he should not be held in contempt. At the request of plaintiff’s counsel, a hearing at which defendants could purge themselves of contempt was scheduled for September 15, 1986, and continued to September 25, 1986, at which time defendant was represented by counsel.

At the September 25, 1986, hearing Mr. Kruse testified as to his knowledge of the missing collateral. Defendant stated that he had received the order for replevin on August 27, 1986, and made arrangements with the sheriff and agents of CPCA to gather collateral or advise them of its location by September 8, 1986, the day prior to the hearing on the rule to show cause. Mr. Kruse further testified the missing dual tires and chisel plow were attached to the 1981 I.H.C. 1486 tractor the last time he had seen the tractor, which was in the latter part of May 1986. He did not report the tractor missing because he thought that CPCA had replevied the machine and also because he was embarrassed that his property was being repossessed. Defendant, who by that time knew that the CPCA had not replevied this equipment, opined that the tractor may have been stolen or taken by friends who thought they were doing him a favor by hiding the machinery.

The court found the testimony of the defendants to be unbelievable, reasoning that litigants who had so zealously defended themselves in this matter would not have failed to report the repossession of their tractor. The court concluded that the only way the defendants could purge themselves of contempt was to produce the missing collateral or indicate where it was located. Mr. Kruse was remanded to the Carroll County jail, and Mrs. Kruse was allowed to remain free so that she could search for the equipment.

On October 3, 1986, the Kruses moved for reconsideration of the finding of contempt. The court denied the motion. On the same day, defendants filed a notice of appeal and a motion to stay the execution of Mr. Kruse’s incarceration pending the resolution of the appeal. On October 6, 1986, the court denied the motion for a stay of execution but did authorize the defendants’ release conditioned upon the posting of a $10,000 appeal bond along with his adherence to a prohibition against leaving the State of Illinois without written permission of the court and his appearing before the court at its direction.

Defendants filed an emergency motion for stay with the court on October 8, 1986. The motion was denied on October 14, 1986. The Kruses filed a motion for leave to file petitions for writs of prohibition and habeas corpus to the Supreme Court of Illinois on November 13, 1986. Without opinion or memorandum, the court denied this motion.

On November 21, 1986, Duane Kruse moved for his release from the custody of the sheriff, alleging that incarceration had lost its coercive effect. An agreement of the parties led to Mr. Kruse’s release from incarceration. This release was conditioned on a $10,000 personal recognizance bond. This appeal followed.

The defendants raise three issues on appeal: (1) the requisite elements for a finding of contempt were not proved; (2) the court did not have the jurisdiction to find defendants in contempt of court; and (3) the court’s failure to make a written order of contempt violated the defendants’ right to due process of law.

Before discussing the issues raised in appeal, we note that it is well settled that an order which results in the imposition of a sanction for contempt of court is final and appealable because it is an original special proceeding, collateral to and independent of the case in which the contempt arises. People ex rel. Scott v. Silverstein (1981), 87 Ill. 2d 167; People ex rel.

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Bluebook (online)
509 N.E.2d 136, 156 Ill. App. 3d 526, 108 Ill. Dec. 710, 1987 Ill. App. LEXIS 2594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-production-credit-assn-v-kruse-illappct-1987.