CHAMPAIGN NAT'L BK. v. Landers Seed Co., Inc.

551 N.E.2d 1122, 194 Ill. App. 3d 1019, 141 Ill. Dec. 779, 1990 Ill. App. LEXIS 316
CourtAppellate Court of Illinois
DecidedMarch 15, 1990
Docket4-89-0464, 4-90-0023 cons
StatusPublished
Cited by17 cases

This text of 551 N.E.2d 1122 (CHAMPAIGN NAT'L BK. v. Landers Seed Co., Inc.) 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
CHAMPAIGN NAT'L BK. v. Landers Seed Co., Inc., 551 N.E.2d 1122, 194 Ill. App. 3d 1019, 141 Ill. Dec. 779, 1990 Ill. App. LEXIS 316 (Ill. Ct. App. 1990).

Opinion

JUSTICE LUND

delivered the opinion of the court:

The genesis of this dispute was the entering of a loan agreement between the Champaign National Bank (hereinafter Bank) and Land-ers Seed Co., Inc. (hereinafter Landers). As part of the agreement, four individuals had to sign as personal guarantors of the loan. They were: Charles and Lorelyn Landers and Charles’ parents, Glen and Maxine Landers. (For the sake of clarity, the individuals will henceforth be, at times, referred to by first names.)

On January 16, 1984, the Bank filed its complaint on the promissory note in the circuit court of Moultrie County. The case against Landers was severed from that against the guarantors. After a jury trial, judgment was entered for the Bank on the note in the amount of $724,637.77. Judgment was also entered for Landers for breach of an oral contract in the amount of $60,833.31. Both parties appealed.

This court in Champaign National Bank v. Landers Seed Co. (1988), 165 Ill. App. 3d 1090, 519 N.E.2d 957, cert. denied (1989), 489 U.S. 1019, 103 L. Ed. 2d 199, 109 S. Ct. 1138 (Landers I), reversed the judgment for Landers and affirmed that for the Bank. This court’s mandate issued on November 30, 1988.

The Bank then proceeded against Charles, Lorelyn, Glen, and Maxine. It filed motions for summary judgment in December 1988. Glen, Maxine, and Charles filed motions seeking permission to file additional affirmative defenses, which were denied. On February 21, 1989, Landers filed, pursuant to section 2 — 1401 of the Code of Civil Procedure (Code) (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 1401), a petition which asserted this court’s decision in Landers I was void as being beyond the scope of our authority, and requested the trial court to refuse to give any effect to the decision. On May 5, 1989, the circuit court entered orders denying Landers’ petition and granting the Bank judgments against Charles, Lorelyn, Glen, and Maxine. Lorelyn did not appeal. Landers now appeals the denial of its section 2 — 1401 petition. Charles, Glen, and Maxine (defendants) appeal the denial of their request to file additional affirmative defenses and the granting of the Bank’s summary judgment motions.

A

We first address the question of whether our decision in Landers I was void. The facts relating to the merits of the dispute on the note are set forth in Landers I.

In that appeal, the Bank, in its cross-appeal, alleged (1) the trial court erred by allowing evidence in violation of the parol evidence rule; (2) the evidence presented was legally insufficient to establish that the Bank’s breach of the asserted oral contract caused the failure of Landers; and (3) there were errors with the instructions. At oral argument before our court in Landers I, counsel for the Bank appeared to have admitted sufficient facts were present at trial to justify the jury finding an oral contract existed. The Bank’s counsel attacked the jury verdict, contending that admission of the evidence relating to an oral contract was a violation of the parol evidence rule. He argued that none of the evidence was admissible to reform a written contract, and that the written contracts were the various debt instruments.

In Landers I, this court, admitting so in the opinion, decided the case on grounds not argued on appeal by the Bank or Landers. This court determined that the facts presented by Landers failed to establish the existence of a valid oral contract. This holding is consistent with this court’s decision in McClellan v. Banc Midwest (1987), 164 Ill. App. 3d 304, 517 N.E.2d 762, which was filed approximately one month prior to Landers I being filed. This court also determined, as an alternative ground, that the jury’s decision that the contract was breached was against the manifest weight of the evidence.

Landers believes this order is void as being an improper exercise by the court and has so maintained in its petition for rehearing, petition for leave to appeal to the Illinois Supreme Court, writ of certio-rari to the United States Supreme Court and, now, its petition under section 2 — 1401 in the trial court. Landers advances four reasons for the Landers I order being void. These are: (1) since the grounds relied on by this court were not properly preserved by the Bank, this court was without subject-matter jurisdiction to decide the issue; (2) Landers was given no notice concerning the issue and was not given an opportunity to be heard on this issue; (3) the court’s procedure violated Landers’ due process rights; and (4) this court’s decision usurps Landers’ right to a jury trial.

In order to have a valid judgment, the court must have both jurisdiction over the subject matter of the litigation and jurisdiction over the parties. (In re Marriage of Verdung (1989), 126 Ill. 2d 542, 547, 535 N.E.2d 818, 820; State Bank v. Thill (1986), 113 Ill. 2d 294, 308, 497 N.E.2d 1156, 1161.) Landers maintains failure to have subject-matter jurisdiction will result in any order being void.

Landers observes that this court has subject-matter jurisdiction as such, because Supreme Court Rule 301 (107 Ill. 2d R. 301) allows appeal of all final judgments. However, it believes Rule 366(b)(2)(iii) (107 Ill. 2d R. 366(b)(iii)) and section 2 — 1202 of the Code (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 1202) provide how that review is to be exercised. Since the Bank did not comply with these provisions, Landers believes this court exceeded its jurisdiction and the decision is void.

Supreme Court Rule 366 sets forth the power of the reviewing court and the scope of permissible review. It provides in part:

“In all appeals the reviewing court may, in its discretion, and on such terms as it deems just,
(5) enter any judgment and make any order that ought to have been given or made, and make any other and further orders and grant any relief, including a remandment, a partial reversal, the order of a partial new trial, the entry of a remitti-tur, or the enforcement of a judgment, that the case may require.” 107 Ill. 2d R. 366(a)(5).

The first case to discuss the language of this rule was Hux v. Roben (1967), 38 Ill. 2d 223, 230 N.E.2d 831. There, in a situation somewhat analogous to ours, the appellate court was asked to review the propriety of an entry of an order of specific performance. The appellate court, on its own, determined the matter should be reversed because the contract was not sufficiently definite. One party appealed to the supreme court, arguing the appellate court exceeded its authority. The supreme court initially observed that the appellate court briefs raised the issue of the adequacy of the contract. It then observed:

“A further word is appropriate, however, in view of the sweeping character of the attack on the judgment of the appellate court. The last sentence of Rule 341(e)(7) of the rules of this court (36 Ill.

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Cite This Page — Counsel Stack

Bluebook (online)
551 N.E.2d 1122, 194 Ill. App. 3d 1019, 141 Ill. Dec. 779, 1990 Ill. App. LEXIS 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champaign-natl-bk-v-landers-seed-co-inc-illappct-1990.