Couri v. Korn

560 N.E.2d 379, 202 Ill. App. 3d 848, 148 Ill. Dec. 77, 1990 Ill. App. LEXIS 1366
CourtAppellate Court of Illinois
DecidedSeptember 5, 1990
Docket3-90-0007
StatusPublished
Cited by27 cases

This text of 560 N.E.2d 379 (Couri v. Korn) 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
Couri v. Korn, 560 N.E.2d 379, 202 Ill. App. 3d 848, 148 Ill. Dec. 77, 1990 Ill. App. LEXIS 1366 (Ill. Ct. App. 1990).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

This appeal concerns a motion for attorney fees filed by defendant, Martha LaHood. Defendant’s motion was based on section 2— 611 of the Code of Civil Procedure (Code) (Ill. Rev. Stat. 1989, ch. 110, par. 2—611). Acting on a motion filed by plaintiff, Peter Couri (Couri), to strike defendant’s request for attorney fees pursuant to section 2 — 611, the trial court amended defendant’s motion for fees by interlineation to change the basis for the motion to Supreme Court Rule 137 (134 Ill. 2d R. 137). Subsequently, the trial court denied defendant’s request for fees, finding the conduct of Couri and Couri’s counsel, Valerie M. Umholtz, did not violate Rule 137. Defendant raises the following issues for our consideration: (1) whether the trial court erred in finding Rule 137 and not section 2— 611 applied in this case; and (2) whether the trial court erred in finding Couri’s and Umholtz’s conduct was not sanctionable under Rule 137. For the reasons that follow, we affirm.

The dispute between Couri, Anthony LaHood (LaHood), Thomas Korn, and South Side Trust & Savings Bank of Peoria (South Side) centers around LaHood’s and Korn’s alleged oral promises to Couri in 1982 in connection with the organization of Morton Trust and Savings Bank (Morton Bank). Inasmuch as Korn and South Side are not parties to this appeal, only those facts relating to defendant LaHood will be recited. Further, in light of the issues raised by defendant Martha LaHood, a full recitation of the procedural history of this case is in order.

In his original complaint against LaHood and South Side, filed on November 30, 1987, Couri alleged LaHood orally solicited him to be one of the organizers and original shareholders of Morton Bank. Couri agreed in March 1982 to subscribe to 6,400 shares of common stock of Morton Bank at $25 per share. After Couri advised LaHood he could not pay for his stock subscription, LaHood negotiated a $150,000 loan from South Side to pay for Couri’s subscription. On March 25, 1982, LaHood and Couri signed a promissory note to South Side for $150,000. According to Couri, South Side knew, at the time the note was signed, that the purpose of the loan was to pay for Couri’s subscription to stock. At South Side’s request, on May 24, 1982, Couri gave South Side a first mortgage on some real estate he owned individually in Tazewell County as security for the $150,000 loan.

According to Couri, LaHood orally promised him in March 1982 that because Couri could not pay for the stock subscription, LaHood would sell Couri’s shares in Morton Bank before selling any other shares held for sale to the public. Further, LaHood orally promised that if Couri’s shares were not sold when the note to South Side came due, LaHood would pay the South Side note and take Couri’s 6,000 shares. Couri alone paid the interest on the South Side note until May 17, 1983, when LaHood represented to Couri he would pay the note in full, including interest, and have Couri’s mortgage released by South Side. Thereafter, LaHood paid only the principal amount of the note ($150,000), had the note marked “paid” and delivered to him, but did not pay any interest which had accrued on the note and did not obtain a release of Couri’s mortgage from South Side.

On September 24, 1983, Couri and LaHood signed another promissory note to South Side for $12,645.21, which represented the amount of interest still owing on the $150,000 note. On September 24, 1984, LaHood paid the $12,645.21 note in full and received an assignment from South Side of the interest note and of Couri’s first mortgage to South Side. In his complaint, Couri demanded $150,000 in compensatory damages and $500,000 in punitive damages. The complaint was signed only by Couri.

On January 8, 1988, LaHood filed a motion to dismiss Couri’s complaint or, in the alternative, to strike the complaint because it was not signed by an attorney as required by section 2 — 611. LaHood also requested that attorney fees be assessed against Couri pursuant to section 2 — 611. In response, Couri, on March 22, 1988, requested leave to file an amended complaint to correct inadequacies in the original complaint and to add an additional claim. The trial court granted Couri’s motion on July 14, 1988.

On July 26, 1988, Couri filed a seven-count verified amended complaint against LaHood, Korn, and South Side. Counts III, IV, and VII concerned LaHood. Count III alleged breach of an oral contract. Couri alleged LaHood told Couri he would assist him in obtaining a loan to buy the stock and would purchase the stock from Couri when the note came due. Couri alleged the South Side note in the amount of $150,000 was to pay for the 6,000 shares of Morton Bank stock. The original note, signed by Couri and LaHood on March 25, 1982, was due on May 24, 1982. On May 24, 1982, the note was renewed to May 24, 1983. Couri repeated his allegations that he gave the first mortgage to South Side as security for the $150,000 note and that he paid the interest on the renewal note at various times between May 1982 and May 1983. During this time, Couri alleged he made repeated demands on LaHood to purchase his 6,000 shares in Morton Bank. Couri alleged LaHood orally offered, in May 1983, to purchase Couri’s 6,000 shares for $160,000. Couri orally accepted LaHood’s offer and delivered, on May 17, 1983, the certificates for 6,000 shares to LaHood. Thereafter, LaHood paid only $150,000 to South Side, received the note marked “paid” but did not obtain a release of Couri’s mortgage.

In count IV, Couri alleged LaHood engaged in a scheme to defraud Couri. Couri asked for $150,000 in compensatory damages and $500,000 in punitive damages. The amended complaint was signed by Couri’s attorney, Umholtz, and by Couri. Count VII set forth a quiet title claim wherein Couri requested a declaratory judgment that La-Hood did not hold a valid lien on Couri’s Tazewell County property by virtue of the invalid assignment of the mortgage from South Side to LaHood.

On August 8, 1988, LaHood filed a motion to dismiss counts III and IV of the amended complaint pursuant to section 2—615 of the Code for failure to state a cause of action. (Ill. Rev. Stat. 1987, ch. 110, par. 2— 615.) Also on August 8, attorneys representing LaHood filed a motion suggesting the death of LaHood on July 26, 1988. On October 21, 1988, Couri’s motion to substitute Martha LaHood (Martha), executor of the estate of Anthony LaHood, was granted. On November 23, 1988, the motion to dismiss counts III and IV was denied and Martha was directed to file an answer to Couri’s amended complaint on or before December 30,1988.

On December 30, 1988, Martha requested an extension of time to file a responsive pleading to Couri’s complaint. She argued Couri’s deposition testimony required further inquiry of Couri before a responsive pleading could be filed. Martha was given until February 15, 1989, to file a responsive pleading, without objection from Couri.

On January 13, 1989, Martha filed a request for admission of facts pursuant to Supreme Court Rule 216. (107 Ill. 2d R.

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Bluebook (online)
560 N.E.2d 379, 202 Ill. App. 3d 848, 148 Ill. Dec. 77, 1990 Ill. App. LEXIS 1366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/couri-v-korn-illappct-1990.