Cvengros v. Liquid Carbonic Corp.

425 N.E.2d 1050, 99 Ill. App. 3d 376, 54 Ill. Dec. 833, 1981 Ill. App. LEXIS 3168
CourtAppellate Court of Illinois
DecidedAugust 11, 1981
Docket80-1294
StatusPublished
Cited by19 cases

This text of 425 N.E.2d 1050 (Cvengros v. Liquid Carbonic Corp.) 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
Cvengros v. Liquid Carbonic Corp., 425 N.E.2d 1050, 99 Ill. App. 3d 376, 54 Ill. Dec. 833, 1981 Ill. App. LEXIS 3168 (Ill. Ct. App. 1981).

Opinion

Mr. PRESIDING JUSTICE HARTMAN

delivered the opinion of the court:

Plaintiffs’ first amended, six-count complaint was dismissed with prejudice and within 30 days thereafter, plaintiffs filed a motion seeking vacatur and leave to file a second amended complaint. The trial court continued the hearing on this motion for 2iú months, and when the hearing was ultimately held, the trial court denied the request for leave to amend, finding that the motion was “faulty” without considering the merits of the proposed second amended complaint tendered. For the reasons set forth hereinafter, we reverse and remand.

Plaintiffs filed their original four-count complaint on July 5, 1979. It was dismissed with leave to amend on September 18,1979. On October 5, 1979, plaintiffs filed their first amended complaint, now containing six counts. Count I of the first amended complaint alleged that on or before March 5, 1979, plaintiffs negotiated with defendant to purchase all the tangible and intangible assets of an operating division owned by defendant. The count further alleged that on March 5, 1979, plaintiffs entered into a written agreement with defendant to purchase the assets of the division for $3.9 million. A copy of this agreement was attached to the complaint as Exhibit A. Exhibit A is entitled “Letter of Intent” and is in the form of a letter from plaintiffs to defendants. The body of the letter describes itself as a letter of intent concerning arrangements for Liquid Carbonic to sell and plaintiffs to buy certain assets. Within its terms, plaintiffs would form Cubemaster Corporation (Cubemaster) which would purchase the assets of defendant’s ice-making division for $3.9 million; Cubemaster would pay $2.5 million in cash at closing, plus $1.4 million in the form of a subordinated nonnegotiable note secured by common stock of Cubemaster; Cubemaster would assume responsibilities for outstanding warranties; and defendant would buy its tank rework requirements from Cubemaster for five years. The letter then concluded, “The completion of this transaction is subject to the following: 1. The execution of a mutually satisfactory legal contract. * ” *” Mr. W. A. Runge, an authorized agent of defendant, signed the bottom of the letter.

Count I further asserted that on April 6, 1979, defendant tendered to plaintiffs “its proposal as to the further terms of a written agreement between the parties concerning the sale of Cubemaster,” attached as Exhibit “B” to the complaint. This “proposal” was undated and unsigned by either party and was at variance with some of the terms contained in the letter of intent. The count then alleges that plaintiffs accepted this proposal. On June 10, 1979, plaintiffs were ready to perform but defendant communicated it would not consummate the agreement. Count I concluded with a request for specific performance.

Count II of the first amended complaint realleged the allegations of count I but sought the alternative relief of $10 million in damages. Count III sought specific performance based on a promissory estoppel theory. Count IV sought $1 million in damages for defendant’s breach of a putative duty to negotiate in good faith. Count V sought specific performance based on an express ratification of the. two documents. Count VI sought $10 million in damages based on this express ratification theory.

On November 2,1979, defendant moved to dismiss the first amended complaint. Defendant filed a memorandum in support of this motion on November 13,1979; plaintiffs filed a memorandum in response thereto on December 4, 1979; defendant filed its reply memorandum on December 21, 1979, after receiving an extension to do so; and plaintiffs filed a response to this memorandum on January 2, 1980.

A hearing was held on the motion to dismiss on January 11,1980. The trial court ruled that: counts I and II failed to allege a binding contract; count III failed to allege a misstatement of existing facts; count V and VI were defeated by the statute of frauds; and count IV involved a theory of questionable viability. The trial court then dismissed counts I, II, III, V and VI. The court indicated that it considered only striking count IV because it could possibly be restated in tort if plaintiffs sought to amend it. Plaintiffs asked for leave to amend several of the counts because they felt that the wording could be clarified to accurately reflect what was intended. Specifically as to count IV, counsel stated he must first speak with his client, who was presently out of town. The trial court responded, “why don’t I do this. Why don’t I issue an order dismissing all counts. When you get in touch with your client and you find out what direction you want to go, come in on a motion for me to reconsider. That will give you some time. You [have] 30 days then.” After acknowledging that count IV might be properly pleaded in tort, the court commented that “When I dismissed [counts] I and II, that doesn’t mean you can’t come in and file an amendment. All I am saying, without leave of court, you can’t come in.” The order entered that day provided that the first amended complaint was dismissed with prejudice, but was silent as to leave to amend.

On January 31, 1980, plaintiffs filed a written motion seeking to vacate the January 11 order and requesting leave to file a second amended complaint within 28 days. The proposed amended document was not attached to this motion. That same day, an order was entered directing that the motion be heard on April 2, 1980. On April 2, the court on its own motion continued the hearing on plaintiffs’ motion to April 14. On April 9, defendant filed a memorandum in response to plaintiffs’ motion, which asserted that plaintiffs failed to set forth good cause for the requested vacatur and that a motion for leave to amend was untimely after a final judgment.

The hearing on the motion was ultimately held on April 14, 1980. At that hearing, plaintiffs tendered a proposed second amended complaint. The trial court stated that the January 31 motion was “faulty.” No explanation was made as to wherein the fault lay. Plaintiffs asserted that they were present on the day of hearing as though present and arguing on January 31, because that hearing was continued twice by the court. The trial court then stated, “That was not a proper motion. * * * I am simply going to rule. I deny the motion.” Plaintiffs tendered the proposed second amendment, and the trial court refused to allow it to be marked or filed in the record. 1

On appeal plaintiffs argue, inter alia, that the trial court improperly refused to consider the merits of the proposed amendment in determining whether leave to amend should be granted. We agree. One of the fundamental purposes of the Civil Practice Act (Ill. Rev. Stat. 1979, ch. 110, par. 1 et seq.) is to remove obstructions which preclude the resolution of a case on its .merits; therefore, amendments to pleadings are to be liberally allowed to enable a party to fully present his case. (Scala/O’Brien Porsche Audi, Inc. v. Volkswagen of America, Inc. (1980), 87 Ill. App. 3d 757, 762, 410 N.E.2d 205; Volvo of America Corp. v. Gibson (1980), 83 Ill. App. 3d 487, 492, 404 N.E.2d 406

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Bluebook (online)
425 N.E.2d 1050, 99 Ill. App. 3d 376, 54 Ill. Dec. 833, 1981 Ill. App. LEXIS 3168, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cvengros-v-liquid-carbonic-corp-illappct-1981.