Dennis G. Kral. Ltd v. JP Morgan Chase Bank, N.A.

2022 IL App (1st) 210075-U
Appellate Court of Illinois·Decided January 21, 2022·No. 1-21-0075·Unpublished

Opinion

2022 IL App (1st) 210075-U

SIXTH DIVISION

January 21, 2022

No. 1-21-0075

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 DISTRICT

) Appeal from the DENNIS G. KRAL, LTD., ) Circuit Court of ) Cook County

Plaintiff-Appellant, )

) No. 19 L 11983 v.

)

) The Honorable

JPMORGAN CHASE BANK, N.A., ) Lloyd J. Brooks and ) Scott D. McKenna, Defendant-Appellee.

) Judges, presiding.

PRESIDING JUSTICE PIERCE delivered the judgment of the court.

Justices Harris and Oden Johnson concurred in the judgment.

ORDER

¶1 Held: The judgment of the circuit court is affirmed. Defendant’s tender mooted plaintiff’s breach of contract claim. The circuit court’s judgment dismissing plaintiff’s complaint is affirmed, but we remand for further proceedings to calculate plaintiff’s court costs incurred prior to defendant’s tender. The circuit court did not err by striking plaintiff’s amended complaint where it was filed without leave of court.

¶2 Plaintiff, Dennis G. Kral, Ltd., sued defendant, JPMorgan Chase Bank, N.A., for breach of contract and other theories for failing to refund plaintiff after a third party used forged checks to make draws on plaintiff’s checking account. The circuit court dismissed plaintiff’s count I breach of contract claim as moot, as defendant had tendered the amount requested in the breach of contract

claim, dismissed plaintiff’s count II “unjust enrichment and fraud” claim without prejudice, and gave plaintiff time to replead count II. After the time for repleading lapsed, plaintiff filed a motion to reconsider the dismissal order and for leave to file an amended complaint. The circuit court denied the motion to reconsider in a written order but did not address plaintiff’s request to file an amended complaint. Plaintiff filed an untimely amended complaint without leave of court, which the circuit court struck, finding that the denial of plaintiff’s motion to reconsider was a final order.

¶3 On appeal, plaintiff argues the circuit court erred by denying plaintiff’s motion for summary judgment on count I of its initial complaint and erred by dismissing its amended complaint. Defendant addresses plaintiff’s arguments on the merits, but also argues we lack jurisdiction over plaintiff’s appeal because the notice of appeal was untimely, and plaintiff’s notice of appeal identifies orders that the circuit court did not enter. Defendant further contends we should strike plaintiff’s appellate brief and dismiss this appeal for plaintiff’s violations of Rule 341. We affirm the circuit court’s judgment and remand for the limited purpose of allowing plaintiff to recover court costs incurred prior to defendant’s tender.

¶4 I. BACKGROUND

¶5 Plaintiff filed a two-count complaint against defendant and made the following allegations. Count I was styled as a breach of contract claim. Plaintiff had a checking accounting with defendant. In August 2016, defendant alerted plaintiff to an out-of-sequence check drawn on plaintiff’s account for $2000, payable to Janeea C. Robinson. Plaintiff denied issuing the check. After meeting with a bank officer, plaintiff received assurances that the check would not be processed. In February 2017, plaintiff discovered defendant processed three other checks in the amounts of $420, $421, and $425, drawn on his checking account that were out of sequence, appeared to be photocopies, and lacked any signature. Defendant advised plaintiff it would

investigate, but later denied plaintiff’s request for reimbursement. In October 2019, defendant alerted plaintiff to another suspicious check in the amount of $6425, and plaintiff confirmed it was a forgery. Defendant’s officer advised plaintiff to close the checking account and open a new account. While opening the new account, plaintiff learned of four additional forged checks drawn on the account, each for $425. Defendant credited plaintiff’s new checking account with $6425. Plaintiff later learned the funds in his account “were held/frozen for over a week.” Defendant denied plaintiff’s request for reimbursement of the four $425 checks totaling $1700.

¶6 Count II was styled as “Unjust Enrichment & Fraud.” Plaintiff alleged defendant routinely denied requests for reimbursement for smaller dollar amounts, in breach of its fiduciary duties to protect account holders. Defendant’s actions were willful and without justification. Plaintiff sought punitive damages exceeding $50,000.

¶7 Defendant moved to dismiss the entire complaint as moot pursuant to section 2-619(a)(9) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(9) (West 2020)) because it reimbursed plaintiff $1700 in January 2020, and alternatively moved to dismiss count II pursuant to section 2-615 of the Code (id. § 2-615) because count II failed to adequately allege fraud or unjust enrichment.

¶8 The circuit court entered a briefing schedule and scheduled a hearing date. Plaintiff responded in a document styled “Answer to Defendant’s Motion to Dismiss Plaintiff’s Complaint Pursuant to 735 ILCS 5/2-615 & 619.” The substance of its response, however, was a motion for summary judgment on count I of its complaint, arguing that defendant “admit[s] that it owed Plaintiff the reimbursement of the forged checks.” Plaintiff argued that the motion to dismiss should be denied and summary judgment entered in plaintiff’s favor, and that plaintiff would “acknowledge the receipt of the principal amount paid and provide a release and satisfaction on

Count I upon receipt of its court costs to date.” It also argued that defendant only deposited the $1700 after plaintiff filed its complaint in a “transparent attempt to avoid a judgment/recovery on Count I which is a requirement to recover damages under Count II.” Plaintiff did not directly respond to the arguments raised in defendant’s section 2-615 motion to dismiss count II, or defendant’s 2-619 motion to dismiss the complaint in its entirety. In reply, defendant asserted that count I was moot because defendant tendered everything plaintiff requested in count I, and plaintiff did not respond to the motion to dismiss count II.

¶9 On April 30, 2020, the circuit court entered a written order1 dismissing count I with prejudice pursuant to section 2-619 of the Code, finding that defendant’s tender of the full amount requested mooted the breach of contract claim, and plaintiff did not identify any additional relief it could obtain under count I. The circuit court dismissed count II without prejudice pursuant to section 2-615 of the Code, finding that plaintiff could not pursue an unjust enrichment claim because plaintiff had an available legal remedy, and plaintiff failed to allege any misrepresentation to support a fraud claim. Plaintiff was granted 28 days to replead.

¶ 10 Plaintiff did not file an amended complaint within 28 days of the circuit court’s April 30, 2020, order. On August 5, 2020, plaintiff filed a “Memorandum in Response to Defendant’s Memorandum and Motion to Dismiss,” even though the circuit court already granted defendant’s motion in the April 30 order.

¶ 11 On September 2, 2020, plaintiff filed a motion to vacate and reconsider the circuit court’s April 30 order, and for additional time to file an amended complaint. Plaintiff asserted that, due to the Covid-19 pandemic, it did not know defendant was proceeding on its motion to dismiss on

1 We note that the circuit court’s order shows the circuit court contacted the parties and advised that no oral argument was necessary and “[n]o party had raised an objection to the Court taking the matter under advisement and ruling without oral argument.”

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