Diacou v. Palos State Bank

357 N.E.2d 518, 65 Ill. 2d 304, 2 Ill. Dec. 351, 1976 Ill. LEXIS 439
CourtIllinois Supreme Court
DecidedNovember 24, 1976
Docket47952
StatusPublished
Cited by54 cases

This text of 357 N.E.2d 518 (Diacou v. Palos State Bank) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diacou v. Palos State Bank, 357 N.E.2d 518, 65 Ill. 2d 304, 2 Ill. Dec. 351, 1976 Ill. LEXIS 439 (Ill. 1976).

Opinion

MR. JUSTICE CREBS

delivered the opinion of the court:

On September 29, 1966, the plaintiffs, Mr. and Mrs. Harry J. Diacou, filed a two-count complaint in the chancery division of the circuit court of Cook County. Each count alleged identical wrongful conduct on the part of the defendants. It was alleged that the defendant bank was given securities and real property to hold as collateral to secure a loan made to the plaintiffs. It was further alleged that all of the defendants made representations to the plaintiffs upon which the plaintiffs detrimentally relied and that the bank wrongfully sold some of the collateral. Count I of the complaint sought certain equitable relief, including a temporary injunction restraining the bank from selling any of the remaining collateral. Count II of the complaint sought money damages.

A hearing on the plaintiffs’ motion for temporary injunction began on October 13, 1966, was continued several times, and concluded on July 12, 1967, when the motion was denied. On August 22, 1967, the court authorized the defendant bank to sell the remaining collateral. On November 24, 1967, the plaintiffs filed a motion for an order directing the bank to return to the plaintiffs surplus proceeds from the sale of the collateral and for certain other relief. The plaintiffs subsequently filed an amended motion in which they sought an order directing the defendants to deposit certain amounts of money with the clerk of the court until final disposition of the case. The defendants’ motion to strike the plaintiffs’ amended motion was granted, and the plaintiffs then filed a second amended motion for post-hearing relief. After several hearings were held on the matter, the plaintiffs’ second amended motion was denied on September 22, 1969. The plaintiffs filed a notice of appeal from the order denying their motion, but the appeal was later dismissed on plaintiffs’ motion.

On January 27, 1970, a new attorney filed his appearance on behalf of the plaintiffs. Plaintiffs’ original attorney did not move to withdraw as counsel, but he never again participated in the case. On June 12, 1970, the court granted the plaintiffs’ motion to transfer count II of the complaint to the law division of the circuit court of Cook County. The defendants moved to vacate that order, alleging that the court had heard all of the evidence concerning the alleged wrongdoing on the part of the defendants and that count II was barred on the grounds of res judicata. The court denied this motion to vacate, holding that while count I had been disposed of in the chancery division, the plaintiffs nonetheless had a right to have count II heard in the law division.

On February 23, 1972, the second attorney for the plaintiffs was granted leave to withdraw from the case. The court found that the plaintiffs had been served with notice that their counsel was seeking leave to withdraw and ordered the plaintiffs to proceed without an attorney until further order of the court. On May 18, 1972, the case was called for trial on the regular call of cases and was dismissed for want of prosecution.

On May 9, 1973, almost one year after the case was dismissed, the plaintiffs sought relief pursuant to section 72 of the Civil Practice Act by filing a petition to vacate the order dismissing the cause for want of prosecution. (Ill. Rev. Stat. 1973, ch. 110, par. 72.) It was alleged in the petition that the failure of the plaintiffs to appear in court on May 18, 1972, was the result of a “procedural misunderstanding or mistake on the part of the plaintiffs” and an accident suffered by the plaintiffs’ attorney. It was further alleged that the plaintiffs had a good and meritorious cause of action.

An affidavit of Anne Sullivan was filed in support of the plaintiffs’ petition. The affiant stated that she and her husband, John Sullivan, were both attorneys and that plaintiff Harry J. Diacou had conferred with John Sullivan in Sullivan’s office on February 28, 1972. On that date, according to the affidavit, Diacou paid Sullivan. $300 to investigate the case. The affiant further stated that, in checking Sullivan’s file on the case, she found 11 pages of handwritten notes regarding the case, dated March 31, 1972, along with a letter sent by Sullivan to Harry Diacou on May 12, 1972, telling Diacou to contact Sullivan. In addition, Diacou had an office appointment with Sullivan on September 7, 1972. It was also alleged in the affidavit that John Sullivan had suffered two strokes in 1972 and that he was incapacitated as of April 26, 1973, the date on which the affidavit was signed. The affidavit states that John Sullivan was hospitalized on five occasions in 1972. The affiant further stated that she received calls from plaintiff Harry Diacou in November and December 1972, and in January 1973, about the case, that she could not find a file concerning the plaintiffs’ case in John Sullivan’s office, and that she finally found the file at Sullivan’s apartment in February 1973. The affiant then checked the court file and discovered that the case had been dismissed for want of prosecution. On February 8, 1973, the affiant advised Diacou that he must find another attorney to represent him and that he must do so “without delay.”

The affiant further stated that she received a call on February 20, 1973, from'an attorney who stated that he and another attorney had spoken to Diacou and that they would like to examine the file. Because of a heavy work load, the attorneys did not pick up the file from the affiant until April 20, 1973. The section 72 petition was prepared by still another attorney and filed on May 9, 1973.

An amended section 72 petition was filed by the plaintiffs on October 23, 1973. In support of the amended petition, the plaintiffs filed an affidavit in which they stated that they had retained John Sullivan to represent them on February 28, 1972. The affiants further asserted that they had repeatedly tried to contact Sullivan after February 28, 1972, but were unable to do so. After learning on February 8, 1973, that the case had been dismissed, the plaintiffs allegedly acted diligently in retaining new counsel.

On November 21, 1973, the court heard arguments of counsel and granted the plaintiffs’ amended petition to vacate the order dismissing the cause for want of prosecution. The defendants filed a timely notice of appeal from the order granting the section 72 petition. The Appellate Court for the First District reversed the judgment of the trial court, reasoning that the plaintiffs had failed to demonstrate that they acted diligently in filing their section 72 petition. (Diacou v. Palos State Bank, 31 Ill. App. 3d 283.) We have granted the petitioners leave to appeal from the judgment of the appellate court.

In determining that the plaintiffs had failed to exercise due diligence in presenting their petition, the appellate court focused upon the period of time subsequent to February 8, 1973, the date on which the plaintiffs learned of the dismissal of their suit. We agree with the appellate court that the plaintiffs failed to act with due diligence during this period. Contrary to the view of the appellate court, we also consider that the petition and supporting affidavits demonstrate a lack of due diligence on the part of the plaintiffs during the entire period following the entry of the dismissal order.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Paul v. Gerald Adelman & Assoc.
Illinois Supreme Court, 2006
Paul v. Gerald Adelman & Associates, Ltd.
858 N.E.2d 1 (Illinois Supreme Court, 2006)
Juszczyk v. Flores
777 N.E.2d 454 (Appellate Court of Illinois, 2002)
In Re Marriage of Delk
666 N.E.2d 683 (Appellate Court of Illinois, 1996)
Andre v. Salem Technical Services
797 F. Supp. 1416 (N.D. Illinois, 1992)
Burchett v. Goncher
603 N.E.2d 1 (Appellate Court of Illinois, 1991)
Salazar v. Wiley Sanders Trucking Co.
576 N.E.2d 552 (Appellate Court of Illinois, 1991)
In Re Marriage of Kantar
581 N.E.2d 6 (Appellate Court of Illinois, 1991)
Klairmont v. Elmhurst Radiologists
558 N.E.2d 328 (Appellate Court of Illinois, 1990)
In Re Petition of Village of Kildeer
530 N.E.2d 491 (Illinois Supreme Court, 1988)
Sterne v. Forrest
495 N.E.2d 1304 (Appellate Court of Illinois, 1986)
People Ex Rel. Johnson v. Payne
469 N.E.2d 270 (Appellate Court of Illinois, 1984)
Tsuetaki v. Novicky
509 N.E.2d 1019 (Appellate Court of Illinois, 1983)
In Re Marriage of Ponsart
455 N.E.2d 271 (Appellate Court of Illinois, 1983)
Bromberg v. Industrial Commission
454 N.E.2d 661 (Illinois Supreme Court, 1983)
In Re Application of County Treasurer
442 N.E.2d 216 (Illinois Supreme Court, 1982)
American Consulting Ass'n v. Spencer
427 N.E.2d 579 (Appellate Court of Illinois, 1981)
Department of Conservation v. Lawless
426 N.E.2d 545 (Appellate Court of Illinois, 1981)
Wilson v. Gholson
420 N.E.2d 1179 (Appellate Court of Illinois, 1981)
In Re Marriage of Panozzo
418 N.E.2d 16 (Appellate Court of Illinois, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
357 N.E.2d 518, 65 Ill. 2d 304, 2 Ill. Dec. 351, 1976 Ill. LEXIS 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diacou-v-palos-state-bank-ill-1976.