Dudek, Inc. v. Shred Pax Corp.

554 N.E.2d 1002, 196 Ill. App. 3d 720, 143 Ill. Dec. 930, 1990 Ill. App. LEXIS 416
CourtAppellate Court of Illinois
DecidedMarch 30, 1990
Docket1-88-3728
StatusPublished
Cited by4 cases

This text of 554 N.E.2d 1002 (Dudek, Inc. v. Shred Pax 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
Dudek, Inc. v. Shred Pax Corp., 554 N.E.2d 1002, 196 Ill. App. 3d 720, 143 Ill. Dec. 930, 1990 Ill. App. LEXIS 416 (Ill. Ct. App. 1990).

Opinion

JUSTICE HARTMAN

delivered the opinion of the court:

From the circuit court’s granting of plaintiff/counterdefendant’s (plaintiff’s) section 2—1401 (Ill. Rev. Stat. 1985, ch. 110, par. 2—1401) (section 2—1401) petition to vacate an order of dismissal for want of prosecution, defendant/counterplaintiff (defendant) appeals, claiming abuse of discretion in the vacatur.

In August of 1985, plaintiff filed a complaint alleging a breach of warranty against defendant, involving an industrial metal-shredding machine plaintiff purchased from defendant. When the complaint was filed, plaintiff was represented by the law firm Goldstein, Simon, Briskman, Briskman, Trinley & Lamb (Goldstein-Simon). Specifically, attorney Thomas Trinley was assigned to the case. Defendant’s subsequent motion to strike and dismiss the complaint was granted, but plaintiff was given leave to and did file an amended complaint. After its motion to dismiss the first amended complaint was denied, defendant filed its answer and additionally brought a counterclaim against plaintiff for breach of contract, seeking the unpaid balance owed on the shredding machine.

Trinley left the Goldstein-Simon firm in early February, 1987. Patrick Lamb, another member of Goldstein-Simon, averred by affidavit that after Trinley’s departure, plaintiff’s file “was not formally reassigned to any other member” of the firm. On March 25, 1987, the case appeared on the court-generated calendar call; notice had been published in the Chicago Daily Law Bulletin one day earlier. Neither party appeared in court on that date. Both complaint and counterclaim were dismissed for want of prosecution. On April 23, 1987, with notice to plaintiff, defendant moved to vacate the dismissal of its counterclaim only, which the circuit court granted on May 15, 1987. Neither plaintiff nor its counsel appeared at that proceeding.

Goldstein-Simon then dissolved on October 1, 1987. Lamb and another partner from that firm formed Goldstein & Lamb, which continued to represent plaintiff in the instant case. Lamb swore that he was unaware of the March 25, 1987, dismissal of plaintiff’s cause for want of prosecution at the time that order was entered.

At another calendar call, scheduled for March 29, 1988, and published in the Chicago Daily Law Bulletin on the previous day, plaintiff again failed to appear. Defendant informed the court of the status of the case as well as of the dismissal of plaintiff’s action for want of prosecution a year earlier. Defendant then moved for default judgment on its counterclaim, asserting plaintiff had not filed any responsive pleadings thereto. The record indicates plaintiff had been served with notice of defendant’s motion for default judgment.

On April 12, 1988, at the hearing on defendant’s motion for default judgment on its counterclaim, Lamb appeared on behalf of plaintiff. According to Lamb’s affidavit, he first discovered at this proceeding that plaintiff’s action had been dismissed for want of prosecution. In response to defendant’s counterclaim, plaintiff was allowed to file an answer, affirmative defenses, and set-offs. It enumerated six “affirmative defense and/or setoff” claims which essentially alleged the same facts as previously raised in its first amended complaint. 1

Around August 2, 1988, Edwin C. Thomas of Bell, Boyd & Lloyd agreed to represent plaintiff, and on September 12, 1988, the court granted plaintiff’s motion for substitution of attorneys. Also on September 12, Thomas filed a section 2 — 1401 petition to vacate the court’s March 25, 1987, dismissal of plaintiff’s claim for want of prosecution. The petition was supported by the affidavits of attorneys Lamb and Thomas, which chronicled the legal representation of plaintiff to that point. In response, defendant moved to dismiss plaintiff’s petition.

At a hearing held November 22, 1988, on the section 2 — 1401 petition and related motion to dismiss, the circuit court repeatedly questioned plaintiff’s counsel for facts demonstrating “excusable neglect” to support a finding of due diligence, but did not deem satisfactory any of the reasons provided. The court nevertheless invoked its equitable powers and granted plaintiff’s petition, based on the existence and viability of defendant’s counterclaim, reasoning:

“[T]he fundamental issue here is the fact there is ongoing litigation. I look at what they have done. They have dropped the ball, so to speak. But the point is in a case that’s an ongoing piece of litigation in terms of fundamental fairness, they are picking up the ball in a case that already has a ball in it. It’s just a question of whether you call it an affirmative defense or ’ a complaint.
* * *
Based upon the pleadings and the peculiar circumstances of this particular case, the Court pursuant to the motion to vacate the dismissal for want of prosecution under [section] 2 — 1401 grants the motion to vacate.”

From that ruling, defendant appeals.

Defendant’s sole contention on appeal is that the circuit court abused its discretion in granting plaintiff’s section 2 — 1401 petition to vacate the dismissal of the first amended complaint for want of prosecution.

To warrant relief under section 2 — 1401, the petitioner must “affirmatively set forth specific factual allegations” demonstrating the existence of the following elements: (1) a meritorious defense or claim; (2) due diligence in presenting this defense or claim in the original action; and (3) due diligence in filing the petition for relief. (Smith v. Airoom, Inc. (1986), 114 Ill. 2d 209, 220-21, 499 N.E.2d 1381 (Airoom).) To be entitled to relief, the petitioner must show that, through no fault or negligence of its own, an error of fact or a valid claim was not raised in the circuit court at the time the order or judgment was entered. (Kaput v. Hoey (1988), 124 Ill. 2d 370, 378, 530 N.E.2d 230.) Further, the question of whether a section 2 — 1401 petition should be granted lies within the sound discretion of the circuit court, which can be disturbed on review only upon a showing of abuse thereof. Airoom, 114 Ill. 2d at 221.

To establish due diligence, a petitioner must have a reasonable excuse for its failure to act within an appropriate time. (Airoom, 114 Ill. 2d at 222; First National Bank v. Mattoon Federal Savings & Loan Association (1988), 175 Ill. App. 3d 956, 960, 530 N.E.2d 666.) Here, plaintiff’s allegations of due diligence, contained in its section 2 — 1401 petition and supporting affidavits, state it originally was represented by Trinley of Goldstein-Simon; Trinley later “left the employ” of that firm; Goldstein-Simon failed to reassign the case to another member of the firm; shortly after Trinley’s departure, the dismissal order was entered against plaintiff; and the firm dissolved without knowledge of the dismissal against plaintiff.

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Related

Dudek, Inc. v. Shred Pax Corp.
626 N.E.2d 1204 (Appellate Court of Illinois, 1993)
Flisk v. Central Area Park District
560 N.E.2d 1160 (Appellate Court of Illinois, 1990)
Gold v. Rader
559 N.E.2d 210 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
554 N.E.2d 1002, 196 Ill. App. 3d 720, 143 Ill. Dec. 930, 1990 Ill. App. LEXIS 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dudek-inc-v-shred-pax-corp-illappct-1990.