Edwards v. City of Henry

924 N.E.2d 978, 385 Ill. App. 3d 1026, 338 Ill. Dec. 452, 2008 Ill. App. LEXIS 1351
CourtAppellate Court of Illinois
DecidedNovember 17, 2008
Docket3-07-0652
StatusPublished
Cited by11 cases

This text of 924 N.E.2d 978 (Edwards v. City of Henry) 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
Edwards v. City of Henry, 924 N.E.2d 978, 385 Ill. App. 3d 1026, 338 Ill. Dec. 452, 2008 Ill. App. LEXIS 1351 (Ill. Ct. App. 2008).

Opinion

JUSTICE WRIGHT

delivered the opinion of the court:

On January 24, 2007, plaintiff Kenin L. Edwards filed a single-count, pro se complaint against defendant City of Henry requesting damages for alleged violations of the Illinois Antitrust Act (Act) (740 ILCS 10/1 et seq. (West 2006)). The City filed a “Motion to Dismiss and for Sanctions” claiming immunity under the Act (740 ILCS 10/ 5(15) (West 2006)) and alleging that plaintiff lacked a good-faith basis for the complaint. The motion also asserted that plaintiff, a nonlawyer, improperly sought to represent two corporations. 1 The trial court granted the City’s motion to dismiss but denied the requested sanctions. Edwards subsequently filed a pro se “Motion to Reconsider” claiming status as both an individual and as sole stockholder of both corporations. The motion to reconsider also requested leave to amend the complaint. The court denied Edwards’ motion to reconsider, and he appeals. The City cross-appeals from the denial of the motion for sanctions. We affirm in part and remand for further proceedings.

BACKGROUND

Plaintiffs complaint alleged that he was the sole stockholder of two Illinois corporations, Illinois River Holdings, Inc. (IRH), and Cor-saw Log & Lumber, Inc. (Corsaw). According to the complaint, Corsaw was the record titleholder of 505 acres located in section 4 of Henry Township, located in Marshall County (County). The complaint stated that IRH was the titleholder of record of all mineral rights to the same 505-acre parcel, and Edwards individually owned mineral leases for the same land.

The complaint stated that, in 2003, Corsaw applied for a special use permit from the Marshall County zoning office to surface mine its 505 acres of land for sand and gravel. The City of Henry (City) opposed the application filed with the County because the land was within IV2 miles of the City’s boundaries. Ultimately, Corsaw withdrew its request for a special use permit from the county zoning office and, according to Edwards’ complaint, the corporation began mining the land in June 2004 without a special use permit.

According to the complaint, on June 9, 2004, the City instituted litigation against Edwards, Corsaw, and IRH to enjoin the mining operation in the County. The result of that litigation is not stated, and the case (Marshall County circuit court case No. 04-CH-16) apparently remained unresolved when the instant suit was filed in 2007.

The complaint further alleged that, in October 2006, the City and Ozinga Materials, Inc. (the developer), a wholly owned subsidiary of Ozinga Bros., Inc. (Ozinga Bros.), filed joint petitions for reclassification of their acreage located in section 10 of Henry Township within Marshall County, to change the zoning from county agricultural to city heavy industrial 1-2, and requested annexation of the property to the City of Henry. The City contemporaneously began proceedings to amend the City’s zoning ordinance to allow surface mining and the operation of a port facility with access to the Illinois River. The joint petition provided that, in the event the developer, Ozinga Materials, Inc., acquired additional land in sections 4 and 9 of Henry Township, the developer agreed to enter into an annexation agreement and a covenant and impact fee agreement with the City for the additional property.

On November 8, 2006, the zoning board for the City heard testimony and comments at the public meeting, held to address the proposed rezoning of the property subject to the annexation agreement. The city attorney, Richard Joseph, stated that he drafted the covenant and impact fee agreement appended to the joint annexation petition of the City and the developer, Ozinga Materials, Inc. In this document, he included a provision that restricted the developer from allowing the use of the proposed port to transport materials mined from property located within IV2 miles of the City’s corporate limits, unless the property was also subject to the terms of an annexation agreement with the City. Joseph explained that the purpose of this clause was to make it uneconomical for persons to mine property within this lV2-mile “collar” that the City did not want mined.

Based on Joseph’s statement, the complaint alleged the purpose of the annexation petition was to make it uneconomical for a property owner, who did not have an annexation agreement with the City, to mine the section 4 property and thus diminished the value of the property in the event of a sale. According to Edwards, the City’s conduct constituted a violation of the Illinois Antitrust Act by allowing the developer to acquire a monopoly over trade and commerce for the purpose of excluding him, Corsaw, and IRH as competitors. In the prayer for relief, “the plaintiff,” Edwards, requested that the Court enter judgment in “their” favor and against defendant in excess of $50,000 and award “them” costs.

On February 22, 2007, attorney Jeffrey E. Krumpe, of the law firm Miller, Hall & Triggs, entered his appearance for the City and filed a motion to dismiss under section 2 — 619 of the Code of Civil Procedure (735 ILCS 5/2 — 619 (West 2006)). The City requested sanctions against Edwards under Supreme Court Rule 137 (155 Ill. 2d R. 137) alleging the complaint was not filed in good faith. This motion stated that Edwards’ complaint was defective and Edwards lacked standing because Corsaw owned the real estate, IRH owned all mineral rights beneath the property, and Edwards alleged he was the “owner of mineral leases related to the property” but attached nothing to the complaint to verify Edwards had any individual interest in the property. Additionally, the City’s motion alleged that Edwards, a nonlawyer, previously had been admonished by the court in related litigation for the unauthorized practice of law by attempting to represent the corporations, Corsaw and IRH, in violation of the Illinois Attorney Act (705 ILCS 205/1 (West 2006)). Alternatively, the City asserted section 5 of the Act (740 ILCS 10/5 (West 2006)) provided the City with immunity from antitrust litigation. 740 ILCS 10/5 (West 2006).

On March 7, 2007, attorney Carl F. Reardon entered his appearance as counsel for Edwards, individually. Reardon did not amend, refile or redraft the complaint as signed by Edwards. Instead, Reardon moved for a substitution of Judge Scott A. Shore, as a matter of right (735 ILCS 5/2 — 1001(a)(2) (West 2006)), and the cause was reassigned to Judge John A. Barra. Next, Reardon filed a motion for disqualification of attorneys Joseph and Krumpe and the law firm of Miller, Hall & Triggs. On June 15, 2007, the court denied the motion to disqualify defense counsel without prejudice.

Attorney Krumpe argued the City’s combined section 2 — 619 motion to dismiss and request for Rule 137 sanctions because Edwards frivolously filed the original complaint against the City.

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Bluebook (online)
924 N.E.2d 978, 385 Ill. App. 3d 1026, 338 Ill. Dec. 452, 2008 Ill. App. LEXIS 1351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-v-city-of-henry-illappct-2008.