Falcon v. Faulkner

567 N.E.2d 686, 209 Ill. App. 3d 1, 153 Ill. Dec. 728, 1991 Ill. App. LEXIS 243
CourtAppellate Court of Illinois
DecidedFebruary 21, 1991
Docket4-90-0466
StatusPublished
Cited by30 cases

This text of 567 N.E.2d 686 (Falcon v. Faulkner) 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
Falcon v. Faulkner, 567 N.E.2d 686, 209 Ill. App. 3d 1, 153 Ill. Dec. 728, 1991 Ill. App. LEXIS 243 (Ill. Ct. App. 1991).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

The Eleventh Judicial District Court for Flathead, Montana, entered a judgment in favor of plaintiffs, Don and Berta Falcon, d/b/a The El Leo Partnership (Falcon), and against defendant Ron Thomas (Thomas) in the amount of $131,010.80. Plaintiffs filed a petition for registration of foreign judgment, which the circuit court of Adams County granted. It is from that order defendant Ron Thomas appeals. Defendant contends (1) he did not have sufficient minimum contacts with the State of Montana for the Montana court to exercise personal jurisdiction over him; and (2) the plaintiffs committed fraud on the Montana court which gave it colorable jurisdiction. We affirm the circuit court.

Plaintiffs raised and bred horses in Columbia Falls, Montana, where they lived throughout these proceedings. Defendant Thomas resided in Quincy, Illinois, at all times relevant to this appeal. Thomas bought and sold horses as well as breeding-rights contracts to specific horses. Defendant Allen E. Faulkner, d/b/a Faulkner Quarter Horses (Faulkner), is located in Edmond, Oklahoma. Faulkner was in the business of breeding horses and was the owner of the stallion named “Impressive.”

Sometime in 1985, Thomas purchased from Faulkner approximately six breeding-rights contracts for “Impressive,” a well-known stallion in the horse-breeding industry. Thomas either paid cash for these contracts ($10,000 each) or traded a mare in lieu of a cash payment. Thomas then either attempted to breed one of his own mares pursuant to one of the contracts or sold the contract to another horse owner for breeding to “Impressive.” It is through the latter alternative that this dispute arises.

The exact sequence of events which form this dispute is contradicted by the parties. Thomas contends he first met Falcon at a horse show in Denver, Colorado, in January 1986. It is here, according to Thomas, he first advised Falcon of the fact that he had for sale a breeding-rights contract for “Impressive.” Thomas advised Falcon he bought the contract for $10,000 but would sell it to Falcon for $7,500. Falcon told Thomas he was interested in breeding his mare “First El Leo” to “Impressive” but had to speak with his partners before making a firm commitment. Thomas alleges Falcon told him to telephone him in Montana at a later date to further discuss this sale. Thomas did later call Falcon in Montana at which time Falcon told Thomas he had not had a chance to speak with his partners. Falcon told Thomas he would return the call to Thomas in Quincy after speaking to his partners. During this phone call, Thomas told Falcon the sale price was $7,500. Thomas alleges Falcon called him back in Quincy and offered $2,500. They negotiated the price and finally agreed upon a price of $5,000. Thomas sent Falcon a copy of his breeding contract and in return Falcon sent a check for $2,500 and a letter. The letter stated the check was for partial payment on the contract and “if [Thomas] don’t mind” a check for the other $2,500 would follow when Falcon’s mare was in foal.

Falcon contends the first time he was aware this breeding-rights contract existed was when Thomas made an unsolicited phone call to him in Montana advising him of the contract. Falcon contends Thomas quoted the price of the contract at $7,500 in this first conversation. According to Falcon, Thomas called at least six times in a two-week period after the initial phone call to discuss this offer. Finally they agreed upon a price of $5,000, with Falcon paying $2,500 down and the balance when the mare was in foal. Falcon contends it was in a phone call from Thomas to Falcon in Montana that this final price and terms were agreed upon. Falcon wanted to see the contract before sending any money, so Thomas mailed the contract to Falcon. Falcon read the contract and noticed a provision that required the consent of Faulkner before the contract could be transferred. Falcon called Faulkner on March 26, 1989, and spoke to Faulkner, who consented to the transfer from Thomas to Falcon. Falcon noted this on the contract and then filled in the name, registration number and age of “First El Leo” as well as the name and address of the El Leo Partnership as the owner of the contract.

Subsequently, Falcon delivered the mare to Faulkner for breeding with ‘‘Impressive.’’1 After approximately 2xk months, the mare was delivered back to Falcon on the belief that she was pregnant. Unfortunately, she was not. One year later, Falcon again delivered the mare to Faulkner for breeding with “Impressive.” However, Faulkner refused to breed the horses, stating Thomas had told him not to.

Falcon contends Thomas told Faulkner not to breed the horses until Thomas received an additional $5,000; $2,500 being the balance due under the original contract and another $2,500 which represented the cost of boarding the mare a second time. Thomas alleges Falcon gave up the right to the second breeding because of a letter Falcon wrote to Thomas in July 1986 after the first breeding. This letter stated Falcon’s mare was veterinarian checked and was not in foal. Thus, Falcon wrote, “If you are agreeable, I’d like my $2,500 back and you can have the breeding to do as you wish.” Although Thomas never returned the money, he contends Falcon gave up the second breeding and, thus, he was justified in refusing to allow the second breeding.

It is on the basis of this refusal of the second breeding that Falcon filed suit in Montana against Thomas and Faulkner. The complaint alleged breach of contract and fraud. Thomas failed to appear or answer the complaint and, thus, a default judgment was entered against him. The Montana trial court found (1) Thomas first informed Falcon of this breeding right contract through an unsolicited telephone call from Thomas to Falcon in Montana; (2) this offer was accepted by Falcon in Montana and this amounted to the transaction of business in Montana, which in turn gave the Montana court personal jurisdiction over Thomas; (3) Thomas instructed Faulkner not to allow the second breeding and this refusal deprived Falcon’s mare from having a foal; and (4) Thomas knowingly made false representations to Falcon and these false representations were material and substantial to the agreement. Thus, according to the Montana court, Thomas’ actions were malicious and in bad faith and, therefore, were outside the scope of Thomas’ employment and/or agency with Faulkner. Finally, the Montana court fixed the amount of judgment at $131,010.80, which included the value of the foal (had it been conceived), breeding costs, punitive damages at $25,000, attorney fees, and court costs.

It is this judgment Falcon sought to register in Adams County, Illinois. Thomas filed a motion to strike the petition for registration of foreign judgment, and both parties submitted briefs in support of their respective positions. The circuit court also heard testimony from Falcon and Thomas at an evidentiary hearing. Thomas alleged the judgment could not be registered because the Montana court lacked personal jurisdiction and further alleged Falcon committed fraud on the Montana court in procuring the judgment. Falcon argued Thomas had sufficient contacts with Montana to enable the court to obtain jurisdiction and no fraud was committed upon the court. It should be noted the record is unclear as to what happened with respect to defendant Faulkner in the Montana proceedings.

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

Related

In re K.S.
2025 IL App (4th) 241491-U (Appellate Court of Illinois, 2025)
In re> Marriage of Parmenter
2023 IL App (4th) 220439-U (Appellate Court of Illinois, 2023)
CE Design Ltd. v. Healthcraft Products, Inc.
2017 IL App (1st) 143000 (Appellate Court of Illinois, 2017)
Elston v. Oglesby
2014 IL App (4th) 130732 (Appellate Court of Illinois, 2014)
Protein Partners, LLP v. Lincoln Provision, Inc.
Appellate Court of Illinois, 2010
Apollo Real Estate Investmend Fund, IV, L.P. v. Gelber
935 N.E.2d 949 (Appellate Court of Illinois, 2009)
Apollo Real Estate Investment Fund v. Gelber
Appellate Court of Illinois, 2009
In Re Mitchell
281 B.R. 90 (S.D. Alabama, 2001)
Doctor's Associates, Inc. v. Duree
745 N.E.2d 1270 (Appellate Court of Illinois, 2001)
In Re Adoption of E.L.
733 N.E.2d 846 (Appellate Court of Illinois, 2000)
In re the Adoption of E.L.
Appellate Court of Illinois, 2000
Neely v. Law Offices of Kevin J. Hermanek, P.C.
122 F. Supp. 2d 923 (N.D. Illinois, 2000)
Massie v. Minor
Appellate Court of Illinois, 1999
Long v. Shorebank Development Corp.
182 F.3d 548 (Seventh Circuit, 1999)
Thorson v. LaSalle National Bank
Appellate Court of Illinois, 1999
Thorson v. La Salle National Banking
708 N.E.2d 543 (Appellate Court of Illinois, 1999)
Firstar Bank Milwaukee v. Cole
Appellate Court of Illinois, 1997
Firstar Bank Milwaukee, NA v. Cole
678 N.E.2d 668 (Appellate Court of Illinois, 1997)
Pinnacle Arabians, Inc. v. Schmidt
654 N.E.2d 262 (Appellate Court of Illinois, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
567 N.E.2d 686, 209 Ill. App. 3d 1, 153 Ill. Dec. 728, 1991 Ill. App. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/falcon-v-faulkner-illappct-1991.