First National Leasing Corp. v. E.T.P. of Chicago, Inc.

511 N.E.2d 889, 158 Ill. App. 3d 882, 110 Ill. Dec. 712, 1987 Ill. App. LEXIS 2913
CourtAppellate Court of Illinois
DecidedJuly 27, 1987
Docket2-86-1045
StatusPublished
Cited by5 cases

This text of 511 N.E.2d 889 (First National Leasing Corp. v. E.T.P. of Chicago, Inc.) 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
First National Leasing Corp. v. E.T.P. of Chicago, Inc., 511 N.E.2d 889, 158 Ill. App. 3d 882, 110 Ill. Dec. 712, 1987 Ill. App. LEXIS 2913 (Ill. Ct. App. 1987).

Opinion

JUSTICE NASH

delivered the opinion of the court:

Michael C. Phillips, third-party defendant, counterplaintiff, and defendant, in the consolidated actions below appeals from orders which vacated a default judgment entered against James Ruzicka, defendant, third-party plaintiff, and counterdefendant.

On March 2, 1982, First National Leasing Corporation (First National), brought an action against E.T.P. of Chicago, Inc. (ETP), and its shareholders Phillips and Ruzicka, for money due under a lease of personal property. Judgment was subsequently entered in First National’s favor against all the defendants.

On June 17, 1982, Ruzicka filed a third-party complaint against Phillips for indemnification in which he alleged that Phillips converted the leased property and sought indemnity. On January 6, 1983, Phillips filed an answer to Ruzicka’s third-party complaint, denying the conversion and the duty to indemnify, and pleading an affirmative defense. Phillips also filed a three-count counterclaim which sought an accounting between Phillips and Ruzicka and a dissolution of a partnership relationship between them; an exoneration of Phillips for debts incurred by Ruzicka during the partnership; and money damages for breach of contract. Included in Phillips’ pleadings was a demand for jury trial.

On May 3, 1984, Ruzicka filed a separate lawsuit against Phillips for money allegedly due on a promissory note. On August 31, 1984, after Phillips filed his answer to the complaint, an order was entered consolidating this action with the action originally brought by First National.

In June and in September 1984, his then retained attorneys were given leave to withdraw as counsel for Ruzicka, and in September

1984, the law firm of Donovan & Roberts, P.C., appeared as his counsel. In February 1985, Ruzicka filed a reply to Phillips’ affirmative defense and an answer to his counterclaim.

At a status hearing on June 10, 1985, the trial court ordered that the next status hearing would be held on July 29, 1985. On July 22,

1985, Donovan & Roberts, P.C., was allowed to withdraw as counsel for Ruzicka after giving him notice of its motion to withdraw. A copy of the trial court’s order granting the withdrawal of counsel was also sent to Ruzicka.

At a status hearing on July 29, 1985, at which neither Ruzicka nor anyone on his behalf appeared, the trial court dismissed Ruzicka’s third-party complaint and other complaint against Phillips, struck Ruzicka’s response and answer to the third-party complaint and counterclaim of Phillips, and entered a default judgment in favor of Phillips on his counterclaim. Although there is no transcript of this proceeding in the record on appeal, the trial court’s order provided for the dissolution of the business venture of Phillips and Ruzicka known as ETP; a money judgment against Ruzicka in favor of Phillips in the amount of $136,443.72 on Phillips’ counterclaim; Ruzicka’s satisfaction of certain creditors of business venture debts in accordance with Phillips’ counterclaim; and for the payment of court costs by Ruzicka.

Ruzicka was served with a citation to discover assets in July 1986, and in August 1986, Ruzicka’s new attorney, who is his counsel for this appeal, filed a motion to vacate the July 29,1985, judgment.

On October 15, 1986, Ruzicka’s counsel filed an amended motion to vacate judgment pursuant to section 2 — 1401 of the Code of Civil Procedure (Ill. Rev. Stat. 1985, ch. 110, par. 2 — 1401) which alleged, inter alia, that Ruzicka did not have notice of the default judgment rendered against him on Phillips’ counterclaim until he received notice of the citation to discover assets, and that Ruzicka was not given the necessary time after the withdrawal of Donovan & Roberts, P.C., to file an appearance pursuant to Illinois Supreme Court Rule 13(c)(2) (87 Ill. 2d R. 13(c)(2)) and Rule 6.03 of the Rules of the Circuit Court of the Eighteenth Judicial Circuit. The motion also stated, “Although a Jury Demand was filed in this cause by MICHAEL C. PHILLIPS on January 6, 1983, it appears that this matter was not proved up before a Jury before entry of a Judgment Order in July, 1985.” The motion further alleged that Ruzicka had a valid defense as reflected in his previously filed pleadings, and that during the time that judgment was rendered against him Ruzicka was engaged in divorce litigation.

On the same day as Ruzicka’s amended petition to vacate judgment was filed, Phillips filed a motion to dismiss Ruzicka’s petition to vacate the judgment, and the trial court heard argument of counsel regarding both motions. The same trial judge who had entered the default judgment on July 29, 1985, ordered that judgment vacated, stating:

“In connection with this matter, the motion to vacate is granted on the basis of noncompliance with the local and State rules as relate to [sic] providing time -with which to secure counsel.
Any monetary loss that may have been incurred as a result of it — I do also find lack of diligence — I will consider it any petition which [Ruzicka’s counsel] may present in that regard.”

Subsequently, two motions by Phillips to reconsider the order vacating the July 29, 1985, default judgment were denied by the trial court and he appeals.

Phillips contends that the trial court erred in granting relief under section 2 — 1401 of the Code of Civil Procedure based upon noncompliance -with Supreme Court Rule 13 and local Rule 6.03 relating to withdrawal of an attorney. We agree.

Ruzicka’s motion to vacate the judgment and argument stated that he was entitled to relief under section 2 — 1401 of the Code of Civil Procedure because Supreme Court Rule 13(c)(5) and Rule 6.03 of the Rules of the Circuit Court of the Eighteenth Judicial Circuit gave him at least 21 days to file a supplemental appearance after his attorney withdrew and it was only 7 days later that the default judgment was entered against him. Phillips argues that these provisions constitute procedural rules of law which cannot be the basis for granting relief under section 2 — 1401.

It has long been held that a petition for relief from judgment pursuant to section 2 — 1401 of the Code of Civil Procedure (formerly section 72 of the Civil Practice Act) is addressed to errors of fact, not errors of law. (Jerome v. 5019-21 Quincy Street Building Corp. (1944), 385 Ill. 524, 527-28, 53 N.E.2d 444; Cooper v. United Development Co. (1984), 122 Ill. App. 3d 850, 857, 462 N.E.2d 629, appeal denied (1984), 101 Ill. 2d 563; In re Charles S. (1980), 83 Ill. App. 3d 515, 517-18, 404 N.E.2d 435, appeal denied (1980), 81 Ill. 2d 594.) Thus, the construction of a supreme court rule relating to timely service of summons was held to be a question of law not within the field of inquiry allowed by this section (Jerome v. 5019-21 Quincy Street Building Corp. (1944), 385 Ill.

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Bluebook (online)
511 N.E.2d 889, 158 Ill. App. 3d 882, 110 Ill. Dec. 712, 1987 Ill. App. LEXIS 2913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-leasing-corp-v-etp-of-chicago-inc-illappct-1987.