Gold v. Rader

559 N.E.2d 210, 201 Ill. App. 3d 775, 147 Ill. Dec. 210, 1990 Ill. App. LEXIS 1111
CourtAppellate Court of Illinois
DecidedJuly 27, 1990
Docket1-89-1301, 1-89-1768 cons.
StatusPublished
Cited by7 cases

This text of 559 N.E.2d 210 (Gold v. Rader) 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
Gold v. Rader, 559 N.E.2d 210, 201 Ill. App. 3d 775, 147 Ill. Dec. 210, 1990 Ill. App. LEXIS 1111 (Ill. Ct. App. 1990).

Opinion

JUSTICE EGAN

delivered the opinion of the court:

In 1981, the plaintiff, Phillip Gold (Gold), and the defendant, John Rader (Rader), entered into a joint venture agreement involving the ownership and management of an office building. In 1982, the parties entered into a dissolution agreement. The dissolution failed to come about and, in January 1985, Gold retained a law firm (Firm) to represent him in the dispute regarding the dissolution agreement and the property. A senior attorney (Partner) was in charge of the case, but other attorneys from the Firm, including at least one other partner, worked on the case. In August 1986, Gold, by the Firm, filed a complaint against Rader for partition and other relief. In June 1987, Rader filed a motion to strike and dismiss Gold’s then-amended three-count complaint. The partner told Gold about the motion to strike and dismiss, and the firm filed a response to Rader’s motion in October 1987. Gold continued to communicate with the Firm through the first quarter of 1988. Thereafter, however, Gold did not hear from his attorneys, and he assumed that this indicated a lack of material developments in his case.

Following a May 20, 1988, status call at which no one appeared for Gold, the court set a July 8, 1988, pretrial conference and required the appearances of Rader and Gold personally and their counsel. By a letter dated May 20, Rader’s attorney notified the Partner of this order. On July 3, 1988, Rader filed a pretrial memorandum and on July 6, 1988, sent by messenger a copy of the pretrial memorandum to the Partner with a cover letter notifying him of the July 8 conference.

On July 8, 1988, neither Gold nor his attorney appeared at the conference. The court set the case for July 18, 1988, for the purpose of setting a trial date and further ordered that, if Gold failed to appear in court at that time, the court would dismiss his amended complaint with prejudice, and declare Gold in default for his failure to answer or otherwise plead to Rader’s affirmative defenses and counterclaim, and hear instanter a prove up of Rader’s affirmative defenses and counterclaim. By a letter dated July 8, 1988, which was sent by certified mail, Rader’s attorney sent a copy of this order to the Partner, which was delivered July 11,1988.

Neither Gold nor his counsel appeared before the court on July 18, 1988.' Rader submitted his affidavit setting forth the parties’ interests in the property and the value of that property and asked the court to fix Gold’s interest and permit Rader to purchase that interest for $103,357.16. In his judgment order of July 18, 1988, the judge ordered Gold in default, dismissed his complaint with prejudice, found Rader’s counterclaim confessed against Gold and ordered that the joint venture be terminated by way of sale of Gold’s interest in the joint venture to Rader for $103,357.16. Gold’s attorney was sent by certified mail a copy of the July 18 default judgment which was delivered on July 21, 1988.

After July 18, according to Gold’s affidavit which he later filed in his motion to vacate the default judgment, Rader continued to send to Gold notices for arrearages that had been credited against amounts due to Gold in the judgment order of that date. Rader, however, indicated in his counteraffidavit that any such notices were computer-generated rent statements and that after July 18, 1988, Rader never attempted to collect arrearages that were credited in the judgment.

In the fall of 1988, Gold left several telephone messages for the Partner that were not returned. Thereafter, Gold spoke with another partner at the Firm, who indicated that he would ascertain the status of the case and telephone Gold; however, he did not call back.

According to Gold’s affidavit, Gold and Rader maintained separate offices in the subject office building. Also, Gold and Rader “met and spoke” at a meeting of the board of directors of an unrelated corporation, “but nothing was said concerning the lawsuit.” At no time did Rader inform Gold of the default judgment. Rader stated in his affidavit that there had been acrimony between them and that Rader preferred that all communications be made through their attorneys. Moreover, although Rader admitted that he spoke with Gold at a board meeting, he indicated that all the discussions involved the unrelated corporation and that the discussions were in the presence of other directors and were not private.

On September 21, 1988, by certified mail, Rader’s attorneys sent the Partner a notice of tender of payment, indicating that on October 5, 1988, payment of the sum would occur at the offices of Rader’s attorneys and requesting a response from Gold within seven days. This notice was delivered on September 22, 1988. Gold and his attorneys failed to respond to this notice. On September 30, 1988, Rader’s attorneys mailed notice by certified mail to the Partner of a motion set for October 11, 1988, for leave to deposit funds with the clerk of the court and for judicial assignment of Gold’s interest. This notice was received by the Firm on October 4, 1988.

On October 11, 1988, the judge granted Rader leave to deposit the funds with the court clerk and ordered that, upon such deposit, the court would execute a judicial assignment of Gold’s interest. Notice of this order was sent by certified mail to the Partner on October 12, 1988, and received by the Firm on October 14.

On November 30, 1988, after being unable to contact the Partner and after the other partner with whom he had spoken failed to return his call, Gold personally reviewed the court file for his suit and first learned of the judgment against him. Thereafter, he learned that the Partner allegedly suffered from alcoholism and that a disciplinary hearing was proceeding against the Partner. Gold hired a new firm, Altheimer & Gray, which filed a section 2 — 1401 (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 1401) petition to vacate the default judgment on January 18, 1989. The petition, which sought to vacate the default judgment, included an affidavit of Gold indicating that Gold had a 50%, rather than a 331/3%, interest in the property and included as support therefor several Federal income tax forms detailing the partners’ interests in the joint venture.

On April 20, 1989, the judge entered an order denying the petition to vacate the default judgment. The judge found that Gold’s petition sufficiently established a meritorious defense to shift the burden on that element to Rader and asked Gold’s counsel to concentrate on the due diligence element. That counsel stated, “I’m not going to try to defend *** the conduct of Mr. Gold’s prior attorneys in this case. I simply don’t think I can *** in good faith before your Honor. *** But I do believe that Mr. Gold has acted with due diligence throughout this matter”; he cited Gold’s experience with the Partner prior to the failures to appear and Gold’s efforts to check on the progress of his case.

The judge found that Gold personally acted with due diligence in presenting the petition to the court after learning of the judgment, but noted that a litigant has a duty to follow the progress of his own case. The judge held that Gold failed to establish due diligence before the judgment was entered, given the conduct of his attorney, whom Gold chose, and his attorney’s firm, and denied the section 2 — 1401 petition.

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

Related

Fiallo v. Lee
826 N.E.2d 936 (Appellate Court of Illinois, 2005)
Advance Iron Works, Inc. v. ECD Lincolnshire Theater, L.L.C.
791 N.E.2d 631 (Appellate Court of Illinois, 2003)
Ames v. Sayler
642 N.E.2d 1340 (Appellate Court of Illinois, 1994)
Raichand v. National Republic Bank
637 N.E.2d 1158 (Appellate Court of Illinois, 1994)
Mitchell v. Atwood Enterprises, Inc.
624 N.E.2d 878 (Appellate Court of Illinois, 1993)
Mt. Zion State Bank & Trust v. Weaver
589 N.E.2d 983 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
559 N.E.2d 210, 201 Ill. App. 3d 775, 147 Ill. Dec. 210, 1990 Ill. App. LEXIS 1111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gold-v-rader-illappct-1990.