Heim v. Herrick

800 N.E.2d 1244, 344 Ill. App. 3d 810
CourtAppellate Court of Illinois
DecidedDecember 5, 2003
Docket4-03-0678 Rel
StatusPublished

This text of 800 N.E.2d 1244 (Heim v. Herrick) 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
Heim v. Herrick, 800 N.E.2d 1244, 344 Ill. App. 3d 810 (Ill. Ct. App. 2003).

Opinion

JUSTICE APPLETON

delivered the opinion of the court:

Plaintiffs sued defendants, Eagle Food Centers, Inc., doing business as Eagle Food Center, No. 297 (Eagle), and CTK, Inc., doing business as the Northender (CTK), under the Liquor Control Act of 1934 (Dramshop Act) (235 ILCS 5/6 — 21(a) (West 2000)). While discovery was still under way, Eagle filed, in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, a voluntary petition for relief under chapter 11 of the Bankruptcy Code (11 U.S.C. §§ 101 through 1330 (2000)). In re Eagle Food Centers, Inc., No. 03 — 15299 (PSH). The filing of the bankruptcy petition automatically stayed all civil litigation against Eagle, including the present action. See 11 U.S.C. § 362(a)(1) (2000). CTK moved that the trial court stay further proceedings against it as well, to avoid the sole exposure to liability, if any. The trial court denied the motion, and CTK appeals, arguing that the ruling was an abuse of discretion. We affirm.

I. BACKGROUND

In their first-amended complaint, which they filed on April 24, 2001, plaintiffs allege that on May 16, 2000, Justin Herrick was driving his Jeep Grand Cherokee in Decatur while intoxicated with liquor he had bought from Eagle and CTK. He rear-ended a car, causing it to veer off the road and strike three pedestrians on a sidewalk. Two of the pedestrians, Julie Heim and Patricia O’Connell, survived their injuries; the other pedestrian, Sharlis Helphinstine, did not. Plaintiffs are Julie and Patricia and their husbands, as well as Nancy Clapp, representative of the estates of Sharlis and her late husband, John Helphinstine. Plaintiffs first named both Eagle and CTK as defendants in the first-amended complaint.

Plaintiffs became aware of Eagle’s and CTK’s potentiál liability by taking Herrick’s discovery deposition on April 6, 2001. He testified that on May 16, 2000, he bought a six-pack of beer from Eagle and began drinking it on an empty stomach. Later, when he bought miniature bottles of rum and a 40-ounce bottle of beer from CTK, he was already drunk from the beer he had bought from Eagle. After drinking two or three of the miniature rums and opening the 40-ounce bottle of beer, he rear-ended the car.

On April 24, 2003, two years after the filing of the first-amended complaint, “after [(as CTK says)] written and limited oral discovery had taken place,” Eagle filed a notice of automatic stay based on its having filed a chapter 11 bankruptcy petition on April 7, 2003.

In its “Motion to Stay Proceedings Against CTK, Inc.,” filed on June 20, 2003, CTK states:

“It is unknown *** whether [p]laintiffs have petitioned *** the federal bankruptcy court for a lift of the automatic stay [of] proceedings directed against Eagle. Until the stay is lifted and/or [sic] a determination is made by the bankruptcy court as to whether [plaintiffs’ claims against Eagle fall within or without the purview of the automatic stay ***, [plaintiffs’ claim alleging [dramshop] liability against CTK, Inc.[,] should and must similarly be stayed.”

On July 18, 2003, the trial court entered a docket order stating as follows:

“1. These proceedings have been stayed until further order of the [c]ourt as to the [defendant, Eagle Foods, because Eagle Foods has filed [for] bankruptcy and an automatic stay is in effect.
2. The [defendant, CTK, has [moved] *** to stay the cause as to [CTK] because of the cause being stayed against Eagle Foods.
3. This is not the first time since the filing of this case that Eagle Foods has been in bankruptcy.-
4. *** [Potential harm *** might be imposed on the [p]laintiffs if they are riot allowed to proceed against CTK.
5. CTK has failed to show clear and convincing circumstances [sic] that outweigh the potential harm to the [p]laintiff[s].
It shall be the [o]rder of the [c]ourt as follows:
A. The [‘]Motion to Stay Proceedings Against CTK[’] is denied.
B. CTK’s request that the court allow [it] to conduct discovery as to Eagle Foods is denied since that may be considered a violation of [the] bankruptcy stay.”

This appeal followed.

II. ANALYSIS

When a party appeals the trial court’s denial of a motion to stay a lawsuit, we will regard the ruling as a denial of a request for a preliminary injunction (Allied Contracting Co. v. Bennett, 110 Ill. App. 3d 310, 311, 442 N.E.2d 326, 327 (1982)), a type of interlocutory order that is appealable as of right (Official Reports Advance Sheet No. 5 (March 5, 2003), R. 307(a)(1), eff. January 1, 2003). If granting the stay might harm plaintiffs, CTK had to prove, by clear and convincing evidence, that denying the stay would inflict upon CTK an injustice and hardship greater than any potential harm to plaintiffs. See Zurich Insurance Co. v. Raymark Industries, Inc., 213 Ill. App. 3d 591, 595, 572 N.E.2d 1119, 1123 (1991). It was the trial court’s prerogative to decide whether CTK had carried that burden, and we review the trial court’s decision for an abuse of discretion. See Zurich Insurance Co., 213 Ill. App. 3d at 594, 572 N.E.2d at 1122. Because the standard of review is deferential, our mere disagreement with the trial court is not grounds for reversal. See Zurich Insurance Co., 213 Ill. App. 3d at 594-95, 572 N.E.2d at 1122. Instead, we ask “whether the [trial] court ‘acted arbitrarily without the employment of conscientious judgment or, in view of all the circumstances, exceeded the bounds of reason and ignored recognized principles of law so that substantial prejudice resulted.’ ” Zurich Insurance Co., 213 Ill. App. 3d at 595, 572 N.E.2d at 1122, quoting In re Marriage of And, 142 Ill. App. 3d 320, 326, 491 N.E.2d 894, 898 (1986).

The trial court found that a stay would cause “potential harm” to plaintiffs. That finding is not unreasonable. CTK itself states in its brief: “[T]he *** accident resulted in significant injuries to Julie Heim and Patricia O’Connell, as well as resulting in the death of Sharlis Helphinstine.” According to the first-amended complaint, all three pedestrians incurred medical expenses, which, one might infer, were substantial since the injuries were severe. The longer those and other damages remain unpaid, the greater the prejudice to plaintiffs.

CTK argues it would be clearly unjust to allow plaintiffs to proceed against CTK alone under the Dramshop Act.

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Related

Darguzas v. Robinson
515 N.E.2d 451 (Appellate Court of Illinois, 1987)
Allied Contracting Co. v. Bennett
442 N.E.2d 326 (Appellate Court of Illinois, 1982)
Zurich Insurance v. Raymark Industries, Inc.
572 N.E.2d 1119 (Appellate Court of Illinois, 1991)
Jodelis v. Harris
517 N.E.2d 1055 (Illinois Supreme Court, 1987)
In Re Marriage of Aud
491 N.E.2d 894 (Appellate Court of Illinois, 1986)

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Bluebook (online)
800 N.E.2d 1244, 344 Ill. App. 3d 810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heim-v-herrick-illappct-2003.