Hirsch v. Optima, Inc.

920 N.E.2d 547, 397 Ill. App. 3d 102
CourtAppellate Court of Illinois
DecidedDecember 9, 2009
Docket1—08—1347, 1—08—1378 cons.
StatusPublished
Cited by30 cases

This text of 920 N.E.2d 547 (Hirsch v. Optima, 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
Hirsch v. Optima, Inc., 920 N.E.2d 547, 397 Ill. App. 3d 102 (Ill. Ct. App. 2009).

Opinion

PRESIDING JUSTICE MURPHY

delivered the opinion of the court:

After plaintiff, Judith Hirsch, purchased a townhouse from defendant John Kelsey in 2002, the basement flooded. On April 18, 2005, plaintiff sued Kelsey, the seller of the townhouse; Coromandel Town Home Association, the homeowner’s association; and Optima, Inc., the builder. The trial court dismissed with prejudice plaintiffs case against Optima but later granted in part plaintiffs petition under section 2—1401 of the Code of Civil Procedure (735 ILCS 5/2—1401 (West 2006)) based on newly discovered evidence. On appeal, Optima argues that the trial court erred in granting plaintiffs petition because the evidence was not new. Plaintiff cross-appeals the trial court’s partial denial of her petition.

I. BACKGROUND

Plaintiff filed a complaint and two amended complaints alleging that Optima designed and constructed the townhouse at 415 Milford Road in Deerfield, Illinois, in 1994 and 1995. In June or July 2001, when Kelsey owned the property, “there was a leakage of water in the basement through a crack in the foundation.” Kelsey notified Optima and Coromandel of the problem, and they concluded that the flooding was due to the improper design and installation of the drain-tile storm-water discharge system around the foundation of the unit. They arranged for Roto-Rooter to fix the problem and to do maintenance work on the drain-tile storm-water discharge system on a biannual basis.

Kelsey sold the property to plaintiff in 2002. None of the defendants informed plaintiff that there was a problem with the drain tiles or that the repairs were not permanent. The real property disclosure report completed by Kelsey indicated that he was not “aware of flooding or recurring leakage problems in the crawlspace or in the basement” or of “material defects in the basement in foundation (including cracks and bulges).” Furthermore, defendants cancelled the biannual servicing by Roto-Rooter on the property. In June 2003 and March 2005, plaintiffs basement flooded. The second amended complaint alleged that Optima breached the implied warranty of habitability and negligently performed a voluntary undertaking. These counts were dismissed with prejudice on December 13, 2006, for failure to state a claim.

On January 10, 2007, plaintiff filed a motion for reconsideration. In March 2007, between filing the motion and the court’s decision, plaintiff received answers to interrogatories that she had served on Kelsey. These answers provided that there was “some seepage” in the basement in 1997 and one leak in June or July 2001 and that Optima and Coromandel undertook to repair the problem on both occasions. Plaintiff did not raise Kelsey’s responses about the 1997 seepage during the proceedings on her motion for reconsideration. The hearing on plaintiffs motion occurred on May 10, 2007, and the trial court denied the motion on June 6, 2007.

On July 17, 2007, Kelsey filed a motion for leave to file an amended counterclaim against Optima and Coromandel. It alleged that in 1997, Kelsey “observed water accumulation” in the basement of the townhouse and that he contacted Optima and Coromandel, which undertook to remedy the problem. In 2000, water accumulated in another part of the basement, and Optima and Coromandel again took care of it.

Plaintiff filed a motion for leave to file a third amended complaint on August 10, 2007. The motion argued that Kelsey’s July 17, 2007, motion for leave to file an amended counterclaim raised new facts regarding the relationship among defendants, that a recently decided case affirmed the correctness of her position, and that “a motion to reconsider would be appropriate, given the discovery of new facts not previously discoverable.”

The proposed third amended complaint alleged that Kelsey informed Optima and Coromandel in 1997 that there was “a leakage of water into the basement” of the townhouse and that when Kelsey decided to sell the townhouse, Optima advised him that he did not have to disclose the history of flooding or water seepage. Thus, the proposed complaint alleged, Kelsey’s misrepresentations were made “with the knowledge and blessing” of Optima. After the flooding in 2003, Optima continued to misrepresent its prior knowledge of the defective drain-tile storm-water discharge system. In addition to breach of the warranty of habitability and negligent performance of a voluntary undertaking, which were alleged in earlier complaints, the proposed third amended complaint alleged that Optima engaged in fraudulent misrepresentation and violated the Illinois Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2006)).

On September 5, 2007, the trial court denied plaintiffs motion for leave to file the third amended complaint as to Optima. It noted that the proposed third amended complaint “does not state a new cause of action or a sufficient cause of action against Optima.” Accordingly, the court found that the order dismissing Optima with prejudice would stand. It entered a Supreme Court Rule 304(a) (210 Ill. 2d R. 304(a)) finding as to the dismissal with prejudice of plaintiff s claims against Optima and the denial of plaintiffs motion for leave to file a third amended complaint against Optima.

On October 2, 2007, plaintiff filed a notice of appeal as to the court’s September 5, 2007, order. On January 22, 2008, while her appeal was pending, plaintiff was granted leave to file a section 2—1401 petition for relief from judgment based on the discovery of new facts.

The petition cited the following: (1) Kelsey’s July 17, 2007, motion for leave to file an amended counterclaim, from which plaintiff “learned for the first time that the property had flooded as early as 1997”; (2) Kelsey’s December 21, 2007, affidavit, wherein Kelsey “for the first time admitted in a document submitted to this Court” that he called Optima and Coromandel before completing the disclosure report; and (3) records from Roto-Rooter that Kelsey filed in his December 21, 2007, response to Optima’s motion to dismiss his second amended counterclaim, showing that the company was at the townhouse at least six times between 1997 and 2002 for rodding and jetting out the drain tiles. According to the petition, the Roto-Rooter records demonstrated that Optima repeatedly misrepresented to the court its level of involvement in the maintenance of the drain-tile storm-water discharge system. In addition, plaintiff asserted that Optima’s representations in earlier pleadings that it did not enter into a maintenance agreement with Roto-Rooter until 2003 was refuted by the cited new facts. Plaintiff sought an order vacating the dismissal with prejudice of her two claims against Optima and permitting her to file the third amended complaint that the court previously would not permit her to file.

On April 30, 2008, the trial court granted the petition in part and denied it in part. The trial court found that plaintiff alleged a meritorious claim or defense as to her claim for breach of warranty.

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Bluebook (online)
920 N.E.2d 547, 397 Ill. App. 3d 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hirsch-v-optima-inc-illappct-2009.