Humilis, LLC v. Wright Tree Service Inc.

2022 IL App (1st) 200823-U
Appellate Court of Illinois·Decided August 17, 2022·No. 1-20-0823·Unpublished

Opinion

2022 IL App (1st) 200823-U

THIRD DIVISION

August 17, 2022

No. 1-20-0823

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

HUMILIS, LLC, )

) Appeal from the

Plaintiff-Appellee, ) Circuit Court of ) Cook County

v. )

) 16 L 66070

WRIGHT TREE SERVICE INC., a Domestic ) Corporation, ) Honorable ) Thomas J. Condon

Defendant-Appellant. ) Judge Presiding )

JUSTICE ELLIS delivered the judgment of the court.

Justices McBride and Burke concurred in the judgement.

ORDER

¶1 Held: Reversed and remanded with instructions. Court erred in denying 2-1401 petition challenging default judgment as void for lack of personal jurisdiction. Remanded with instructions to vacate default judgment and dismiss case for lack of personal jurisdiction.

¶2 Wright Tree Service Inc. (WTS) appeals from the court’s denial of its Section 2-1401 petition, which challenged a default judgment that plaintiff, Humilis, LLC obtained. WTS’s petition challenged the judgment as void, as it was not subject to either general or specific personal jurisdiction within Illinois.

¶3 Without conducting an evidentiary hearing, the court concluded that “That there was enough contacts between Wright Tree Service, Inc and Plaintiff Humilis LLC to support

jurisdiction under the Illinois Long Arm statute.” For the following reasons, we reverse and remand with instructions.

¶4 BACKGROUND

¶5 WTS is an Iowa corporation that performs tree-cutting services in more than 40 states, including Illinois. Humilis is an Illinois limited liability company that owns property in Benton Harbor, Michigan. In the summer of 2016, WTS performed tree-cutting work for the holder of an easement on Humilis’s Benton Harbor property. WTS tells us the easement holder is American Electric Power, presumably with an easement to run power lines or something of that nature. Humilis does not dispute as much, but neither the identity of the easement holder nor the scope of the easement is of consequence. The important points are that WTS contracted with and performed this work for the easement holder; Humilis alleges that WTS left the easement in poor condition post-work; and Humilis alleges that WTS promised Humilis that it would return the property to good condition post-work but did not.

¶6 In December 2016, Humilis filed a two-count lawsuit in the circuit court of Cook County against WTS, claiming that WTS left the easement property in poor condition after the tree- cutting work and did not remediate the damage. The lawsuit alleged (incorrectly) that WTS was a “domestic corporation.”

¶7 In count 1 of Humilis’s complaint against WTS, sounding in “negligence,” Humilis alleges that it “allowed” WTS to perform the tree-cutting work on the easement “with the understanding and promise to return the Premises to a condition that was substantially the same as it was prior to [WTS’s] entry onto said Premises.” Count 1 alleges that WTS left the property damaged and did not repair that damage.

¶8 Count 2 is labeled “breach of oral contract.” In that count, Humilis re-alleges that WTS performed the work and left the easement property in damaged condition. Count 2 adds that, “on or about August 21, 2016 and several times thereafter, [WTS] orally promised [Humilis] to return the premises to the same or substantially the same condition.” Count 2 then alleges that WTS did not keep that promise, leaving the property in disrepair.

¶9 After service of process, the court entered a default judgment against WTS in March 2017. However, shortly thereafter, in April, a different judge ordered that “default judgment order entered on 3/1/17 is vacated on question of jurisdiction. Plaintiff to advise court on proper jurisdiction of case + bring a new mtn for default.”

¶ 10 As of January 2018, there had been no substantive activity on the case and the circuit court dismissed it for want of prosecution. That August, a third judge vacated “the DWP entered on 1/16/18.” Between April 2017 and August 2018, there is no indication in the record that Humilis provided the proof requested by the court in April 2017. Nonetheless, the August order also reinstated the default against WTS and set the matter for prove-up.

¶ 11 Finally, in May 2019, a fourth judge (the judge under review), issued the following order: “based upon sworn testimony and evidence presented in open court, judgement is hereby entered in favor of Humilis LLC and against Defendant Wright Tree Service, A Domestic Corporation in the amount of $250,000.00.”

¶ 12 Based on this default judgment, Humilis issued a citation to discover assets in November 2019. Less than two weeks after the citation issued, WTS’s counsel entered a limited appearance for the purpose of contesting personal jurisdiction. Contemporaneous with this appearance, WTS filed a petition pursuant to section 2-1401 of the Code of Civil Procedure, challenging the default judgment as void for lack of personal jurisdiction. See 735 ILCS 5/2-1401 (West 2018).

¶ 13 In support of the petition, WTS filed the affidavit of its general counsel, Austin Kennedy. In it, Kennedy swore that WTS is an Iowa corporation that does business in 40 states. It has 4200 employees and does more than $350 million in business annually. Of that, 300 employees (7%) are located in Illinois, and approximately $31 million in revenue (8.85%) comes from Illinois. The company also owns a single property in Bartonville, IL. Despite Humilis referring to WTS in its complaint as a domestic corporation, “Wright Tree Service, Inc. is not currently and never has been registered as an Illinois domestic corporation with the Illinois Secretary of State. Wright Tree Service, Inc. has never held itself out to be an Illinois domestic corporation.”

¶ 14 The court ordered briefing. In response, Humilis provided the affidavit of Steven Armbruster, an attorney with Vrdolyak Law Group, LLC, who negotiated the “oral contract” with WTS. Armbruster claimed that he spoke with “a representative of [WTS], several times between January and August 2016.” In those calls, the representative “made a series of promises concerning property owned by [Humilis], an Illinois limited liability company.” “During each of those conversations, I was in Illinois. I did not represent to [WTS] that I was anywhere else, and the phone number I used reflected an Illinois area code. Additionally, there were numerous times that I left voicemails indicating that I was calling from The Vrdolyak’s office in Chicago.”

¶ 15 After supplemental briefing, the court held oral arguments on the petition in June 2020. During oral argument, Humilis submitted three additional documents for the court’s review, which are included in the supplemental record. One was a letter from August 2019, merely informing WTS of the default judgment and enclosing a copy of the judgment.

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