Johnson-Olson Floor Coverings, Inc. v. Branthaver

236 N.E.2d 903, 94 Ill. App. 2d 394, 1968 Ill. App. LEXIS 1073
CourtAppellate Court of Illinois
DecidedMay 9, 1968
DocketGen. 67-118
StatusPublished
Cited by33 cases

This text of 236 N.E.2d 903 (Johnson-Olson Floor Coverings, Inc. v. Branthaver) 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
Johnson-Olson Floor Coverings, Inc. v. Branthaver, 236 N.E.2d 903, 94 Ill. App. 2d 394, 1968 Ill. App. LEXIS 1073 (Ill. Ct. App. 1968).

Opinion

MR. JUSTICE SEIDENFELD

delivered the opinion of the court.

Plaintiff sued defendant to recover the balance due for merchandise sold. Thirty days after a default judgment was entered, defendant was served with a citation and six days later filed a motion to open up the judgment and for leave to plead. Defendant appeals from the order denying his motion.

Consideration of the following facts and circumstances in the record impels this court to affirm.

On August 30, 1966, the plaintiff filed his unverified complaint, alleging an open account and praying for judgment against the defendant in the amount of $432.33. On the next day, and apparently without knowledge of this suit, the defendant filed a voluntary petition in bankruptcy in the United States District Court for the Northern District of Illinois. The bankruptcy petition named the plaintiff as a creditor, but there is nothing in the record to indicate that plaintiff received a restraining order from the federal court forbidding him from pursuing his claim against the defendant. The defendant was served with summons herein on September 8, 1966, but failed to file an appearance, answer or any other pleading within the time permitted by law. On January 5, 1967, defendant’s debts were discharged in bankruptcy. On the following April 19, however, on plaintiff’s motion and without proofs, the trial court entered judgment in favor of the plaintiff and against the defendant in the amount prayed.

On May 19, the thirtieth day after entry of the default judgment, plaintiff filed a citation to discover assets. When the citation was served upon defendant on May 25, it was the first notice he received that the judgment had been entered. On June 5, defendant filed his motion and supporting affidavit under section 72 of the Civil Practice Act (Ill Rev Stats, c 110, § 72), asking that the judgment be vacated and that he be given leave to file his answer.

Essentially, defendant’s affidavit set forth the foregoing facts, and averred further that defendant “was under a misapprehension that his pending bankruptcy relieved him of the responsibility of responding to a suit in state court and, therefore, he did not consult an attorney, file an answer or otherwise enter his appearance in the matter.” The plaintiff did not file a response to defendant’s motion and affidavit, leaving the allegations therein unchallenged. The trial court denied defendant’s section 72 motion to vacate the judgment order, whereupon defendant filed this appeal.

It is defendant’s contention that he was free from negligence and that the bankruptcy proceedings furnished him with a meritorious defense. He further contends that principles of “substantial justice” dictate that the judgment order be set aside.

It is well settled that a determination under section 72 invokes the equitable powers of the court, as justice and fairness require. See, e. g., Elfman v. Evanston Bus Co., 27 Ill2d 609, 613, 615, 190 NE2d 348 (1963). Although this section is not intended to relieve a party “from the consequences of his own mistake or negligence” Ulrich v. Glyptis, 79 Ill App2d 447, 454, 224 NE 2d 581 (1967), relief thereunder will be granted where the defendant shows a reasonable excuse for failure to act within the appropriate time, together with a statement of ultimate facts showing a meritorious defense. See, e. g., Stoller v. Holdren, 47 Ill App2d 81, 82, 83, 197 NE2d 492 (1964).

It is this court’s opinion that the defendant has not met the burden of section 72, and that the trial court properly refused to set aside its judgment order. Several factors lead to this conclusion.

Passing momentarily the question as to whether the defendant had a meritorious defense at the appropriate time, we shall first consider whether the defendant acted diligently as contemplated by section 72.

There is, to be sure, some confusion as to the standard of conduct required of a defendant under section 72. It is quite clear, however, that the defendant must show that his failure to defend was a result of excusable mistake, and that under the circumstances he acted reasonably, and therefore not negligently, when he failed to initially resist the judgment. Boyle v. Veterans Hauling Line, 29 Ill App2d 235, 172 NE2d 512 (1961).

While the question of the defendant’s negligence must be determined on the facts of each particular case, the decisions dealing with the question imply that the defendant’s neglect is not excusable where he ignores the summons, or otherwise treats the proceedings with indifference. Thus, in Busser v. Noble, 8 Ill App2d 268, 283, 131 NE2d 637 (1956), the court made the following observation:

“In the instant case defendant paid attention to this summons. He did not treat it with indifference. He did just what the ordinary individual would do. He delivered it to the agent of his insurance carrier. He thereafter made repeated inquiries concerning it and was assured his interests would be taken care of. His conduct was not inexcusable.” (Emphasis added.)

In Dalton v. Alexander, 10 Ill App2d 273, 288, 135 NE 2d 101 (1956), it was likewise noted that the defendant “did not ignore the summons.” See also Widicus v. Southwestern Elec. Cooperative, Inc., 26 Ill App2d 102, 110, 167 NE2d 799 (1960), where the court observed that “the defendant did not treat the court’s command nor plaintiff’s claim with indifference.” While these cases involved the question of setting aside default judgments within a thirty-day period and not under section 72 as here, the allusions to the issue of excusable neglect in the defense of a case are addressed to the same equitable powers of the court.

Defendant has cited no case, and we know of none, where a defendant was granted relief under section 72 after ignoring the proceedings on his own initiative. In each case where the judgment had been set aside, the defendant had taken some action, albeit insufficient, in response to the summons. In the leading case of Ellman v. De Ruiter, 412 Ill 285, 106 NE2d 350 (1952), the defendant immediately forwarded the summons to the law firm that was to represent him, and the firm’s docket clerk inadvertently showed a wrong return day, thereby allowing a default judgment to be entered. Later decisions have held that defendants may be guilty of only excusable neglect where they refer the summons to their attorneys or insurance carriers who in turn fail to defend. Boyle v. Veterans Hauling Line, (supra); Busser v. Noble, (supra).

True, some of the decisions tend to suggest that the defendant must show diligence in pursuing his rights after entry of the judgment in question, but a closer reading of these opinions reveals that in such cases the defendants were found not to have been inexcusably negligent in permitting the judgment in the first place, and in none of these cases had the defendant ignored the summons without consulting with either his attorney or insurer. In Skivington v. Lehman, 36 Ill App2d 479, 484, 184 NE2d 785 (1962), for example, the defendant had been represented in the proceedings by an attorney who withdrew and was replaced by another attorney who was seriously ill. When no one appeared on behalf of the defendant at the trial, plaintiff withdrew his jury demand without notice and received an ex parte judgment.

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236 N.E.2d 903, 94 Ill. App. 2d 394, 1968 Ill. App. LEXIS 1073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-olson-floor-coverings-inc-v-branthaver-illappct-1968.