Kaden v. Pucinski

635 N.E.2d 468, 263 Ill. App. 3d 611, 200 Ill. Dec. 129
CourtAppellate Court of Illinois
DecidedMarch 30, 1994
Docket1—93—1236, 1—93—1243 cons.
StatusPublished
Cited by44 cases

This text of 635 N.E.2d 468 (Kaden v. Pucinski) 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
Kaden v. Pucinski, 635 N.E.2d 468, 263 Ill. App. 3d 611, 200 Ill. Dec. 129 (Ill. Ct. App. 1994).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Plaintiff and defendants have both appealed orders of the circuit court of Cook County. This court, by its own motion, consolidated both appeals.

Plaintiff appeals an order which denied her motion to stay the instant proceedings in the circuit court of Cook County due to another case based upon substantially similar issues pending before the Appellate Court, Second District, on appeal from the circuit court of Du Page County. The sole issue presented is whether the trial court abused its discretion in denying plaintiff’s motion for a stay of the Cook County proceedings.

Defendants appeal the trial court’s order, considered after plaintiff’s appeal, which denied their motion to reinstate briefing schedules on all outstanding motions and found that the interlocutory appeal by plaintiff deprived it of jurisdiction to rule on defendants’ motion.

Defendants’ appeal raises two issues: (1) whether the appellate court has jurisdiction under Supreme Court Rule 307(a)(1) (134 Ill. 2d R. 307(a)(1)) to consider the trial court’s order denying defendants’ motion to proceed with the instant case, and (2) whether the trial court loses jurisdiction to proceed to the merits of a case where an interlocutory appeal is pending on the trial court’s denial of a stay of proceedings.

As to plaintiff’s appeal, we affirm the trial court’s denial of a stay of the Cook County action and remand for further proceedings. In light of our disposition in plaintiff’s appeal, we dismiss defendants’ appeal as moot.

On March 20, 1992, plaintiff filed the underlying complaint as a class action on behalf of all taxpayers in Illinois to challenge the constitutionality of section 2 of the Fee Deposit Act (Ill. Rev. Stat. 1991, ch. 85, par. 722) and section 27.5 of the Clerks of Courts Act (Ill. Rev. Stat. 1991, ch. 25, par. 27.5). In September 1992, defendant County of Cook was granted leave to intervene as a matter of right. The complaint maintains that the funds collected pursuant to these two Acts are State rather than county funds and should be part of the General Assembly’s appropriation process.

After filing the complaint in Cook County, plaintiff filed substantially identical complaints against the county treasurers and circuit clerks of four other counties: Lake County (May 11, 1992); Will County (June 26, 1992); Winnebago County (July 1, 1992); and Du Page County (June 30, 1992). As in the Cook County case, each of these four complaints challenged the constitutionality of section 2 of the Fee Deposit Act. Unlike the Cook County case, none of the other four complaints contested the constitutionality of section 27.5 of the Clerks of Courts Act.

Subsequently plaintiff voluntarily dismissed her three complaints pending in Lake, Will and Winnebago Counties.

On October 22, 1992, plaintiff moved to voluntarily dismiss the Cook County case. To date, no action has been taken on this motion by the trial court.

On January 26,1993, the circuit court in Du Page County entered an order dismissing plaintiff’s complaint on a section 2 — 615 motion to dismiss (Ill. Rev. Stat. 1991, ch. 110, par. 2—615) brought by the defendant in that case and expressly found that "the funds in question are not State funds.” On February 5, 1993, plaintiff appealed this order to the Appellate Court, Second District. To date, plaintiff’s appeal of the Du Page County order is still pending in the second district.

On January 27,1993, plaintiff filed her motion to stay proceedings in the instant Cook County action based on the pendency of the Du Page County appeal. At an evidentiary hearing, defendants presented the testimony of Phillip W. Peloquin, who is an executive vice-president of Public Sector Group Incorporated, which serves as a financial advisor for public entities including the County of Cook. The role of financial advisor includes helping the county to develop its financial plans and to structure its debt issues, such as notes or bonds. Plaintiff questioned Peloquin’s credentials and suggested a bias based on his company’s employment as an advisor to the county on financial matters. The court observed that these matters would go to the weight of the witness’ testimony.

Peloquin testified that the case at bar calls into question about $80 million in annual revenue for the county. The impact of a judgment adverse to the county would create an $80 million deficit in the county’s budget on an annual basis. As stated by Peloquin, "this would not be a one time hit on the county’s budget; but would be a problem that would occur this year and every year for sometime in the future.” This litigation has been disclosed to the bond rating and bond insurance agencies. The continued pendency of the litigation continues to raise doubts about the county’s ability to meet its financial obligations.

Peloquin further testified that the mere pendency of the instant case could cause a drop in Cook County’s bond rating which represents the perception held by the rating agencies of the county’s ability to meet its obligations. The downgrading of a bond rating increases the interest rate paid by the county, deters potential bond investors and negatively impacts on the ability of the county to meet its long-term obligations.

Plaintiff presented no evidence or witnesses. Following the hearing, the trial court denied plaintiffs motion for a stay on April 6, 1993, and plaintiff filed a notice of appeal.

On April 8, 1993, defendants filed a motion requesting the trial court to reinstate the briefing schedules on motions previously filed by the parties to the Cook County action. Pending motions include plaintiffs motion to voluntarily dismiss, defendants’ section 2 — 615 motion to dismiss, plaintiffs motions for certification of a plaintiff class and a defendant class, and plaintiffs motion to create a special fund.

On the same day (April 8), the trial court entered an order declining to rule on defendants’ motion to reinstate briefing schedules on all outstanding motions "because the Court finds that plaintiff’s filing of the notice of Interlocutory Appeal [from the court’s denial of plaintiffs motion for a stay of proceedings] has deprived the Court of jurisdiction to rule on defendants’ motion.” Defendants’ appeal of the April 8, 1993, order is the subject of the second appeal.

The sole relevant issue in plaintiffs appeal is whether the trial court abused its discretion in denying her motion for a stay of proceedings.

Plaintiff asserts that the principles of comity, judicial efficiency and stare decisis justify the stay of the Cook County proceedings due to the appeal of the Du Page County order pending in the Appellate Court, Second District. Plaintiff also argues that there is no substantial likelihood that the mere pendency of this case, while stayed, would lead to a downgrading of Cook County’s credit rating.

Defendants contend that plaintiff failed to satisfy the burden placed on the party seeking a stay as established in Landis v. North American Co. (1936), 299 U.S. 248, 255, 81 L. Ed. 153, 158, 57 S. Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
635 N.E.2d 468, 263 Ill. App. 3d 611, 200 Ill. Dec. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaden-v-pucinski-illappct-1994.