Kincaid v. Smith

625 N.E.2d 750, 252 Ill. App. 3d 618, 192 Ill. Dec. 595, 1993 Ill. App. LEXIS 1285
CourtAppellate Court of Illinois
DecidedAugust 20, 1993
Docket1-92-4331
StatusPublished
Cited by15 cases

This text of 625 N.E.2d 750 (Kincaid v. Smith) 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
Kincaid v. Smith, 625 N.E.2d 750, 252 Ill. App. 3d 618, 192 Ill. Dec. 595, 1993 Ill. App. LEXIS 1285 (Ill. Ct. App. 1993).

Opinion

JUSTICE MURRAY

delivered the opinion of the court:

After the trial court denied defendant Jerald W. Smith’s (Smith’s) motion to dismiss the action against him pursuant to Supreme Court Rule 103(b) (134 Ill. 2d R. 103(b)), Smith applied to this court for leave to bring a permissive interlocutory appeal pursuant to Supreme Court Rule 308 (134 Ill. 2d R. 308). On December 4, 1992, the trial court certified a question for review and, on January 5, 1993, this court granted Smith leave to appeal. The facts of this case are as follows.

On February 26, 1990, plaintiff Shirley Kincaid (Kincaid) filed a complaint against Smith, Santos Cruz (Cruz) and Zayre Illinois Corporation (Zayre), alleging false arrest and malicious prosecution based upon an incident which occurred April 5, 1989. Subsequently, Kincaid learned that Ames Department Store (Ames) had purchased Zayre just prior to the date of the incident, but that she could not amend her complaint and proceed against Ames because on April 20, 1990, Ames filed a petition for relief under chapter 11 of the United States Bankruptcy Code (the Code) (11 U.S.C. §301 (1988)). On May 25, 1990, both Ames and an attorney representing Zayre notified Kincaid’s attorney, Lonny Ben Ogus (Ogus), by letter, that a bankraptcy petition had been filed and that section 362(a) of the Code (11 U.S.C. §362(a) (1988)) provided for an automatic stay of all judicial proceedings, the violation of which could result in civil contempt.

On June 7, 1990, Ogus wrote to Ames, asking whether the automatic stay provided for under section 362(a) of the Code affected his ability to proceed against codefendants Smith and Cruz, who were being sued as employees of Ames. There is no letter of response from Ames. However, in another letter Ogus sent to Ames dated October 2, 1990, Ogus noted that, based upon discussions he had with Ames’ legal counsel, he understood Ames’ position to be that the claims against Smith and Cruz were so closely related to the claim against Ames that the stay applied to them as well. Apparently, Kincaid accepted this position to be fact and then directed her efforts toward lifting the stay.

In December 1990 Kincaid filed a motion with the United States Bankruptcy Court for the Southern District of New York to have the automatic stay lifted so that she could proceed in her civil suit. On March 28, 1991, the bankruptcy court ordered the stay lifted so that Kincaid could serve Ames with process in the action and preserve her rights. Consequently, on April 2, 1991, Kincaid amended her complaint, replacing Zayre with “Ames Department Store d/b/a Zayre, an Illinois Corporation” as party defendant and served process on Ames.

On February 8, 1991, Kincaid filed a second motion in bankruptcy court requesting a modification of the automatic stay. As a result of this motion the bankruptcy court entered an order on November 25, 1991. In this order the bankruptcy court held that, since Ames was insured under a policy issued by Argonaut Insurance, the automatic stay should be modified to allow Kincaid to liquidate her contingent claim, except that any punitive damage award would not be allowed without further order of the bankruptcy court and that the encumbrance of any of Ames’ property was prohibited.

Following this order, Kincaid sent an alias summons and amended complaint to the sheriff’s department in Dona Ana County, Las Cruces, New Mexico, to be served on Smith, who apparently had not yet been served in this matter. Smith was then served by a Dona Ana County sheriff on January 4,1992.

Although it does not appear in the record, Kincaid claims that Smith initially filed an answer to the complaint, pro se, denying the charges. In any event, on May 29, 1992, Smith, through counsel, filed a motion to dismiss the action against him pursuant to Illinois Supreme Court Rule 103(b). 134 HI. 2d R. 103(b).

Subsequently, the trial court denied Smith’s motion, stating that it was unpersuaded by any representations Ames may have made to Ogus regarding the effect of the stay on the other defendants, since an attorney may not rely upon the representations of opposing counsel on matters such as this. Nevertheless, the trial court ruled that when Ames filed for bankruptcy under chapter 11, the action against Smith was also stayed. The court based its decision on the fact that Smith was being sued in his capacity as an agent of Ames. In addition, however, the trial court stated that it believed plaintiff exercised due diligence in light of the attempts to obtain service and various communications made.

Smith filed a motion to reconsider on October 13, 1992, which the trial court denied on October 23, 1992. On December 4, 1992, the trial court granted Smith’s motion for a finding pursuant to Illinois Supreme Court Rule 308 (134 Ill. 2d R. 308) and certified for review the following question:

“Whether the filing of a petition for relief pursuant to Chapter 11 of the United States Bankruptcy Code by Ames Department Stores, Inc. operates to stay the false arrest and malicious prosecution action of Shirley Kincaid filed against co-defendant Jerald W. Smith, an employee of Ames at the time of the incident, but a non-debtor who did not file a petition for relief pursuant to the U.S. Bankruptcy Code.”

On December 18, 1992, Smith petitioned for leave to appeal to this court pursuant to Rule 308. This court granted leave on January 5,1993, and both Smith and Kincaid filed briefs.

Before considering the appeal, we must first address Smith’s motion to strike Kincaid’s brief, or parts thereof, for failure to comply with Illinois Supreme Court Rule 341. (134 Ill. 2d R. 341.) This motion was taken with the case and we now deny the motion. Although there are some unsupported elements contained within the brief, this court is capable of disregarding the inappropriate materials. See Kritzen v. Flender Corp. (1992), 226 Ill. App. 3d 541, 589 N.E.2d 909.

With regard to the appeal, it is Smith’s position that the automatic stay of all judicial proceedings imposed by section 362(a) of the Code and applicable to Ames upon its filing of a petition for bankruptcy under chapter 11 of the Code did not operate to stay the proceedings against him. Additionally, Smith argues that, contrary to the trial court’s findings, Kincaid failed to exercise reasonable diligence by failing to serve him wdth process until after the expiration of the applicable statutes of limitations. Smith concludes that, pursuant to Rule 103(b), the trial court should have dismissed the complaint against him with prejudice.

Kincaid, on the other hand, urges this court to answer the certified question on review in the affirmative and to uphold the judgment of the trial court. Kincaid asserts that Smith was not a mere codefendant in this case because Smith was an agent of Ames and, consequently, Smith’s liability was attributable to Ames. Kincaid argues that under these special circumstances, the stay affected her ability to serve and proceed against Smith.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rozsavolgyi v. The City of Aurora
2017 IL 121048 (Illinois Supreme Court, 2017)
In re: the Estate of Stahling
2013 IL App (4th) 120271 (Appellate Court of Illinois, 2013)
De Bouse v. Bayer AG
922 N.E.2d 309 (Illinois Supreme Court, 2009)
People v. Niezgoda
786 N.E.2d 256 (Appellate Court of Illinois, 2003)
Klak v. Skellion
741 N.E.2d 288 (Appellate Court of Illinois, 2000)
Teverbaugh Ex Rel. Duncan v. Moore
724 N.E.2d 225 (Appellate Court of Illinois, 2000)
Teverbaugh v. Moore
Appellate Court of Illinois, 2000
Meusel v. Ballard
296 Ill. App. 3d 377 (Appellate Court of Illinois, 1998)
Lanxon v. Magnus
694 N.E.2d 610 (Appellate Court of Illinois, 1998)
Brazas v. Ramsey
Appellate Court of Illinois, 1997
Dowd & Dowd, Ltd. v. Gleason
Appellate Court of Illinois, 1996
Dowd and Dowd, Ltd. v. Gleason
672 N.E.2d 854 (Appellate Court of Illinois, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
625 N.E.2d 750, 252 Ill. App. 3d 618, 192 Ill. Dec. 595, 1993 Ill. App. LEXIS 1285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kincaid-v-smith-illappct-1993.