Komala v. Soderholm

469 N.E.2d 410, 127 Ill. App. 3d 871, 82 Ill. Dec. 876, 1984 Ill. App. LEXIS 2357
CourtAppellate Court of Illinois
DecidedSeptember 27, 1984
DocketNo. 83—1761
StatusPublished
Cited by3 cases

This text of 469 N.E.2d 410 (Komala v. Soderholm) 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
Komala v. Soderholm, 469 N.E.2d 410, 127 Ill. App. 3d 871, 82 Ill. Dec. 876, 1984 Ill. App. LEXIS 2357 (Ill. Ct. App. 1984).

Opinion

JUSTICE JIGANTI

delivered the opinion of the court:

The central issue in this appeal is whether the trial court properly-entered a judgment by default against- the plaintiffs, John and Vera Komala, as a discovery sanction under Illinois Supreme Court Rule 219(c)(v) (87 Ill. 2d R. 219 (c)(v)). In 1981, the plaintiffs filed a declaratory judgment action seeking a judicial determination that Myrtle B. Soderholm, an incompetent, had the requisite mental capacity to create a number of Totten Trust accounts under which the plaintiffs were the beneficiaries. The defendant-appellee herein, La Salle National Bank (the conservator), was named as the successor conservator of Myrtle’s estate soon after the onset of the lawsuit.1 The conservator filed an answer to the plaintiffs’ complaint, alleging that Myrtle was senile and therefore incapable of creating a valid trust agreement. The conservator further set forth its own prayer for declaratory relief, requesting that the court order the plaintiffs to deliver to the conservator any property in their possession belonging to Myrtle and seeking a declaration that the plaintiffs had no legal or equitable rights in any of Myrtle’s property. The affirmative allegations in support of the conservator’s prayer for declaratory relief stated that the plaintiffs had fraudulently abused a fiduciary relationship they owed to Myrtle.

Both of the plaintiffs were deposed under oath during the course of discovery. As we shall discuss at length later in this opinion, the plaintiffs repeatedly lied during their depositions and admittedly destroyed physical evidence which the trial court had ordered them to produce. It was for these discovery violations that a judgment by default was entered against the plaintiffs. Myrtle died on February 21, 1983, over a year after the suit had been filed by the plaintiffs. On March 3, 1983, the conservator filed its motion seeking sanctions for the plaintiffs’ violations of discovery rules. The plaintiffs responded and further moved for a voluntary dismissal of their complaint, alleging that Myrtle’s death had divested the conservator of authority to request sanctions or pursue the affirmative allegations contained in its answer to the plaintiffs’ complaint.

In its order, the trial court entered judgment by default against the plaintiffs and in favor of the conservator as a discovery sanction. It further granted the conservator’s motions to dismiss the plaintiffs’ complaint with prejudice and to strike the plaintiffs’ answer to the conservator’s affirmative allegations. The plaintiffs’ motion to voluntarily dismiss their own complaint was denied. The plaintiffs now appeal.

The plaintiffs have raised two threshold matters concerning jurisdiction which we must address prior to reaching the merits: whether the trial court improperly refused to voluntarily dismiss the plaintiffs’ complaint upon their own motion and whether the court had jurisdiction to impose sanctions and consider the conservator’s affirmative allegations following the death of Myrtle. If we find that the trial court possessed jurisdiction to enter its order, we must then address the plaintiffs’ argument that the imposition of the sanction of judgment by default was an abusive exercise of the trial court’s discretion. The plaintiffs have also raised a number of peripheral matters which shall be discussed at the conclusion of this opinion.

The plaintiffs first contend that the trial court’s order is “void as a matter of law” because the court “had no jurisdiction to deny” the plaintiffs’ motion to voluntarily dismiss their own complaint. Specifically, the plaintiffs maintain that they possessed an absolute right to voluntarily dismiss their complaint prior to trial. (See GilbertHodgman, Inc. v. Chicago Thoroughbred Enterprises, Inc. (1974), 17 Ill. App. 3d 460, 308 N.E.2d 164.) However, section 2—1009 of the Illinois Code of Civil Procedure provides that “*** [a]fter a counterclaim has been pleaded by a defendant no dismissal may be had as to the defendant except by the defendant’s consent.” (Ill. Rev. Stat. 1983, ch. 110, par. 2—1009(a).) While a plaintiff generally may voluntarily dismiss his action before trial, he may dismiss the action only if the defendant consents once a counterclaim has been pleaded. (Myers v. Myers (1977), 51 Ill. App. 3d 830, 366 N.E.2d 114; In re Marriage of Hanlon (1980), 83 Ill. App. 3d 629, 404 N.E.2d 873.) In an action for declaratory judgment, an answer including a prayer for relief may be considered a counterclaim. Country Life Insurance Co. v. Goffinet (1969), 117 Ill. App. 2d 338, 254 N.E.2d 281.

In the instant action, the conservator’s prayer for declaratory relief requested that the court order the plaintiffs to deliver to the conservator any property in their possession belonging to Myrtle and sought a declaration that the plaintiffs had no legal or equitable rights in any of Myrtle’s property. The conservator’s affirmative allegations in support of its prayer for declaratory relief alleged that the plaintiffs had induced Myrtle to create the accounts through fraud and through an abuse of a fiduciary duty they owed to Myrtle. We believe that the conservator’s responsive pleadings constituted a viable counterclaim. Because the conservator did not consent to the plaintiffs’ motion to voluntarily dismiss their complaint, the trial court properly denied the motion to dismiss.

The plaintiffs nonetheless argue that the trial court had no discretion to deny their motion to voluntarily dismiss the complaint because the controversy had become moot. Specifically, the plaintiffs contend that the money in the accounts vested in them as a matter of law when Myrtle died, thus mooting any counterclaim raised by the conservator. As we understand it, the plaintiffs are asking this court to conclude that the money in the accounts became theirs upon Myrtle’s death regardless of whether it was procured by fraud or an abuse of a fiduciary relationship. We find this position untenable. The conservator’s authority to challenge the creation of the trust accounts must necessarily survive Myrtle’s death, and any irregularities in the creation of the trust consequently did not become moot once Myrtle died.

As an alternative argument on this voluntary dismissal issue, the plaintiffs maintain that the conservator had no authority to object to their motion to voluntarily dismiss. Specifically, the plaintiffs contend that the conservator could not challenge the creation of the trusts unless the money in the accounts was needed for Myrtle’s support during her lifetime. The plaintiffs consequently argue that because the money in the accounts was not needed for Myrtle’s support, the conservator could neither challenge the creation of the trusts nor object to the plaintiffs’ motion to dismiss their complaint. We disagree.

The plaintiffs cite a number of cases to the effect that a conservator may not use the funds in an already existing Totten Trust account unless the money is needed for the care and support of the ward. (See, e.g., Rozycke v. Sroka (1972), 3 Ill. App. 3d 741, 279 N.E.2d 155, Schlieper v. Rust (1977), 46 Ill. App.

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Cite This Page — Counsel Stack

Bluebook (online)
469 N.E.2d 410, 127 Ill. App. 3d 871, 82 Ill. Dec. 876, 1984 Ill. App. LEXIS 2357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/komala-v-soderholm-illappct-1984.