Krautsack v. Anderson

861 N.E.2d 633, 223 Ill. 2d 541, 308 Ill. Dec. 302, 2006 Ill. LEXIS 1676
Illinois Supreme Court·Decided December 21, 2006·No. 101718·Published·Cited by 179 cases

Opinions

JUSTICE FITZGERALD

delivered the judgment of the court, with opinion.

Chief Justice Thomas and Justices Freeman, Kilbride, and Garman concurred in the judgment and opinion.

Justice Karmeier dissented, with opinion.

Justice Burke took no part in the decision.

OPINION

Plaintiff, Richard G. Krautsack, brought an action in the circuit court of Cook County against defendants, Luxury Adventures, Ltd. (Luxury), a California corporation, and David Anderson, Luxury’s president and sole shareholder, for breach of contract and violations of the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act or Act) (815 ILCS 505/1 et seq. (West 2004)). Defendants prevailed at trial and subsequently filed a petition seeking attorney fees and costs pursuant to section 10a(c) of the Act (815 ILCS 505/ 10a(c) (West 2004)) and Supreme Court Rule 137 (155 Ill. 2d R. 137). The trial court granted plaintiffs motion to strike defendants’ fee petition. Both parties appealed. The appellate court affirmed the trial court’s judgment in favor of defendants on plaintiffs complaint, and affirmed the trial court’s order striking defendants’ fee petition. No. 1 — 04—2135 (unpublished order under Supreme Court Rule 23) (Krautsack II). We allowed defendants’ petition for leave to appeal and now affirm the judgment of the appellate court.

BACKGROUND

On January 9, 1998, plaintiff and three family members embarked on a two-week, $38,000 safari to East Africa arranged by Luxury. Although the trip was scheduled during what would ordinarily be the dry season, plaintiffs safari experience was marred by heavy rainfall reportedly due to the phenomenon known as “El Nino.” Upon return from East Africa, plaintiff contacted Anderson and requested a cash refund, which Anderson declined. The parties were unable to resolve their dispute and on September 1, 1998, plaintiff filed suit against Anderson, seeking a full refund, attorney fees and costs, and punitive damages. Plaintiff later amended the complaint to add Luxury as a defendant.

Count I of the amended complaint alleged a violation of the Consumer Fraud Act by Anderson. Plaintiff alleged that shortly before leaving on safari, he obtained information that the countries on the tour were experiencing heavy rainfall. Plaintiff contacted Luxury and “was assured by Anderson that the information he had received was incorrect and that the tour would neither be disrupted nor made more difficult because of the rain.” Plaintiff claimed these representations were false and were made in an effort to convince plaintiff not to postpone the tour. Count II of the amended complaint alleged that Luxury, as Anderson’s employer, was liable for his fraudulent conduct under the doctrine of respondeat superior. Finally, count III of the amended complaint alleged that Luxury breached its contract with plaintiff “because certain of the designated tour sites could not be visited, and certain other sites could only be reached with great difficulty.”

Defendants moved for summary judgment. Briefly, defendants argued that Anderson’s statements regarding the weather in Africa were not actionable under the Consumer Fraud Act, but even if those statements were deceptive, they did not proximately cause plaintiff any injury. According to defendants, the statements were made shortly before the planned departure date and, under the parties’ contract, plaintiff could not have cancelled the safari without forfeiting the entire cost of the trip. Defendants also argued that plaintiff signed a contract clearly stating that Luxury was not liable for acts of God or the weather. Finally, defendants claimed entitlement to a reasonable attorney fee under section 10a(c) of the Act.

In response, plaintiff argued that material issues of fact regarding the communications between the parties, the cancellation and refund provisions of the parties’ contract, and other relevant matters precluded summary judgment. Plaintiff also refined his theory of recovery under the Consumer Fraud Act. Although plaintiff still maintained that defendant Anderson deceived plaintiff when he stated that the weather in Africa would not adversely affect the safari, plaintiff now argued that, based on the record generated in discovery, Anderson had a financial motive for deceiving him and acted out of “greed and avarice.” According to plaintiff:

“When [plaintiff] asked for Anderson’s recommendation, Anderson found himself in a bind because Anderson had already paid his African suppliers in advance for [plaintiffs] trip, and if [plaintiff] postponed, Anderson would lose all of that money. *** [I]nstead of being truthful with [plaintiff], Anderson lied to him, recommended to plaintiff that he leave for Africa on January 9, but not revealing that the reason for his recommendation was that he did not want to lose money.
* * *
Anderson’s misrepresentation to [plaintiff] and his withholding from [plaintiff] the true basis of his recommendation, is actionable because [plaintiff] would clearly have acted differently had he known the truth, instead of being deceived by Anderson.”
The trial court granted defendants summary judgment on all three counts of the amended complaint. With respect to the consumer fraud counts, the trial court stated in relevant part:
“Although [defendants’ actions may have been motivated by self interest, as they had already forwarded certain non-refundable sums to their African suppliers, [defendants cannot predict the weather in such a harsh tropical environment. Defendants are clear that their representations about the weather and its effects on their clients’ transportation were based purely on their personal experiences as well as those of their contacts in the region. There is no possible way that these statements could be viewed as fraudulent and deceptive. It would be against public policy to hold one Hable for acts of God. The choice was left to [pjlaintiff to cancel the trip — he chose not to. Therefore, the Court finds that there is no question of fact that [djefendants did not engage in any deceptive act or practice in this case.”

With respect to the contract count, the trial court ruled that no evidence was introduced that Luxury had a contractual duty to recommend that plaintiff postpone his trip, and the evidence that was presented indicated that Luxury satisfied all of its contractual obligations. The trial court also noted that damages did not result directly from Luxury’s action, but were the direct result of inclement weather, “something obviously outside of Luxury’s control.” The trial court concluded: “The facts are clear that Luxury used its best efforts to book a trip for [pjlaintiff during the dry season and there have been no facts presented by [pjlaintiff to contradict this.”

Defendants thereafter filed an amended petition for attorney fees under section 10a(c) of the Consumer Fraud Act. Section 10a(c) states that a court “may award *** reasonable attorney’s fees and costs to the prevailing party.” 815 ILCS 505/10a(c) (West 2004).

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Krautsack v. Anderson, 861 N.E.2d 633, 223 Ill. 2d 541, 308 Ill. Dec. 302, 2006 Ill. LEXIS 1676 (Ill. 2006).

861 N.E.2d 633 (Krautsack v. Anderson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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