Labate v. Data Forms, Inc.

682 N.E.2d 91, 288 Ill. App. 3d 738, 224 Ill. Dec. 530, 1997 Ill. App. LEXIS 308
CourtAppellate Court of Illinois
DecidedMay 22, 1997
Docket1-96-2668
StatusPublished
Cited by22 cases

This text of 682 N.E.2d 91 (Labate v. Data Forms, Inc.) 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
Labate v. Data Forms, Inc., 682 N.E.2d 91, 288 Ill. App. 3d 738, 224 Ill. Dec. 530, 1997 Ill. App. LEXIS 308 (Ill. Ct. App. 1997).

Opinion

PRESIDING JUSTICE WOLFSON

delivered the opinion of the court:

After being found liable by a jury, can a defendant challenge the sufficiency of the plaintiffs complaint? Ordinarily, no. On occasion, yes. In this case, where the plaintiff claimed tortious interference with his business expectation with a third party, the answer is no.

FACTS

Plaintiff Charles Labate (Labate) alleged that his application for a purchase money mortgage was denied because Charles Thomas (Thomas), president of Data Forms, refused to verify Labate’s past employment with Data Forms to a prospective lender. Labate alleged that Data Forms’ refusal to supply this basic information was done with malicious intent, knowing that without this information the bank’s approval of the mortgage would be denied.

The trial court found that Labate’s complaint stated a cause of action and denied defendants’ section 2 — 615 motion for dismissal. 735 ILCS 5/2 — 615 (West 1994). After discovery was exchanged and depositions were taken, defendants filed a motion for summary judgment. Again, the question was whether the facts stated a cause of action for intentional interference with a prospective business expectation.

The trial court maintained that a cause of action was stated and denied the motion. The case went to trial and a jury entered judgment in favor of Labate.

On appeal, no issues are raised regarding the sufficiency of the evidence at trial. A transcript of the trial is not before the court. Instead, defendants again question the sufficiency of the pleadings. They ask this court to decide whether a cause of action for intentional, tortious interference with a prospective business expectation was stated. Defendants ask us to reverse the judgment entered and grant judgment in their favor, finding that the trial court erred when it denied the motions for dismissal and for summary judgment. We affirm.

DECISION

Since the matter went to trial and Labate won a judgment in his favor, we first consider whether defendants’ challenge to the pleadings and the trial court’s denial of summary judgment, at.this juncture, are properly before this court. If they are not, that is the end of the matter.

In general, when a motion for summary judgment is denied and the case proceeds to trial, the order denying the motion for summary judgment merges with the judgment entered and is not appeal-able. Battles v. La Salle National Bank, 240 Ill. App. 3d 550, 608 N.E.2d 438 (1992). But where the issue raised in the summary judgment motion is one of law and would not be before the jury at trial, the order denying the motion does not merge and may be reviewed by the appellate court. Walters v. Yellow Cab Co., 273 Ill. App. 3d 729, 653 N.E.2d 785 (1995).

Also, when a motion to dismiss is denied and defendant files an answer, the defendant, generally, is held to have waived any defects in the pleading. Adcock v. Brakegate, Ltd., 164 Ill. 2d 54, 60, 645 N.E.2d 888 (1994). An important corollary to the waiver principle — aider by verdict — provides that when a defendant allows an action to proceed to verdict, the verdict will cure all formal and purely technical defects or clerical errors, as well as "any defect in failing to allege or in alleging defectively or imperfectly any substantial facts which are essential to a right of action.” Adcock, 164 Ill. 2d at 60-61; Lasko v. Meier, 394 Ill. 71, 73-74, 67 N.E.2d 162 (1946).

There is an exception to the doctrine of aider by verdict, however. In Lasko, 394 Ill. at 74-75, the court said:

"The rule is *** that if the declaration omits to allege any substantial fact which is essential to a right of action, and which is not implied in or inferable from the finding of those which are alleged, a verdict for the plaintiff does not cure the defect. The question whether a complaint discloses a cause of action is always open to consideration in a court of review. There is a substantial and material difference between a complaint which alleges no cause of action and which may be questioned at any time and one which defectively or imperfectly alleges a cause of action and is good after verdict.” (Emphasis omitted.)

If a complaint totally fails to a state of cause of action, its sufficiency can be questioned at any time, even if raised for the first time on appeal. Larkin v. Howlett, 19 Ill. App. 3d 343, 311 N.E.2d 367 (1974).

But, from a post-verdict viewpoint, what does it mean to fail to state a cause of action? How do we now differentiate between a defectively or imperfectly stated cause of action and a complete failure to state a cause of action?

In Adcock, the court explained:

"[The] exception applies only when a complaint fails to state a recognized cause of action. The exception does not apply where the complaint states a recognized cause of action, but contains an incomplete or otherwise insufficient statement of that cause of action.
Stated more succinctly, courts draw a distinction between a complaint that alleges no cause of action, which may be challenged at any time, and one which defectively or imperfectly alleges a cause of action.” (Emphasis added.) Adcock, 164 Ill. 2d at 61-62.

It is not always easy to know whether a defendant’s post-verdict challenge to the plaintiffs complaint for failure to state a cause of action is reviewable on appeal. As a matter of policy, in the interests of finality, post-verdict review of a complaint should not be a common occurrence.

We believe the supreme court in Adcock was trying to limit the scope of appeal that was suggested in Lasko v. Meier. Adcock involved a claim of civil conspiracy. And civil conspiracy, said the court, "is a recognized cause of action in this State.” Adcock, 164 Ill. 2d at 65. Having said that, the court then refused to consider Owens-Corning’s claim that the judgment against it must be reversed because Ad-cock’s complaint failed to allege "any substantial facts which are essential to a civil conspiracy cause of action.” Adcock, 164 Ill. 2d at 61.

Factual deficiency, then, even where "substantial,” is not enough to overcome the doctrine of aider by verdict. On the other hand, we do not believe the supreme court was suggesting that merely labeling a complaint with the name of some recognized cause of action is enough to bar any post-verdict review, no matter how legally deficient that complaint might be. There must be some principled line between a complaint that states no cause of action and one that defectively or imperfectly alleges a cause of action.

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Bluebook (online)
682 N.E.2d 91, 288 Ill. App. 3d 738, 224 Ill. Dec. 530, 1997 Ill. App. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/labate-v-data-forms-inc-illappct-1997.