Larochelle v. Allamian

836 N.E.2d 176, 361 Ill. App. 3d 217, 296 Ill. Dec. 761
CourtAppellate Court of Illinois
DecidedSeptember 21, 2005
Docket2-03-1383
StatusPublished
Cited by18 cases

This text of 836 N.E.2d 176 (Larochelle v. Allamian) 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
Larochelle v. Allamian, 836 N.E.2d 176, 361 Ill. App. 3d 217, 296 Ill. Dec. 761 (Ill. Ct. App. 2005).

Opinion

JUSTICE McLAREN

delivered the opinion of the court:

Plaintiffs appeal from the order of the trial court granting the motion to dismiss of defendant Oceanic Bank & Trust Company, Ltd. We reverse and remand.

Plaintiffs are a group of 32 investors, three of whom are citizens of Illinois, owning common shares of defendant M.J. Select Global, Ltd., an investment company organized under the laws of the Bahamas. In August 2002, plaintiffs brought a seven-count complaint against nine defendants, seeking declaratory relief and damages “arising from the wrongful offering, sale, accounting, and management of shares” in M.J. Select. Oceanic, whose principal place of business is located in Nassau, Bahamas, was named as a defendant and was alleged to be “the administrator, registrar and transfer agent” of M.J. Select.

On October 7, 2002, Oceanic filed an appearance and a motion for extension of time and for leave to file an oversized brief “in support of its expected motion to dismiss for lack of personal jurisdiction and for failure to state a claim.” The following day, the court set the motion for hearing on October 21, when the case was “otherwise set for status.” The October 8 order also dealt with plaintiffs’ motion regarding other defendants and those defendants’ answers. The trial court granted Oceanic’s motion on October 21. At that time, another law firm entered its appearance as additional counsel for Oceanic.

Oceanic subsequently filed a motion to dismiss pursuant to sections 2 — 615 and 2 — 619 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615, 2 — 619 (West 2000)). Oceanic was also granted leave to join in the motion to dismiss filed by defendant Vorisek & Co., LLC. After a hearing, the trial court granted Oceanic’s motion to dismiss pursuant to section 2 — 619 “due to lack of personal jurisdiction.” The trial court did not address Oceanic’s section 2 — 615 arguments in its ruling. The trial court denied plaintiffs’ motion for reconsideration and subsequently found that there was no just reason for delaying appeal of this issue, pursuant to Supreme Court Rule 304(a) (155 Ill. 2d R. 304(a)). This appeal followed.

Plaintiffs now contend that the trial court erred in granting Oceanic’s motion to dismiss. A motion brought pursuant to section 2 — 619 admits the legal sufficiency of the complaint, along with all well-pleaded facts and the inferences therefrom, but asserts an affirmative matter that avoids or defeats the claim. Northwest Millwork Co. v. Komperda, 338 Ill. App. 3d 997, 1000 (2003). This court must ascertain whether a genuine issue of material fact precluded the dismissal or, if such an issue does not exist, whether the dismissal was proper as a matter of law. Northwest Millwork Co., 338 Ill. App. 3d at 1000. We review de novo the trial court’s ruling on such a motion. Northwest Millwork Co., 338 Ill. App. 3d at 1000.

In its motion, Oceanic argued that it was not subject to personal jurisdiction in Illinois because of a “lack of contact with Illinois.” However, plaintiffs argue that Oceanic waived the issue of personal jurisdiction by filing a general appearance and participating in a status conference, which resulted in a substantive discovery order involving Oceanic, before it objected to personal jurisdiction by filing its section 2 — 619 motion.

Section 2 — 301(a) of the Code provides in part:

“Prior to the filing of any other pleading or motion other than a motion for an extension of time to answer or otherwise appear, a party may object to the court’s jurisdiction over the party’s person, either on the ground that the party is not amenable to process of a court of this State or on the ground of insufficiency of process or insufficiency of service of process, by filing a motion to dismiss the entire proceeding or any cause of action involved in the proceeding or by filing a motion to quash service of process.” 735 ILCS 5/2— 301(a) (West 2000).

Section 2 — 301(a—5) then provides:

“If the objecting party files a responsive pleading or a motion (other than a motion for extension of time to answer or otherwise appear) prior to the filing of a motion in compliance with subsection (a), that party waives all objections to the court’s jurisdiction over the party’s person.” 735 ILCS 5/2 — 301(a—5) (West 2000).

Section 2 — 301, which was amended effective January 1, 2000, had previously stated that a defendant had to file a special appearance for the purpose of objecting to the court’s jurisdiction over his person; this special appearance had to be filed prior to the filing of any other pleading or motion, and every appearance not in compliance with that section was considered a general appearance. See 735 ILCS 5/2— 301(a) (West 1998). Plaintiffs argue that, while the 2001 amendment did away with the requirement of a special appearance, the underlying principle was unchanged: a party must first object to jurisdiction before taking any other action.

We agree that a defendant’s first action must be to object to jurisdiction. This court has interpreted the amendment to section 2 — 301 to evince the legislature’s intent “to permit a party to file a motion or other responsive pleading after the party objects to the court’s jurisdiction over the party’s person.” In re Marriage of Schmitt, 321 Ill. App. 3d 360, 366 (2001). A party does not waive its objection to the court’s jurisdiction over the party’s person so long as the party objects to the court’s jurisdiction before the party files a motion or other responsive pleading. Schmitt, 321 Ill. App. 3d at 366. Here, Oceanic’s first pleading was a motion for an extension of time and page length regarding its “expected motion to dismiss for lack of personal jurisdiction and for failure to state a claim.” Since section 2 — 301 no longer requires the filing of a special appearance in such a situation (indeed, there is no longer any mention of a special appearance in the Code), we cannot conclude that the filing of a general appearance waives the issue of personal jurisdiction. Oceanic had to file some type of appearance; attorneys cannot just walk into court and seek involvement in a case without one. We do not find that Oceanic’s general appearance, filed with its motion regarding an anticipated motion to dismiss for lack of jurisdiction, waived Oceanic’s challenge to the trial court’s personal jurisdiction.

Plaintiffs also argue that Oceanic submitted to the trial court’s jurisdiction by appearing at and participating in the trial court’s October 21, 2002, status call that resulted in a substantive discovery order against Oceanic. According to plaintiffs, a substantive order could not have been entered against Oceanic unless it had submitted to the trial court’s personal jurisdiction. However, our review of the order entered after the October 21 court date is not so clear. The portion of the order regarding discovery required “Defendants” to produce written discovery and deposition transcripts from related federal litigation.

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Cite This Page — Counsel Stack

Bluebook (online)
836 N.E.2d 176, 361 Ill. App. 3d 217, 296 Ill. Dec. 761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larochelle-v-allamian-illappct-2005.