Lawless v. Central Production Credit Ass'n

592 N.E.2d 1210, 228 Ill. App. 3d 500, 170 Ill. Dec. 530, 1992 Ill. App. LEXIS 783
CourtAppellate Court of Illinois
DecidedMay 20, 1992
Docket4-91-0540
StatusPublished
Cited by13 cases

This text of 592 N.E.2d 1210 (Lawless v. Central Production Credit Ass'n) 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
Lawless v. Central Production Credit Ass'n, 592 N.E.2d 1210, 228 Ill. App. 3d 500, 170 Ill. Dec. 530, 1992 Ill. App. LEXIS 783 (Ill. Ct. App. 1992).

Opinions

JUSTICE McCULLOUGH

delivered the opinion of the court:

Plaintiff John F. Lawless appeals from a summary judgment entered in the circuit court of Champaign County in favor of defendant Central Production Credit Association. Plaintiff’s action sought to recover damages for the alleged tortious interference by defendant in plaintiff’s contract of employment with the Farmers Home Administration (FmHA) and for economic duress. The issues raised on appeal by plaintiff are whether the granting of summary judgment ex parte and without a hearing requires reversal and whether there remain such genuine issues of material fact that the motion for summary judgment should have been denied.

Count I of plaintiff’s complaint (interference with a contractual relationship) alleged he is a resident of Terre Haute, Indiana, and was from 1961 until 1988 an employee of the FmHA. From 1963 until April 1986, he was the county supervisor assigned to the Lawrenceville, Illinois, office. From 1967 until 1987, he also conducted an ongoing farm operation in Crawford and Lawrence Counties, Illinois. As county supervisor, plaintiff was responsible for primary loan servicing for farmers, consumers, and municipal organizations seeking low-interest government financing. He also conducted business for the United States government in concert with other creditors, including defendant, by making loans and participating in the subordination of loans and guarantees on loans to assist FmHA borrowers in obtaining a sound financial position.

As a farmer, plaintiff borrowed money from defendant. From 1980 to 1985, plaintiff experienced financial difficulties. As a result, plaintiff filed a petition for bankruptcy. It is alleged that at that time, plaintiff had a good relationship with FmHA and creditors with whom he worked, including defendant. Plaintiff owed defendant over $500,000. The bankruptcy court determined this debt to be partially unsecured and, as a consequence, defendant had to write off some or all of the $500,000 debt. Plaintiff alleged defendant retaliated, an allegation which defendant’s answer denied. According to plaintiff’s complaint, Donald W. Cochran, president of the Southeastern Illinois Farm Credit System and an officer of defendant, met with FmHA officers, and based on the demands of defendant, FmHA decided to remove plaintiff from the Lawrence County office and temporarily assign him to the office in Champaign. Plaintiff further alleges that by letter dated April 27, 1986, he was informed he was removed from the Lawrence County office and permanently relieved of his duties as county supervisor. On that date he was transferred to the State office in Champaign, Hlinois. In September 1987, plaintiff was informed that involuntary termination proceedings were commencing against him, and in November 1987, plaintiff was offered the opportunity to take early retirement instead of being involuntarily terminated. Plaintiff alleged his removal as county supervisor and the requirement that he take early retirement or face involuntary termination was without justification and that defendant intended to cause and did cause these actions by FmHA. The damages which plaintiff alleged were directly and proximately caused by defendant are physical ailments, loss of job and salary, loss of full retirement benefits, loss of full health and life insurance coverage and other benefits, loss of his personal reputation, loss of other advancement or additional pension benefits, and other economic losses.

Count II of plaintiff’s complaint (economic duress) additionally alleged that defendant intended to retaliate and force plaintiff from his job and that defendant’s acts were performed in bad faith with the intention of punishing plaintiff for exercising his statutory right to file for protection under the bankruptcy laws. Plaintiff alleged that defendant’s demands for his removal included the threat of uncooperative lending decisions involving joint lending practices between defendant and FmHA, and that FmHA decided to remove plaintiff as an employee rather than develop problems with defendant. According to plaintiff’s complaint, that is the result intended by defendant.

Defendant’s answer denied all allegations of tortious conduct and alleged five affirmative defenses. Defendant’s motion for summary judgment was based on answers to interrogatories and discovery depositions which defendant stated established that FmHA’s temporary reassignment of plaintiff was made solely at the request of the Federal investigators from the Office of Inspector General (OIG), which was investigating allegations of official misconduct by plaintiff; and as a further result of this investigation, several instances of alleged misconduct were discovered such that FmHA proposed to fire plaintiff on August 27, 1987, and none of these instances involved defendant.

The motion for summary judgment was filed by defendant on November 21, 1990. Also filed on that date by defendant were a brief in support of the motion for summary judgment, a motion for sanctions, a brief in support of the motion for sanctions, and a proof of service of sending copies of discovery depositions to plaintiff’s attorneys. The proofs of service for each document indicated these documents were mailed to plaintiff’s attorneys of record on November 20, 1990. The docket entry of January 3, 1991, indicated that the defendant’s motion for summary judgment was granted on that date.

On February 1, 1991, plaintiff filed a motion to vacate the summary judgment and a brief in support thereof. Attached as exhibits were (1) a portion of the deposition of Robert Chambers, FmHA’s director for the State of Illinois; (2) a copy of a memorandum from Terry G. Dodd, a farmer program specialist, to Chambers; and (3) an affidavit from plaintiff. On February 13, 1991, defendant filed a brief in opposition to the motion to vacate. On that date, the motion to vacate the summary judgment was denied.

In his discovery deposition, Terry Dodd, a farmer program specialist for FmHA, stated he had no direct authority over plaintiff as a county supervisor although he could make recommendations. When Dodd became a farmer program specialist, this was considered a higher pay and grade level than county supervisor. On March 19, 1986, Dodd wrote a memorandum to Chambers regarding plaintiff. The memorandum stated:

“On March 13, 1986, Roger Witt, Norbert Soltwedel, Clyde Fife and I met with Donald Cochran, President of the Southeastern Illinois Farm Credit System. Following this meeting Cochran asked to talk to Roger Witt and me.
Cochran said he was very concerned with the situation in Lawrenceville. There have been no lines of communication with our Lawrenceville office since John Lawless filed Chapter-7. He said they had taken a hit for $500,000. He has not met John or attempted to meet with him. Cochran said he realizes they (PCA [Production Credit Association]) have not been blameless in the lack of communication; however, he didn’t feel the main problem was theirs.
Cochran said they have very good relations with FmHA throughout his district. He did mention Marion County troubles, but felt those may be more their problem than FmHA.
I asked Cochran what could be done, if anything, to resolve the differences at Lawrenceville. I asked if a meeting could be arranged. He did not feel a meeting would resolve anything.

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Cite This Page — Counsel Stack

Bluebook (online)
592 N.E.2d 1210, 228 Ill. App. 3d 500, 170 Ill. Dec. 530, 1992 Ill. App. LEXIS 783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawless-v-central-production-credit-assn-illappct-1992.