Lemna v. Harry F. Shea & Co.

628 N.E.2d 577, 256 Ill. App. 3d 916, 195 Ill. Dec. 113, 1993 Ill. App. LEXIS 1775
CourtAppellate Court of Illinois
DecidedDecember 3, 1993
Docket1-92-3169
StatusPublished
Cited by6 cases

This text of 628 N.E.2d 577 (Lemna v. Harry F. Shea & Co.) 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
Lemna v. Harry F. Shea & Co., 628 N.E.2d 577, 256 Ill. App. 3d 916, 195 Ill. Dec. 113, 1993 Ill. App. LEXIS 1775 (Ill. Ct. App. 1993).

Opinion

JUSTICE MURRAY

delivered the opinion of the court:

Defendants Harry F. Shea & Company, Richard E. Shea and Richard M. Shea (the Sheas) appeal from the circuit court’s confirmation of an arbitration award entered against them and in favor of plaintiff, William F. Lemna (Lemna). The facts of the case are as follows.

In October 1987 the Sheas entered into an agreement with Lemna to purchase his accounting practice. According to the agreement, the Sheas paid an initial amount in cash and signed a secured promissory note for the remainder. In November 1988 a dispute arose when the Sheas defaulted on the secured promissory note.

The purchase agreement provided that any controversy or claim arising out of or related to the agreement or any breach was to be resolved through arbitration in accordance with the rules of the American Arbitration Association, that any award would be accompanied by a written opinion giving the reasons for the award, and that the judgment rendered by the arbitrators would be final and conclusive. In December 1991 Lemna filed a demand for arbitration and thereafter an arbitration hearing was held before a panel of three arbitrators. Both parties were represented by counsel.

In February 1992 the arbitrators rendered their opinion, unanimously awarding Lemna the sum of $200,000 and the retention of the accounting practice. On March 13, 1992, the Sheas filed a motion with the arbitrators to correct and modify the award, raising a number of alleged errors and omissions in the calculation of the monetary award to Lemna. The arbitrators denied the petition and reaffirmed their earlier award.

Lemna filed a verified application for the confirmation of the arbitration award in the circuit court of Cook County pursuant to section 11 of the Uniform Arbitration Act (Act) (Ill. Rev. Stat. 1991, ch. 10, par. 111; 710 ILCS 5/11 (West 1992)). The Sheas answered the application, but also filed a motion with the circuit court to correct and modify the award pursuant to section 13(a)(1) of the Act (Ill. Rev. Stat. 1991, ch. 10, par. 113(a)(1); 710 ILCS 5/13(a)(1) (West 1992)), raising the identical issues raised before the arbitrators. Lemna countered by filing a motion to confirm the award and enter judgment in his favor.

On July 21, 1992, a hearing was held in the circuit court on the cross-motions concerning the arbitration award. Both sides presented argument on their respective positions. The circuit court denied the Sheas’ motion and granted Lemna’s motion, affirming the arbitration award and entering judgment in Lemna’s favor in the amount of $200,000 and awarding Lemna the retention of the accounting practice.

On August 21, 1992, the Sheas filed a motion for reconsideration in the circuit court. Lemna moved to strike the Sheas’ motion on the grounds that the circuit court was without jurisdiction to hear it because the Sheas had filed the motion 31 days after judgment was entered. The circuit court denied the motion to strike, but also denied the motion for reconsideration. The Sheas then filed the present appeal with this court. In their appeal, the Sheas ask this court to correct the confirmed award in accordance with certain proffered evidence or to remand to the circuit court with instructions for them to direct the arbitrators to recalculate the damages awarded to Lemna.

Before addressing the issues raised by the Sheas in their appeal, we must first address the challenge to this court’s jurisdiction raised by Lemna. Lemna contends that because the Sheas’ motion for reconsideration was filed more than 30 days from the date the judgment order was entered, the post-trial motion was not timely and, therefore, pursuant to Supreme Court Rule 303 (134 Ill. 2d R. 303), the time for taking an appeal was not extended. Lemna further concludes that the present appeal, although filed within 30 days of the circuit court’s ruling on the motion to reconsider, was untimely brought and that this court lacks jurisdiction to entertain the appeal.

Although Lemna is correct in his assertion that the time for filing an appeal is not extended by the filing of an untimely post-judgment motion (Archer Daniels Midland Co. v. Barth (1984), 103 Ill. 2d 536, 470 N.E.2d 290; In re Application of County Treasurer & Ex-Officio County Collector of Cook County for Judgment & Order of Sale Against Real Estate Returned Delinquent for the Nonpayment of General Taxes for 1984 (1990), 208 Ill. App. 3d 561, 567 N.E.2d 486), under the circumstances of this case, we find that we have jurisdiction over this appeal.

As noted by the Sheas in their response brief, the lower court already heard argument on the issue of the timeliness of the post-judgment motion. At that time the Sheas presented the affidavit of the clerk of the court, stating that their motion for reconsideration was presented for filing 30 days after the date that judgment was entered, but that the motion was not accepted because it was not accompanied by the appropriate filing fee.

Because it has been held that it is not mandatory for the filing fee to be paid at the time the motion is filed and that a motion should be accepted on the date tendered even though the fee does not accompany the motion (Hanks v. Floyd (1977), 51 Ill. App. 3d 1048, 367 N.E.2d 483), the trial court considered the motion for reconsideration to be timely filed and exercised jurisdiction over the post-trial motion. We believe that the trial court acted properly in considering the post-trial motion and, consequently, we find this appeal, taken within 30 days of the circuit court’s ruling on the post-judgment motion, was also timely.

We now turn our attention to the issues raised by the Sheas. The Sheas allege that: (1) the circuit court erred by disregarding competent, uncontradicted testimony which showed that the arbitration award was incorrect; (2) the circuit court erred by failing to correct the arbitrators’ mistaken description of funds in the bank account of the accounting practice; and (3) the circuit court failed to correct the miscalculation of the out-of-pocket loss suffered by the defendants. The Sheas contend that these errors or mistakes are apparent on the face of the award and that they should have been corrected by the circuit court pursuant to section 13 of the Act. (Ill. Rev. Stat. 1991, ch. 10, par. 113; 710 ILCS 5/13 (West 1992).) We must disagree.

Initially, we note that the Sheas did not move to have the arbitration award vacated pursuant to section 12 of the Act. (Ill. Rev. Stat. 1991, ch. 10, par. 112; 710 ILCS 5/12 (West 1992).) Thus, they do not claim that the award was procured by corruption, fraud or undue means or that the arbitrators exceeded their power, lacked neutrality or behaved improperly. The Sheas moved to correct and modify the award under section 13 of the Act.

Section 13 of the Uniform Arbitration Act states in pertinent part:

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Bluebook (online)
628 N.E.2d 577, 256 Ill. App. 3d 916, 195 Ill. Dec. 113, 1993 Ill. App. LEXIS 1775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lemna-v-harry-f-shea-co-illappct-1993.