Lynch v. Illinois Hospital Services, Inc.

187 N.E.2d 330, 38 Ill. App. 2d 470, 1963 Ill. App. LEXIS 376
CourtAppellate Court of Illinois
DecidedJanuary 14, 1963
DocketGen. 10,430
StatusPublished
Cited by21 cases

This text of 187 N.E.2d 330 (Lynch v. Illinois Hospital Services, 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
Lynch v. Illinois Hospital Services, Inc., 187 N.E.2d 330, 38 Ill. App. 2d 470, 1963 Ill. App. LEXIS 376 (Ill. Ct. App. 1963).

Opinion

REYNOLDS, P. J.

Plaintiff sued defendant for payment under a hospitalization insurance policy. Suit was commenced July 25, 1961, and service had on the defendant the same day. There seems to have been some negotiation between the attorneys for the parties toward settlement, but nothing was agreed upon and on September 5, 1961, a default judgment was entered for the plaintiff in the amount of $1436.75 and $359 attorney fees or a total of $1795.75, and costs of suit. Execution was ordered to issue. On September 8, 1961, on its own motion, the court amended the judgment to be $1316.75 and attorney fees of $354, or a total judgment of $1670.75 and costs of suit. On September 18, 1961, defendant filed motion to set aside tbe default judgment, said motion being accompanied with affidavit by James B. Martin, defendant’s attorney, stating that tbe attorney was in tbe process of moving from Springfield, Illinois to Chicago, Illinois, and in tbe confusion tbe status of tbe case was not noted until September 1, 1961, at which time he wrote tbe attorney for tbe plaintiff, B. W. Deffenbaugb, asking for additional time to file an answer in tbe case. In tbe affidavit was tbe statement that tbe defendant bad a meritorious defense to tbe suit, claiming that tbe policy limited tbe amount of hospital benefits for maternity to $120. Hearing on tbe motion to set aside tbe default judgment was continued from time to time, until March 1, 1962. At that time tbe court set March 26, 1962 for bearing. On March 26, 1962, although defendant’s attorney bad been notified of the bearing, no one appeared for tbe defendant, and tbe motion to set aside was dismissed. On April 24, 1962, defendant filed a motion to set aside tbe dismissal order, on tbe ground that defendant’s attorney Martin kept a daily log and appointment book and that bis secretary bad failed to note tbe pending bearing in tbe log. On May 3, 1962, tbe court denied tbe motion to set aside tbe dismissal order. On May 22, 1962, tbe court on its own motion entered an order finding that tbe attorney for tbe defendant was careless and indifferent in not appearing on behalf of bis client at tbe time bearings were set in tbe matter, but that a final order on tbe defendant’s motion of September 18, 1961, should be entered. Tbe court then allowed tbe motion of defendant to set aside tbe order of March 26, 1962 dismissing tbe defendant’s motion to set aside tbe default judgment, and denied tbe motion by defendant of September 18, 1961, to set aside tbe default judgment. Tbe defendant appeals to this court.

In its appeal defendant takes the position that the test for determining the setting aside of a default judgment is simply how will justice best be accomplished; that any reasonable doubt should be decided in favor of a trial on the merits and the defendant in this case is entitled to a hearing on the merits. Plaintiff takes the position that the matter rests in the discretion of the trial court and unless there has been an abuse of discretion the order should be sustained; that the court as a reviewing court will indulge in reasonable presumptions favoring the action of the trial court, and that the carelessness and negligence of the defendant is a sound basis for the order of the trial court.

The question of setting aside a default judgment has been litigated many times. The authority of the trial court to set aside a default judgment is provided in Chapter 110, Section 50, sub-paragraph (6) Illinois Revised Statutes. The authority there is permissive but not directory.

The case of Widucus v. Southwestern Electric Cooperative, Inc., 26 Ill App2d 102, 167 NE2d 799, is cited by both the plaintiff and defendant. In that case, the court held that the old requirement of a meritorious defense and a reasonable excuse for not having made that defense in due time is not now required, and under the present Practice Act a default may be set aside upon any terms and conditions that shall be reasonable. The court in that case said, page 109:

“It seems to us that the overriding reason should be whether or not justice is being done. Justice will not be done if hurried defaults are allowed any more than if continuing delays are permitted.
“The entering of a default is one of the most drastic actions a court may take to punish for disobedience to its commands. The court has other powers which are ample in most instances. In our judgment, a default should only be condoned when, as a last resort, it is necessary to give the plaintiff his just demand. It should be set aside when it will not cause a hardship upon the plaintiff to go to trial on the merits.”

The reasoning and law as laid down in the Widucus case, was approved by In re Estate of Hoyman, 27 Ill App2d 438, 442, 170 NE2d 25. In the case of Kehrer v. Kehrer, 28 Ill App2d 296, 171 NE2d 239, the court referring to the Widucus case said, page 298:

“In Widucus v. Southwestern Electric Cooperative, Inc., 26 Ill App2d 102, 167 NE2d 799, a case involving the entry of a default judgment, we stated that the discretion will be properly invoked if it is based upon principles of right and wrong and is exercised for the prevention of injury and the furtherance of justice. We said further that the spirit of the Civil Practice Act is that controversies be speedily determined according to the substantive rights of the parties, and that the question of permitting default should be so resolved as to do substantial justice between the parties with the idea in mind of carrying out, insofar as it is possible, the determination of matters upon their merits. We there concluded that a default should be condoned only when, as a last resort, it is necessary to give a party his just demand.”

In the case of Wolder v. Wolder, 30 Ill App2d 98, 173 NE2d 546, at page 101, the court said:

“Whether such inexcusable neglect exists as should bar this defendant from an opportunity to defend on its merits has turned largely on the facts of the individual case. However, our courts have been liberal in setting aside defaults entered at the same term so that controversies might be determined according to the substantive rights of the parties.”

These cases reflect the present thinking of our courts on the question of setting aside default judgments. A default should be entered when, as a last resort, it is necessary to give the plaintiff his just demand. It should be set aside when it will not cause a hardship upon the plaintiff to go to trial on the merits.

The plaintiff relies upon those cases which hold that the trial court exercises its discretion in granting or denying a motion to set aside a default judgment and in the absence of abuse of that discretion the order will be sustained. The recent case of Dann v. Gumbiner, 29 Ill App2d 374, 173 NE2d 525, at page 379, held that such a motion is addressed to the sound legal discretion of the court, and it is only when there is an abuse of discretion that a reviewing court will interfere. Citing McMurray v. Peabody Coal Co., 281 Ill 218, 223, 118 NE 29. But the court, in the same case, pages 379 and 380, says:

“Courts in this state are liberal in setting aside defaults during the term time in which they are entered, when it appears justice will be promoted.

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Bluebook (online)
187 N.E.2d 330, 38 Ill. App. 2d 470, 1963 Ill. App. LEXIS 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lynch-v-illinois-hospital-services-inc-illappct-1963.