Martzaklis v. 5559 Belmont Corp.

510 N.E.2d 1148, 157 Ill. App. 3d 731, 110 Ill. Dec. 117, 1987 Ill. App. LEXIS 2763
CourtAppellate Court of Illinois
DecidedJune 29, 1987
Docket86 — 0379
StatusPublished
Cited by6 cases

This text of 510 N.E.2d 1148 (Martzaklis v. 5559 Belmont Corp.) 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
Martzaklis v. 5559 Belmont Corp., 510 N.E.2d 1148, 157 Ill. App. 3d 731, 110 Ill. Dec. 117, 1987 Ill. App. LEXIS 2763 (Ill. Ct. App. 1987).

Opinion

JUSTICE O’CONNOR

delivered the opinion of the court:

Appellant Andrew Cardaras, defendant 5559 Belmont Corporation’s attorney, appeals from an award of attorney fees. On appeal he argues that: (1) the trial court lacked jurisdiction to enter an order for fees on January 17, 1986; and (2) the award of fees as a sanction pursuant to Supreme Court Rules 219(c) and (d) was improper and the amount of fees was excessive. We affirm.

In February 1977 the parties to the underlying action entered into an oral agreement for the remodeling of the Spartan Restaurant, owned by defendant 5559 Belmont Corporation. Plaintiff Bill Martzaklis (Martzaklis) provided labor and materials for the remodeling work, which was completed on April 25, 1977. On July 14, 1978, Martzaklis filed a complaint against defendants to foreclose a mechanic’s lien, which was later amended to add a breach of contract count. An order closing discovery was entered on December 15, 1980, effective January 26, 1981. Defendants filed a countercomplaint on September 8, 1981, for breach of contract. The trial took place on various dates in 1983 and 1984.

At trial, plaintiff attempted to introduce his group exhibit No. 14, which consisted of copies of mechanic’s lien waivers by various carpenters who had done work for plaintiff in conjunction with the remodeling of the Spartan Restaurant. The defendants’ objection to the entry of this exhibit as hearsay and as being unauthenticated was overruled. The court also ruled that the defendants would not be allowed to introduce testimony of a handwriting expert unless it could be shown that the individuals who had signed the lien waivers were unavailable to testify in court.

Thereafter, Andrew Cardaras, attorney for defendant 5559 Belmont Corporation, employed an “investigator” to contact these potential witnesses. However, the investigator misrepresented himself as a State’s Attorney investigator and made unannounced late night visits to the potential witnesses and the persons who had previously done carpentry work for Martzaklis. Several of the parties, recent Greek immigrants, were coerced into signing documents they did not understand.

Following the visits by the “investigator,” defendants’ counsel sent letters by certified mail to at least four witnesses. The letters were accompanied by subpoenas requiring the witnesses to produce their income tax returns. The letters stated that “[if] your testimony will be that this is not your signature or that you did not receive any funds from Mr. Bill Martzaklis, then you need not bring any documentation with you.” The letters also stated that “you will recall that someone previously had spoken to you.”

Subsequently, on March 1, 1984, the plaintiff filed a motion for sanctions pursuant to Supreme Court Rules 219(c) and (d) alleging that the defendants had violated the order closing discovery by “engaging in intimidation and deception to obtain discovery.” Plaintiff also filed a petition for fees on April 6, 1984.

In an order entered May 16, 1984, the court ruled on the motion for sanctions and barred seven prospective witnesses of the defendant from testifying at trial. These witnesses were persons whose affidavits were included in plaintiff’s group exhibit No. 14. The court also granted plaintiff’s petition for fees but reserved ruling pending submission of evidence of the time expended by plaintiff’s attorneys.

On September 4, 1984, plaintiff filed a petition for fees and schedule of services and an agreed order was entered which read in part:

“That this court *** shall retain jurisdiction of the pending proceedings which involved the Petition for Attorney’s Fees which was granted on May 16, 1984, and the future determination of those fees which has not been ruled upon ***. This court shall have jurisdiction to hear the matters referred to herein even after the Court enters Judgment in the underlying cause of action, including those matters unresolved within 30 days from the entry of Judgment.”

Three days later, on September 7, 1984, an order was entered finding in favor of the defendants on both counts of the plaintiff’s complaint and in favor of the defendants and against the plaintiff on the counterclaim in the amount of $4,829.14 and court costs. The trial court did not, however, make a finding in the order that there was “no just reason for delaying enforcement or appeal” of the order. On February 27, 1985, the plaintiff filed a supplement to his petition for fees. The court entered an order on June 25, 1985, which stated that it had “retained jurisdiction to entertain the aforesaid Petition for Fees filed pursuant to the order of this court entered May 16,1984.”

On January 17, 1986, the court entered an order granting plaintiff’s, attorneys Peck & Wolf, $10,347.50 in attorney fees against Andrew Cardaras, attorney for the defendants. It is from this award that Cardaras appeals.

Cardaras’ first contention is that the trial court lacked jurisdiction when it entered the order for fees on January 17, 1986. He notes that despite the agreed order entered on September 4, 1984, which indicated that the court was to retain jurisdiction for some time on the fee question, the final order entered on September 7, 1984, made no reference to this agreed order. His position is that the September 7 order which disposed of both counts of the plaintiff's complaint and also defendants’ countercomplaint was therefore final and the court retained no jurisdiction over the fee question. He asserts that since the September 7 judgment went unchallenged fór more than 30 days, the trial court lost subject matter jurisdiction over the fee issue.

We reject this view because we believe the order was not a final judgment as to all of the claims in the action. The agreed order, entered only three days before the alleged final order was entered and signed by attorneys for both parties, expressly retained jurisdiction over the fee issue “even after the Court enters Judgment in the underlying cause of action, including those matters unresolved within 30 days from the entry of Judgment.”

It appears that the parties on both sides of the controversy accepted the viability of the September 4, 1984, order. Moreover, the attorneys for both sides, as officers of the court, had an obligation to raise the issue of whether jurisdiction was reserved if they had any doubt on that question at the time the September 7, 1984, order was entered. The record does not show that either party raised the issue on September 7 and we conclude that this was because both parties recognized that the fee issue was an unresolved claim over which the court retained jurisdiction.

A judgment that does not dispose of all the claims in an action is not an appealable order without a finding under Supreme Court Rule 304(a) (87 Ill. 2d R. 304(a)). (Hise v. Hull (1983), 116 Ill. App. 3d 681, 683, 452 N.E.2d 372; In re Marriage of Janetzke (1981), 97 Ill. App. 3d 418, 422, 422 N.E.2d 914.) Supreme Court Rule 304(a) states:

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Bluebook (online)
510 N.E.2d 1148, 157 Ill. App. 3d 731, 110 Ill. Dec. 117, 1987 Ill. App. LEXIS 2763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martzaklis-v-5559-belmont-corp-illappct-1987.