Nagy v. Beckley

578 N.E.2d 1134, 218 Ill. App. 3d 875, 161 Ill. Dec. 488, 1991 Ill. App. LEXIS 1442
CourtAppellate Court of Illinois
DecidedAugust 26, 1991
DocketNo. 1-90-0268
StatusPublished
Cited by1 cases

This text of 578 N.E.2d 1134 (Nagy v. Beckley) 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
Nagy v. Beckley, 578 N.E.2d 1134, 218 Ill. App. 3d 875, 161 Ill. Dec. 488, 1991 Ill. App. LEXIS 1442 (Ill. Ct. App. 1991).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Plaintiffs Mae Nagy, Victor Nagy and Victor P. Nagy, Inc., appeal an order of the circuit court of Cook County dismissing counts II, III and IV of their complaint against defendants James E. Beckley and James E. Beckley & Associates, P.C.

The record on appeal discloses the following. Plaintiffs Mae and Victor Nagy are married residents of Michigan. Mae and Victor are also the shareholders, officers and directors of plaintiff Victor P. Nagy, Inc. (the corporation).

In 1971, Victor signed a franchise agreement with the Comprehensive Accounting Corporation (CAC), permitting the corporation to render bookkeeping services in Michigan. Mae did not sign the agreement. Under the agreement, the corporation provided services to accounts it purchased from CAC. The corporation financed these purchases through CAC, as well as signing pledges and loan agreements with CAC. Later, Victor and Mae signed 41 installment notes and security guarantees, both as individuals and as officers and shareholders of the corporation.

In 1983, CAC filed a suit (the CAC litigation) against plaintiffs arising from contractual disputes between the parties. Plaintiffs retained defendants as counsel to defend them.

The first trial on the merits was declared a mistrial due to the death of the judge. At the second trial, defendants asserted the defense of fraud on behalf of plaintiffs. After the close of proofs, defendants moved to conform the pleadings to the proof and argued that the agreement was unconscionable. In February 1987, the trial court in the CAC litigation entered a judgment against plaintiffs in the amount of $440,268.23, which was affirmed on appeal.1 Mae then agreed to pay CAC $150,000. Defendants received $102,881.44 for their legal services.

Plaintiffs subsequently filed a four-count complaint against defendants alleging legal malpractice. Count I, brought solely by Mae, alleged defendants neither asserted the defense that Mae never signed the franchise agreement nor told her that the availability of this defense might place her in an adverse position to the other plaintiffs. Count II, also brought solely by Mae, alleged that defendants breached their ethical duty to inform Mae of any potential conflict she might have with the other plaintiffs. Count III, brought by all plaintiffs, alleged defendants’ failure to assert illegality as a defense. Count IV, also brought by all plaintiffs, alleged defendants’ failure to assert the unconscionability defense before the close of proofs.

Defendants moved to dismiss the complaint pursuant to section 2— 619 of the Illinois Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 619). In December 1989, the trial court dismissed counts II, III and IV; plaintiffs now appeal.

The purpose of a section 2 — 619 motion is to provide a mechanism to dispose of issues of law or easily proved issues of fact. (Chicago Steel Rule Die & Fabricators Co. v. Malan Construction Co. (1990), 200 Ill. App. 3d 701, 558 N.E.2d 341; Consumer Electric Co. v. Cobelcomex, Inc. (1986), 149 Ill. App. 3d 699, 501 N.E.2d 156.) A trial court should grant a motion to dismiss if after construing the documents in the light most favorable to the nonmoving party, the court finds no disputed issue of fact. (Samansky v. Rush-Presbyterian-St. Luke’s Medical Center (1990), 208 Ill. App. 3d 377, 567 N.E.2d 386.) The court assumes that the well-pleaded facts of plaintiffs’ complaint are true, but conclusions of law or fact unsupported by specific factual allegations may be disregarded. (Foreman v. Consolidated Rail Corp. (1991), 214 Ill. App. 3d 700.) We may affirm a dismissal granted pursuant to section 2 — 619 on any grounds supported by the record, regardless of the trial court’s reasons. See Beckman v. Freeman United Coal Mining Co. (1988), 123 Ill. 2d 281, 286, 527 N.E.2d 303, 305.

I

Mae initially contends that the trial court erred in dismissing count II of plaintiffs’ complaint as duplicative of count I. A duplicative count may be properly dismissed. See, e.g., Hoth v. Stogsdill (1991), 210 Ill. App. 3d 659, 663, 569 N.E.2d 34, 37; Ill. Rev. Stat. 1987, ch. 110, pars. 2-619(aX3), (a)(9).

In this case, count I alleged that defendants negligently failed to raise the fact that Mae never signed the franchise agreement as a defense and negligently failed to tell Mae that this fact might place her in an adverse position to Victor and the corporation, who lacked this possible defense. The record shows that count II contains substantially the same allegations, but adds allegations that these failures violated duties arising under Canon 5 of the Illinois Code of Professional Responsibility, including Rule 5 — 105 (107 Ill. 2d R. 5 — 105 (repealed and superseded by new rules effective August 1, 1990); see 134 Ill. 2d R. 1.7), which prohibited attorneys from representing multiple clients where the representation was likely to adversely affect the exercise of the attorney’s independent judgment, unless the clients consented after receiving full disclosure of the relevant facts from the attorney. Mae argues that this rule gives rise to a duty separate from the duty alleged in count I.

What little authority there is on the subject in this jurisdiction suggests that the rules of legal ethics do not establish a separate duty or cause of action. (See Suppressed v. Suppressed (1990), 206 Ill. App. 3d 918, 565 N.E.2d 101; Berlin v. Nathan (1978), 64 Ill. App. 3d 940, 381 N.E.2d 1367; Lyddon v. Shaw (1978), 56 Ill App. 3d 815, 372 N.E.2d 685.) For example, the Berlin court was “not convinced by [the] argument that since the defendant attorneys are officers of the court and can be disciplined by the court, they should be held liable in tort for breach of *** the Illinois Code of Professional Responsibility.” Berlin, 64 Ill. App. 3d at 953, 381 N.E.2d at 1376.

Similarly, in Suppressed, the plaintiff client brought a legal malpractice claim alleging that coerced sexual relations between the attorney and client created a potential conflict of interest. (Suppressed, 206 Ill. App. 3d at 924, 565 N.E.2d at 105.) The court rejected this claim, stating that while “defendant’s behavior may have been unethical, we do not think that it equates to legal malpractice.” (Suppressed, 206 Ill. App. 3d at 925, 565 N.E.2d at 105.) The Suppressed court continued:

“We do not disagree with plaintiff’s suggestion that there should be a separate cause of action for a lawyer’s breach of the ethical duty to conduct himself in accordance with the rules of professional responsibility. However, we feel that it should be left to the legislature to address this matter.” Suppressed, 206 Ill. App. 3d at 926, 565 N.E.2d at 106.

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Related

Nagy v. Beckley
578 N.E.2d 1134 (Appellate Court of Illinois, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
578 N.E.2d 1134, 218 Ill. App. 3d 875, 161 Ill. Dec. 488, 1991 Ill. App. LEXIS 1442, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nagy-v-beckley-illappct-1991.