Nagy v. Beckley

578 N.E.2d 1134, 218 Ill. App. 3d 875, 161 Ill. Dec. 488
Appellate Court of Illinois·Decided August 26, 1991·No. 1-90-0268·Published·Cited by 42 cases

Opinion

578 N.E.2d 1134 (1991)
218 Ill. App.3d 875
161 Ill.Dec. 488

Mae J. NAGY, Victor P. Nagy and Victor P. Nagy, Inc., a corporation, Plaintiffs-Appellants,
v.
James E. BECKLEY and James E. Beckley & Associates, P.C., a corporation, Defendants-Appellees.

No. 1-90-0268.

Appellate Court of Illinois, First District, First Division.

August 26, 1991.

*1135 Collins & Bargione, Chicago (George B. Collins, Christopher Bargione and Gregory A. Bedell, of counsel), for plaintiffs-appellants.

Williams & Montgomery, Ltd., Chicago (Barry L. Kroll, David E. Morgans, Steven J. Rizzi and Lloyd E. Williams, Jr., of counsel), for defendants-appellees.

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 & 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' *1136 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, 146 Ill.Dec. 378, 558 N.E.2d 341; Consumer Electric Co. v. Cobelcomex, Inc. (1986), 149 Ill.App.3d 699, 103 Ill.Dec. 135, 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 non-moving party, the court finds no disputed issue of fact. (Samansky v. Rush-Presbyterian-Saint Luke's Medical Center (1990), 208 Ill. App.3d 377, 153 Ill.Dec. 428, 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, 158 Ill.Dec. 384, 574 N.E.2d 178.) 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, 122 Ill.Dec. 805, 807, 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, 155 Ill.Dec. 34, 37, 569 N.E.2d 34, 37; Ill.Rev.Stat.1987, ch. 110, par. 2-619(a)(3), (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, 151 Ill.Dec. 830, 565 N.E.2d 101; Berlin v. Nathan (1978), 64 Ill.App.3d 940, 21 Ill.Dec. 682, 381 N.E.2d 1367; Lyddon v. Shaw (1978), 56 Ill.App.3d 815, 14 Ill.Dec. 489, 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 Code of Professional Responsibility * * *." Berlin, 64 Ill.App.3d at 953, 21 Ill.Dec. at 691, 381 N.E.2d at 1376.

Similarly, in Suppressed,

Free access — add to your briefcase to read the full text and ask questions with AI

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

578 N.E.2d 1134 (Nagy v. Beckley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Gomberg Sharfman P.C. v. Kuznar
2023 IL App (1st) 221165-U (Appellate Court of Illinois, 2023)
Carlson v. Cronin
2022 IL App (1st) 200724-U (Appellate Court of Illinois, 2022)
Flynn v. Maschmeyer
2020 IL App (1st) 190784 (Appellate Court of Illinois, 2020)
Vandenberg v. Brunswick Corporation
2017 IL App (1st) 170181 (Appellate Court of Illinois, 2017)
Brannen v. Seifert
2013 IL App (1st) 122067 (Appellate Court of Illinois, 2013)
Yoon Kim v. Russell Hoseney
Seventh Circuit, 2013
Kim v. Hoseney
545 F. App'x 521 (Seventh Circuit, 2013)
Susan Ball v. Cherie Kotter
723 F.3d 813 (Seventh Circuit, 2013)
DeGeer v. Gillis
707 F. Supp. 2d 784 (N.D. Illinois, 2010)
Teague v. St. Paul Fire and Marine Ins. Co.
10 So. 3d 806 (Louisiana Court of Appeal, 2009)
Kelley v. Carbone
837 N.E.2d 438 (Appellate Court of Illinois, 2005)
Tri-G, Inc. v. Burke, Bosselman and Weaver
817 N.E.2d 1230 (Appellate Court of Illinois, 2004)
Tri-G, Inc. v. Burke, Bosselman & Weaver
Appellate Court of Illinois, 2004
Owens v. McDermott, Will & Emery
Appellate Court of Illinois, 2000
Kramer v. Dirksen
Appellate Court of Illinois, 1998
Sarno v. Akkeron
Appellate Court of Illinois, 1997