Navistar Financial Corporation v. Curry Ice & Coal, Inc.

2016 IL App (4th) 150419
CourtAppellate Court of Illinois
DecidedJune 22, 2016
Docket4-15-0419, 4-15-0646 cons.
StatusUnpublished

This text of 2016 IL App (4th) 150419 (Navistar Financial Corporation v. Curry Ice & Coal, 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
Navistar Financial Corporation v. Curry Ice & Coal, Inc., 2016 IL App (4th) 150419 (Ill. Ct. App. 2016).

Opinion

2016 IL App (4th) 150419 FILED May 26, 2016 NOS. 4-15-0419, 4-15-0646 cons. Carla Bender 4th District Appellate IN THE APPELLATE COURT Court, IL OF ILLINOIS FOURTH DISTRICT NAVISTAR FINANCIAL CORPORATION, ) Appeal from Plaintiff-Appellee, ) Circuit Court of v. ) Sangamon County CURRY ICE & COAL, INC.; CURRY READY-MIX ) No. 13L177 & BUILDERS' SUPPLY, INC.; CURRY READY ) MIX OF CARLINVILLE, INC.; CURRY READY ) MIX OF GILLESPIE, INC.; CURRY READY MIX ) OF PEORIA, INC.; CURRY READY MIX OF ) PAWNEE, INC.; CAPITOL READY-MIX, INC.; ) CURRY READY MIX OF JACKSONVILLE, INC.; ) CURRY ICE & COAL OF CARLINVILLE, INC.; ) CURRY ICE & COAL OF SPRINGFIELD, INC.; ) CURRY ICE & COAL OF ILLIOPOLIS, INC.; CUR- ) RY ICE & COAL OF PERRYVILLE, INC.; CURRY ) ICE & COAL OF OTTAWA, INC.; CURRY ICE & ) COAL OF PEORIA, INC.; TROY READY MIX ) CONCRETE, INC.; CONSOLIDATED READY MIX ) OF MASON CITY, INC.; LIPPOLD & ARNETT, ) INC.; M-C TRANSFER, INC.; LIPPOLD & ARNETT ) TRANSPORTATION SERVICES, INC.; and BRUCE ) GARNER, ) Honorable Defendants ) John P. Schmidt, (Capitol Ready-Mix, Defendant-Appellant). ) Judge Presiding.

JUSTICE STEIGMANN delivered the judgment of the court with opinion. Presiding Justice Knecht and Justice Holder White concurred in the judgment and opinion.

OPINION

¶1 In April 2005, plaintiff, Navistar Financial Corporation (Navistar), entered into an

"Interlocking Guaranty" with defendants Capitol Ready-Mix, Inc. (Capitol); and Curry Ice and

Coal, Inc. (Curry); as well as defendants Curry Ready-Mix & Builders' Supply, Inc.; Curry Ready Mix of Carlinville, Inc.; Curry Ready Mix of Gillespie, Inc.; Curry Ready Mix of Peoria,

Inc.; Curry Ready Mix of Pawnee, Inc.; Curry Ready Mix of Jacksonville, Inc.; Curry Ice & Coal

of Carlinville, Inc.; Curry Ice & Coal of Springfield, Inc.; Curry Ice & Coal of Illiopolis, Inc.;

Curry Ice & Coal of Perrysville, Inc.; Curry Ice & Coal of Ottawa, Inc.; Curry Ice & Coal of Pe-

oria, Inc.; Troy Ready Mix Concrete, Inc.; Consolidated Ready Mix of Mason City, Inc.; Lippold

& Arnett, Inc.; M-C Transfer, Inc.; Lippold & Arnett Transportation Services, Inc.; and Bruce

Garner. At issue in this appeal is the interlocking guaranty between Navistar and Capitol, in

which Capitol agreed to be a guarantor for any then-existing or future debt Curry owed to Navis-

tar. (The remaining defendants are not parties to this appeal.)

¶2 In July 2013, Navistar sued Capitol, claiming that Capitol breached the interlock-

ing guaranty by refusing to reimburse Navistar for Curry's default of several financial loans be-

tween Curry and Navistar.

¶3 In July and November 2014, Navistar and Capitol, respectively, filed cross-

motions for summary judgment pursuant to section 2-1005 of the Code of Civil Procedure (735

ILCS 5/2-1005 (West 2014)). In December 2014, the trial court entered an order granting sum-

mary judgment in Navistar's favor and awarding Navistar $506,567.

¶4 In May 2015—after the trial court denied Capitol's motion to reconsider—Capitol

timely filed a notice of appeal. In August 2015, the court granted Navistar's "motion to add fees

and costs to judgment order," adding an additional $36,174 to the $506,567 sum the court

awarded Navistar.

¶5 Capitol appeals, arguing that the trial court (1) erred by granting summary judg-

ment in Navistar's favor (case No. 4-15-0419) and (2) lacked jurisdiction to award Navistar addi-

tional fees and costs after Capitol filed its notice of appeal (case No. 4-15-0646). We affirm.

-2- ¶6 I. BACKGROUND

¶7 The following undisputed information was gleaned from the parties' pleadings,

depositions, affidavits, and other supporting documents filed in the trial court.

¶8 As a condition of entering into leases or extending financing, Navistar required

companies to enter into an interlocking guaranty. In April 2005, Navistar and Capitol signed an

interlocking guaranty in which Navistar and Capitol (among others) agreed, in part, to the fol-

lowing contractual provision:

"Guarantors hereby absolutely and unconditionally guarantee (a)

the prompt payment of all monetary obligations of any sort, which

any of the Guarantors is now or may hereafter become liable to

Navistar ('Monetary Obligations') *** whether pursuant to leases

*** or other agreements or instruments *** when such Monetary

Obligations become due under such Agreements and (b) the full

and timely performance of each and every other obligation of any

Guarantor under the Agreements ('Non-monetary Obligations') for

which such Monetary Obligations and Non-Monetary Obligations

(collectively, 'Obligations'). Guarantors shall be jointly and sever-

ally liable with each other Guarantor. Guarantors expressly

acknowledge that this Guaranty will apply not only to Agreements

entered into as of the date hereof, but also to any additional

Agreements and all amendments, and schedules and other supple-

ments of any Agreements which are entered into prior to the termi-

nation of this Guarantee." (Emphasis added.)

-3- ¶9 Between July 2005 and December 2008, Navistar executed eight contracts with

Curry, which were entitled, "Commercial Loan and Security Agreement" (hereinafter, commer-

cial loans). The financing Navistar extended under the eight commercial loans assisted Curry in

acquiring transportation assets for its trucking business.

¶ 10 In July 2013, Navistar sued Capitol (as well as the other identified defendants),

claiming, in pertinent part, that Capitol "failed to pay all sums due and owing" for Curry's default

of the eight commercial loans. Navistar's suit explained that after Curry's default, Navistar re-

possessed the equipment Curry purchased and later sold those assets at a public auction, but an

outstanding balance of $307,293 remained on the commercial loans. In its prayer for relief,

Navistar requested reimbursement of the outstanding balance plus interest, fees, costs, and other

equitable relief the trial court deemed just.

¶ 11 In July 2014, Navistar filed a motion for summary judgment pursuant to section

2-1005 of the Code. Appended to Navistar's summary judgment motion was its July 2013 com-

plaint for breach of contract against Capitol, which contained (1) the three-page interlocking

guaranty executed between Navistar and Capitol and (2) the eight commercial loans executed

between Navistar and Curry. In addition, Navistar appended the affidavit of Lynn Roy, Navis-

tar's retail operations specialist. In November 2014, Capitol filed (1) a motion to strike Roy's

affidavit and (2) a cross-motion for summary judgment in which Capitol appended the affidavit

of its president, Louis Marcy.

¶ 12 Later that month, the trial court conducted a hearing on the parties' respective mo-

tions and, thereafter, took the matter under advisement. In December 2014, the court entered the

following order:

"In the instant case, there is no material question of fact to prevent

-4- granting summary judgment in favor of [Navistar] and against ***

Capitol ***. Based on the pleadings and affidavits, there is no dis-

pute [Capitol] signed the interlocking agreements, agreeing to

guarantee payment to [Navistar] should Curry *** fail to make

payment. Nothing on the pleadings alleges fraud in the formation

of the various commercial loan[s]. In sum, the pleadings and sup-

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2016 IL App (4th) 150419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navistar-financial-corporation-v-curry-ice-coal-inc-illappct-2016.