Pancoe v. Singh

876 N.E.2d 288, 376 Ill. App. 3d 900, 315 Ill. Dec. 288, 2007 Ill. App. LEXIS 1009
CourtAppellate Court of Illinois
DecidedSeptember 17, 2007
Docket1-05-2513
StatusPublished
Cited by14 cases

This text of 876 N.E.2d 288 (Pancoe v. Singh) 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
Pancoe v. Singh, 876 N.E.2d 288, 376 Ill. App. 3d 900, 315 Ill. Dec. 288, 2007 Ill. App. LEXIS 1009 (Ill. Ct. App. 2007).

Opinion

JUSTICE ROBERT E. GORDON

delivered the opinion of the court:

In 2002, Robert Pancoe sued Gulzar Singh for breach of an agreement calling for the dissolution of an alleged joint venture between the parties. According to plaintiff, the underlying venture was for the operation of Pan-Oceanic Engineering Co. (Pan-Oceanic), and N.K. Contracting and Equipment Co. (N.K.). Following a bench trial, the circuit court of Cook County entered judgment in favor of plaintiff and awarded damages in the amount of $92,959. Defendant appeals, arguing, among other things, that (1) the trial court erred in (a) denying defendant’s motion for judgment on the pleadings pursuant to section 2 — 615(e) of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615(e) (West 2004)), and (b) denying defendant’s motion for judgment at the close of plaintiffs case pursuant to section 2 — 1110 of the Code (735 ILCS 5/2 — 1110 (West 2004)); (2) the evidence was insufficient to establish the existence of the underlying venture; (3) the trial court should not have allowed defendant’s expert witness to testify in plaintiff’s case, in violation of Rule 213(f) (210 Ill. 2d R. 213(f)); (4) the trial court lacked jurisdiction to enter the judgment; and (5) the court’s damages award was not supported by the evidence. Plaintiff cross-appeals, arguing that the trial court erred in awarding only $92,959 in damages rather than the $433,976.71 urged by plaintiff. For the reasons set forth below, we affirm the judgment of the circuit court, as modified.

BACKGROUND

In October 2002, plaintiff filed a three-count verified amended complaint against Singh, Pan-Oceanic and N.K. Counts I and II sought the involuntary dissolution of Pan-Oceanic and N.K., respectively, pursuant to the Illinois Business Corporation Act of 1983 (Act) (805 ILCS 5/1.01 et seq. (West 2004)). Count III of the complaint was against Singh for breach of contract. In June 2003, upon motion of defendants, the circuit court dismissed counts I and II against Pan-Oceanic and N.K. From this point forward, the case proceeded solely against Singh for breach of contract.

In count III of the amended complaint — the only remaining count — plaintiff alleged that he and defendant entered into an agreement “in or about 1998” to create and operate Pan-Oceanic, a construction company. Plaintiff further alleged that “[i]n or about the spring of 2000,” he and defendant agreed to create and incorporate N.K., a small equipment rental company. According to plaintiff, the two men intended to operate Pan-Oceanic and N.K. “as a single venture” in which N.K. would serve as an equipment rental subcontractor on Pan-Oceanic’s construction projects.

Plaintiff also alleged that in early 2001 he told defendant that he was dissatisfied with certain personnel decisions defendant had made, and plaintiff wanted to end his affiliation with the venture by the end of 2001. Plaintiff asserted that “[o]n or about September 17, 2001,” he and defendant entered into a written agreement for the dissolution of the venture. A copy of this one-page agreement, showing signatures by both parties, was attached to plaintiffs complaint. The agreement included, inter alia, the following stipulations: (1) any money the venture received for projects then under contract was to be deposited in Pan-Oceanic’s checking account, (2) no new contracts were to be entered into on behalf of the venture, and (3) upon payment of all venture obligations, any amounts remaining in the checking account were to be disbursed equally to the two parties. The agreement was titled, “Memorandum of Agreement Between Gulzar Singh and Robert Pancoe re dissolution of Venture known as Pan-Oceanic Engineering Co. and N.K. Contracting and Equipment Co. Dated this 17th Day of September, 2001 And covering all projects under contract as of this date.”

According to the amended complaint, defendant breached this agreement in that, “since September 17, 2001, he has, without notice to Pancoe or Pancoe’s knowledge or consent, bid for work on behalf of the Venture, failed to report payments on accounts receivable, failed to supply Pancoe with an accounting of the venture’s profits and money, used the venture’s funds for new business and revived a previously suspended contract.” Plaintiff sought, as damages, the amount to which he was entitled “in accordance with the Agreement.” Plaintiff added that, because he lacked access to the venture’s books and records, he was uncertain, at that time, as to the precise amount that was due.

In his amended answer to count III of the complaint, defendant acknowledged the existence of Pan-Oceanic and N.K. but denied that he and plaintiff agreed to create the two companies. Defendant also denied that he and plaintiff intended to operate Pan-Oceanic and N.K. as a single venture. With regard to the agreement for dissolution of the venture, defendant admitted that he signed the agreement in his individual capacity but stated that his signature was procured through fraud, misrepresentation and duress.

Defendant alleged, as an affirmative defense, that he signed the dissolution agreement under duress and the contract therefore was void and unenforceable. Defendant described the September 2001 meeting where the agreement was signed and claimed that, during this meeting, which was attended only by plaintiff and defendant, plaintiff physically threatened him. According to defendant, plaintiff told him that if he did not sign the agreement, plaintiff would “do something” to defendant that defendant would not like, and defendant would “totally disappear.” Defendant stated that he signed the document “out of fear for his personal safety and well-being.” Defendant alleged, in addition, that he could not read the document because plaintiff “deliberately placed his hand over the wording.”

In March 2005 plaintiff filed witness disclosures pursuant to Supreme Court Rule 213(f) (210 Ill. 2d R. 213(f)). Plaintiffs disclosures included one independent expert witness, Christopher O. Ihejirika, who had formerly done accounting work for Pan-Oceanic. Among the expert witnesses disclosed by defendant was Dennis Steffens, who succeeded Ihejirika as Pan-Oceanic’s accountant. According to defendant’s Rule 213(f) disclosures, the subjects about which Steffens was to testify included (1) the total net profit from Pan-Oceanic’s contracts that were outstanding at the time plaintiffs relationship with Pan-Oceanic ended and the calculation of that profit, and (2) the interpretation of Pan-Oceanic’s and N.K.’s financial statements and income tax returns. It is undisputed that Steffens was not named in plaintiffs Rule 213(f) disclosures.

On April 30, 2005, plaintiff served Steffens with a trial subpoena and a deposition subpoena. Steffens’ deposition took place on May 12, 2005, with defendant present.

On May 31, 2005, just prior to the start of trial, defendant moved for judgment on the pleadings pursuant to section 2 — 615(e) of the Code (735 ILCS 5/2 — 615(e) (West 2004)). Defendant pointed to his previously asserted affirmative defense that he had signed the dissolution agreement under duress. Defendant noted that plaintiff never filed an answer to this affirmative defense.

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

Related

Rivas v. Benny's Prime Chophouse, LLC
2025 IL App (1st) 242044 (Appellate Court of Illinois, 2025)
Granville Tower Condominium Ass'n v. Escobar
2022 IL App (1st) 200362 (Appellate Court of Illinois, 2022)
Monarch Hospice & Palliative Care, Inc. v. Ybarra
2021 IL App (1st) 200536-U (Appellate Court of Illinois, 2021)
Granville Tower Condominium Association v. Escobar
2021 IL App (1st) 200362-U (Appellate Court of Illinois, 2021)
Housing Authority of the County of Cass v. Assisted Housing Risk Management Ass'n
2020 IL App (4th) 180737-U (Appellate Court of Illinois, 2020)
In re Marriage of Polk
2020 IL App (1st) 191484-U (Appellate Court of Illinois, 2020)
Bluestone Executive Search, LLC v. Staff Management Solutions, LLC
2020 IL App (1st) 181647-U (Appellate Court of Illinois, 2020)
The Takiff Properties Group Ltd. 2 v. GTI Life, Inc.
2018 IL App (1st) 171477 (Appellate Court of Illinois, 2018)
Downs v. Rosenthal Collins Group
2011 IL App (1st) 90970 (Appellate Court of Illinois, 2011)
Downs v. ROSENTHAL COLLINS GROUP, LLC
2011 IL App (1st) 090970 (Appellate Court of Illinois, 2011)
Garden View, LLC v. Fletcher
916 N.E.2d 554 (Appellate Court of Illinois, 2009)
Grillo v. Yeager Construction
900 N.E.2d 1249 (Appellate Court of Illinois, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
876 N.E.2d 288, 376 Ill. App. 3d 900, 315 Ill. Dec. 288, 2007 Ill. App. LEXIS 1009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pancoe-v-singh-illappct-2007.