People v. Reymar Clinic Pharmacy, Inc.

617 N.E.2d 35, 246 Ill. App. 3d 835, 186 Ill. Dec. 796, 1993 Ill. App. LEXIS 415
CourtAppellate Court of Illinois
DecidedMarch 26, 1993
Docket1-91-1153, 1-91-2181
StatusPublished
Cited by18 cases

This text of 617 N.E.2d 35 (People v. Reymar Clinic Pharmacy, 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
People v. Reymar Clinic Pharmacy, Inc., 617 N.E.2d 35, 246 Ill. App. 3d 835, 186 Ill. Dec. 796, 1993 Ill. App. LEXIS 415 (Ill. Ct. App. 1993).

Opinion

PRESIDING JUSTICE GORDON

delivered the opinion of the court:

The corporate defendants, Reymar Clinic Pharmacy (hereinafter Reymar), and Englewood Clinic Laboratory, Inc. (hereinafter Englewood), along with two individuals, Henry Piemental, M.D. (hereinafter H.P.), and Oscar Hosenilla, were indicted in several counts, including count I charging vendor fraud, which is the only count pertaining to this appeal. The indictment alleged that defendants defrauded the Illinois Department of Public Aid in obtaining more than $10,000 in payments for medical services which it never ordered or delivered.

On May 11, 1990, defendants H.P., Englewood and Reymar were found guilty on the charges of vendor fraud pursuant to a guilty plea purportedly entered by H.P. on his behalf and on behalf of the corporate defendants. Each received a sentence of conditional discharge for a period of 24 months.

Englewood and Reymar each filed post-conviction petitions pursuant to section 122 — 1 of the Post-Conviction Hearing Act (Ill. Rev. Stat. 1989, ch. 38, par. 122 — 1), which were summarily denied by the trial court. Each defendant also filed petitions to vacate the judgment pursuant to section 2 — 1401 of the Illinois Code of Civil Procedure (Ill. Rev. Stat. 1989, ch. 110, par. 2 — 1401), which were also summarily denied without an evidentiary hearing.

Each corporate defendant filed a notice of appeal and both appeals were consolidated before this court. Subsequently, appellant Reymar’s appeal was stricken, leaving Englewood as the sole remaining appellant. Although filed separately and at different times, the grounds alleged in the respective post-conviction petitions and motions to vacate filed by Reymar and by Englewood are substantially identical. Although the court ruled on Reymar’s post-conviction pleadings first, the trial court assigned the same reasons for the denial of the petitions in Englewood as it had articulated previously with respect to Reymar.

In its post-conviction petition, Englewood avers that H.R, who purported to represent it in entering a plea of guilty on its behalf, was unauthorized to do so. Englewood’s post-conviction petition avers that H.P. was neither a shareholder, director nor officer of Englewood. It further states that H.P. made false representations as to his authority to enter a plea for Englewood. The petition contends that neither Englewood nor its officers, true agents or directors ever received notice of its “alleged violations.”

The petition states that as a result of the conviction, Englewood’s eligibility to remain a vendor of laboratory services to public aid recipients was being terminated and its principals (officers and shareholders) would be barred from participating in the State’s medical assistance program.

Englewood’s petition urges that its rights under the fourteenth amendment of the United States Constitution and article I, section 2, of the Constitution of the State of Illinois were violated by the lack of notice of the charges and the fraudulent testimony of H.P.

Supporting affidavits were filed under oath by Dr. Suck Oo Kim, president, director and 50% shareholder of Englewood, and by Dr. Lamberto Piemental, secretary-treasurer and owner of the other 50% of Englewood’s stock. Dr. Lamberto Piemental is H.P.’s brother.

The section 2 — 1401 petition of Englewood contained allegations substantially identical to those in its post-conviction petition and was apparently filed contemporaneously. The section 2 — 1401 petition explicitly avers that Englewood did not discover that it was convicted until it was notified of the conviction by the Illinois Department of Public Aid, more than six months later, in November 1990.

The same sworn affidavits submitted by Englewood in support of its post-conviction petition were also submitted in support of its section 2 — 1401 petition.

As noted, the trial court adopted its reasons for denying the petitions of Reymar as its reasons for denying the petitions of Englewood. The trial court held that the post-conviction remedy provided under the Post-Conviction Hearing Act (Ill. Rev. Stat. 1989, ch. 38, par. 122 — 1 et seq.) was not available to corporations. The trial court reasoned that since corporations could not be imprisoned, they were not the intended beneficiaries of the relief provided under that statute.

The reasons assigned by the trial court for the denial of Englewood’s section 2 — 1401 petition are less clear. Although the trial judge stated that his grounds for denying Englewood’s section 2 — 1401 petition were the same as those which controlled his dismissal of the Reymar petition, there were distinct differences between the two petitions. In Reymar, affidavits submitted in support of the section 2 — 1401 petition were unsigned, while those submitted by Englewood were signed and sworn to. In Reymar, the face of the “Domestic Corporation Annual Reports” filed with the Secretary of State showed that H.P. was an officer of that corporation while the “Domestic Corporation Annual Reports” filed by Englewood showed that Drs. Suck Oo Kim and Lamberto Piemental were its only officers and fiduciaries.

Unlike his statement regarding the post-judgment petition, the trial judge did not pinpoint the reasons for denying Reymar’s section 2 — 1401 petition. He did state that for purposes of section 2 — 1401 the claim regarding H.P.’s fraud or lack of authority was collateral and tenuous “at best.” He also stated that he saw nothing in the record “that shows Henry Piemental committed or perpetuated any fraud upon this court” in entering his plea for Reymar. He concluded “in the. absence of any direct affirmative showing” of Henry Piemental’s lack of authority, the petition “must fail.”

We shall first address the question raised by Englewood’s post-conviction petition.

The Post-Conviction Hearing Act (Ill. Rev. Stat. 1989, ch. 38, par. 122 — 1) provides in pertinent part:

“Any person imprisoned in the penitentiary who asserts that in the proceedings which resulted in his conviction there was a substantial denial of his rights under the Constitution of the United States or of the State of Illinois or both may institute a proceeding under this Article.”

Although the explicit language of this provision requires that the petitioner be imprisoned in the penitentiary in order to institute a post-conviction proceeding, our supreme court in construing this provision has deemphasized the necessity of actual imprisonment. Thus, our courts have allowed post-conviction petitions from defendants sentenced to probation (People v. Montes (1980), 90 Ill. App. 3d 355, 412 N.E.2d 1363), as well as from defendants who were on mandatory supervised release. People v. Correa (1985), 108 Ill. 2d 541, 485 N.E.2d 307.

In People v. Martin-Trigona (1986), 111 Ill. 2d 295, 489 N.E.2d 1356, a post-conviction petition from a defendant who was released on bond when the petition was filed was allowed. In People v. Placek (1976), 43 Ill. App.

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Bluebook (online)
617 N.E.2d 35, 246 Ill. App. 3d 835, 186 Ill. Dec. 796, 1993 Ill. App. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-reymar-clinic-pharmacy-inc-illappct-1993.