Pinnacle Arabians, Inc. v. Schmidt

654 N.E.2d 262, 210 Ill. Dec. 963, 274 Ill. App. 3d 504, 1995 Ill. App. LEXIS 620
CourtAppellate Court of Illinois
DecidedAugust 12, 1995
Docket2-94-1372
StatusPublished
Cited by15 cases

This text of 654 N.E.2d 262 (Pinnacle Arabians, Inc. v. Schmidt) 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
Pinnacle Arabians, Inc. v. Schmidt, 654 N.E.2d 262, 210 Ill. Dec. 963, 274 Ill. App. 3d 504, 1995 Ill. App. LEXIS 620 (Ill. Ct. App. 1995).

Opinion

JUSTICE DOYLE

delivered the opinion of the court:

Defendant, William Schmidt, appeals the circuit court’s order granting the petition of plaintiff, Pinnacle Arabians, Inc., to register in McHenry County a Canadian judgment against defendant. Defendant contends that the Canadian court lacked personal jurisdiction over him and that the judgment was obtained fraudulently.

In December 1992, plaintiff filed suit in the Court of Queen’s Bench of Alberta, Canada, against William Schmidt, Katie Schmidt, Katie Schmidt and William Schmidt carrying on business as Schmidt Arabians, and Schmidt Arabians. Plaintiff alleged that defendants breached a contract for the purchase of horses from plaintiff. The record reflects that Katie Schmidt was served personally while defendant was served by abode service upon Katie Schmidt.

Defendant and Katie Schmidt, his wife, filed a pro se "Statement of Defense” on February 8, 1993. Subsequently, Molstad Gilbert, a firm of Canadian solicitors, filed an appearance, an "Amended Statement of Defence” and a counterclaim, purportedly on behalf of all defendants. The "Amended Statement of Defence,” inter alia, raised the defenses that defendant was not connected with the business of Schmidt Arabians and was not a party to the contract.

According to a certificate issued by the Canadian court, "An application for summary judgment was heard on May 18, 1993, the Defendants appearing.” The court granted summary judgment to plaintiff against all defendants for $36,915.89 U.S. Apparently, no appeal was taken from this judgment.

On May 26,1994, plaintiff petitioned the circuit court of McHenry County to register the foreign judgment. Once again, Katie Schmidt was personally served with the petition to register the foreign judgment, while defendant was served by substituted service. Oliver, Close, Worden, Winkler, Greenwald & Maier purportedly entered an appearance on behalf of all defendants. That firm was later granted leave to withdraw.

Defendant obtained new counsel and filed a petition to vacate the judgment. Defendant’s affidavit was attached to the petition. In it, defendant asserted that he had no connection whatsoever with Schmidt Arabians, but rather it was a corporation of which his wife was the sole stockholder and officer. Defendant never entered into any contract with plaintiff and was never in Canada in connection with this or any other matter involving plaintiff. Defendant was not served with any papers in connection with the Canadian lawsuit and did not retain an attorney to represent him in Canada or consent to the entry of judgment against him. Defendant was never served in connection with the petition to register the foreign judgment. The attorneys purportedly representing his interests in the registration action were not authorized to do so.

The court conducted a hearing on defendant’s petition. According to the bystander’s report of that hearing, defendant’s testimony was substantially similar to his affidavit. However, on cross-examination, defendant admitted that he owned property in Illinois and that he was aware that there were horses on that property which came from plaintiff. Defendant also had offspring from those horses. He admitted that he and Katie Schmidt had a joint bank account, but was unaware that plaintiff had received a check drawn on the joint account in payment of the judgment.

The court admitted plaintiff’s exhibits into evidence without objection. These included copies of the statement of defense and "Amended Statement of Defence” filed in the Canadian action, both of which purportedly contain defendant’s signature. Also included was a magazine advertisement for a stallion that was owned by:

"SCHMIDT ARABIANS
Bill Schmidt
28 W 224 Rosevelt [szc] Rd.
Winfield, IL 60190.”

An excerpt from another magazine contains a brief description of Schmidt Arabians and refers to "the Schmidt’s.”

The court also admitted into evidence the supplementary affidavit of Robert A. Bradburn. Bradburn avers that he is plaintiff’s shareholder and director. He further states:

"I advised Katie Schmidt that I would not deal with a trade name or a corporate entity and was advised by Katie Schmidt that Schmidt Arabians was a trade name operated by herself and her husband, William Schmidt, and I was instructed to put in on the Bill of Sale, Katie Schmidt and William Schmidt DBA (meaning doing business as) Schmidt Arabians.
4. That historically, Mr. Schmidt and his former wife, Pam Schmidt, also carried on business as Schmidt Arabians and I was advised that Schmidt Arabians was a trade name for Katie Schmidt and William Schmidt and at the time of the documentation being completed for this sale, I advised Katie Schmidt and William Schmidt that I would not deal with a corporate entity and must deal with the individuals and was at that time was [szc] given the names, Katie Schmidt and Bill Schmidt.
5. That I am the President of the Arabian Incentive Foundation Inc. and historically when various horses were nominated by the Schmidts DBA Schmidt Arabians, the member nominator is always William Schmidt, with a designation that prize monies go to William Schmidt.
* * *
8. That although the bulk of my dealings have been with Katie Schmidt, it was always known to me, believed by me and represented to me that the owners of Schmidt Arabians were William Schmidt and Katie Schmidt during the course of this transaction.
9. That William Schmidt’s daughter from a previous marriage came to see the horses in Alberta for their inspection and signed the contract. Katie Schmidt advised me that William Schmidt was breeding the horses that had been purchased in 1992.”

The court denied defendant’s motion to vacate, finding that defendant failed to produce sufficient evidence to support his petition. Defendant timely appealed. The other defendants are not parties to this appeal.

Defendant first contends that the court erred in registering the Canadian judgment because the foreign court lacked personal jurisdiction over him. Defendant maintains that he lacked sufficient minimum contacts with the province of Alberta to subject him to jurisdiction in that forum. Furthermore, according to defendant, the general appearance allegedly filed on his behalf was ineffective to confer jurisdiction because the Canadian lawyers were not authorized to appear for him.

The Uniform Foreign Money-Judgments Recognition Act (the Act) (735 ILCS 5/12 — 618 et seq. (West 1992)) provides that a foreign judgment which is final and enforceable where rendered is conclusive between the parties and is enforceable in the same manner as the judgment of a sister State which is entitled to full faith and credit. (735 ILCS 5/12

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Bluebook (online)
654 N.E.2d 262, 210 Ill. Dec. 963, 274 Ill. App. 3d 504, 1995 Ill. App. LEXIS 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinnacle-arabians-inc-v-schmidt-illappct-1995.