Quintas v. Asset Management Group, Inc.

917 N.E.2d 100, 334 Ill. Dec. 503, 395 Ill. App. 3d 324
CourtAppellate Court of Illinois
DecidedSeptember 30, 2009
Docket1-08-1950
StatusPublished
Cited by29 cases

This text of 917 N.E.2d 100 (Quintas v. Asset Management Group, 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
Quintas v. Asset Management Group, Inc., 917 N.E.2d 100, 334 Ill. Dec. 503, 395 Ill. App. 3d 324 (Ill. Ct. App. 2009).

Opinion

JUSTICE GALLAGHER

delivered the opinion of the court:

Plaintiffs-appellants James and Maria Quintas filed a complaint against defendants-appellees Asset Management Group, Inc., AMG Guaranty Trust, and Linda Weinrib (collectively defendants). The complaint contained three counts: negligence, breach of fiduciary duty, and violation of the Consumer Fraud and Deceptive Business Practices Act (the Act) (815 ILCS 505/1 et seq. (West 2006)). The trial court granted summary judgment for defendants on the fiduciary duty and Act counts but denied summary judgment on the negligence count. Subsequently, the plaintiffs filed for voluntary dismissal pursuant to section 2 — 1009 of the Code of Civil Procedure (Code) (735 ILCS 5/2— 1009 (West 2004)). Defendants then moved for costs pursuant to section 2 — 1009 of the Code and for costs and expenses pursuant to Supreme Court Rule 219(e) (210 Ill. 2d R. 219(e)). Based on plaintiffs’ representation that the claim would be refiled, the trial court continued the hearing on the motion for 60 days. Plaintiffs refiled the action, alleging only negligence. The trial court awarded defendants expenses under Rule 219(e). Defendants then moved for summary judgment on the grounds that the refiled action was barred by res judicata. The trial court granted the motion and plaintiffs appeal, contending that the trial court erred in granting summary judgment because the trial court in the original action granted plaintiffs leave to refile and defendants acquiesced in the refiling. For the following reasons, we reverse.

BACKGROUND

Prior to May 2000, Jim Quintas was employed by Lucent Technologies. Jim and Maria Quintas retained AMG and its financial planner, Linda Weinrib, through Lucent to provide financial counseling prior to Jim’s retirement. They met with Weinrib in January and February, 2000, at which time they had 80% of their assets invested in Lucent stock and vested Lucent options as well as unvested Lucent options. The Lucent stock and vested Lucent options had a value of over two million dollars at the time of their meeting with Weinrib. They informed Weinrib that Jim planned to retire on May 1, 2000. Allegedly following Weinrib’s recommendation, they kept half of their net worth in Lucent options after Jim retired. Lucent stock subsequently lost 80% of its value.

On September 9, 2002, James and Maria Quintas filed suit against AMG Guaranty Trust, Asset Management Group, and Weinrib, alleging that the standard of care for financial planners requires that retiring investors be invested in a diversified portfolio (Quintas I). The complaint contained three counts: negligence, breach of fiduciary duty, and violation of the Act. Defendants filed a motion for summary judgment on all three counts stating that: (1) defendants did not have a fiduciary relationship with plaintiffs, (2) plaintiffs admitted that no misrepresentations were made and could not point to any unfair or deceptive practices, and (3) plaintiffs did not rely on defendants’ advice and thus the advice did not proximately cause plaintiffs’ damages. On October 15, 2004, the trial court granted defendants’ motion for summary judgment on the counts for breach of fiduciary duty and violation of the Act, but denied the motion as to the negligence count. 1 The remaining count was set for trial on October 25, 2004.

On October 21, 2004, plaintiffs filed an emergency motion to dismiss without prejudice pursuant to section 2 — 1009 of the Code. 735 ILCS 5/2 — 1009 (West 2004). On October 22, 2004, a judge sitting in for the assigned judge granted the motion and entered an agreed order that required plaintiffs to: (1) pay the costs allowed by section 2 — 1009; (2) pay fees and costs that the court had awarded on October 2, 2004, related to its allowance of a supplemental opinion from plaintiffs’ expert witness; and (3) pay any costs the court might later award defendants pursuant to Rule 219(e). The court also retained jurisdiction to decide any motion defendants might bring under Rule 219 (210 Ill. 2d R. 219).

On October 25, 2004, plaintiffs appeared before the assigned judge and presented the same motion for voluntary dismissal. Counsel advised the court that plaintiffs intended to refile and the court expressed a desire to hear the refiled case if the parties agreed. There is no transcript of this hearing. The court then entered an order dated October 25, 2004, that is identical to the order that was entered on October 22, granting voluntary dismissal subject to certain conditions. The court docket sheet shows that plaintiffs’ motion to dismiss was filed on October 22, 2004. The entry on the docket sheet for October 25, 2004, states: “VOLUNTARY DISMISSAL W[ITH] LEAVE TO REFILE — ALLOWED.”

On November 4, 2004, defendants filed a motion for costs pursuant to section 2 — 1009 of the Code (735 ILCS 5/2 — 1009 (West 2004)) and for reasonable expenses pursuant to Rule 219(e) (210 Ill. 2d R. 219(e)). The court heard the motion on February 18, 2005, and entered an order continuing the court’s ruling on the motion until April 18, 2005, based upon plaintiffs’ representation that the case would be refiled. Plaintiffs refiled the negligence claim on April 6, 2005 (Quintas II). On April 18, 2005, the court heard defendants’ motion for costs in Quintas I and issued an order on May 4, 2005, holding that plaintiffs voluntarily dismissed the action in order to avoid compliance with discovery deadlines and awarding judgment to defendants of $16,197.18 pursuant to Rule 219(e) (210 Ill. 2d R. 219).

On July 15, 2005, defendants filed a motion for administrative transfer, requesting that the same judge who presided over Quintas I also preside over Quintas II. Plaintiffs opposed the motion and it was denied. On November 4, 2005, defendants filed an answer and counterclaim in Quintas II, asserting the affirmative defense that plaintiffs’ negligence claim was barred by res judicata. The counterclaim sought attorney fees and costs as the prevailing party pursuant to the Act. Plaintiffs moved to dismiss the counterclaim because such motions must be filed within 30 days of the judgment upon which the motion for costs is based. The counterclaim was eventually withdrawn on May 8, 2006. Defendants moved for summary judgment in Quintas II on November 28, 2005. The trial court granted the motion and entered summary judgment for defendants on February 28, 2006, on res judicata grounds. Plaintiffs filed a motion for reconsideration on March 29, 2006, and asked for a stay pending the Illinois Supreme Court’s decision in Hudson v. City of Chicago, 228 Ill. 2d 462, 889 N.E.2d 210 (2008). The stay was granted and after the Hudson decision was issued, plaintiffs filed an amended motion for reconsideration. The motion was denied and this appeal follows.

ANALYSIS

Our review of a trial court’s grant of summary judgment is de novo. Inter-Rail Systems, Inc. v. Ravi Corp., 387 Ill. App. 3d 510, 515, 900 N.E.2d 407, 411 (2008).

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Bluebook (online)
917 N.E.2d 100, 334 Ill. Dec. 503, 395 Ill. App. 3d 324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quintas-v-asset-management-group-inc-illappct-2009.