Rivan Die Mold Corp. v. Stewart-Warner Corp.

325 N.E.2d 357, 26 Ill. App. 3d 637, 17 U.C.C. Rep. Serv. (West) 570, 1975 Ill. App. LEXIS 1943
CourtAppellate Court of Illinois
DecidedFebruary 13, 1975
Docket59940
StatusPublished
Cited by43 cases

This text of 325 N.E.2d 357 (Rivan Die Mold Corp. v. Stewart-Warner Corp.) 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
Rivan Die Mold Corp. v. Stewart-Warner Corp., 325 N.E.2d 357, 26 Ill. App. 3d 637, 17 U.C.C. Rep. Serv. (West) 570, 1975 Ill. App. LEXIS 1943 (Ill. Ct. App. 1975).

Opinion

Mr. JUSTICE BURMAN

delivered the opinion of the court:

This is an appeal from an order of the Circuit Court granting summary judgment solely on the pleadings and depositions against plaintiff, Rivan Die Mold Corporation (Rivan), and in favor of defendant, Stewart-Warner Corporation (Stewart-Warner), and third party Exchange National Bank of Chicago (Bank).

The sole question for review is whether there is any genuine issue as to any material fact requiring a trial on the merits. Although a complete statement of the pleadings and discovery depositions would prolong this opinion unduly, a substantial recitation of their essence is necessitated by the factual nature of the issue before us.

The action was commenced on July 27, 1972, when Rivan filed a complaint against defendant, Stewart-Warner, for an alleged breach of contract. Pursuant to the terms of an agreement, Rivan sought to collect 50% of all invoices submitted to Stewart-Wamer by Logan Industries (Logan). As stated in the complaint, Logan had been producing piece parts for Stewart-Warner from certain dies. The dies were originally manufactured by Rivan. At the direction of Stewart-Warner, Logan delivered the dies to Rivan for specified alteration. Thereafter, Rivan made the requested changes, but refused to release the dies without assurance from Stewart-Wamer that payment would be received in the amount of $14,775 for work performed on the dies.

The complaint further alleges that on January 19, 1972, the parties met to discuss the matter. Present were Ray Gorzynski, director of purchases for Stewart-Wamer; Robert Rivan, president of Rivan; and Saul Coven, d/b/a Logan Industries. A written agreement was entered into that day and executed by all of the parties whereby it was agreed that in consideration of Rivan releasing the dies, Stewart-Warner would “pay directly to Rivan Die Mold Corporation 50% of all Logan Industries invoices submitted to Stewart-Wamer until $15,000 has been paid to Rivan.” Pursuant to the terms of tire agreement, Rivan released the dies. On February 23, 1972, Stewart-Wamer paid Rivan the sum of $1,683.18 which constituted 50% of the Logan invoices to date. Thereafter, Stewart-Warner refused further payment, advising Rivan that it had received notice from the Exchange National Bank on February 28, 1972, that Logan had previously assigned and transferred to the Bank any and all accounts and monies due and to become due from Stewart-Wamer to Logan. Rivan claims that despite this fact,.it is entitled to payment from Stewart-Warner and that the invoices received to date are more than sufficient to enable Stewart-Wamer to liquidate an owing balance of $14,775.

Stewart-Warner admits by its answer to the complaint that it had been purchasing piece parts from Logan, that certain dies were brought to Rivan, and that it had ordered changes of the dies; but StewartWamer states that it owned the dies and that the changes were ordered strictly from Logan. Stewart-Wamer further admits that a conference had been held for the release of the dies by Rivan at which the pleaded agreement had been made, but it denies that there was adquate consideration to support any agreement. Furthermore, Stewart-Wamer avers that the payment of any account receivable to Rivan was subject to an implied condition that there had been no prior assignment of the account receivable by Logan. Additionally, Stewart-Warner raises two affirmative defenses. First, it disputes the amount claimed by Rivan. Second, it alleges that by reason of the notice of assignment from the Bank, it became obligated to pay all Logan invoices directly to the Bank. Rivan filed a reply to the affirmative defenses.

On September 27, 1972, Stewart-Wamer filed a third-party complaint against the Bank. The complaint alleges that in the event Rivan is entitled to a judgment against Stewart-Warner, it is entitled to a judgment against the Bank for any amount it may become liable to Rivan. In response, the Bank filed a motion and an amended motion for summary judgment and dismissal of the third-party complaint. In substance, the Bank alleged that it had a perfected security interest in the accounts receivable of Logan, and that any rights of Rivan were subservient and unrelated to its claim. Thereafter, Stewart-Wamer moved to strike the Bank’s motion or, in the alternative; for summaiy judgment against Rivan. Subsequently, Rivan moved to strike Stewart-Warner’s motion and for a grant of summary judgment against Stewart-Wamer.

On October 4, 1973, an order was entered dismissing the third-party complaint and granting summary judgment in favor of Stewart-Warner against Rivan. Consequently, Rivan’s complaint was dismissed, and its motion for summary judgment was denied.

With regard to summary judgment, section 57 of the Civil Practice Act provides that a “* * * judgment or decree sought shall be rendered forthwith if the pleadings, depositions and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment or decree as a matter of law.” Ill. Rev. Stat. 1971, ch. 110, par. 57.

The purpose of summary judgment is quite clear. It is a means to avoid the expense and delay of trial where no genuine issue of fact exists. (Allen v. Meyer, 14 Ill.2d 284.) The procedure is not designed to try an issue of fact, but rather to determine whether one exists. (Weber v. Northern Illinois Gas Co., 10 Ill.App.3d 625, 295 N.E.2d 41.) We must note that while summary judgment is to be encouraged, it is a remedy to be awarded with due caution in view of its drastic nature. (Solone v. Reck, 32 Ill.App.2d 308, 177 N.E.2d 879.) Accordingly, in making a determination as to the propriety of summary judgment, courts must construe the pleadings, depositions and affidavits most strictly against the moving party and most liberally in favor of the opponent in order to determine whether there is a genuine issue as to a material fact. Lumbermens Mutual Casualty Co. v. Poths, 104 Ill.App.2d 80, 243 N.E.2d 40.

From the outset we must comment that we are not passing on the issues raised in the pleadings. We are merely determining the propriety of the trial court’s grant of summary judgment. After a thorough review of the record, we are of the opinion that there were genuine issues of material fact in the action by Rivan against Stewart-Wamer. Therefore, the grant of summary judgment in said suit is reversed and remanded.

The record does establish several uncontroverted facts. Prior to January 19, 1972, Stewart-Warner purchased from Logan piece parts produced by certain dies. The dies were subsequently delivered by Logan to Rivan for changes. Thereafter, Rivan made the requested changes, but refused to release the dies without assurance that it would be paid for its efforts. Consequently, the dies remained unproductive on Rivan’s premises.

The discovery deposition of Raymond Gorzynski (manager of Purchases for Stewart-Wamer) sets forth further uncontested facts.

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325 N.E.2d 357, 26 Ill. App. 3d 637, 17 U.C.C. Rep. Serv. (West) 570, 1975 Ill. App. LEXIS 1943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivan-die-mold-corp-v-stewart-warner-corp-illappct-1975.