Rockford Financial Systems v. Borgetti

932 N.E.2d 1152
CourtAppellate Court of Illinois
DecidedJuly 21, 2010
Docket2-08-1236
StatusPublished

This text of 932 N.E.2d 1152 (Rockford Financial Systems v. Borgetti) 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
Rockford Financial Systems v. Borgetti, 932 N.E.2d 1152 (Ill. Ct. App. 2010).

Opinion

932 N.E.2d 1152 (2010)

ROCKFORD FINANCIAL SYSTEMS, INC., Plaintiff and Third-Party Citation Petitioner-Appellant,
v.
Michael BORGETTI, Defendant (National City Bank, Third-Party Citation Respondent-Appellee).

No. 2-08-1236.

Appellate Court of Illinois, Second District.

July 21, 2010.

*1154 Theodore Liebovich, Liebovich & Weber, P.C., Rockford, for Rockford Financial Systems, Inc.

Thomas P. Sandquist, Williams McCarthy, P.C., Rockford, for National City Bank.

Justice McLAREN delivered the opinion of the court:

Plaintiff, Rockford Financial Systems, Inc., appeals from the orders of the trial court vacating a judgment against third-party citation respondent, National City Bank, and limiting the amount of the subsequently *1155 reinstated judgment. We affirm.

In May 2007, Rockford Financial filed a one-count complaint for breach of promissory note against defendant, Michael Borgetti. On July 19, 2007, pursuant to an agreed order, judgment was entered in favor of Rockford Financial in the amount of $44,210.62 plus costs. Rockford Financial then began supplementary proceedings, pursuant to section 2-1402 of the Civil Practice Law (735 ILCS 5/2-1402 (West 2006)). During a hearing on a subsequent citation to discover assets, the following colloquy took place:

"Q. Do you have any bank accounts?
A. [Borgetti] Yes, sir.
Q. And where are they located?
A. National City.
Q. What kind of accounts do you have?
A. Just checking.
Q. Is that in your name solely?
A. Yes, sir.
Q. No other bank accounts?
A. No, sir."

Rockford Financial then filed a third-party citation to discover assets against National City, which failed to appear or otherwise respond on the return date of November 5, 2007. National City further failed to respond to mail and facsimile requests by Rockford Financial, which then filed a motion for conditional judgment against National City in the amount of $44,210.62 plus interest and costs. The trial court granted the motion on December 21, 2007, and confirmed the judgment on March 17, 2008.

On June 13, 2008, the trial court issued a citation to discover assets against National City for recovery of the confirmed judgment. National City then filed a motion to quash the citation to discover assets and vacate the judgment. National City attached an affidavit of Philip Roby, its special services processor, in which he stated that he received the third-party citation to discover assets on November 15, 2007. He immediately froze Borgetti's only account, which had a negative balance of $34.83 and had been negative since October 24, 2007 (the date on which the citation was served). He spoke to Rockford Financial's attorney on December 5, 2007, and told him that Borgetti's only account at National City had a negative balance.

National City filed a corrected affidavit on July 30, 2008, in which Roby stated that, upon further review, at the time it was frozen Borgetti's account had a negative balance of $8.83 and that, on October 24, 2007, the account had a positive balance of $519.98. With the exception of a positive balance of $0.17 on the March 14, 2008, bank statement, the account had not had a positive balance after November 15, 2007.

On September 2, 2008, the trial court granted National City's motion to quash the citation and vacate the judgment. Rockford Financial filed a motion to reconsider. On November 24, 2008, the trial court reinstated the conditional judgment against National City but limited the judgment to $519.98 plus costs. This appeal followed.

Rockford Financial first contends that the trial court erred in granting National City's motion to quash the citation and vacate the judgment. National City brought its motion under section 2-1401 of the Civil Practice Law, which provides for relief from final orders and judgments after 30 days but before 2 years from entry. See 735 ILCS 5/2-1401 (West 2006). Generally, such a petition is directed to the sound discretion of the trial court, and the court's decision will not be disturbed on review unless the court has abused its discretion. Engel v. Loyfman, 383 Ill. *1156 App.3d 191, 194, 321 Ill.Dec. 911, 890 N.E.2d 633 (2008). This can be so even where an issue addressed by the trial court is a question of law. See Engel, 383 Ill.App.3d at 194, 321 Ill.Dec. 911, 890 N.E.2d 633. The granting of the petition must be supported by a preponderance of the evidence. Smith v. Airoom, Inc., 114 Ill.2d 209, 223, 102 Ill.Dec. 368, 499 N.E.2d 1381 (1986). In general, to be entitled to relief under section 2-1401, a petitioner must affirmatively set forth specific factual allegations supporting (1) the existence of a meritorious defense or claim; (2) due diligence in presenting that defense or claim to the trial court in the original action; and (3) due diligence in filing the section 2-1401 petition for relief. Smith, 114 Ill.2d at 220-21, 102 Ill.Dec. 368, 499 N.E.2d 1381. However, a petition brought pursuant to section 2-1401(f) to vacate a void order is not amenable to the due diligence, meritorious defense, and two-year time requirements. Cook v. Burnette, 341 Ill.App.3d 652, 660, 275 Ill.Dec. 680, 793 N.E.2d 160 (2003).

We are aware that our supreme court has recently held that "when a trial court enters either a judgment on the pleadings or a dismissal in a section 2-1401 proceeding, that order will be reviewed, on appeal, de novo." People v. Vincent, 226 Ill.2d 1, 18, 312 Ill.Dec. 617, 871 N.E.2d 17 (2007). The court explained that the abuse-of-discretion standard, which had been emphatically affirmed as the appropriate standard of review just months before in Paul v. Gerald Adelman & Associates, Ltd., 223 Ill.2d 85, 306 Ill.Dec. 556, 858 N.E.2d 1 (2006), "does not comport with the usual rules of civil practice and procedure" if applied in cases where either a judgment on the pleadings or a dismissal has been entered. Vincent, 226 Ill.2d at 16, 312 Ill.Dec. 617, 871 N.E.2d 17. While the issues of a meritorious defense and the timeliness of a section 2-1401 petition are clearly amenable to a de novo review, we do not understand how the issue of due diligence, both in presenting the defense originally and in filing the section 2-1401 petition, can be given a de novo review. Due diligence in all its aspects is a mixed question of law and fact. See Dillman v. Nadelhoffer, 160 Ill. 121, 128, 43 N.E. 378 (1895).

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Bluebook (online)
932 N.E.2d 1152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockford-financial-systems-v-borgetti-illappct-2010.