Rush v. Leader Industries, Inc.

531 N.E.2d 863, 176 Ill. App. 3d 803, 126 Ill. Dec. 236, 1988 Ill. App. LEXIS 1583
CourtAppellate Court of Illinois
DecidedNovember 14, 1988
DocketNo. 87—1752
StatusPublished
Cited by2 cases

This text of 531 N.E.2d 863 (Rush v. Leader Industries, 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
Rush v. Leader Industries, Inc., 531 N.E.2d 863, 176 Ill. App. 3d 803, 126 Ill. Dec. 236, 1988 Ill. App. LEXIS 1583 (Ill. Ct. App. 1988).

Opinion

PRESIDING JUSTICE LORENZ

delivered the opinion of the court:

Defendant, Leader Industries, Incorporated, appeals from the denial of its motion to modify a trial judgment to award damages on its counterclaim arising out of plaintiff’s action to recover earned sales commissions. Defendant also appeals the grant of sanctions for noncompliance with discovery.

We affirm.

On April 7, 1986, plaintiff, Michael Rush, filed a verified complaint against defendant alleging that defendant failed to pay full sales commissions pursuant to a written agreement between the parties in which plaintiff agreed to procure clients to enter waste transportation contracts with defendant.

Together with an answer denying the material allegations of the complaint, défendant filed a three-count counterclaim. Relevant here, count I of the counterclaim alleged that, although the sales commission agreement provided that plaintiff was to pay the expenses of his efforts to procure clients, plaintiff used defendant’s facilities, equipment, personnel, and supplies without reimbursement to defendant. Defendant prayed for $3,000 in damages.

Although plaintiff unsuccessfully moved to dismiss the counterclaim, plaintiff did not otherwise answer defendant’s allegations.

On May 15, 1986, plaintiff filed a notice upon defendant to produce certain invoices pursuant to Supreme Court Rule 214 (107 Ill. 2d R. 214). By letter dated July 15, 1986, plaintiff again requested that defendant produce various of those invoices which had not been produced in defendant’s response to the production request. Another request for those invoices was made in a second letter dated July 28, 1986. Notwithstanding defendant’s submission of an affidavit of compliance with plaintiff’s discovery request, plaintiff, in a third letter, dated September 25, 1986, made further demand on defendant to produce the missing invoices.

On December 29, 1986, plaintiff filed a supplemental notice to produce certain of defendant’s tax returns, financial statements, and receipts of payments dating from 1982. Subsequently, by letter dated January 21, 1987, plaintiff advised defendant that plaintiff still had not received certain of the requested invoices or defendant’s response to both plaintiff’s request to admit and to plaintiff’s supplemental notice to produce.

On February 18, 1987, the matter having come before the court on the trial call, an order was entered which recited that plaintiff had viewed the various documents produced by defendant.

The cause proceeded to bench trial on February 23, 1986. At the completion of plaintiff’s case in chief, defendant rested without putting on any evidence in support of its action on the counterclaim. Judgment for plaintiff in the amount of $2,916, plus costs, was rendered on the evidence presented and the allegations of the pleadings. A judgment was also rendered for defendant on defendant’s counterclaim on the basis that plaintiff’s failure to answer constituted admissions. However, the court awarded no damages to defendant, finding that defendant had put forth no evidence to support allegations of damages in the counterclaim.

Subsequently, plaintiff moved for modification of the judgment based on evidence purportedly indicating a higher applicable commission rate than that used by the court in determining plaintiff’s damages. In addition, plaintiff moved for sanctions against defendant for noncompliance with discovery.

Defendant also moved for modification, seeking an award of damages on its counterclaim against plaintiff. After hearing argument on May 5, 1987, the trial judge denied both parties’ motions for modification but granted plaintiff’s motion for sanctions, imposing $1,000 in costs for time attributable to plaintiff’s efforts resulting from defendant’s noncompliance in producing the requested invoices. This appeal followed.

Opinion

On appeal, defendant first contends that plaintiff’s failure to answer defendant’s counterclaim resulted in plaintiff’s admission of the allegations contained therein and therefore did not necessitate that defendant present any evidence to support its claim for damages.

Generally, a defendant’s counterclaim against a plaintiff constitutes an entirely independent and separate cause, of action which must be complete within itself. (Helle v. Brush (1971), 2 Ill. App. 3d 951, 275 N.E.2d 688, rev’d on other grounds (1973), 53 Ill. 2d 405, 292 N.E.2d 372.) Accordingly, the pleading of a counterclaim and response thereto are governed under the Code of Civil Procedure by the same considerations applicable to complaints. (See Ill. Rev. Stat. 1985, ch. 110, pars. 2—608, 2—610.) Pertinent here, subsection (b) of section 2—610 provides that all allegations made in the counterclaim, except allegations of damages, not explicitly denied, constitute admissions against the defending plaintiff. (Ill. Rev. Stat. 1985, ch. 110, par. 2—610(b); McClure Engineering Associates, Inc. v. Winter (1980), 84 Ill. App. 3d 231, 405 N.E.2d 28.) Because the burden of proof rests with the defendant bringing the counterclaim to establish all elements of a separate cause of action (Steinberg v. Schwartz (1920), 219 Ill. App. 138), it is axiomatic that, as in any other suit, damages are not recoverable without some evidence as to amount. See Cannell v. State Farm Fire & Casualty Co. (1975), 25 Ill. App. 3d 907, 323 N.E.2d 418.

Defendant here, however, argues that by presenting evidence of damages at trial, defendant would have waived the opportunity to rely on the constituted admissions of plaintiff under operation of section 2 — 610(b). As support for that proposition, defendant cites Mc-Grath Heating & Air Conditioning Co. v. Gustafson (1976), 38 Ill. App. 3d 465, 348 N.E.2d 223.

McGrath simply does not stand for the proposition asserted by defendant. McGrath involved an action by plaintiff, subcontractor, against defendant, builder, for payment of work completed. Defendant answered, asserting affirmative defenses, and counterclaimed, alleging defective construction and overcharge by plaintiff. On appeal, the issue with respect to the counterclaim was whether the trial court properly permitted plaintiff to file a response during final argument at trial after the close of all evidence. The appellate court held that the late filing was permissible because no new matter was raised therein nor was defendant otherwise prejudiced. McGrath, 38 Ill. App. 3d at 467, 348 N.E.2d at 225.

We find nothing in McGrath to suggest a rule that a defendant waives the opportunity to use constituted admissions against a plaintiff where the defendant presents evidence of damages on a counterclaim. Nor does our own research indicate such a rule exists.

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531 N.E.2d 863, 176 Ill. App. 3d 803, 126 Ill. Dec. 236, 1988 Ill. App. LEXIS 1583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rush-v-leader-industries-inc-illappct-1988.