Safeway Insurance v. Spinak

641 N.E.2d 834, 204 Ill. Dec. 404, 267 Ill. App. 3d 513
CourtAppellate Court of Illinois
DecidedJune 16, 1994
Docket1-93-1905
StatusPublished
Cited by13 cases

This text of 641 N.E.2d 834 (Safeway Insurance v. Spinak) 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
Safeway Insurance v. Spinak, 641 N.E.2d 834, 204 Ill. Dec. 404, 267 Ill. App. 3d 513 (Ill. Ct. App. 1994).

Opinion

JUSTICE JOHNSON

delivered the opinion of the court:

Plaintiff, Safeway Insurance Company (hereinafter Safeway), filed a complaint in the circuit court of Cook County against defendants, Michael D. Spinak and Arthur H. Levinson, individually and doing business as Spinak, Levinson & Associates, alleging that defendants filed an unauthorized lawsuit on behalf of Ricardo Sanchez. This "unauthorized filing” complaint was ultimately dismissed by the trial court.

On appeal, Safeway contends (1) the trial court erroneously found that its claim for "unauthorized filing” was barred by the applicable statute of limitations; and (2) the trial court improperly dismissed its punitive damages claim.

We reverse and remand.

On September 27, 1991, Safeway filed its original complaint alleging that on December 30, 1987, defendants filed an unauthorized action against Safeway on behalf of Ricardo Sanchez (hereinafter the Sanchez action). Safeway sought compensatory damages for the fees and expenses it incurred in defense of the Sanchez action and punitive damages predicated upon allegations of malice.

In response, defendants filed a motion to dismiss Safeway’s complaint asserting that it failed to state a cause of action. The trial court granted defendants’ motion, dismissed Safeway’s punitive damages claim with prejudice, and dismissed the remainder of Safeway’s complaint with leave to file an amended complaint.

Safeway filed its amended complaint and defendants moved to dismiss it, claiming that it was barred by the two-year statute of limitations applicable to malicious prosecution and abuse of process actions. The trial court granted defendants’ motion and Safeway appeals.

In determining the propriety of the trial court’s dismissal of Safeway’s amended complaint as time barred, it is essential to establish the cause of action pleaded so that the applicable limitations period can be identified. Safeway argues that it pleaded an action for "unauthorized filing” of a lawsuit, an action separate and distinct from malicious prosecution or abuse of process, which is governed by the five-year limitations period provided in section 13 — 205 of the Code of Civil Procedure (hereinafter the Code) (Ill. Rev. Stat. 1991, ch. 110, par. 13 — 205). Defendants argue that liability for the wrongful filing of a lawsuit is limited to an action for malicious prosecution or abuse of process governed by the two-year statute of limitations in section 13 — 202 of the Code (Ill. Rev. Stat. 1991, ch. 110, par 13 — 202), or the remedy provided in Supreme Court Rule 137 (134 Ill. 2d R. 137) or its predecessor, section 2 — 611 of the Code (Ill. Rev. Stat. 1989, ch. 110, par. 2 — 611). Alternatively, defendants argue that even if the tort of "unauthorized filing” is cognizable, it is also governed by the two-year limitations period of section 13 — 202.

In Merriman v. Merriman (1937), 290 Ill. App. 139, this court recognized a cause of action in favor of the defendant in a legal proceeding against the attorney who instituted such proceeding without authority from the putative plaintiff. The court distinguished the action from malicious prosecution and abuse of process. Relying upon authority from other jurisdictions, Merriman held:

"[I]t is an actionable wrong to bring suit in another’s name without authority [citations]; and if the defendant in such action suffers injury by reason of the prosecution of the unauthorized suit against him, he may maintain an action for the actual damages sustained by him in the loss of time, and for money paid to procure the discontinuance of the suit.” (290 Ill. App. at 146.)

Our research fails to reveal any other reported case in Illinois which directly concerns the existence of this tort, but one other case has acknowledged the holding in Merriman regarding this issue. See Landau v. Schneider (1987), 154 Ill. App. 3d 875.

Primarily relying upon Lyddon v. Shaw (1978), 56 Ill. App. 3d 815, defendants argue that this court should reject Safeway’s efforts to extend tort liability for the unauthorized filing of a lawsuit beyond the ambit of an action for malicious prosecution or abuse of process. They also urge us to decline to follow Merriman as it was decided before the advent of satellite litigation and long before the adoption of the sanctions authorized by Rule 137 and its predecessor, section 2 — 611. They further assert that the extension of liability authorized by Merriman is contrary to the "well-established public policy of preventing the endless re-litigation of civil actions and clogging the court system by cases based on personal vendettas of the litigants and their attorneys.”

At first blush, defendants’ contention that Rule 137 is the proper remedial vehicle for Safeway’s claim is appealing. Certainly, no such remedy existed when Merriman was decided and, consequently, a defendant who was subjected to an arguably well-grounded yet unauthorized action was without a remedy. Presently, a filing well grounded in fact and law can subject its pleader to sanctions when interposed for any improper purpose such as harassment or vexation. (134 Ill. 2d R. 137.) However, in the final analysis, the same behavior which would support actions for malicious prosecution and abuse of process would also be sanctionable under Rule 137 in most instances. We know of no court, adopting Rule 137 or its predecessor, section 2 — 611, which hás held that independent actions for malicious prosecution and abuse of process ceased to exist, nor are we prepared to so hold.

Regarding defendants’ argument that recognizing the tort of "unauthorized filing” would, in this age of satellite litigation, contribute to endless relitigation of civil actions in an already clogged court system, we note that the same could be said of the continued recognition of the torts of malicious prosecution and abuse of process. We also note that in the 57 years since Merriman was decided, the instant case is only the second time that an Illinois court of review has had occasion to discuss the very existence of this tort, hardly .a harbinger of the deluge of litigation that defendants predict if we follow Merriman.

Access to our courts as a vehicle for resolving private -disputes is a fundamental component of our judicial system and public policy demands that litigants who, in good faith, present their claims to our courts for determination be free to do so without fear of being sued for seeking to enforce their rights. (Schwartz v. Schwartz (1937), 366 Ill. 247; Merriman, 290 Ill. App. at 144.) Consequently, courts have resisted attempts to enlarge upon the tort liability of litigants beyond the ill-favored actions for malicious prosecution and abuse of process. (Lyddon v. Shaw (1978), 56 Ill. App. 3d 815, 822.) But the claim asserted by Safeway does not impact upon litigants; it seeks redress against those who set our judicial system in motion when there is no litigant seeking to enforce a right. When an unauthorized action is filed, there is nothing for a court to determine; there are no claims presented to resolve. If recognizing a tort action for the filing of a lawsuit without the knowledge or consent of the putative plaintiff casts a chill over the meaningless invocation of our judicial process, then so be it.

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Bluebook (online)
641 N.E.2d 834, 204 Ill. Dec. 404, 267 Ill. App. 3d 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safeway-insurance-v-spinak-illappct-1994.