Same Condition, LLC v. Codal, Inc

2022 IL App (1st) 220687-U
CourtAppellate Court of Illinois
DecidedSeptember 7, 2022
Docket1-22-0687
StatusUnpublished
Cited by3 cases

This text of 2022 IL App (1st) 220687-U (Same Condition, LLC v. Codal, 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
Same Condition, LLC v. Codal, Inc, 2022 IL App (1st) 220687-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (1st) 220687-U No. 1-22-0687 Order filed September 7, 2022 Third Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ SAME CONDITION, LLC, an Illinois Limited Liability ) Appeal from the Company, ) Circuit Court of ) Cook County Plaintiff and Counterdefendant-Appellant, ) ) v. ) ) CODAL, INC., an Illinois Corporation, ) ) No. 19 L 5407 Defendant and Counterplaintiff-Appellee ) ) ) ) (Munish Kumar, a/k/a Munish Kumar Raizada, ) Honorable ) Thomas More Donnelly, Counterdefendant-Appellant). ) Judge presiding.

JUSTICE BURKE delivered the judgment of the court. Justices Gordon and Ellis concurred in the judgment.

ORDER

¶1 Held: Where Same Condition, LLC, and Munish Kumar did not file a timely postjudgment motion or notice of appeal from the circuit court’s order imposing a No. 1-22-0687

permanent injunction on them, we lack jurisdiction to consider the merits of that injunction and dismiss this appeal.

¶1 After a business relationship between Codal, Inc. (Codal), and Same Condition, LLC

(Same Condition), soured, Same Condition sued Codal for breach of contract, among other claims.

Codal then countersued Same Condition and its president, Munish Kumar, raising various claims,

including ones sounding in defamation based on critical comments and reviews that Same

Condition and Kumar had posted online. As the litigation progressed, Same Condition and Kumar

continued posting critical comments and reviews online about Codal and its chief executive

officer, Keval Baxi, which resulted in Codal filing motions for a preliminary injunction and

temporary restraining order to have Same Condition and Kumar cease their online campaign.

Although the circuit court denied those motions, it utilized its inherent authority to manage its

cases and prohibited Same Condition and Kumar from making any additional posts online about

Codal. Same Condition and Kumar appealed the circuit court’s order and contended that the

injunction was an unconstitutional abridgment on their right to free speech under both the first

amendment of the United States Constitution (U.S. Const., amend. I) and article 1, section 4, of

the Illinois Constitution (Ill. Const. 1970, art. I, § 4). We agreed and vacated the order.

¶2 The litigation continued in the circuit court, where, on Codal’s motion for summary

judgment, the court granted judgment in favor of Codal on all of Same Condition’s claims and

some of its own counterclaims, but denied judgment on some of its counterclaims. However, the

court did find that Same Condition and Kumar’s barrage of online postings were defamatory and

entered a permanent injunction that, in part, barred them from publishing similar defamatory

statements about Codal in the future. Two and a half months after the court entered the injunction,

Same Condition and Kumar challenged, in part, the court’s injunctive relief. The court denied their

motion, and they appealed therefrom.

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¶3 On appeal, Same Condition and Kumar again contend that the circuit court’s injunction is

an unconstitutional abridgment on their right to free speech under both the first amendment of the

United States Constitution (U.S. Const., amend. I) and article 1, section 4, of the Illinois

Constitution (Ill. Const. 1970, art. I, § 4). They also raise various other issues from the proceedings

below. However, because Same Condition and Kumar did not file a timely postjudgment motion

or notice of appeal from the court’s order imposing the permanent injunction on them, we lack

jurisdiction to consider the merits of that injunction and must dismiss this appeal.

¶4 I. BACKGROUND

¶5 Codal is a corporation that provides personnel with expertise in the fields of systems

integration, information technology consulting, and systems development. Same Condition is a

company that intended on creating a web-based, medical patient-centered software application. In

June 2017, Same Condition hired Codal to develop that software application. According to Section

10.2 of their agreement, if Codal was forced to pursue legal action against Same Condition for its

nonpayment, Codal would be entitled to recover reasonable attorney fees and costs. According to

Same Condition’s interpretation of their agreement, Codal was supposed to deliver the software

application to it by January 2018. But, by January 2018, Codal had failed to deliver the application.

And, in July 2018, when Codal had delivered the software application, Same Condition believed

the application was incomplete, substandard, rife with errors and bugs, and inadequate to be

released publicly. According to Same Condition, by October 2018, Codal indicated that it needed

at most 100 more hours of work to complete the application to Same Condition’s specifications.

¶6 Eventually, in May 2019, after the software application allegedly did not meet Same

Condition’s standards, it sued Codal for breach of contract, fraud, and unjust enrichment. Two

months later, Codal answered Same Condition’s complaint and denied the chief allegations

-3- No. 1-22-0687

therein. Codal also raised several affirmative defenses and brought counterclaims against Same

Condition, including breach of contract for Same Condition’s failure to pay an invoice of $30,750,

unjust enrichment and quantum meruit, the latter two as alternatives to its breach of contract claim.

¶7 In August 2019, Codal, with leave from the circuit court, filed its first amended

counterclaims. Codal added claims for defamation per se, defamation per quod, a violation of the

Uniform Deceptive Trade Practices Act (Deceptive Practices Act) (815 ILCS 510/1 et seq. (West

2018)) and commercial disparagement against Same Condition and Munish Kumar, Same

Condition’s president. All four counterclaims were based on online posts from Kumar and Same

Condition about Codal’s performance and business integrity. Codal attached these posts as exhibits

to its first amended counterclaims.

¶8 One exhibit showed a comment on a post from Codal’s LinkedIn page, where Kumar stated

that he hired Codal to build an “ambitious” software platform and “gave them a huge sum” but the

project was not completed on time and the platform that was completed was defective. Kumar

added that he had to hire a third-party quality assurance tester to test Codal’s platform and

remarked that it was:

“more than clear that Codal lacks the technical expertise to build the software or

our specifications. It was not a small platform (technically, but then we hired Codal

because they assured that have the required skill sets to accomplish the kind of work

it requires. And they asked is premium cost, which we kept paying as bills kept

coming). But Codal has not been able to hand over the platform to us now. Harassed

and frustrated by Codal’s highly unethical business practices, we had to drag them

to court in Chicago in 2019).”

-4- No. 1-22-0687

¶9 Another exhibit showed that, in July 2019, Same Condition’s Twitter account replied to

various tweets from Codal’s Twitter account. In some of these replies, Same Condition remarked

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