Same Condition, LLC v. Codal, Inc.

2024 IL App (1st) 230554-U
Appellate Court of Illinois·Decided February 21, 2024·No. 1-23-0554·Unpublished

Opinion

2024 IL App (1st) 230554-U No. 1-23-0554

Order filed February 21, 2024 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. ) No. 19 L 5407 )

CODAL, INC., an Illinois Corporation, )

)

Defendant and Counterplaintiff-Appellee )

) Honorable

(Munish Kumar, a/k/a Munish Kumar Raizada, ) Diane M. Shelley and ) Thomas More Donnelly, Counterdefendant-Appellant). ) Judges presiding.

JUSTICE VAN TINE delivered the judgment of the court.

Presiding Justice Reyes and Justice Lampkin concurred in the judgment.

ORDER

¶1 Held: We dismiss Same Condition and Munish Kumar’s appeal of a permanent injunction that the circuit court entered against them because the law of the case is that we lack jurisdiction to hear that appeal. We reverse the circuit court’s grant of summary judgment to Codal on its defamation per quod counterclaim and enter judgment in Same Condition’s favor on that counterclaim because Codal failed to establish

special damages. We affirm the circuit court’s award of attorney fees and costs to Codal for prevailing at summary judgment on its breach of contract counterclaim.

¶2 Same Condition, LLC, and its president, Munish Kumar, appeal from the circuit court’s grant of summary judgment in favor of Codal, Inc., on Codal’s counterclaim for defamation per quod, a permanent injunction that the court entered against Same Condition in the summary judgment ruling, and the court’s award of $309,741.10 in attorney fees and costs to Codal for prevailing at summary judgment on its breach of contract counterclaim. 1 For the following reasons, we dismiss Same Condition’s appeal of the injunction due to lack of jurisdiction, we reverse the grant of summary judgment to Codal and enter judgment in Same Condition’s favor on the defamation per quod counterclaim, and we affirm the circuit court’s award of attorney fees and costs.

¶3 I. BACKGROUND

¶4 The procedural history of this case is extensive and has already been discussed at length in three related appeals. Same Condition v. Codal, 2021 IL App (1st) 201187 (Same Condition I); Same Condition v. Codal, 2022 IL App (1st) 220687-U (Same Condition II); Same Condition v. Codal, 2023 IL App (1st) 221441-U (Same Condition III). We set out only the facts that are relevant to the issues in this appeal.

¶5 This lawsuit arises out of a 2017 contract in which Same Condition hired Codal to develop a medical software application. Munish Kumar is Same Condition’s president. According to Same Condition, Codal delivered the application six months late and in a state that was inadequate for public release. Three months after that, Codal indicated that it needed at least 100 more hours of

1 Generally, we will refer to Same Condition and Kumar collectively as “Same Condition.” Where necessary, we will differentiate between the company and Kumar, its principal.

work to fix the defects and enable public release of the application. Same Condition began posting disparaging comments online about Codal. In brief, Same Condition repeatedly accused Codal of “unethical business practices,” being “incompetent,” and having “cheated” Same Condition on Twitter, LinkedIn, Google, and other social media platforms, as well as a blog that Same Condition created at the address codalsucks.blogspot.com.

¶6 In 2019, Same Condition sued Codal for breach of contract, fraud, and unjust enrichment. Codal brought counterclaims for breach of contract, unjust enrichment, quantum meruit, defamation per se, defamation per quod, commercial disparagement, and violation of the Uniform Deceptive Trade Practices Act (815 ILCS 510/2(a)(8) (West 2018)). Codal’s breach of contract counterclaim alleged that Same Condition did not pay an invoice for $30,750. Codal’s non-contract counterclaims were based on Same Condition’s disparaging online comments.

¶7 As the case progressed, Same Condition continued posting critical comments about Codal online. Same Condition I, 2021 IL App (1st) 201187, ¶ 1. Codal moved for a preliminary injunction and a restraining order to stop such conduct. Id. The circuit court denied those motions but, using its inherent authority to manage the case, prohibited Same Condition from making further posts about Codal. Id. Same Condition appealed, arguing that the circuit court’s order was an unconstitutional restriction on its free speech. Id. ¶ 2. We agreed and vacated the circuit court’s order. Id.

¶8 In September 2021, Codal moved for summary judgment on all claims and counterclaims. Relevant here, Codal sought summary judgment on its counterclaim for defamation per quod, arguing that “Same Condition posted hundreds of defamatory statements on social media including allegations that Codal is incompetent, that Codal cheated [Same Condition], that Codal is

unprofessional, [and] that Codal unethically charged U.S. based rates for development work that took place in India.” In support of this claim, Codal explained how each of Same Condition’s online statements was false. Codal did not allege or seek money damages for defamation. However, Codal requested an injunction requiring Same Condition to “remove all published statements about Codal” and to “refrain from publishing similar statements about Codal in the future.” Same Condition did not file a response to Codal’s motion for summary judgment.2

¶9 On December 7, 2021, the circuit court granted summary judgment in Codal’s favor on all of Same Condition’s claims, as well as Codal’s counterclaims for breach of contract, defamation per quod, and commercial disparagement. The court denied summary judgment on Codal’s defamation per se and Deceptive Trade Practices Act counterclaims. The court awarded Codal “$30,750 in expectation damages plus applicable late fees for Same Condition’s breach of contract,” but awarded no damages on the defamation and commercial disparagement claims. The court found that “[a]lthough *** Dr. Munish Kumar’s statements on social media and various other online forums are defamatory, Codal is not entitled to receive damages because this court has not been presented with evidence of lost earnings, future lost earning capacity, and other lost business or economic opportunities that it suffered or is likely to suffer as a result of the defamatory statement[s].”

However, the court entered the following injunction:

2 The record contains two ex parte letters from Kumar to the circuit court judge dated August 29 and 31, 2021, which appear to request denial of Codal’s motion for summary judgment. However, the letters contain no legal argument, citation to authority, or citation to the record, and are largely incomprehensible.

“(a) Dr. Kumar and/or Same Condition must remove all published statements about Codal and/or its clients, customers, employees, agents, principals, representatives, affiliates, independent contractors, officers, directors, managers, members, shareholders, attorneys, subsidiaries, insurers, heirs, successors, and assigns within thirty (30) days of this Order;

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Same Condition, LLC v. Codal, Inc., 2024 IL App (1st) 230554-U (Ill. Ct. App. 2024).

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