S.C. Vaughan Oil Co. v. Caldwell, Troutt & Alexander

693 N.E.2d 338, 181 Ill. 2d 489, 230 Ill. Dec. 209, 1998 Ill. LEXIS 354
CourtIllinois Supreme Court
DecidedMarch 19, 1998
Docket82600
StatusPublished
Cited by98 cases

This text of 693 N.E.2d 338 (S.C. Vaughan Oil Co. v. Caldwell, Troutt & Alexander) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S.C. Vaughan Oil Co. v. Caldwell, Troutt & Alexander, 693 N.E.2d 338, 181 Ill. 2d 489, 230 Ill. Dec. 209, 1998 Ill. LEXIS 354 (Ill. 1998).

Opinions

JUSTICE McMORROW

delivered the opinion of the court:

At issue in this appeal is whether a trial court’s order dismissing plaintiffs’ case for want of prosecution constitutes a final and appealable order upon expiration of plaintiffs’ opportunity to refile the case pursuant to section 13 — 217 of the Code of Civil Procedure (735 ILCS 5/13 — 217 (West 1992)). For the reasons that follow, we conclude that upon expiration of the section 13 — 217 period for refiling, the dismissal for want of prosecution constitutes a final and appealable order.

BACKGROUND

On August 4, 1986, plaintiffs, S.C. Vaughan Oil Company and Charles A. Vaughan, filed a complaint in the circuit court of Marion County naming Paul Caldwell and the law firm of Caldwell, Troutt & Alexander as defendants in an action seeking damages for legal malpractice and conflict of interest. On August 6, 1990, proof that Paul Caldwell had filed a petition for relief under the United States Bankruptcy Code was filed with the circuit court. Pursuant to this bankruptcy petition, an automatic stay of the continuation of the state proceedings as to defendant Paul Caldwell was imposed pursuant to 11 U.S.C. § 362 (1994).

No entries regarding this matter were made on the docket sheet maintained by the clerk of the circuit court of Marion County from the date of the filing of Paul Caldwell’s bankruptcy petition on August 6, 1990, until April 22, 1991. After this 81/2-month period of inactivity, the record reveals an April 22, 1991, docket entry stating “cause DWP — close file.” Both parties agree that the circuit court, on its own motion, entered an order dismissing plaintiffs’ cause of action for want of prosecution (DWP).

On April 12, 1993, nearly two years after the entry of the DWP, plaintiffs filed a “motion to reinstate” their case. The motion was supported by an affidavit from one of plaintiffs’ attorneys, who averred that notice of the DWP to the parties was neither recorded on the docket sheet nor filed with the court pursuant to local rule.

After entering a special and limited appearance, the defendants on May 7, 1993, filed a motion to strike plaintiffs’ motion to reinstate, arguing that the trial court lost jurisdiction of the matter 30 days after the DWP order was entered. Accordingly, defendants maintained that plaintiffs’ sole avenue to obtain reinstatement was through the filing of a petition to vacate the DWP pursuant to section 2 — 1401 of the Code of Civil Procedure (735 ILCS 405/2 — 1401 (West 1992)). Section 2 — 1401 provides a comprehensive statutory procedure whereby final orders and judgments may be vacated more than 30 days following their entry. Defendants contended that since plaintiffs had neither cited to section 2 — 1401, nor alleged the elements of a section 2 — 1401 petition, the “motion to reinstate” was ineffective and did not vest the circuit court with jurisdiction. On September 3, 1993, an order was entered by the circuit court upholding the special and limited appearance as to Paul Caldwell, but denying it as to Caldwell, Troutt, and Alexander.

Subsequent to the trial court’s denial of the law firm’s special and limited appearance, the defendant law firm moved to dismiss plaintiffs’ motion to reinstate, citing plaintiffs’ failure to plead factual allegations of due diligence in filing the petition and the existence of a meritorious claim. On March 30, 1994, plaintiffs filed an amended motion to reinstate, specifically citing section 2 — 1401, and stating three reasons why they had not pursued the case from April 1991 through March 1993: (1) the claim against Paul Caldwell could not be pursued due to the bankruptcy stay; (2) uncertainty as to the types of damages recoverable in legal malpractice actions, which plaintiffs allege occurred as a result of the appellate court’s decision in Collins v. Reynard, 195 Ill. App. 3d 1067 (1990), rev’d, 154 Ill. 2d 48 (1992); and (3) the existence of ongoing settlement discussions between plaintiffs’ counsel and representatives of defendants and their insurers. Plaintiffs additionally reiterated their claim that they were provided no notice of the entry of the DWP by the circuit court, in violation of local court rules.

On April 20, 1994, defendant moved to dismiss the plaintiffs’ amended motion to reinstate. The circuit court, on December 30, 1994, entered an order allowing plaintiffs’ motion to reinstate, treating it as a petition to vacate the DWP order pursuant to section 2 — 1401 of the Code of Civil Procedure (735 ILCS 5/2 — 1401 (West 1992)). Although the circuit court stated in its docket entry that the plaintiffs “should have properly referred to the motion as a [2 — ]1401” petition which should have contained factual allegations regarding the meritorious claim, the court went on to observe that the motion was “squarely a section [2 — ]1401 motion and the focus has been, largely at the court’s direction, upon the diligence in presenting the claim and in presenting the motion.” The circuit court also noted that it was “not inclined to further delay this proceeding with evidentiary hearings not anticipated by section [2 — ]1401.” In granting plaintiffs’ March 30, 1994, motion to reinstate and denying defendant’s motion to dismiss, the trial court found the following to be “especially compelling”: (1) the DWP was entered in April 1991 and contrary to local rule no notice of its entry was provided to the parties, which led the trial court to hold that “the diligence required in presenting this motion should be relaxed,” and (2) the notice of Paul Caldwell’s bankruptcy meant “plaintiff would have reasonably relied on the bankruptcy stay as protecting his state court action from a DWP.”

On January 13, 1995, defendant Caldwell, Troutt, and Alexander filed a motion to rehear and reconsider the trial court’s December 30, 1994, ruling. In its motion, defendant contended that the circuit court had not allowed defendant an opportunity to present evidence either by way of affidavit or live testimony to controvert the allegations of plaintiffs’ motion to reinstate. On March 2, 1995, defendant filed the affidavits of an insurance adjustor employed by CNA Insurance Company and defendant’s former attorney. Both affidavits contradicted plaintiffs’ attorney’s affidavit concerning the amount and significance of telephone contact between plaintiffs’ attorney and defendant’s representative in regard to settlement negotiations. On that same date, the circuit court vacated the December 30, 1994, order granting the plaintiffs’ motion to reinstate. However, on April 19, 1995, the trial court again reconsidered plaintiffs’ motion to reinstate and granted it for the identical reasons set forth in its December 30, 1994, docket entry.

Defendant appealed pursuant to Supreme Court Rule 304(b)(3) (155 Ill. 2d R. 304(b)(3)), which allows appeal to the appellate court from a judgment on a petition brought under section 2 — 1401. Defendant asserted that the trial court abused its discretion in refusing to resolve factual disputes arising from the section 2 — 1401 petition filed by the plaintiffs and that the plaintiffs failed to establish due diligence as a matter of law.

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Bluebook (online)
693 N.E.2d 338, 181 Ill. 2d 489, 230 Ill. Dec. 209, 1998 Ill. LEXIS 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sc-vaughan-oil-co-v-caldwell-troutt-alexander-ill-1998.