Sinclair v. State Bank of Jerseyville

589 N.E.2d 862, 226 Ill. App. 3d 909, 168 Ill. Dec. 462, 1992 Ill. App. LEXIS 315
CourtAppellate Court of Illinois
DecidedMarch 5, 1992
Docket4-91-0575
StatusPublished
Cited by5 cases

This text of 589 N.E.2d 862 (Sinclair v. State Bank of Jerseyville) 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
Sinclair v. State Bank of Jerseyville, 589 N.E.2d 862, 226 Ill. App. 3d 909, 168 Ill. Dec. 462, 1992 Ill. App. LEXIS 315 (Ill. Ct. App. 1992).

Opinion

JUSTICE LUND

delivered the opinion of the court:

Plaintiff Russell Sinclair filed a two-count complaint against defendant State Bank of Jerseyville. Defendant moved to dismiss the complaint, alleging failure to state a cause of action (Ill. Rev. Stat. 1989, ch. 110, par. 2—615), and the circuit court of Jersey County denied the motion. Plaintiff was unsuccessful in opposing defendant’s application to appeal under Supreme Court Rule 308 (134 Ill. 2d R. 308). In Sinclair v. State Bank (1991), 207 Ill. App. 3d 430, 566 N.E.2d 44 (Sinclair I), appeal denied (1991), 139 Ill. 2d 605, our court reversed the trial court’s ruling on the motion to dismiss, but did not remand. Plaintiff’s petition for leave to appeal to our supreme court was denied. While the petition for leave to appeal was pending, plaintiff returned to the circuit court and filed a motion to amend, seeking to add a contract count. The trial court held that it was without authority to proceed further and denied plaintiff’s motion. Plaintiff appeals, contending the appellate court ruling on the Rule 308 appeal did not foreclose further proceedings on the trial level.

We initially observe that section 2 — 615(d) of the Code of Civil Procedure (Code) provides: “After rulings on motions, the court may enter appropriate orders either to permit or require pleading over or amending or to terminate the litigation in whole or in part.” (Ill. Rev. Stat. 1989, ch. 110, par. 2—615(d).) We are aware plaintiffs generally are granted at least one opportunity to amend their pleadings. Thus, if defendant had initially been successful with its section 2 — 615 motion to dismiss, plaintiff most likely would have been allowed to file an amendment to the complaint.

Procedural Background

On August 1, 1989, plaintiff and his wife (who was voluntarily dismissed from the case prior to this appeal) filed a two-count complaint against defendant State Bank of Jerseyville. Count I alleged fraud in connection with a previous loan transaction between plaintiff and defendant. Count II alleged a breach of defendant’s duty of good faith in its business dealings with plaintiff. Plaintiff and his wife had obtained a $450,000 loan from defendant in March 1983. As collateral for this loan, plaintiff and his wife granted mortgages to defendant on certain tracts of real estate in Jersey County, Illinois, and in Grundy County, Missouri. Plaintiff, individually, had also obtained a loan from defendant in 1981. That loan came due in December 1983. The larger loan came due in January 1984. Neither loan was paid when due, and defendant commenced foreclosure proceedings in both counties.

Plaintiff alleged in his complaint that he and defendant had agreed he would pay the interest due on the loans through January 31, 1984, and defendant would then dismiss the foreclosure actions and extend plaintiff’s notes. Plaintiff further alleged that he had paid the interest due in the amount of $46,870.61. Defendant, however, continued to pursue its foreclosure proceedings to a partial summary judgment in Grundy County, Missouri, and to a foreclosure decree and sale in Jersey County, Illinois. Plaintiff further alleged he was forced into chapter 11 bankruptcy proceedings because of defendant’s actions in continuing with the foreclosures.

Defendant’s motion to dismiss plaintiff’s complaint, alleging a failure to state a cause of action (Ill. Rev. Stat. 1989, ch. 110, par. 2—615), was then filed and denied. The questions identified by the trial court for review in the Rule 308 appeal were as follows: (1) whether performance of a preexisting legal obligation as the result of an alleged intentional misrepresentation can constitute legally cognizable damages in an action predicated on fraud; and (2) whether plaintiff can state an action for breach of the obligation of good faith absent allegations of a contractual relationship and without reference to a specific contractual provision under which the defendant failed to perform in good faith.

This court answered both questions in the negative and reversed the trial court’s order denying defendant’s motion, as we have stated, with no remand to the trial court. Toward the end of the opinion, the following comment was made:

“Aside from the insufficient pleadings, plaintiffs would have difficulty establishing that a contract was formed when defendant allegedly promised to forbear from proceeding on the foreclosure if plaintiffs paid the interest due on the note. Plaintiffs gave no consideration for the promise as ‘[a] promise to do that which one is already legally obligated to do is no consideration and does not create a new obligation.’ [Citation.]” Sinclair, 207 Ill. App. 3d at 435-36, 566 N.E.2d at 47.

We note that the pleadings at the time of the decision which led to the Rule 308 appeal did not contain a contract count. After the reversal in Sinclair I, plaintiff filed his motions to amend, seeking to state a count III. This count alleged defendant had breached a contract with plaintiff to dismiss the foreclosure actions in return for his payment of the interest due on his notes. Defendant filed an objection to these motions, alleging that this court’s reversal, without remand, in Sinclair I constituted an adjudication on the merits and left the trial court without power to take any further action in the case. In response, plaintiff alleged the reversal was not with prejudice and that section 2 — 616(a) of the Code (Ill. Rev. Stat. 1989, ch. 110, par. 2—616(a)) allows the trial court to permit amendment of pleadings at any time prior to final judgment. After a hearing on these motions and defendant’s objection, and after receiving the mandate in Sinclair I, the trial court denied plaintiff’s motions. Stating it was without authority to proceed further, the trial court ordered the cause stricken.

Defendant contends the above-quoted language from the Sinclair I opinion indicates the issue of whether plaintiff can state a cause of action for breach of contract has already been decided by this court. We need not decide this question. In Schoonover v. American Family Insurance Co. (1991), 214 Ill. App. 3d 33, 40-41, 572 N.E.2d 1258, 1262, our court held that in deciding the Rule 308 appeal in that case, it was not limited in scope to the identifying question. Schoonover held that in determining the propriety of the summary judgment order, all issues properly raised at the trial level could be considered. (Schoonover, 214 Ill. App. 3d at 41, 572 N.E.2d at 1262-63.) The Schoonover court stated:

“In reviewing an order for summary judgment, this court must consider all of the facts revealed in the record and all of the grounds alleged by the parties in order to determine whether a genuine issue as to a material fact does still exist.” Schoonover, 214 Ill. App. 3d at 41, 572 N.E.2d at 1262-63.

In our present case, no motion for summary judgment was involved, the only order being one ruling on two specific counts. Those two counts did not include contract allegations, so no legal questions relating to the contract issue were presented to or ruled upon by the trial court.

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Bluebook (online)
589 N.E.2d 862, 226 Ill. App. 3d 909, 168 Ill. Dec. 462, 1992 Ill. App. LEXIS 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-v-state-bank-of-jerseyville-illappct-1992.