Stavros v. Karkomi

349 N.E.2d 599, 39 Ill. App. 3d 113, 1976 Ill. App. LEXIS 2529
CourtAppellate Court of Illinois
DecidedMay 26, 1976
Docket60386
StatusPublished
Cited by41 cases

This text of 349 N.E.2d 599 (Stavros v. Karkomi) 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
Stavros v. Karkomi, 349 N.E.2d 599, 39 Ill. App. 3d 113, 1976 Ill. App. LEXIS 2529 (Ill. Ct. App. 1976).

Opinion

Mr. JUSTICE BURMAN

delivered the opinion of the court:

The instant appeal arose out of a breach of a real estate contract entered into by the plaintiffs, August A. Stavros, James Stavros, Maurice M. Nesset, and Wheeling Bank and Trust Company, as trustee, and the original defendant, Zev Karkomi. Subsequent to serving a notice of default and forfeiture on the defendants Karkomi and Chicago Title and Trust Company, as escrowee, the plaintiffs filed a complaint on December 7, 1970, seeking, among other things, a quitclaim deed reconveying the real estate in question and a permanent injunction against the defendant Karkomi or any individual either acting in his behalf, succeeding to his interest, or having notice of the lawsuit from taking any action which involved “any assertion of any claim in or to any part of the real estate covered by the contract.” Pursuant to a stipulation entered into by the parties, the controversy was apparently settled when the trial court entered a decree in accordance with the agreement of the parties.

However, as a result of the defendant Karkomi’s failure to comply with such decree, ancillary enforcement proceedings ensued in which the trial court issued variegated orders affecting not only the original parties but Arnold Kramer, a co-venturer and beneficial interest holder with the defendant Karkomi, Exchange National Bank of Chicago (hereinafter referred to as Exchange), the trustee and naked title holder and Parkway Bank and Trust Company (hereinafter referred to as Parkway), who had acquired as assignee the beneficial interests of the defendant Karkomi and Kramer in such land interests. These proceedings, whose duration encompassed a time span of approximately three years, culminated with the entry by the trial court of an order on May 7, 1974. In the aforesaid order, the corut, after concluding that it had jurisdiction over the subject matter of proceedings, namely, the effectuation of its injunctive order of a prior date, denied Parkway’s special appearance and required Exchange to execute a quitclaim deed concerning the disputed property.

On appeal, Exchange and Parkway seek a reversal of this May 7,1974, order on the bases that (1) the trial court had no jurisdiction to enter such order affecting their rights and interests because, even though they were necessary parties, they were never named nor made parties to this suit; (2) such order directing the execution of documents divesting the appellants of their rights and interests in the real estate in question infringed their constitutional rights to due process of law, and (3) it was not incumbent upon them to intervene to protect their interests; rather, the onus was on the plaintiffs to name them as parties and have proper process served upon them.

Before delving into the pertinent facts surrounding the controversy at bar, it is important to note that this case comes before us for the third time on appeal. In our two prior reviews of this action, we respectively affirmed the trial court’s orders of July 20,1971, which denied the petition of the defendant Karkomi for a change of venue (Stavros v. Karkomi, 14 Ill. App. 3d 355, 302 N.E.2d 420) and of May 7, 1974, wherein the trial court denied Arnold Kramer’s special appearance (Stavros v. Karkomi, 28 Ill. App. 3d 996, 329 N.E.2d 563). Although the instant appeal stems from the same order entered May 7, 1974, the parties at bar were not at issue until a considerable period of time subsequent to our second review of this matter. However, even though the instant appellants as well as the issues posited for review are divergent from those involved in the previous considerations of this matter, the factual scenario underlying this appeal is analogous to its predecessors. Thus, while the prior two opinions have accurately depicted what transpired in this case, a reiteration of such facts is crucial, especially insofar as they relate to the instant appellants, Exchange and Parkway.

A review of the record reveals that on October 8, 1969, the plaintiffs, owners of the entire beneficial interest in certain land trusts, entered into an amended real estate contract with the defendant, Zev Karkomi, for the purchase of certain property. Subsequent to the defendant’s failure to pay both the principal and interest pursuant to the contract, the plaintiffs served notice of default and forfeiture upon him and thereafter commenced suit on December 7, 1970, against Karkomi and Chicago Title and Trust Company, as escrowee of a certain parcel of land contained in the contract. This action sought injunctive relief against Chicago Title and Trust Company to prevent such entity from delivering a deed to the property held in escrow to any person other than the plaintiffs. Besides requesting a temporary and permanent injunction against the defendant Karkomi, his agent, successor, or any individual having notice of the lawsuit from “taking any action involving any assertion of any claim in or to any part of the real estate” contained in the contract in question, the plaintiffs also sought a court order requiring the defendant Karkomi to execute a quitclaim deed to a certain parcel of land designated in the contract as Parcel 6. On December 11, 1970, a lis pendens notice was filed of such action affecting the property contained in the contract in which Parcel 6 was specifically described therein.

While the defendant Karkomi initially responded to this complaint by filing a motion to strike on January 18, 1971, as well as assigning, along with Arnold Kramer, their beneficial interests in a particular land trust which included Parcel 6 to Parkway on March 16,1971, he subsequently entered into a written stipulation on April 14, 1971, with the plaintiffs, in which they agreed to settle this dispute pursuant to the entry of an order by the trial court. Although the trial court entered such order on May 14, 1971, the defendant Karkomi failed to adhere to its provisions. This prompted the plaintiffs to file on June 14,1971, a motion for the entry of a rule to show cause why the defendant Karkomi should not be held in contempt of court for failure to comply with the decree entered on May 14, 1971, and for the forfeiture of his interest in and to the real estate involved and for other relief. The defendant, through Arnold Kramer, who was appearing due to an illness of the defendant’s regular attorney, Ben Rosenthal, countered such motion by presenting, at a hearing conducted on June 21,1971, a petition to vacate the May 14,1971, consent decree on the grounds of misrepresentation etc. In response to the affidavit submitted by Ben Rosenthal seeking a short continuance of the matter, the trial court set the cause for a hearing on June 30, 1971. Thereafter, counsel for the plaintiff served notice on Arnold Kramer requesting that he bring to the hearing all papers, documents, etc., relating to the alleged misrepresentations.

On June 30, 1971, the plaintiffs renewed their contention that the defendant Karkomi had failed to comply with the agreed order of May 14, 1971. Thereafter, Arnold Kramer presented a petition for a change of venue on behalf of the defendant Karkomi in which it was alleged that the trial judge was prejudiced against him. The trial court denied this petition and then set a date for a hearing on the rule to show cause as well as on all other pending matters.

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Bluebook (online)
349 N.E.2d 599, 39 Ill. App. 3d 113, 1976 Ill. App. LEXIS 2529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stavros-v-karkomi-illappct-1976.