West Suburban Bank v. American Products Group

2022 IL App (2d) 210137-U
CourtAppellate Court of Illinois
DecidedMay 26, 2022
Docket2-21-0137
StatusUnpublished

This text of 2022 IL App (2d) 210137-U (West Suburban Bank v. American Products Group) 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
West Suburban Bank v. American Products Group, 2022 IL App (2d) 210137-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (2d) 210317-U No. 2-21-0317 Order filed May 26, 2022

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(l). ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

WEST SUBURBAN BANK, ) Appeal from the Circuit Court ) of Du Page County. Plaintiff-Appellee, ) ) v. ) Nos. 19-L-1180 ) 20-L-950 ) AMERICAN PRODUCTS GROUP, INC., ) KENNETH W. REICK, AND DANIEL ) O’MALLEY, ) Honorable ) David E. Schwartz, Defendants-Appellants. ) Judge, Presiding. ______________________________________________________________________________

PRESIDING JUSTICE BRIDGES delivered the judgment of the court. Justices Zenoff and Birkett concurred in the judgment.

ORDER

¶1 Held: The trial court did not err in granting summary judgment for plaintiff. However, the trial court erred in denying defendants’ motion for reconsideration based on a lack of jurisdiction. Therefore, we affirm in part, reverse in part, and remand for further proceedings.

¶2 American Products Group, Inc. (the borrower) borrowed money from West Suburban Bank

(the bank); Daniel O’Malley and Kenneth W. Reick (the guarantors) supplied personal guarantees

for the loan. In 2019, the bank sued the borrower and the guarantors (collectively, the obligors) in

the Du Page County circuit court, alleging a default. At the same time, the borrower sued the bank 2022 IL App (2d) 210317-U

and West Suburban Bancorp, Inc, in Cook County circuit court alleging tortious interference with

the borrower’s prospective economic advantages. The Cook County court dismissed the

borrower’s complaint without prejudice for improper venue and transferred the case to Du Page

County.

¶3 The Du Page County court then granted summary judgment for the bank on its complaint.

The obligors moved for reconsideration, asserting that the court should have considered the

allegations of the Cook County complaint; alternatively, they sought leave to file an amended

complaint raising the same claim as the dismissed Cook County complaint. The court denied the

motions, ruling that its jurisdiction had lapsed.

¶4 On appeal, the obligors argue first that the court erred in denying the motion on the basis

that it lacked jurisdiction and second that, the court should have considered the Cook County

complaint and that, had it done so, it would have denied the bank’s summary judgment motion.

We hold that the court had jurisdiction to address the obligors’ motion but that the court did not

err in granting the motion for summary judgment. We therefore affirm the grant of summary

judgment, reverse the denial of leave to file an amended complaint, and remand the cause.

¶5 I. BACKGROUND

¶6 On February 28, 2018, the borrower and the bank entered into a loan agreement. The

agreement included a note that was guaranteed by the guarantors; the note was secured by a lien

on the borrower’s property, including equipment and receivables.

¶7 On October 21, 2019, the borrower filed a complaint in the Du Page County circuit court

alleging that the borrower had failed to perform under the loan agreement. It sought various

remedies that included money judgments against the guarantors, whom it named as defendants

along with the borrower.

-2- 2022 IL App (2d) 210317-U

¶8 Also on October 21, 2019, the borrower filed a complaint in Cook County court against

the bank and West Suburban Bancorp, Inc. (which it treated as indistinguishable from the bank).

The borrower alleged that the bank was a creditor of a third party, Microthin.com, Inc.

(“Microthin”), which declared bankruptcy in 2012. The borrower bought all of Microthin’s assets

in a bankruptcy sale. Those assets included what the borrower described as a “a specialized

injection mold tool” (“the molding tool”), used to produce a type of plastic water bottle—“the Fin

Bottle.” The molding tool was in the possession of Wise Plastics Technologies (“Wise”), with

which Microthin had contracted to produce water bottles. After the bankruptcy sale, Wise retained

possession of the molding tool. In 2016, the bank “came into possession of the [molding tool] from

Wise.” “The [borrower] immediately requested return of the [molding tool] so that it could

continue to manufacture the Fin Bottle, service existing customers and obtain new customers.”

Moreover, “manufacturing of the Fin Bottle was essential to [the borrower’s] keeping current

business relationships and creating new business relationships.” The borrower informed the bank

of its need for the molding tool to generate income and to pay the amounts due on the note.

¶9 According to the borrower’s theory of the case, the bank’s retention of the molding tool

amounted to tortious interference with the borrower’s prospective economic advantages.

¶ 10 On January 21, 2020, the obligors filed an answer in the Du Page County case. They denied

many of the bank’s allegations, but also included a section captioned “Affirmative Defenses.” The

obligors’ allegations in that section were nearly identical to those that the borrower made in its

complaint in the Cook County case.

¶ 11 On February 10, 2020, the bank and West Suburban Bancorp filed a motion in the Cook

County circuit court to transfer venue of the Cook County tortious interference case to Du Page

County. It contended that no condition for venue in Cook County had been satisfied and that the

-3- 2022 IL App (2d) 210317-U

borrower had named West Suburban Bancorp as a defendant solely for the purpose of engineering

a Cook County venue.

¶ 12 On February 25, 2020, the bank and West Suburban Bancorp filed a motion to dismiss the

Cook County tortious interference case; they relied on section 2-619(a)(3) of the Code of Civil

Procedure (Code) (735 ILCS 5/2-619(a)(3) (West 2020)), which provides for involuntary dismissal

of “an action” when “there is another action pending between the same parties for the same cause.”

They noted, among other things, that the obligors had taken the language of their affirmative

defenses in the Du Page County case verbatim from the Cook County tortious interference

complaint.

¶ 13 On July 9, 2020, the Cook County court dismissed the borrower’s tortious interference

complaint without prejudice pursuant to section 2-619(a)(3). It further granted the bank’s motion

to transfer venue to Du Page County. The order stated:

“The Court finds that [the borrower’s] claim for tortious interference and [the

bank’s] claim for default and replevin are so inexplicably [sic] intertwined that neither case

may be resolved without duplicative litigation of the same facts and arguments. The Court

believes that a ruling in one matter will be determinative of the other and in the interest of

judicial efficiency, the claims should be consolidated. As such, [the bank’s] Motion to

Dismiss pursuant to 735 ILCS 5/2-619(a)(3) is GRANTED and [the borrower’s] Complaint

is DISMISSED without prejudice to file in DuPage County.”

¶ 14 The Cook County court also ruled that the borrower had failed to plead a cause of action

against West Suburban Bancorp and thus dismissed the complaint with prejudice as to West

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Cite This Page — Counsel Stack

Bluebook (online)
2022 IL App (2d) 210137-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-suburban-bank-v-american-products-group-illappct-2022.