Windcrest Development Co. v. Giakoumis

834 N.E.2d 610, 359 Ill. App. 3d 597, 296 Ill. Dec. 53, 2005 Ill. App. LEXIS 887
CourtAppellate Court of Illinois
DecidedAugust 18, 2005
Docket2-04-0972
StatusPublished
Cited by5 cases

This text of 834 N.E.2d 610 (Windcrest Development Co. v. Giakoumis) 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
Windcrest Development Co. v. Giakoumis, 834 N.E.2d 610, 359 Ill. App. 3d 597, 296 Ill. Dec. 53, 2005 Ill. App. LEXIS 887 (Ill. Ct. App. 2005).

Opinion

JUSTICE GEOMETER

delivered the opinion of the court:

Citation respondent, the office of the treasurer, County of Lake, State of Illinois, appeals from a judgment that directed it to pay to plaintiff, Windcrest Development Company, Inc., $14,231.58 for violating plaintiffs citation to discover assets of a third party. On appeal, citation respondent argues, in part, that the trial court erred by concluding that plaintiffs citation was still in effect when the turnover order was entered. We reverse.

In case number 02 — LM—1244, on August 28, 2002, a judgment was entered against defendants, Jim Giakoumis, Dean Rozos, Tommy Odisho, and Nikolas D. Katsoulos, for $18,984 plus costs and interest. The judgment was subsequently vacated against Giakoumis.

On June 3, 2003, plaintiff served on citation respondent a citation to discover assets of a third party. According to the citation, citation respondent was to file an answer or appear at the return date of July 2, 2003. The citation referred to the judgment against Rozos and Katsoulos and stated that $18,533.66 plus interest and costs remained unsatisfied. Citation respondent was prohibited “from making or allowing any transfer or other disposition of, or interfering with, any property *** belonging to the judgment debtor[s] or to which the judgment debtor[s] may be entitled or which may be acquired by or become due the judgment debtor until further order of the court or termination of the proceedings.” Citation respondent was to hold and retain the judgment debtors’ property up to double the amount of the balance due.

On June 19, 2003, citation respondent answered the citation, indicating that it possessed property belonging to defendants. Specifically, it possessed $40,606.61 plus interest from case number 01— ED — 27, an eminent domain proceeding in which the Village of Lincolnshire acquired the property where defendants’ business, Dog ’N Spuds, Inc., was a tenant.

On July 2, 2003, the trial court continued the citation proceedings until September 30, 2003. Again, on September 30, 2003, the court continued the citation proceedings until October 14, 2003.

Meanwhile, in case number 01 — ED—27, on October 7, 2003, the trial court granted defendants’ petition to withdraw their just compensation award. According to the order, citation respondent was to pay $15,652.63, of which $13,000 was to be paid to the law firm of Wysocki and Smith and $2,652.63 was to be paid to defendants.

In case number 02 — LM—1244, on October 14, 2003, plaintiff moved the court to order citation respondent to turn over defendants’ property. In the motion, plaintiff stated that a final settlement had been reached in case number 01 — ED—27. According to that settlement, defendants received $37,000 for the corporation’s leasehold interest. Additionally, plaintiff noted that, in 1999, Dog ’N Spuds, Inc., was involuntarily dissolved by the Secretary of State. Plaintiff requested that citation respondent be ordered to turn over $21,347.37.

At the hearing on the turnover motion, Rozos and Katsoulos were given leave to file an appearance and permitted 14 days to respond to the turnover motion. The hearing was continued until November 19, 2003. Upon defendants’ motion, they were granted additional time to respond to the turnover motion. After two continuances, on December 16, 2003, pursuant to an agreed order, a briefing schedule was set and the motion hearing was scheduled for January 27, 2004.

According to defendants’ response, they were shareholders of Dog ’N Spuds, Inc., and the money held by citation respondent belonged to the corporation, not defendants individually. As the money held did not belong to defendants, the turnover order should be denied.

Meanwhile, in case number 03 — L—948, on November 18, 2003, Plaza Bank, another judgment creditor of Rozos and Katsoulos, initiated nonwage garnishment proceedings against their property to satisfy Plaza Bank’s judgment of $108,485.53. Plaza Bank served interrogatories on citation respondent as a garnishee. On December 9, 2003, citation respondent submitted its answer to the garnishee interrogatories. In its answer, citation respondent acknowledged that it possessed $21,347.47, which was awaiting “an appropriate withdrawal order from Case No. 01 ED 27.” Thereafter, on December 19, 2003, Plaza Bank obtained a turnover order, which required citation respondent to turn over $21,347.37 of defendants’ property to Plaza Bank. On December 23, 2003, citation respondent paid Plaza Bank pursuant to that order.

In case number 02 — LM—1244, on February 10, 2004, the court ordered that plaintiff was permitted additional time to file a response to defendants’ filing. The order also indicated that the citation “shall remain in full force and effect until further order of the court.”

On March 9, 2004, the court issued the turnover order. It ordered citation respondent to turn over to plaintiff $14,231.58 from the funds that citation respondent was holding.

On April 7, 2004, plaintiff petitioned for a rule to show cause or, alternatively, a judgment against citation respondent. In the petition, plaintiff argued that citation respondent violated the provisions of the citation by releasing funds to Plaza Bank while it was holding those funds pursuant to the citation. Plaintiff requested that the court enter a rule against citation respondent for it to show cause why it should not be held in contempt. Alternatively, plaintiff requested a judgment against citation respondent for $18,533.66 plus costs and interest.

Citation respondent filed a response to the petition and moved the court to vacate the March 9, 2004, turnover order. In its response, citation respondent stated that, on September 30, 2003, a judgment was entered in case number 01 — ED—27 awarding defendants $37,000. On October 7, 2003, citation respondent was ordered to pay defendants $15,652.63 from those monies. Citation respondent held the remainder of $21,347.37. On October 14, 2003, plaintiff moved for the turnover order. Thereafter, citation respondent did not receive a turnover order or any notice that the citation was continued. According to the mandate of Supreme Court Rule 277(f) (134 Ill. 2d R. 277(f)), the citation proceeding terminated on December 18, 2003, six months after citation respondent served its answer to the citation on June 19, 2003. On December 19, 2003, citation respondent received Plaza Bank’s turnover order for $21,347.37, and citation respondent transferred the funds to Plaza Bank pursuant to that order. As a result, citation respondent contended that it properly paid the monies and, therefore, plaintiffs turnover order should be vacated.

Following a hearing, on June 9, 2004, the court entered a judgment of $14,231.58 against citation respondent and denied citation respondent’s motion to vacate the turnover order. Citation respondent moved the court to reconsider.

In its motion, citation respondent argued that the trial court erred by (1) concluding that plaintiff was entitled to notice of Plaza Bank’s garnishment proceedings and (2) retroactively extending the citation when that action destroyed Plaza Bank’s subsequent lien on defendants’ property. After a hearing, the trial court denied the motion. Citation respondent appeals.

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834 N.E.2d 610, 359 Ill. App. 3d 597, 296 Ill. Dec. 53, 2005 Ill. App. LEXIS 887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/windcrest-development-co-v-giakoumis-illappct-2005.