Wood v. Lyft, Inc

2022 IL App (1st) 210416-U
CourtAppellate Court of Illinois
DecidedSeptember 6, 2022
Docket1-21-0416
StatusUnpublished

This text of 2022 IL App (1st) 210416-U (Wood v. Lyft, Inc) 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
Wood v. Lyft, Inc, 2022 IL App (1st) 210416-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (1st) 210416-U FIRST DISTRICT, FIRST DIVISION September 6, 2022

No. 1-21-0416

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

DANIEL WOOD, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County ) v. ) No. 2019 CH 04723 ) LYFT, INC., ) Honorable ) Michael T. Mullen, Defendant-Appellant, ) Judge Presiding. v. ) ) ) ZURICH NORTH AMERICA, ) ) Defendant. ) _________________________________________________________________________

JUSTICE COGHLAN delivered the judgment of the court. Justices Pucinski and Walker concurred in the judgment.

ORDER

¶1 Held: Circuit court’s judgment reversed. In a declaratory judgment action, the trial court erred in granting the plaintiff’s pro se motion to vacate two agreed orders to dismiss the action with prejudice.

¶2 For the reasons that follow, we reverse the circuit court’s judgment.

¶3 BACKGROUND

¶4 On April 12, 2019, plaintiff Daniel Wood filed a declaratory judgment action against

defendants Lyft, Inc. (“Lyft”) and Marsh Risk & Insurance Services. According to the complaint, No. 1-21-0416

plaintiff was in a car accident with an uninsured driver while working as a driver for Lyft. Plaintiff

alleged that Lyft’s “automobile insurance policy,” under which he sought coverage, violated the

minimum liability insurance requirement as set forth in section 12-707.01(b)(3) of the Illinois

Vehicle Code.

¶5 Plaintiff filed an amended complaint on June 12, 2019, adding an allegation that the

liability insurance requirements of the Transportation Network Providers Act (625 ILCS 57 et seq)

are “in direct conflict” with the requirements of section 12-707.01(b)(3) of the Illinois Vehicle

Code. Plaintiff filed a second amended complaint on October 7, 2019, substituting defendant

Zurich North America for defendant Marsh Risk & Insurance Services.

¶6 Lyft filed a motion to dismiss the second amended complaint and for sanctions on

November 4, 2019, arguing that sanctions were warranted because plaintiff’s counsel admitted

“the meritless nature of the complaint” but refused to voluntarily dismiss the action. Plaintiff

responded that there was a “good faith basis” to pursue the claim “based on the plain language of

the applicable policy that was in effect at the time of the accident.” The trial court granted Lyft’s

motion to dismiss, without prejudice, on September 8, 2020, giving plaintiff “one last opportunity

to file a further amended complaint.” Lyft’s motion for sanctions was entered and continued.

¶7 Plaintiff’s third amended complaint was filed on September 29, 2020. On October 26,

2020, Steven Levin, a member of the law firm representing plaintiff, advised Lyft’s attorney that

plaintiff’s original attorney, Bryan Flangel, had left the firm. Jeffrey Deutschman filed an

additional appearance on plaintiff’s behalf.

¶8 On November 3, 2020, Levin phoned Lyft’s counsel to “broker a deal” and offered to

dismiss the action against Lyft with prejudice in exchange for withdrawing its motion for

sanctions. On November 4, 2020, Levin contacted Lyft’s counsel again and requested agreement

on an order to “dismiss Lyft with prejudice.” Lyft’s Motion to Dismiss the Third Amended

-2- No. 1-21-0416

Complaint and For Additional Sanctions was filed the same day.

¶9 On November 5, 2020, an agreed order to dismiss the action against Lyft with prejudice

was entered. Plaintiff’s complaint against Zurich and Lyft’s two motions for sanctions remained

pending.

¶ 10 On November 25, 2020, plaintiff filed a response to Lyft’s motion for additional sanctions,

conceding that after consulting with Levin and Deutschman, he “voluntarily agreed to dismiss

[Lyft] with prejudice” based upon Lyft’s agreement to dismiss the sanctions motions. In an

affidavit attached to his response, plaintiff clarified that his original counsel “misled” him into

bringing the complaint against Lyft, but he “agreed to a dismissal of the case against Lyft ***

[o]nce properly informed of the law” by Levin and Deutschman in October, 2020.

¶ 11 On December 7, 2020, the court entered an “Agreed Order of Dismissal of Entire Case”

with prejudice. The order also provided that “all pending motions for sanctions filed by [Lyft] are

withdrawn.”

¶ 12 On January 6, 2021, plaintiff filed a pro se motion to vacate the December 7, 2020 agreed

order of dismissal. Plaintiff alleged he “was never informed of the legal significance of the term

with prejudice,” and would not “have agreed to a dismissal of that type” if he had been “informed

of what that term meant.”

¶ 13 Lyft responded that “consent orders are not subject to review or vacatur by a court because

consent orders do not represent the judgment of a court.” Lyft also relied on plaintiff’s sworn

statement that he had agreed to the dismissal only after being “properly informed of the law” by

his attorneys.

¶ 14 On March 15, 2021, the circuit court granted plaintiff’s motion to vacate, as follows: “The

agreed Orders of Dismissal entered on November 5, 2020, and December 7, 2020 are vacated, both

are modified to strike the phrase ‘with prejudice,’ and both shall be deemed entered as of the date

-3- No. 1-21-0416

of the first order, November 5, 2020.” Plaintiff was also granted leave to reinstate the action by

November 5, 2021.

¶ 15 ANALYSIS

¶ 16 Initially, we note that plaintiff failed to file a brief on appeal. This court ordered the case

taken on Lyft’s brief only, and we are deciding the merits of the appeal without the benefit of an

appellee brief. Selective Insurance Co. v. Urbina, 371 Ill. App. 3d 27, 29 (2007) (“Where the

record is simple and the claimed error is such that the court can easily decide it without the aid of

an appellee’s brief, a reviewing court will decide the merits of the appeal.”).

¶ 17 Plaintiff’s pro se motion to vacate the agreed orders of dismissal was the functional

equivalent of a section 2-1401 motion, a statutory procedure by which judgments may be vacated

after 30 days if certain conditions are established. 735 ILCS 5/2-1401(a) (West 2020). The purpose

of such a motion is “to bring before the trial court facts not appearing on the record which if known

to the court at the time judgment was entered would have prevented its entry.” Burchett v. Goncher,

235 Ill. App. 3d 1091, 1098 (1991). The motion is a collateral attack on the order or judgement

challenged. Id.

¶ 18 “An agreed order, also termed a consent order or a consent decree [citation], is not an

adjudication of the parties’ rights but, rather, a record of their private, contractual agreement.” In

re Marriage of Roselth, 389 Ill. App. 3d 969, 971 (2009). Once entered, such an order generally

cannot be amended or varied without the consent of each party. In re M.M.D., 213 Ill. 2d 105, 114

(2004). Absent consent, an agreed order can only be amended or set aside “upon a showing that

the order resulted from fraudulent misrepresentation, coercion, incompetence of one of the parties,

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Related

In Re Marriage of Rolseth
907 N.E.2d 897 (Appellate Court of Illinois, 2009)
Selective Insurance v. Urbina
861 N.E.2d 1145 (Appellate Court of Illinois, 2007)
In Re Haber
425 N.E.2d 1007 (Appellate Court of Illinois, 1981)
Burchett v. Goncher
603 N.E.2d 1 (Appellate Court of Illinois, 1991)

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2022 IL App (1st) 210416-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-lyft-inc-illappct-2022.