Articles Posted in Illinois Civil Procedure

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Thomas Topal owned real estate in Benld, Ill., when he died on March 15, 2017.  The mortgage on the property was held by First National Bank in Staunton, Ill.

In February 2020, Associated Bank N.A. (Associated) acquired First National Bank and succeeded it as mortgagee.

On Oct. 22, 2020, just over 2 ½ years after Topal passed away, his heir, Catherine Petrak, filed a petition seeking to admit his will to probate. Petrak died on Dec. 5, 2020. Attorney Robert Smith was named executor for her estate in a separate probate case and as independent administrator of Topal’s estate.

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Ashad Umrani and Mundar Jatoi, the plaintiffs, brought a derivative action on behalf of Sindhi Association of North America (SANA) against SANA and several SANA office holders. They alleged misconduct and breach of fiduciary duties, fraud, and spoliation of evidence against SANA executive council members and other office holders.

SANA is an organization under New York State law with office holders spread across North America. SANA is registered as a 501c non-profit organization that works to unite Sindhis in North America; to defend the national rights of Sindhi people; to foster understanding between Sindhis and other nationalities; and to educate people about Sindhi Civilization, according to the group’s website. The defendants, who include SANA office holders in multiple states, were represented by multiple attorneys.

Some of the defendants filed a motion to dismiss based on lack of personal jurisdiction, but others neither filed a motion nor joined the others. The circuit court judge granted the motion to dismiss but directed the parties to specify the order in which defendants were included. This was not done; instead, the motion to dismiss was granted and the defendants were not notified individually.

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In a federal district court matter, the district judge ruled that the obligation of a defendant who settled a negligence lawsuit wasn’t “uncollectible” and would not be reallocated between the remaining tortfeasors.

The Illinois Supreme Court, answering a question presented by the 7th Circuit Court of Appeals, concluded that “the obligation of a tortfeasor who settles is ‘not uncollectible’ within the meaning of Section 3.” Section 3 is part of the Illinois Joint Tortfeasor Contribution Act, which states that “no person shall be required to contribute to one seeking contribution an amount greater than his pro rata share,” except when “the obligation of one or more of the joint tortfeasors is uncollectible.”

Two of the seven Illinois Supreme Court justices dissented with a view that this ruling undermined the legislative goal of promoting settlements. The dissent stated that the Illinois Supreme Court’s decision “would likely require the General Assembly to revisit the Contribution Act.”

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On April 27, 2017, Kevin Hartley was working for his uncle, Tony Hartley, at Hartley’s Painting. Hartley was refinishing the bathtub at an apartment complex in Nashville, Tenn.

While on the job, Kevin was wearing a respirator mask and gloves but was overcome by fumes from the NAPCO White Lighting Low Odor Stripper. He passed out and died the following day at the age of 21.

Wendy Hartley, his mother and special administrator of Kevin’s estate, filed a lawsuit against the North American Polymer Company Ltd. (NAPCO), which sold the product. The lawsuit then added Samax Enterprises Inc. (Samax), the company that manufactured the product. Wendy Hartley set out two causes of action for each of the two defendants. One was in strict product liability and the other was in negligence, alleging that the product was “unreasonably dangerous and toxic, and that defendants did not adequately warn users about the danger and did not adequately test the product to ensure that it was safe for its reasonable anticipated use.”

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In a 2-1 decision, the Illinois Appellate Court reversed a judgment that resulted in a $1 million verdict in punitive damages and a $163,327 in compensatory damages. The suit was brought against Pan-Oceanic Engineering Co. for reckless conduct that allegedly caused a motor vehicle crash, injuring Fletcher McQueen.  It was alleged that McQueen was injured because (1) Pan-Oceanic conceded it was liable for any negligence by its employee, Lavonta M. Green, and (2) the jury decided Green was not negligent.

Justice Mary L. Mikva dissented because she relied on the line of cases supplied by the majority – which concluded that “once an employer admits responsibility under respondeat superior, a plaintiff may not proceed against the employer on another theory of imputed liability such as negligent entrustment or negligent hiring,” Gant v. LU Transport Inc., 331 Ill.App.3d 924 (2002) – “as being at odds with several well-reasoned decisions of this court.”

And even if Gant should be followed, Justice Mikva believed “the majority unnecessarily and unfairly extends application of the rule in that case beyond its principled parameters.”

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Tomas Buron was stuck by a delivery truck driven by Shane M. Lignar, an employee of Lily Transportation Co., on Nov. 27, 2017. The incident occurred in the parking lot of the Whole Foods delivery building in Munster, Ind.

Buron filed a lawsuit against Lignar and Lily in Cook County. Lignar and Lily moved to dismiss the lawsuit, arguing that the circuit court lacked personal jurisdiction over both. Lignar is an Indiana resident, the crash occurred in Indiana, and Lily is a Massachusetts corporation with “only limited operations in Illinois.”

Discovery was done on the jurisdictional issue and Buron submitted in his reply brief that the court had jurisdiction over Lily based on the company’s operations in Illinois. Buron further replied that Lignar worked out of the facility in Illinois, made pickups and deliveries in Illinois twice weekly and filed Illinois tax returns in 2018 and 2019. The Cook County Circuit Court judge denied the motion to dismiss before an evidentiary hearing or oral argument. Lignar and Lily petitioned for an appeal.

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During discovery in a negligence case, State Farm Insurance Co. retained outside counsel to defend Allison Rancour. In this Kane County case, the attorneys named Drs. Benjamin Goldberg and Michael Musacchio as controlled experts. The plaintiff requested a list of the amounts paid to each of the doctors in every case where they were hired by State Farm and the group of State Farm employees that practiced law in Chicago known as Bruce Farrel Dorn & Associates.

The defendant refused to comply and the court sanctioned the defendant and attorneys $25 a day for failing to comply. The attorney for the defendant and State Farm argued that the judge erred in commanding discovery from non-parties that had not been subpoenaed. And because neither the attorneys nor outside counsel hired by State Farm nor its client were employees of State Farm, the law firm claimed they could not be compelled to provide information possessed by State Farm.

The appellate court affirmed the discovery order but reversed the sanction because the outside firm used a “friendly contempt” for immediate review, thus the appellate court explained that there was no need to subpoena State Farm or the Bruce Farrel Dorn & Associates law firm because the discovery order was aimed at Rancour and the outside law firm. The decision of the appellate court was based on Szczeblewski v. Gossett, 342 Ill. App. 3d 344 (2003), and Oelze v. Score Sports Venture, 401 Ill. App. 3d 110 (2010) for the Second District. The court concluded that “the court correctly applied existing case law, which holds that a party has reasonable control over the documents possessed by her insurer.”

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Susan Danzig and Carla Davis, plaintiffs, attended a student play put on by the Professional Theater and Dance Youth Academy (dance academy) at the Woodlawn facility at The University of Chicago Charter School Corp. (charter school) on Feb. 24, 2017. While there, the plaintiffs were instructed to sit on a bench by an employee of the charter school. The bench collapsed, injuring both Danzig and Davis.

The plaintiffs filed an identical one-count negligence lawsuit against the dance academy and the charter school on March 20, 2018. The charter school moved to dismiss the complaint, claiming the case was barred by the statute of limitations, citing the Illinois Tort Immunity Act, section 101(a), which requires claims to be filed within one year of the alleged injury.

On June 28, 2018, the plaintiffs filed a response and the dance academy moved to dismiss and filed a counterclaim against the charter school for contribution. The charter school moved to dismiss, also citing the one-year statute of limitations.

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A Will County judge rejected Diana Angell’s attempt to use veil-piercing to overcome a mistake made in suing the wrong defendant. Her attorney sued Santefort Family Holdings LLC when she should have targeted an affiliated company known as Midwest Home Rentals LLC. Having done so, the circuit court judge dismissed the case; however, the Illinois Appellate Court for the Third District reversed with a dissent.

Angell was inspecting a mobile home that was for sale or lease at Tri-Star Estate when she walked into an unlit bathroom and stepped into a hole. She was seriously injured and sued Tri-Star’s owner, Santefort Family Holdings. Even though Santefort Family Holdings owned the real estate, the mobile home was owned by Midwest Home Rentals LLC.

To make matters worse, Santefort Family 2012 Irrevocable Trust reportedly owned numerous affiliates, including Santefort Real Estate Group LLC (which owned the defendant, Santefort Family Holdings), Midwest Home Rentals LLC, Santefort Services LLC, Santefort Property Management Inc. (called SPMI) and an array of single purpose entities.

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James Richardson was seriously injured in an auto crash at 53rd Street and Western Avenue in Chicago, which resulted in a settlement for $1 million against Night Dream Inc. and Shaun T. Small. However, their Nevada-based insurer, Spirit Commercial Auto RRG Inc., was placed in liquidation before it funded the $1 million settlement amount. Because Spirit was a “risk retention group, (RRG),” Richardson couldn’t collect from the insurance guaranty funds in Nevada or Illinois.

He asked for a $1 million judgment against Dream and Small based on the portion of the Illinois Code of Civil Procedure, Section 2-2301, aimed at insurance companies that slow walk settlement payments.

Richardson requested the judgment more than 30 days after he submitted an executed release and all other documents required by Section 2-2301. Subsection (d) says: “A settling defendant shall pay all sums due to the plaintiff within 30 days of tender by the plaintiff of the executed release and all applicable documents in compliance with subsections (a), (b), and (c) of this Section.”

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