Gaylor v. Campion, Curran, Rausch, Gummerson and Dunlop, P.C.
980 N.E.2d 215
Ill. App. Ct.2012Background
- Plaintiffs allege legal malpractice and fraud arising from the Ions, Inc. EL technology transaction with Bettis.
- Trial court dismissed the fraud count; the case proceeded on a one-count legal-malpractice claim resulting in a $182,625 verdict for plaintiffs.
- Plaintiffs alleged defendants failed to obtain separate counsel, failed to perform due diligence on Bettis’s patents, and failed to protect plaintiffs’ interests at closing.
- Closing documents granted Ions an exclusive license and anticipated transfer of EL IP, but plaintiffs claim Bettis’s patents were not properly owned or transferred.
- Plaintiffs maintained an attorney-client relationship with the Campion firm, Gummerson, and Lockwood; defendants allegedly misrepresented expertise and the existence of Bettis’s patents.
- Damages sought exceeded $400,000; posttrial motions challenged the damages award as manifestly inadequate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Preservation of the fraud count | Gaylor preserves fraud count via motion to amend. | Foxcroft waiver applies; fraud count not preserved. | Fraud count waived; not preserved for review. |
| Damages adequacy | Damages were proven and the award is manifestly inadequate. | Damages within range; not manifestly defective. | Damages not manifestly inadequate; affirmed. |
Key Cases Cited
- Foxcroft Townhome Owners Ass’n v. Hoffman Rosner Corp., 96 Ill. 2d 150 (1983) (establishes Foxcroft waiver rule for dismissed claims)
- Bonhomme v. St. James, 2012 IL 112393 (2012) (clarifies preservation methods for dismissed claims)
- Boatmen’s National Bank of Belleville v. Direct Lines, Inc., 167 Ill. 2d 88 (1995) (rejects expansion of preservation based on court’s assurances)
- Russ v. Pension Consultants Co., 182 Ill. App. 3d 769 (1989) (discusses preservation when leave to amend is denied)
- Silver Fox Limousine v. City of Chicago, 306 Ill. App. 3d 103 (1999) (addresses preservation despite trial court actions)
