Franks v. North Shore Farms, Inc.Franks v. North Shore Farms, Inc.
The plaintiffs have appealed from the order of the court granting defendant, North Shore’s motion for a judgment notwithstanding the verdict and also from the order of the court dismissing the case against defendant, McKee, under Counts II and III.
We shall first consider the correctness of the court’s dismissal of the case against defendant, McKee, under Counts II and III of the Second Amended Complaint.
Money deposited to be held until the performance of a condition has been treated as a deposit in escrow, although this concept is contrary to the generally accepted or common-law meaning of the term. 30A CJS, 971. In this case, McKee was a stakeholder, depositary, or escrowee having custody of funds belonging to the plaintiffs. Title of the plaintiff to these funds would be divested upon defendant, North Shore, performing under the terms of the contract. McKee held the money for the mutual benefit of both parties. Upon the failure of defendant, North Shore, to perform, plaintiffs had the right to the return of the money. Should the escrowee, McKee, fail to return the same, he became a necessary party to any action by the plaintiffs to recover the deposit. Had there been no conflicting claims to the money deposited, then McKee would have been the only necessary party-defendant. However, where there are conflicting claims to the deposited fund by the parties to the contract, in an action by one party against the escrowee for the recovery of the deposited fund, the other party to the contract is a necessary party to the litigation. Hilyard v. Krisolofsky, 337 Ill 584,
The original Complaint sought only the recovery of the earnest money and named both North Shore and McKee party-defendants. The defendant, McKee, then filed a Counterclaim for Interpleader pursuant to the provisions
When there are conflicting claims to the deposited fund, the escrowee is not required to act upon his own responsibility in making a determination as to the rights of the rival claimants. Stark v. Chicago Title & Trust Co., 316 Ill App 353,
Count II of the Second Amended Complaint, although containing general allegations of conspiracy and wrongdoing by both McKee and North Shore, nonetheless, seeks to recover only the earnest money that had been deposited with McKee. The order on the counterlcaim for interpleader which had previously been entered disposed of that issue as to the defendant, McKee, and the court accordingly properly dismissed Count II as to McKee.
Count III of the Second Amended Complaint appears to be an attempt to allege a cause of action sounding in tort based on McKee’s willful and malicious violations of his duties as escrowee and seeks to recover
Injuria absque damno does not constitute a cause of action, 1 Am Jur2d, 597, 598; Kane v. Nomad Mobile Homes, Inc., 84 Ill App2d 17,
In considering the propriety of the order of the court entering judgment for the defendant, North Shore, on defendant’s post-trial motion notwithstanding the verdict for the plaintiffs, we must examine the evidence.
Under the terms of the contract which was entered into July 26, 1962, the plaintiffs agreed to buy and the defendant, North Shore, agreed to sell approximately 10 acres of real estate located in the Northwest portion of Cook County, Illinois. The property was to be used by the plaintiffs as a riding academy. The contract provided:
“Within sixty days from the date hereof seller shall deliver to purchaser or his agent (which delivery may be made at the office of the Buyers’ attorney) a title insurance policy of the Chicago Title and Trust Company in the amount of the purchase price covering the date hereof, or its customary preliminary report on title, showing title in seller(or grantor), subject only to the matters to which this sale is subject by the terms hereof, and to the usual objections contained in owners’ policies issued by said Company. . . .
“It is agreed and understood that the buyer is purchasing the subject property for use as a private riding club and stable for training and boarding horses. Seller represents that the present zoning on said property is agricultural even though said property has been used for some 20 years for commercial purposes by seller. This contract is subject to seller obtaining zoning for buyer that would be suitable for buyer’s use as outlined above. Time being of the essence, it is agreed by the Parties that rezoning order necessary for the buyer’s business must be obtained on or before October 15, 1962. Failure by the Seller so to do shall render the contract null and void and the earnest money deposit shall be returned to the Buyer.”
The plaintiffs’ Second Amended Complaint alleged as breaches of the contract North Shore’s failure to procure the title insurance policy and the failure to procure the change in zoning within the time limits prescribed in the contract. Defendant, North Shore, in its answer alleged facts constituting a waiver of the performance of the two requirements within the time limits. Plaintiffs filed no reply denying the affirmative allegations of the answer. The defendant, North Shore, now contends that the affirmative allegations of waiver stand admitted by virtue of sections 32 and 40 (2) of the Civil Practice Act. Without holding that the affirmative allegations involved required a denial, we are of the opinion that the defendant, North Shore, is not in a position to rely upon plaintiffs’ failure to reply to these allegations. The theory upon which North Shore defended the action was waiver by the plaintiffs of the contract requirements. North
The defendant, in an attempt to prove waiver of the contract provisions relating to the furnishing of a title insurance policy, relied upon the acts, words, and conduct of the plaintiffs and their attorney. The defendant contends that the plaintiff treated the contract as still being in effect even after the expiration of the 60-day period and led the defendant to believe that this requirement would not be insisted upon. The defendant contends that the plaintiffs thereby waived performance of this part of the contract. The conduct relied upon by the defendant is the same conduct which it claims constituted waiver of the contract requirement to procure a change in zoning of the property within the time specified. The discussion hereinafter contained concerning the waiver of that contract provision relates to the waiver of the contract provision now under consideration and what is hereinafter said on the subject of waiver relates to both of these contractual provisions.
It stands admitted that a change in the zoning ordinance of the property was not obtained by October 15, 1962, but was obtained in March of 1963. Although the contract recited that the seller represented that the property was zoned agricultural, it was actually zoned R-3 (residential). In any event, the zoning was such as would not permit an operation such as the plaintiffs proposed to pursue on the property except as a nonconforming use.
The defendant, North Shore, contends that the failure to obtain the change in zoning by October 15, 1962, did not constitute a breach, of contract. It insists that the
Where the language used in a contract leaves the true intent of the parties in doubt and it is necessary to
In the alternative, North Shore argues that if completion of the zoning proceeding by October 15, 1962, was material, then the plaintiffs by their words and conduct had waived the contract requirement and the subsequent notification on October 17 that plaintiffs considered the contract terminated constituted an anticipatory breach. The defendants were thereby entitled to retain the earnest money as liquidated damages. Since by this plea defendant, North Shore, is relying upon the defense of waiver to excuse its noncompliance with the terms of the contract, the burden of establishing the waiver is upon the defendant. Voris v. McIver, 339 Ill 340,
Much of the evidence bearing on the question of waiver is essentially uncontroverted. After the contract was signed in July there were several conversations between plaintiff, John Franks, and Schmidt, an agent for defendant. Schmidt urged Franks to move his horses onto the property, but Franks refused to do so until the zoning proceedings had been completed. Franks left for Canada on October 5. Before he left, he instructed his attorney, Jurco, to prepare a letter cancelling the contract and demanding his money back and if they did not receive the rezoning by October 15, then he should mail
The hearing was held on October 17, 1962. Neither Franks nor Jurco appeared at the hearing, but Mrs. Franks attended the hearing but did not testify. At the hearing Murphy explained to Mrs. Franks that the objections had been withdrawn to the application and Mrs. Franks was apparently quite happy about it.
There was conflict in some of the evidence presented by the parties on the question of waiver. Attorney Jurco testified that he first received notice of the October 17 hearing on October 12, however, Attorney Murphy testified that he had received notice of the hearing date about September 18 and had immediately informed Jurco of the hearing date. There was also a dispute as to the substance of several telephone conversations between the two attorneys.
This conflicting evidence plus the various inferences that may be drawn from the evidence not in
Following the oral argument on the defendant’s post-trial motion the court made the following statement:
“I think the verdict was against the manifest weight of the evidence. Coupled with the remarks which you have made, it can’t stand. The motion, therefore, made for a directed verdict at the close of all the evidence will be allowed. There will be no judgment against the defendant for the plaintiff.”
The remarks the court referred to were remarks which counsel for the plaintiff made in his closing arguments and which the judge viewed as inflammatory.
The reason stated by the court does not support its order. Our Supreme Court in the Pedrick case, supra, at page 513 stated:
“We have rather carefully preserved the distinction between the evidentiary situation which will require anew trial, verdict against the manifest weight of the evidence . . . , and that justifying direction of a verdict or judgment n. o. v. There is, in our judgment, excellent reason for so differentiating to be found in the radically different results of allowance of the two motions, and we believe a more nearly conclusive evidentiary situation ought to be required before a verdict is directed than is necessary to justify a new trial. It is not our intention by this opinion to alter this concept.”
It appears, therefore, that the reasons stated by the trial court, inflammatory remarks by counsel and the verdict against the manifest weight of the evidence, were reasons which if present would conceivably support the granting of a new trial but would not support the directing of a verdict or the granting of a judgment notwithstanding the verdict.
The defendant’s post-trial motion in addition to asking for the relief granted, in the alternative asked for a new trial. The trial court refused to pass on the motion for a new trial although specifically requested to do so by the defendant. Defendant, North Shore, now requests this court to grant it a new trial in the event we set aside the trial court’s order which entered judgment in its favor. The question arises as to this court’s authority to consider the defendant’s alternative motion for a new trial in view of the fact that it had not been passed upon by the trial court.
In an attempt to eliminate successive appeals on the questions presented by post-trial motions, the Civil Practice Act of 1933, § 68, subsections 3(b) and 3(c) authorized the reviewing court after reversing the trial court’s ruling on a Motion for Judgment Notwithstanding the Verdict to grant a new trial if one was warranted, even though the motion for a new trial was not passed
Following this decision and others to the same effect, the Supreme Court amended former Supreme Court Rule 22. Under the amendment the party moving for a judgment notwithstanding verdict was required to move at the same time and in the alternative for the new trial. The trial court was also required to pass on the alternative motion for a new trial even though it granted the Motion for Judgment notwithstanding the verdict. The conditional ruling then served as a basis for the exercise by a reviewing court of its appellate jurisdiction in the event it determined that the judgment notwithstanding the verdict should not have been granted. The provisions of this amendment to former Supreme Court Rule 22 have been incorporated in subsection (6) of section 68.1 of the Civil Practice Act (Ill Rev Stats 1967, c 110, par 68.1 (6)).
Under the new judicial article of our constitution effective January 1, 1964, the Appellate Court is no longer prohibited from exercising original jurisdiction. Section 7 thereof provides:
“The Appellate Court may exercise such original jurisdiction as may be necessary to the complete determinationof any cause on review.” (SHA Const Art VI §7.)
A similar provision is incorporated in Ill Rev Stats 1967, c 37, § 32.1.
In view of the trial court’s superior position of observation, the better practice is for a trial court to pass upon all motions presented in the post-trial motion and to preserve the reviewing court’s role as one of review of such decisions. Rigid adherence to this belief would compel us to remand this case to the trial court to pass upon the motion for a new trial. The decision of the trial court then would be the potential subject of another appeal. The history of our present section 68.1 of the Civil Practice Act discloses a studied attempt by the legislature and by the Supreme Court to prevent the necessity of multiple appeals on motions pertaining to post-trial relief. In accord with this endeavor, we deem it advisable for an Appellate Court, pursuant to the authority granted by the constitutional provision and statute above cited, to exercise original jurisdiction and pass upon the defendant’s motion for a new trial even though the trial court failed to do so.
Three propositions are urged by the defendant in this court in support of its alternative motion for a new trial:
1. The jury’s verdict was against the manifest weight of evidence;
2. The verdict of the jury was a result of bias and prejudice occasioned by: (a) the argument of plaintiff’s counsel to the jury, (b) the improper statements and actions of plaintiff’s counsel in moving for the production of the defendant’s president in open court before the jury; and
3. The assignment judge at the trial court erred in denying the motion for a continuance because of the absence of William J. Schmidt, president of defendant.
We have heretofore referred to much of the evidence relating to the disputed questions of fact. We stated above that we felt there was substantial evidence to support the jury’s verdict when tested in light of the rule of the Pedrick case relating to motions for judgment notwithstanding the verdict. We also feel that there is substantial evidence on disputed questions of fact to support the jury’s verdict when tested by the rules relating to a motion for a new trial. A reviewing court will not disturb a verdict where the evidence is conflicting unless the verdict is clearly wrong or unless the court is satisfied that the verdict is against a manifest weight of evidence and that an opposite conclusion is clearly evident. A verdict will not be set aside merely because the jury could have found differently or because judges feel that other conclusions would be more reasonable. Cardona v. Toczydlowski, 35 Ill App2d 11,
The alleged improper remark of counsel in his closing arguments was not objected to by the defendant. The general rule is that objections must be made to the prejudicial argument in the trial court and a ruling obtained thereon before the alleged prejudicial argument can be assigned as error in a court of review. Belfield v. Coop, 8 Ill2d 293,
The Belfield case also announced an exception to the general rule as follows at page 313:
“If prejudicial arguments are made without objection of counsel or interference of the trial court to the extent that the parties litigant cannot receive a fair trial and the judicial process stand without deterioration, then upon review this court may consider such assignments of error even though no objection was made and no ruling made or preserved thereon.”
At the hearing on the defendant’s post-trial motion, the trial judge criticized plaintiff’s counsel for making certain
Plaintiff had served a notice on defendant’s counsel pursuant to the provisions of Supreme Court Rule 237 to compel the presence of the president of defendant, North Shore Farms, Inc., William J. Schmidt. Prior to the commencement of the trial the defendant presented a motion for continuance alleging that Schmidt was in Florida and could not be present until a later date. The motion was denied. Thereupon, plaintiff called as its first witness the president of defendant, North Shore Farms, Inc., William J. Schmidt, pursuant to notice served under Supreme Court Rule 237. The defendant claims that the plaintiff’s conduct in this regard was prejudicial but has cited no authority for its position. We can see nothing prejudicial to the defendant in the conduct of the plaintiff.
As to the refusal of the assignment judge and the trial court to grant the defendant’s motion for a continuance because of the absence of this witness, we do not think that this refusal was an abuse of judicial discretion. Supreme Court Rule 231(a) provides in part:
“If either party applies for a continuance of a cause on account of the absence of material evidence, the motion shall be supported by the affidavit of the party so applying or his authorized agent. The affidavitshall show (1) that due diligence has been used to obtain the evidence, or the want of time to obtain it . . . .”
The affidavit filed in support of the motion for a continuance recites that Schmidt is engaged in a farming operation in Florida and due to manpower shortage he will not be able to attend the trial of the case until after May 1, 1968. The affidavit was signed by Schmidt and was dated December 11, 1967. It was filed along with a motion for continuance on January 3, 1968. The case was called for trial February 1, 1968. The affidavit had been made more than seven weeks before the case was called for trial. It is hard to understand why the defendant could not have made arrangements during this seven-week period to leave his farming operation in Florida for two or three days while he attended court in Chicago. Furthermore, no reason is shown in the motion why the evidence deposition of this witness was not taken during this seven-week period. The case was six years old when called for trial. The motion for a continuance and affidavit do not show that due diligence was used to obtain the testimony of this witness or the wanting of time to obtain it. We feel that the assignment judge and the trial court both properly refused the motion for a continuance.
Accordingly, the motion of the defendant, North Shore, for a new trial is denied.
The judgment of the trial court is reversed and the cause is remanded with directions to enter judgment in favor of the plaintiffs, John Franks and Genevieve Franks, and against the defendant, North Shore Farms, Inc., in the amount of the verdict returned by the jury and for interest thereon and costs.
Reversed and remanded with directions.
STOUDER, P. J. and ALLOY, J., concur.