This is an appeal by petitioner, Janet Pagano, from the denial of a section 2 — 1401 petition to vacate an order for attorney fees awarded to Rinella & Rinella, Ltd. (Rinella). Ill. Rev. Stat. 1985, ch. 110, par. 2 — 1401 (formerly section 72 of the Civil Practice Act (Ill. Rev. Stat. 1979, ch. 110, par. 72)).
On appeal, petitioner contends that (1) the trial court lacked subject matter jurisdiction to enter fee awards in the absence of any pleading to seek such awards; (2) Rinella did not have standing in the absence of a fee petition; (3) petitioner was entitled
In her dissolution of marriage proceedings against Thomas Pa-gano, petitioner was represented by Rinella. On June 2, 1986, during the course of this proceeding, an agreed order was entered in the amount of $20,000 in favor of Rinella and against petitioner. That order provided:
“That Janet B. Pagano, having been advised of her right to a full and complete hearing with respect to her attorney’s fees under section 508 of the Illinois Marriage and Dissolution of Marriage Act, and having knowingly waived her right to said hearing, agrees that she shall pay RINELLA & RINELLA,LTD. the sum of TWENTY THOUSAND ($20,000) DOLLARS as and for additional fees shé has already paid said law firm.
2. That judgment is hereby awarded RINELLA & RINELLA against JANET P. PAGANO for said sum and said judgment shall be a lien against her interest in the residence located at7 South 441 Donwood Drive, Naperville, Illinois, until paid in full.”
On May 18, 1987, again during the course of the proceedings and prior to any judgment of dissolution, a second agreed order with substantially the same language was entered in favor of Rinella for $30,000 against Janet B. Pagano. With regard to this order, the trial court queried petitioner as follows:
“THE COURT: On the record, Mrs. Pagano, your attorney has just handed me an order which bears your signature acknowledging that you owe the firm of Rinella & Rinella the sum of $30,000 for their fees in their representation of you in this cause.
MRS. PAGANO: Yes, your Honor.
THE COURT: And you signed that order, is that correct, Mrs. Pagano?
MRS. PAGANO: That’s correct.”
We note that the first order has never been released or modified. Therefore, after entry of the second order, Rinella had and still has a total of $50,000 in judgments against petitioner.
On July 27, 1987, William J. Stogsdill filed an appearance as additional counsel on behalf of petitioner.
On September 14, 1987, Rinella was granted leave to withdraw as attorney of record for petitioner.
After obtaining the two judgments totalling $50,000, Rinella filed a petition for attorney fees on September 21, 1987. This petition was extensive. It requested fees for two attorneys for a total of 235.10 hours with hourly fees ranging from $125 an hour to $200 an hour. The total fees requested were in the amount of $37,034.15, $700 of which had been paid. Rinella prayed for a judgment of $36,334.15 and for such other relief as equity required. Attached to the petition was a breakdown alleging that various work had been performed and the time spent on such work.
Judgment for dissolution of marriage was entered on September 21, 1987.
On December 2, 1987, a hearing was held on Rinella’s petition for attorney fees. Rinella did not present any evidence but stated that it was standing on the order entered on May 18, 1987, and on its petition
“THE COURT: Mr. Rinella, you give me no choice other than to state that the Court has previously entered an order and made a finding by the entry of that order relative to the reasonableness of the fees that were agreed to between you and your client for the sum of $30,000.00.
That order was entered in May of 1987. There has been no motion to vacate or set the order aside. The judgment has been entered in this case, is that correct?
MR. MARINACCIO: Yes, your Honor.
THE COURT: There has been no notice to appeal that I am aware of filed in this case, is that correct?
MR. RINELLA: No, there isn’t.
THE COURT: And more than 30 days have passed since judgment was entered.
MR. RINELLA: That’s correct.
THE COURT: But I can’t see, Mr. Rinella, without further testimony or evidence that I can’t award additional attorney’s fees.
MR. RINELLA: Well, Judge, we are standing on our petition.
THE COURT: The law is quite clear especially in the Second District, Mr. Rinella, that you have to set forth testimony and time sheets and a lot of other things.
MR. RINELLA: We do have that attached to our petition, Judge.
THE COURT: As I said before, I think I am correctly stating the law in the Second District as I understand it is that the mere filing of the petition and standing on that petition is not sufficient cause for the Court to award fees. There is a modification in the Second District.
MR. RINELLA: Well, we would ask leave to put the case on, Judge.
THE COURT: Well, that is what I asked you to begin with.
MR. RINELLA: It is discretionary with you whether or not—
THE COURT: I am not going to grant that. There is an order of Court. That order is to remain in effect.”
On December 2, 1987, an order was entered which (1) denied the petition for attorney fees from Thomas Pagano and further stated, “the order entered on May 18, 1987, awarding Rinella & Rinella fees of THIRTY THOUSAND ($30,000) DOLLARS shall be the total fees
Also on December 2, 1987, William Stogsdill was granted leave to withdraw as attorney of record for petitioner.
On February 11, 1988, petitioner moved pursuant to section 2— 1401 to vacate the order entered on May 18, 1987, and to vacate the order entered on December 2,1987.
On March 7, 1988, Rinella filed a motion to strike the petition to vacate. On March 7, 1988, an order was entered which provided that attorney Joanne Pitulla was denied leave to represent petitioner solely as to the section 2 — 1401 petition and further provided that leave was granted to withdraw the section 2 — 1401 petition to vacate.
On April 15, 1988, petitioner filed a section 2 — 1401 petition to vacate the orders entered on May 30, 1986 (from the description of the order we take this to mean the order of June 2, 1986), May 18, 1987, and December 2, 1987. An affidavit in support of this petition was also filed on April 15, 1987. The section 2 — 1401 petition alleged, among other things, that on May 14, 1987, just prior to the commencement of trial of the dissolution action, Richard A. Rinella told petitioner that he would not represent her at the trial if she did not immediately agree to pay Rinella $30,000 and sign an order to that effect; that petitioner signed the order because of the threat; that in May 1986, Richard Rinella and Steven Russo, an attorney with the Rinella firm, told petitioner that she had to sign an agreed order for $20,000 in favor of Rinella as security for their fees and further told her that this was normal procedure and that she should not worry about the fees since her husband would be responsible as he had the ability to pay and she did not; that no itemized statements were submitted to petitioner; that no retainer agreement had been executed between petitioner and Rinella; that no hourly rates for the services of Rinella were ever disclosed to petitioner; and that on numerous occasions Richard Rinella and Steven Russo assured petitioner that they would seek the payment of their fees from respondent, Thomas Pa-gano.
Rinella subsequently filed a motion to strike and dismiss the section 2 — 1401 petition.
The trial court heard arguments regarding the section 2 — 1401 petition and thereafter granted Rinella’s motion to strike the petition finding that petitioner lacked due diligence.
We initially note that Rinella contends that petitioner is attempting to use a section 2 — 1401 petition as a substitute for appeal. The purpose of a section 2 — 1401 petition is to bring to the trial court’s attention facts not of record which if known by the trial court
Petitioner initially contends that the trial court lacked subject matter jurisdiction to enter the agreed orders in the absence of any pleading seeking such awards. Petitioner contends that when awarding fees it must act within the authority vested in it by the Illinois Marriage and Dissolution of Marriage Act. According to petitioner, the trial court lacks jurisdiction to enter a fee award where there is no petition.
In response, Rinella contends that a petition was not required for subject matter jurisdiction because there was a fee petition filed prior to the December 2 order, and that with respect to the agreed order, subject matter jurisdiction arose out of the filing of the initial petition for dissolution of marriage which initially requested attorney fees.
A trial court’s jurisdiction is found in the Constitution (III. Const. 1970, art. VI, §9). (In re Marriage of Bussey (1985),
Although we do not fin'd the filing of a fee petition to be a jurisdictional requirement, we do find it to be a procedural requirement of section 508. In this respect, we agree with the assessment of section 508 stated in In re Marriage of Pitulla (1986),
“While section 508 permits judicial economy by eliminating the need for an attorney to sue his own client in a separate action to obtain a judgment for his attorney fee, we must not lose sight of the fact that it also places an attorney and his client in adversary positions during the course of court proceedings.Moreover, the situation presents a circumstance where the client is not represented by counsel, although he or she is being opposed by counsel on a matter in which a judgment may be entered against the client. Plainly, what is permitted by section 508 is unique in, and is otherwise inimical to, the legal profession.”
Because section 508 puts clients in a position where they are effectively before the court without representation, we are of the opinion that precautions must be taken to ensure that any rights of the client are not relinquished unknowingly and that any resulting attorney fee is fair. At a minimum, we find that prior to entering an award of attorney fees on behalf of an attorney against his client, the trial court must be presented with a petition for attorney fees and an itemization of the billing including the hourly cost, the time spent on the case, and an itemization of the tasks performed. In being presented with such a petition, the trial court will have a basis for ensuring that the fees awarded are fair. In absence of a petition for attorney fees, we find that entry of the agreed orders on June 2, 1986, and May 18, 1987, was error. We do not, however, reverse on this particular error as this is an appeal from the denial of a section 2 — 1401 petition, and the lack of a petition for attorney fees was procedural and, standing alone, not a basis for granting a section 2 — 1401 petition.
Petitioner next contends that Rinella did not have standing since the agreed orders were not entered pursuant to section 508. Petitioner reasons that an attorney only becomes a party to a dissolution for the purpose of seeking fees pursuant to section 508, that fees were not awarded pursuant to section 508, and, thus, Rinella had no standing.
Attorneys for litigants in a dissolution proceeding are considered as parties in interest in an action for attorney fees, and the attorney has standing in such cases to pursue an action himself for fees. (In re Marriage of Baltzer (1986),
The next two arguments of petitioner will be considered together since they are interrelated and their outcomes depend upon one another. These contentions are (1) that the trial court improperly denied petitioner’s section 2 — 1401 petition without an evidentiary hearing; and (2) that Rinella’s fiduciary duty to petitioner prevented it from entering into a valid agreed order for attorney fees.
In addressing the above issues, we first consider the attorney
A section 2 — 1401 petition must set forth facts showing the existence of a meritorious defense and the exercise of due diligence in presenting both a defense to the original action and the petition to vacate. (Smith v. Airoom, Inc. (1986),
In the instant case, there are no allegations in the petition to show that petitioner acted with due diligence. Nonetheless, we find that the record indicates that petitioner was diligent.
In determining whether due diligence was exhibited, the court must be mindful of the facts and circumstances peculiar to the case including the conduct of the parties. In re Petition of Village of Kildeer to Annex Certain Territory (1988),
Because there is a fiduciary relationship between an attorney and his client (Durr,
In the instant case, petitioner had substitute counsel at the hearing on December 2, 1987, and at the end of the hearing, that attorney was granted leave to withdraw. Petitioner was thus left without counsel.
It is not clear from the record when present counsel was retained. However, petitioner’s original section 2 — 1401 petition was filed on February 11, 1988. Leave to withdraw this petition was granted on March 7, 1988, and a new section 2 — 1401 petition was filed on April 15,1988.
We find that in light of the fact that petitioner was left without an attorney as of December 2, 1987, her original filing of a section 2— 1401 petition on February 11 (less than three months from the order of December 2, 1987) and her subsequent filing of another section 2— 1401 petition on April 15, 1988, showed due diligence. (See Chastain v. Chastain (1986),
Because the section 2 — 1401 petition alleges impropriety by an attorney, which the courts should be peculiarly vigilant in guarding against (see Franciscan Sisters,
The next question before us is whether petitioner had a meritorious defense. As stated earlier in this opinion, the purpose of section 2 — 1401 is to bring to the trial court’s attention facts not of record which, if known by the trial court at the time judgment was entered, would have prevented entry of the judgment. (In re Petition of Village of Kildeer,
Where a transaction is entered into between an attorney and his client during the existence of that relationship and the attorney benefits from the transaction, it is presumed that the attorney exercised undue influence. (Klaskin v. Klepak (1989),
Because section 2 — 1401 petitions are a proper means for setting aside consent judgments obtained by fraud or coercion (see Thompson v. Thompson (1980),
In making this finding, we recognize that, prior to entry of the agreed order in the instant case, the trial court questioned petitioner as to whether she had signed the agreement. However, no inquiry was made as to whether she signed it voluntarily. Even had she said it was signed voluntarily, such a fact would not defeat her section 2—1401 petition. At that time, petitioner was being represented by Rinella, and, according to her petition, which must be taken as true (In re Petition of Kildeer,
Petitioner further contends that fees were improperly awarded because there was no hearing on the reasonableness of the fees. In response, Rinella contends that petitioner waived her right to a hearing. However, petitioner contends that a party cannot waive her right to a hearing and in support thereof cites In re Marriage of Pitulla (1986),
Pitulla was another case in which Rinella sought attorney fees. In that case, no written retainer agreement was prepared and no attorney fee amount was stated. (
In addressing the case, the court noted that section 508 is unique in that it places the attorney and the client in adversary roles during the course of the proceedings. (
“As a result, we must be circumspect that the attorney’s right under the statute does not in any way encroach upon the rights of his client. In this regard, we must make sure that the client does not waive any right by his or her own admission or inaction.” (141 Ill. App. 3d at 961 .)
The court concluded that the client’s right to an itemized statement of fees was not waived because the attorney fee was included in the judgment dissolving the marriage, or because the client signed the marital settlement agreement which was incorporated in the judgment for dissolution, or because the client assented to the amount of the attorney fee. (
As stated earlier in this opinion, we agree with the assessment of section 508 made by the court in Pituita and accordingly have found that the granting of fees pursuant to section 508 requires the filing of a petition. However, we find that a client may waive her right to a hearing under section 508.
In In re Marriage of Lord (1984),
“While Robert has questioned the portion of the court’s order granting Arlene $7,200 from a $17,209 marital savings account, the balance to be divided equally between the parties’ attorneys for attorney fees, we find no error. In effect, the ruling was one which required each spouse to pay the fees for his or her own attorney. There is no showing on the record before us that the fees were not reasonable. Moreover, Robert has waived his right to a hearing on attorney fees, as there is no indication that he ever requested such a hearing before the trial court.”125 Ill. App. 3d at 6-7 .
In In re Marriage of Bennett (
“Where the trial court orders a spouse to pay the fees of his or her own attorney and there is no showing on the record that this fee was unreasonable and where the party never requested a hearing before the trial court, an objection to the fee is waived.”131 Ill. App. 3d at 1054 .
However, this court found that the trial court abused its discretion in awarding attorney fees where the trial court had no information upon which to base a finding of reasonableness and necessity. (
Both Bennett and Lord indicate that a party can waive her right to a hearing under section 508 (see also In re Marriage of
As we have noted before, two agreed orders were entered in the present case for a total of $50,000 even though Rinella’s own petition for fees indicated that only $37,034.15 had been earned. While it may have been the intent of Rinella to have the second agreed order supersede the first, that is not clear from the second order. Consequently, we find that both orders must be vacated since the two combined were excessive. Additionally, we find that since the order of December 2, 1987, was based on the second agreed order it too must be vacated. Consequently, we find that the section 2 — 1401 petition should have been granted. Thus, we reverse and remand for a hearing on attorney fees pursuant to section 508.
Because of our foregoing disposition, we find it unnecessary to address petitioner’s contention that the agreed orders violated section 2 — 1301 of the Code of Civil Procedure and were not final and thus could not be liens. We further find that it would be premature for us to address petitioner’s contention that Rinella forfeited its fees because it breached its fiduciary duty since no such factual determination has been made as of yet.
Finally, we find it incumbent upon ourselves to recommend that similar orders between attorneys and their clients, especially those relating to attorney fees, be avoided in the future. In Franciscan Sisters, our supreme court noted it is usually unnecessary for lawyers to prepare documents under which they benefit, as there is almost always a third party available who can intervene and provide a disinterested perspective. (Franciscan Sisters,
For the foregoing reasons, we reverse the decision of the trial court and remand for a hearing on attorney fees pursuant to section 508 of the Illinois Marriage and Dissolution of Marriage Act (Ill. Rev. Stat. 1987, ch. 40, par. 508).
Reversed and remanded.
