delivered the opinion of the court:
This action arises from a complaint for declaratory judgment originally filed by plaintiff Michael Jordan alleging that defendant Karla Knafel was attempting to extort $5 million from him by threatening to publicly expose their relationship. Knafel filed a counterclaim asserting breach of contract based on Jordan’s alleged agreement to pay her $5 million when he retired from basketball in exchange for her agreement not to file a paternity suit against him and to keep
On appeal, Knafel contends that the circuit court erred in granting Jordan’s motions for summary judgment on her verified counterclaim and his amended complaint where: (1) material issues of fact remain regarding the validity of the paternity tests; (2) material issues of fact remain on the elements of good faith, intent, materiality, and reliance in connection with Jordan’s defenses of fraudulent inducement and mutual mistake of fact; and (3) there was no evidence that she ever threatened Jordan to substantiate his claim of extortion. Additionally, Knafel contеnds that the circuit court abused its discretion in denying her motions to compel Jordan’s deposition and the production of certain documents.
BACKGROUND
On October 23, 2002, Jordan filed his original complaint for a declaratory judgment and injunctive relief against Knafel. Therein, he alleged that he had a relationship with Knafel more than a decade earlier, but denied the existence of any agreement to pay Knafel $5 million. Jordan further alleged that Knafel had previously extorted $250,000 from him under threat of publicly exposing their relationship and that, pursuant to a purported second agreement, she threatened to publicly expose their relationship unless Jordan paid her an additional $5 million. He sought a declaratory judgment that her demand for payment, even if an agreement existed, was unenforceable because (1) extortionate agreements violate public policy; (2) there would be no consideration to support any such agreement due to Knafel’s existing obligation not to publicly expose their relationship; (3) any such agreement would violate the statute of frauds; and (4) any such agreement would be barred by the statute of limitations. Additionally, Jordan sought an order enjoining Knafel, and any other person acting on her behalf, from engaging in further efforts to extort money from him.
Knafel responded to the complaint by filing a verified answer and affirmative defenses denying the material allegations of the complaint. Therein, she admitted that Jordan paid her $250,000 but stated that it was for her mental pain and anguish arising from their romantic relationship. In addition, Knafel filed a verified counterclaim asserting theories of breach of contract and anticipatory breach of contract based on Jordan’s alleged breach of his promise to pay Knafel $5 million “when he retired from professional basketball in exchange for her agreement not to file a paternity suit against him and for her agreement to keep their romantic involvement publicly confidential.”
The following relevant facts were alleged in the verified counterclaim. In the spring of 1989, Knafel, a singer, was performing in a band at a hotel in Indianapolis, Indiana. The Chicago Bulls were also in town to play the Indiana Pacers. After her performance, Knafel was approached by a National Basketball Association referee, who eventually introduced her to Jordan over the telephone. Although Knafel declined Jordan’s invitations to meet during the spring and summer of 1989, she and Jordan continued long-distance telephone conversations during that time.
According to Knafel, during several conversations about the impending birth of the baby, she and Jordan “discussed possible resolutions of their dilemma.” In the spring of 1991, Jordan offered, and urged Knafel to accept, his proposed settlement agreement to “resolve their problems.” Jordan offered to pay her “$5 million when he retired from professional basketball in return for her agreement not to file a paternity suit against him and for her agreement to keep their romantic involvement publicly confidential.” Knafel accepted Jordan’s offer. In consideration for his promise to pay her, she agreed to forbear filing a public paternity action against him and agreed to keep their romantic relationship confidential.
In July 1991, Knafel’s child was born. Jordan paid certain hospital bills and medical costs and paid Knafel $250,000 for “her mental pain and anguish arising from her relationship with him.” Knafel did not file a paternity suit against Jordan and she kept their relationship confidential.
Thereafter, in October 1993, Jordan announced his retiremеnt from the Bulls, but in March of 1995, he returned again to the NBA to play for the Bulls. Knafel had not contacted Jordan to demand her payment of the $5 million which he had allegedly promised her until the summer of 1998, amid public speculation that Jordan would soon retire again. In September 1998, Knafel approached Jordan while he was vacationing in Las Vegas. During their conversation, Knafel reminded Jordan of his obligation to pay her the money under their agreement. Knafel alleged that Jordan reaffirmed his agreement to pay her the $5 million. A few months later, Jordan again retired from professional basketball.
Two years later, after Jordan failed to pay the $5 million under the alleged agreement, Knafel’s counsel contacted Jordan’s counsel to resolve their contract dispute. Jordan denied that he had promised to pay Knafel $5 million and eventually filed his complaint for declaratory judgment and an injunction. Knafel’s counterclaim sought $5 million for breach of contract. Additionally, at the time Knafel filed her counterclaim, it was alleged that Jordan was playing basketball for the Washington Wizards. Accordingly, she also alleged an anticipatory breach of their 1991 contract and 1998 reaffirmation.
Thereafter, Jordan filed a hybrid motion for judgment on the pleadings, which was directed to his complaint, and a motion to dismiss Knafel’s counterclaim. Therein, Jordan argued that the alleged agreement was unenforceable because it violated public policy or, in the alternativе, that it was induced by fraud or mutual mistake of fact regarding the paternity of her child.
In Jordan v. Knafel,
On remand, Jordan filed a verified amended complaint for declaratory judgment and injunсtive relief and a motion for summary judgment on Knafel’s counterclaims. For purposes of the motion for summary judgment, Jordan did not contest the existence of the alleged settlement agreement. Rather, he argued that the alleged agreement was unenforceable because it was either fraudulently induced or was based on a mutual mistake of fact as to the paternity of Knafel’s child. In support, Jordan attached the affidavit of Dr. Charles M. Strom. Dr. Strom’s affidavit provided that in August 1991, which was one month after Knafel’s child was born, and a few months after the purported settlement agreement, he collected blood samples from Jordan, Knafel, and Knafel’s child, and conducted genetic testing for all three individuals under pseudonyms. Based upon the lab report from the Genetics Institute of the Illinois Masonic Medical Center, which was attached to Dr. Strom’s affidavit, Dr. Strom concluded that “[t]he test exclude[d] Mr. Jordan from being the father” of Knafel’s child. Additionally, in September 1991, Dr. Strom collected blood samples from Jordan to conduct additional genetic testing of Jordan, Knafel, and her child. Those tests were conducted by Cellmark Diagnostics and the report, also attached to the affidavit, indicated that Jordan was excluded from being the father of Knafel’s child by both DNA and serology testing.
In response, Knafel argued that Jordan’s actual paternity was irrelevant to the enforceability of the alleged settlement agreement. In support of her argument, she filed an affidavit in opposition to the motion for summary judgment. Therein, she stated that at the time of the alleged agreement she believed in good faith that she was pregnant with Jordan’s child. Specifically, she stated that she informed Jordan throughout their relationship that she was having sex with another man and that he even teased her about it. She never told Jordan that she was using birth control and he never used a condom when they had sex. She and Jordan were together in Phoenix, Arizona, on November
“TO WHOM IT MAY CONCERN:
KARLA KNAFEL IS A PATIENT UNDER MY CARE FOR HER PREGNANCY. HER DATE OF CONCEPTION IS NOV 19, 20, 1990. HER LMP WAS NOV 5, 1990. HER EDC IS AUG. 10, 1991. ANY QUESTIONS PLEASE FEEL FREE TO CALLME [sic] AT MY OFFICE.”
Knafel alleged that since those dаtes coincided with her stay with Jordan in Phoenix, she believed in good faith that she was pregnant with Jordan’s child. Ultimately, Knafel’s child was born in July 1991.
Additionally, in response to Jordan’s motion for summary judgment, Knafel disputed the validity and reliability of the paternity tests submitted by Jordan and sought to compel discovery from him, but declined to depose Dr. Strom and declined Jordan’s offer of additional paternity testing.
After a hearing, the trial court granted Jordan’s motion for summary judgment on the counterclaim, finding that “as a result of Knafel’s fraudulent misrepresentation to Jordan that he was the child’s father or, alternatively, as a result of a mutual mistake of fact, the alleged settlement contract is voidable and is therefore unenforceable against Jordan.” Thereafter, the trial cоurt also granted Jordan’s motion for summary judgment on his amended complaint for declaratory judgment, concluding that “the relief sought in [Jordan’s] declaratory judgment is the same relief’ granted in the motion for summary judgment on the counterclaim. Knafel’s motions to compel discovery were also denied. Knafel filed a timely appeal from those orders.
ANALYSIS
Knafel contends on appeal that the circuit court erred in granting Jordan’s motions for summary judgment where there were disputed issues of fact relating to his defenses of fraudulent inducement and mutual mistake of fact. Summary judgment is proper where the pleadings, depositions, and admissions on file, when viewed in the light most favorable to the nonmoving party, reveal that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. 735 ILCS 5/2 — 1005(c) (West 2004).
“The movant bears the initial burden of production in a motion for summary judgment.” Bourgonje v. Machev,
Initially, we address Knafel’s threshold assertion that there is a disputed issue of fact regarding Jordan’s paternity. Although rejecting several opportunities to depose Dr. Strom and to conduct additional paternity testing, Knafel instead claims that she is entitled to an inference that Dr. Strom’s expert opinion is invalid or unreliable. She makes the following arguments: (1) the tests performed by the Genetics Institute were spoiled or tainted as a result of rеfrigeration; (2) the Genetics Institute test results are inadmissible hearsay where Dr. Strom did not personally conduct these tests; (3) no chain of custody has been shown to prove that the blood samples drawn actually came from Jordan; and (4) Dr. Strom cannot verify the authenticity of the Cellmark testing.
We find that Dr. Strom’s affidavit and attached test results constitute valid and admissible evidence in support of Jordan’s motion for summary judgment. Contrary to Knafel’s assertions, the Genetics Institute final results were not spoiled or tainted. Rather, Dr. Strom indicated that due to inadvertent refrigeration of certain samples, definitive HLA serology testing could not be completed. However, despite the refrigeration issue, he was able to conclude that Jordan was not the father of Knаfel’s child because Jordan “was excluded from paternity by 4 other serology tests which are not sensitive to refrigeration, and by DNA testing.” This conclusion was further supported by the subsequent Cellmark DNA and serology testing.
Furthermore, we reject Knafel’s argument, made without citation to any relevant authority, that the test results are inadmissable hearsay because Dr. Strom does not claim to have done the testing himself. Indeed, Dr. Strom indicated in his affidavit that with respect to the Genetics Institute tests, he “conducted genetic testing,” and the test results are signed by him. Knafel was free to test that assertion by deposing Dr. Strom, but she declined. With respect to the Cell-mark test results, although Knafel argues that Dr. Strom cannot verify their authenticity, as an expert witness, Dr. Strom may rely on otherwise inаdmissible facts or data to support his opinion that Jordan is not the father of Knafel’s child. Wilson v. Clark,
Additionally, Knafel’s arguments regarding chain of custody and authenticity are mere speculation and are unsupported by any evidence suggesting that the tests were actually tainted or contaminated. Mere speculation is not enough to create a genuine issue of material fact sufficient to survive a motion for summary judgment. Tzakis v. Dominick’s Finer Foods, Inc.,
We must now consider what impact the paternity evidence has on the enforceability of the alleged agreement. Knafel argues that Jordan’s actual paternity is irrelevant to the enforceability of the alleged settlement agreement as long as she has alleged a good-faith belief at the time of contracting that she was pregnant with Jordan’s child. Jordan maintains that,
A contract may сontain all of the elements necessary for enforceability, but may nonetheless be unenforceable as a result of the imposition of an affirmative defense. R. Lord, Williston on Contracts §69:1, at 485 (4th ed. 2003). Here, Jordan seeks rescission of the contract, which is an equitable doctrine (Illinois State Bar Ass’n Mutual Insurance Co. v. Coregis Insurance Co.,
In order for a representation to constitute fraud that would permit a court to set aside a contract, the party seeking such relief must establish that the representation was: (1) one of material fact; (2) made for the purpose of inducing the other party to act; (3) known to be false by the maker, or not actually believed by him on reasonable grounds to be true, but reasonably believed to be true by the other party; and (4) was relied upon by the other party to his detriment. Tower Investors, LLC,
Knafel asserts that there is a genuine issue of fact as to whether her affirmative representation to Jordan that “she was pregnant with his child” was material to the alleged settlement agreement and induced Jordan to act. Specifically, she argues that Jordan’s actual paternity (1) was not a subject of discussion when they reached their settlement agreement; (2) it was not a term or contingent condition of their settlement agrеement; and (3) Jordan has never actually stated that it was material to the agreement. Additionally, she maintains that she is entitled to an inference that Jordan’s only motive was to preserve his image and protect his lucrative endorsements.
A misrepresentation is “material” if the party seeking rescission would have acted differently had he been aware of the fact or if it concerned the type of information upon which he would be expected to rely when making his decision to act. Miller v. William Chevrolet/ GEO, Inc.,
Contrary to Knafel’s assertions, her own allegations establish that paternity was material to the alleged settlement agreement and was made for the purposes of inducing Jordan to act. Knafel alleged that in the spring of 1991, when she told Jordan “she was pregnant with his child,” Jordan “became worried” and they “discussed possible resolutions of their dilemma.”
To hold otherwise would render her agreement not to file a paternity claim to have been a mere pretense to extort money. If Jordan’s paternity was immaterial to the parties’ settlement agreement, then her claim that she had a good-faith basis for a paternity action against Jordan would be unfounded. Without a good-faith basis, they would have lacked the necessary consideration for their bargain. See McKinley v. Watkins,
Next, we consider whether there is a genuine issue of fact as to whether Knafel’s representation was known to be false or not reasonably believed by her to be true at the time of the alleged agreement. Jordan argues that bеcause Knafel represented to him with certainty that “she was pregnant with his child,” yet paternity testing ultimately revealed that someone else was the father, it necessarily follows that at the time she told Jordan he was the father, she must have lacked certainty about the paternity of the child. Therefore, Knafel’s knowledge of her uncertainty regarding paternity satisfies the “knowledge” element of fraudulent misrepresentation. He relies upon Lipscomb v. Wells,
In Lipscomb, the plaintiff brought a paternity action against the defendant to have him adjudicated the father of her child, alleging in a verified complaint that he was the natural father. Lipscomb,
Although Lipscomb does not specifically rely on section 162(1) (Restatement (Second) of Contracts §162(1) (1981)) to support its reasoning, it is implicitly recognized therein. That provision is instructive and provides:
“(1) A misrepresentation is fraudulent if the maker intends his assertion to induce a party to manifest his assent and the maker
(a) knows or believes that the assertion is not in accord with the facts, or
(b) does not have the confidence that he states or implies in the truth of the assertion, or
(c) knows that he does not have the basis that he states or implies for the assertion.” Restatement (Second) of Contracts §162(1) (1981).
Here, at the time of contract formation, Knafel represented with certainty that she knew Jordan was the father of her child. However, the paternity tests reveal that it was also the case that she was having sexual relations with someone other than Jordan around the time of conception. Therefore, the evidence presented establishes that she knew that she lacked the certainty about the paternity of the child or, at least, knew that she did not have the basis that she stated or implied for that categorical representation, thus making it fraudulent.
To rebut that finding, Knafel asserts that she believed she had certainty about the paternity of her child, and in support of that state of mind, she relies on Dr. Grisanti’s office memo regarding the timing of conception. However, the memo is insufficient to defeat summary judgment. Knafel merely states that the doctor’s information regarding the dates of conception coincided with the dates she was with Jordan in Phoenix. That assertion does not discount that she knew she was also with another partner around that same time period. Although one could contemplate a situation where a pregnant woman could be subjectively certain about paternity, Knafel has presented no such affirmative evidence to support an adequate basis for her certainty.
Additionаlly, Knafel argues that she indeed disclosed to Jordan throughout their relationship that she was having sex with another man. Nevertheless, the question is not whether she told him about her relationships with other men at some previous time, but whether she failed to disclose material information in the process of contract formation that would render the contract voidable. Section 161(b) (Restatement (Second) of Contracts §161(b) (1981)) is instructive here, providing that one makes a misrepresentation through nondisclosure:
“(b) Where he knows that disclosure of the fact would correct a mistake of the other party as to a basic assumptionon which that party is making the contract and if non-disclosure of the fact amounts to a failure to act in good faith and in accordance with reasonable standards of fair dealing.” Restatement (Second) of Contracts §161(b) (1981).
Here, at the time of negotiating the settlement, Knafel was not forthcoming that she had sex with another partner at the time of conception. Instead, she made an affirmative representation with certainty that she was pregnant with Jordan’s child. Her failure to disclose the information when she alone had access to that information amounts to a failure to act in good faith and in accordance with reasonable standards of fair dealing.
Finally, with respect to the element of reliance, Knafel initially argues that Jordan’s failure to state that he relied upon Knafel’s representation precludes summary judgment. However, “[wjhere representations have been made in regard to a material matter and action has been taken, in the absence of evidence showing the contrary, it will be presumed that the representations were relied on.” R. Lord, Williston on Contracts §69:32, at 12 (4th ed. 2003), citing Hicks v. Stevens,
Furthermore, as the court in Lipscomb articulated, Jordan had a right to rely upon the categorical representation by Knafel that he was the father because “[i]t would make little sense to compel a putative father to conduct an independent investigation in the face of a clear and categorical representation of a mother (who is also his sexual partner) as to his parentаge.” Lipscomb,
We further find Knafel’s cited cases, primarily a Maryland case from 1956 and an Illinois case from 1880, to lack any persuasive or instructive value where contract law has evolved and societal notions regarding intimatе relationships have changed. Moreover, Heaps v. Dunham,
The court in Fiege found that even though Fiege was ultimately found not to be the father there was no proof of fraud or unfairness and that the mother gave testimony which indicated that “she made the charge of bastardy against [the father] in good faith.” Fiege,
Moreover, under modern case law and section 161 (Restatement (Second) of Contracts §161 (1981)), the mother’s testimony in Fiege that she had sex with the defendant on one occasion, would likely constitute a misrepresentation permitting rescission where she failed to disclose the material fact that she also had sex with another partner around the time of conception. See M. Oberman, Sex, Lies, and the Duty to Disclose, 47 Ariz. L. Rev. 871 (2005) (arguing in favor of subjecting these types of agreements between intimates to contemporary rules favoring disclosure of material information). Accordingly, Knafel’s reliance on these cases is not well founded.
Alternatively, we consider Jordan’s defense of mutual mistake of fact. “Mutual mistake of fact” as defined by section 152 of the Restatement (Restatement (Second) of Contracts §152 (1981)), and as recognized in Bentley v. Slavik,
Here, even if Knafel’s rеpresentation was not fraudulent and was made in good faith, her representation regarding paternity was ultimately mistaken as Jordan was not the father of the child. As we have already held, the issue of paternity went to a basic assumption upon which the contract was made because it was the consideration for the alleged settlement of her paternity claim. Knafel’s certainty regarding Jordan’s paternity had a material effect on the agreed exchange of performances, and Jordan did not bear the risk of mistake as a matter of law as he was not obligated to infer that Knafel had another sexual partner at the time of conception in the face of Knafel’s categorical representation that Jordan was the father. See Lipscomb,
Discovery is authorized in the supreme court rules “ ‘regarding any matter relevant to the subject matter involved in the pending action.’ ” Computer Teaching Corp. v. Courseware Applications, Inc.,
Here, we find no abuse of discretion in the trial court’s decision to stay discovery that was not relevant to the evidentiary issues raised in the motion for summary judgment. The court found Knafel’s Supreme Court Rule 191(b) (145 Ill. 2d R. 191(b)) affidavit was entirely conclusory. The court further found that discovery was unnecessary on the issues of materiality and reliance because those matters were demonstrated by Knafel’s own verified pleadings and Jordan took those allegations as true for purposes of the motion. Furthermore, Knafel was given an opportunity by the court to refute the paternity evidence by deposing Dr. Strom and testing the basis for his assertions and the authenticity of the documents upon which he relied and to engage in additional paternity testing. She chose not to take that opportunity. Accordingly, it was not an abuse of discretion for the trial court to find that her assertions that she was “denied access to the truth” to be baseless.
Lastly, where Jordan’s complaint for declaratory judgment was premised upon the same arguments in defense of the counterclaim, namely, fraudulent inducement and mutual mistake of fact, the trial court properly granted summary judgment on his complaint as well. For all of the foregoing reasons, we affirm the judgment of the circuit court.
Affirmed.
GREIMAN and CUNNINGHAM, JJ., concur.
