delivered the opinion of the court:
B.R. MacKay & Sons, Inc., respondent in a contempt proceeding, appeals from a judgment of the circuit court of Cook County finding it guilty of contempt and imposing a fine of $1,000. On appeal, respondent contends that the trial court erred in finding respondent in contempt for failure to comply with post-judgment discovery requests made by the Attorney General of the State of Illinois in connection with his petition to vacate judgment, which was filed pursuant to section 2 — 1401 of the Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2-1401).
On May 12, 1983, the State filed a complaint for injunctive and other relief against respondent and other defendants, alleging violations of environmental protection laws for producing hazardous waste. On May 23, 1983, respondent filed a motion to dismiss for lack of personal jurisdiction because respondent did not conduct business in Illinois. The motion was supported by the affidavit of Michael MacKay, respondent’s president. MacKay stated, among other things, that respondent had no employees in Illinois; that respondent did not sell or distribute products or services in Illinois; that respondent did not engage in the business of processing scrap film in Illinois; and that respondent did not store film chips resulting from the process in Illinois. MacKay also stated, however, that respondent provided the initial capital for the Illinois operation, was a customer and creditor of the Illinois corporation, Film Recovery Systems, Inc., and that it maintained a mailing address and phone number in Illinois during January and February, 1983. Based on these sworn representations, among
Subsequently, petitioner acquired information indicating that MacKay’s sworn statements were false. In a sworn deposition taken in an unrelated lawsuit, MacKay stated that respondent paid the salaries of the employees of the Illinois corporation; that respondent purchased scrap film in Illinois; that respondent was involved in processing scrap film in Illinois; that respondent paid rent for the Illinois property; that respondent’s comptroller exercised control over expenditures made by the Illinois corporation; and that employees in the Illinois corporation were authorized by respondent to draw money from respondent’s account in Utah. Other evidence indicated that MacKay was president of Silver Recovery Systems, an Illinois company; and that little or no distinction existed between respondent and the Illinois corporation.
On October 24, 1983, petitioner filed a petition to vacate the dismissal order of July 26, 1983. Respondent subsequently filed a motion to dismiss the petition, and petitioner filed a supplemental petition. On May 30, 1984, petitioner was given leave to file its first request for production of documents. The request sought business records which would indicate whether respondent conducted business in Illinois at the time it filed affidavits stating it did not conduct business in Illinois. Respondent objected, contending that discovery is not authorized under section 2 — 1401. (Ill. Rev. Stat. 1983, ch. 110, par. 2— 1401). After considering briefs and hearing oral argument, the trial court ruled that petitioner could seek discovery, but limited the discovery to materials relevant to the claimed fraud. After receiving permission from the court, respondent filed specific objections to the discovery requests. The trial court ruled in favor of respondent on some of its objections, generally limited the scope of the discovery requests, and ordered respondent to comply within 30 days.
Respondent then sought and received a protective order, and the trial court again ordered respondent to comply with the discovery requests. When respondent failed to do so, petitioner filed a petition for a rule to show cause why respondent should not be held in contempt for failure to comply. On January 16, 1985, the court held respondent in contempt and ordered it to pay a fine of $1,000 per day, which was later limited to a total of $1,000.
The sole issue before this court is whether, under the narrow circumstances presented here, petitioner had the right to conduct limited
In City of Chicago v. Hart Building Corp. (1969),
In City of Chicago v. Hart Building Corp. (1969),
Similarly, we find that the unusual facts present here, establishing a prima facie case of fraud, permit limited discovery in relation to the 2 — 1401 petition. Petitioner was forced into this unique position by MacKay’s fraudulent statements regarding whether it was sufficiently involved in Illinois to fall under Hlinois’ long arm jurisdiction. Respondent contends that MacKay’s affidavit filed in support of its motion to dismiss for lack of personal jurisdiction did not deny any involvement in Illinois, and contained facts which should have notified petitioner that respondent had substantial connections with Illinois. However, the purpose of the affidavit was to support a motion to dismiss
We find further support for our holding in Gatto v. Walgreen Drug Company (1975),
Respondent relies on Taxman v. Health & Hospital Governing Com. (1980),
Accordingly, the judgment of the circuit court of Cook County is affirmed.
Judgment affirmed.
McGILLICUDDY and WHITE, JJ., concur.
