Ganci v. Blauvelt
State: Illinois
Court: 4th District Appellate
Docket No: 4-97-0324
Case Date: 01/22/1998
NO. 4-97-0324
IN THE APPELLATE COURT
OF ILLINOIS
FOURTH DISTRICT
PAUL GANCI, MARIE E. SECKER, JO ANNA ) Appeal from
CLAYCOMB and ROSALIE JONES, ) Circuit Court of
Plaintiffs, ) Sangamon County
v. ) No. 92L271
GARY BLAUVELT, )
Defendant and Third-Party )
Plaintiff-Appellant, )
v. )
KENNETH R. DEIHL, ) Honorable
Third-Party Defendant- ) Stuart H. Shiffman,
Appellee. ) Judge Presiding.
JUSTICE GREEN delivered the opinion of the court:
On June 8, 1992, plaintiffs, Paul Ganci, Marie E.
Secker, Jo Anna Claycomb, and Rosalie Jones, brought suit in the
circuit court of Sangamon County against defendant and third-
party plaintiff, Gary Blauvelt, and third-party defendant,
Kenneth R. Deihl. Plaintiffs are the natural-born children of
Leonard Ganci, and Blauvelt is the natural-born child of Delores
Ganci, who was Leonard's wife. The complaint alleged Blauvelt
and Deihl, an attorney-at-law, wrongfully deprived plaintiffs of
a portion of Delores' estate to which they were entitled. In
September 1996, plaintiffs dismissed their complaint as to Deihl.
On December 27, 1996, Blauvelt filed a third-party
complaint against Deihl seeking contribution in regard to any
judgment. On April 1, 1997, the court allowed Deihl's motion to
dismiss the third-party complaint pursuant to section 2-619(a)(5)
of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(5)
(West 1996)) as untimely under sections 13-214.3(b) and 13-204(b)
of the Code (735 ILCS 5/13-214.3(b), 13-204(b) (West 1996)).
In its order of dismissal, the circuit court made a
finding pursuant to Supreme Court Rule 304(a) (155 Ill. 2d R.
304(a)) making that order appealable. Blauvelt has appealed,
contending that, under the complex statutory scheme involving
third-party claims, his claim was timely. Deihl maintains the
trial court correctly ruled the third-party claim was untimely.
He also seeks to support the trial court order for the first time
on appeal on the theory the third-party complaint was void
because Blauvelt failed to obtain the court's permission to file
the complaint, as required by section 2-406(b) of the Code (735
ILCS 5/2-406(b) (West 1996)). We hold the third-party complaint
was not barred by section 13-214.3(b) or 13-204(b) of the Code
and failure to obtain the trial court's permission to file the
third-party complaint did not void it. Accordingly, we reverse
and remand.
The substance of the complaint was as follows: (1) in
January 1985, Deihl prepared a joint and mutual will for Leonard
and Delores; (2) the will devised each one's estate to the other
upon the death of the first and for the estate of the survivor to
each of the plaintiffs and Blauvelt in equal shares; (3) the
wills named plaintiff Ganci and Blauvelt as coexecutors; (4)
Leonard died first, in December 1987; and (5) on or about January
15, 1988, Deihl mailed a copy of the joint and mutual will to all
plaintiffs and Blauvelt, advising them that opening an estate was
unnecessary because Leonard's property was held in joint tenancy.
The complaint further alleged that (1) on or about
January 23, 1988, Delores retained Deihl to prepare a new will;
(2) this document purported to bequeath all of Delores' property,
including that obtained upon Leonard's death, to Blauvelt; (3)
Delores also placed all of the property she obtained upon
Leonard's death in joint tenancy with right of survivorship in
favor of herself and Blauvelt; (4) Delores died in June 1991, at
which time her will was admitted to probate and Blauvelt was
named executor; and (5) sometime after Delores' death, Blauvelt
admitted he was not entitled to most of what he received from
Delores and agreed to share equally with each of the plaintiffs
but only distributed approximately one-fifth of the assets he had
agreed to share. In separate counts, plaintiffs asked for (1) a
determination that the will of Leonard and Delores was joint and
mutual, (2) imposition of a constructive trust on the property
coming from Leonard and Delores, and (3) money damages.
In Blauvelt's third-party complaint, he alleged, in
part, as follows:
"In the event that a judgment is entered
in favor of the [p]laintiffs and against
[Blauvelt], *** [Blauvelt] is entitled to a
right of contribution from [Deihl] in an
amount equivalent to [his] culpability in
drafting the will of Delores M. Ganci and in
an amount equivalent to his culpability in
advising [Blauvelt] and acting as attorney
for the estate while [Blauvelt] was acting as
[e]xecutor for the [e]state." (Emphasis
added.)
We consider first the timeliness of Blauvelt's third-
party complaint. His most serious contention in that regard is
his assertion the complaint was barred by section 13-204(b) of
the Code. Blauvelt maintains section 13-204 is inapplicable
because his claim is for indemnity rather than contribution, but
this would make no difference because section 13-204(c) states
that section 13-204 is applicable to either contribution or
indemnity claims. 735 ILCS 5/13-204(c) (West 1996). In any
event, implied indemnity arises in cases of vicarious liability.
American National Bank & Trust Co. v. Columbus-Cuneo-Cabrini
Medical Center, 154 Ill. 2d 347, 350, 609 N.E.2d 285, 287 (1992);
Allison v. Shell Oil Co., 113 Ill. 2d 26, 29, 495 N.E.2d 496, 498
(1986). Here, the third-party complaint is based upon Deihl's
culpability in drafting Delores' will and in advising Blauvelt,
all to the damage of plaintiffs. Thus, the liability is not
alleged to be vicarious but one that is shared because of the
combined actions of Blauvelt and Deihl.
Prior to January 1, 1995, when Public Act 88-538 became
effective (Pub. Act 88-538, 5, eff. January 1, 1995 (1994 Ill.
Laws 154, 157), amending 735 ILCS 5/13-204 (West 1992)) (here-
inafter amendment), section 13-204 of the Code had no subsections
and stated:
"Contribution among tortfeasors. No
action for contribution among joint tort-
feasors shall be commenced with respect to
any payment made in excess of a party's pro
rata share more than 2 years after the party
seeking contribution has made such payment
towards discharge of his or her liability."
735 ILCS 5/13-204 (West 1992).
Under the foregoing amendment, section 13-204(c) was created,
which stated:
"The applicable limitations period con-
tained in subsection (a) or (b) shall apply
to all actions for contribution or indemnity
and shall preempt, as to contribution and
indemnity actions only, all other statutes of
limitation or repose, but only to the extent
that the claimant in an underlying action
could have timely sued the party from whom
contribution or indemnity is sought at the
time such claimant filed the underlying ac-
tion, or in instances where no underlying
action has been filed, the payment in dis-
charge of the obligation of the party seeking
contribution or indemnity is made before any
such underlying action would have been barred
by lapse of time." (Emphasis added.) 735
ILCS 5/13-204(c) (West 1996).
The basic limitation period of section 13-204 is set forth in
subsection (b) thereof, which now states:
"In instances where an underlying action
has been filed by a claimant, no action for
contribution or indemnity may be commenced
more than 2 years after the party seeking
contribution or indemnity has been served
with process in the underlying action or more
than 2 years from the time the party, or his
or her privy, knew or should reasonably have
known of an act or omission giving rise to
the action for contribution or indemnity,
whichever period expires later." 735 ILCS
5/13-204(b) (West 1996).
Here, Blauvelt was served with process in June 1992 and
did not file the instant third-party action until November 1996,
well over two years later. The foregoing legislation became
effective January 1, 1995, at which time more than two years had
elapsed since Blauvelt had been served with process and, at the
time of service, Blauvelt clearly knew of the activities of
Deihl. However, by the foregoing amendment, subsection (d) of
section 13-204 was created and has since stated:
"The provisions of this [section, as
amended by Public Act 88-538, 5, eff. Janu-
ary 1, 1995 (1994 Ill. Laws 154, 157),] shall
be applied retroactively when substantively
applicable, including all pending actions
without regard to when the cause of action
accrued; provided, however, that this amenda-
tory Act of 1994 shall not operate to affect
statutory limitations or repose rights of any
party which have fully vested prior to its
effective date." (Emphasis added.) 735 ILCS
5/13-204(d) (West 1996).
Thus, section 13-204 purports to have retroactive effect, but it
does "not operate to affect statutory limitations or repose
rights of any party which have fully vested prior to its
effective date." 735 ILCS 5/13-204(d) (West 1996).
Deihl recognizes that ordinarily when, as here, retro-
active application of new legislation in regard to time limits
for bringing actions completely cuts off or unreasonably re-
stricts the opportunity for a person or entity to bring an
action, that person or entity has a reasonable time to bring the
action. Mega v. Holy Cross Hospital, 111 Ill. 2d 416, 420-21,
490 N.E.2d 665, 667 (1986); Phillips Products Co. v. Industrial
Comm'n, 94 Ill. 2d 200, 203-04, 446 N.E.2d 234, 236 (1983).
Here, if we disregard the provision of the new legislation
regarding rights of limitations or repose "which have fully
vested," the third-party complaint was tardily filed because
Blauvelt had a reasonable time after the effective date of the
amendment to file the third-party complaint but did not do so.
Moore v. Jackson Park Hospital, 95 Ill. 2d 223, 237, 447 N.E.2d
408, 414 (1983); Clark v. St. John's Hospital, 128 Ill. App. 3d
989, 992, 471 N.E.2d 912, 914 (1984). Blauvelt had knowledge of
his cause of action in June 1992, well before the January 1,
1995, effective date of the applicable provisions of section 13-
204, but did not file his claim against Deihl until December 27,
1996, some 23 months after the effective date of the amendment to
section 13-204.
However, we cannot disregard the provision of section
13-204(d) that states the retroactive application of the amended
provisions of section 13-204 "shall not operate to affect
statutory limitations or repose rights of any party which have
fully vested prior to [the effective date of the amendment]."
(Emphasis added.) 735 ILCS 5/13-204(d) (West 1996). Ordinarily,
limitations or repose rights are those exercised by a party
defendant to a claim to protect that party from a stale claim,
but section 13-204(d) refers to those rights of "any party,"
which would include those possessing a cause of action, as well
as those who seek to defend against an action. Moreover, the
language concerning the protection of vested rights would have
little significance if it referred only to defendants because the
amendment cuts down the time plaintiffs have for bringing suits
against defendants and, therefore, could not injure the rights of
defendants.
No case has been called to our attention that holds
that a party having a cause of action has a vested right in that
cause of action. In First of America Trust Co. v. Armstead, 171
Ill. 2d 282, 291, 664 N.E.2d 36, 40 (1996), the court described a
vested right as a "complete and unconditional demand or exemption
that may be equated with a property interest." The undisputed
vested rights of parties from suits after statutory periods of
limitation have expired have been equated with the rights of
parties to bring suits. Wilson v. All-Steel, Inc., 87 Ill. 2d
28, 41, 428 N.E.2d 489, 494 (1981); Board of Education of Normal
School District v. Blodgett, 155 Ill. 441, 449, 40 N.E. 1025,
1027 (1895). In a dissent in a case before the Supreme Court of
Illinois, the statement was made that an accrued cause of action
is a vested right. Sanelli v. Glenview State Bank, 108 Ill. 2d
1, 46, 483 N.E.2d 226, 247 (1985) (Simon, J., dissenting, joined
by Clark, C.J., and Ward, J.).
In view of the foregoing language from authoritative
opinions and the express reference in section 13-204(d) to the
vested "rights of any party," we conclude the General Assembly
sought to protect the rights of parties seeking contribution
under the time limits previously in existence if the cause of
action for contribution accrued prior to the amendment. We are
troubled by the fact that our interpretation renders meaningless
the provision of section 13-204(d) indicating that subsection
applied retroactively. Retroactive application of new legisla-
tion concerning limitations and repose and retention of vested
rights under the prior legislation involving the same matters are
inherently inconsistent.
In any event, statutes are presumed to have only a
prospective application, and the presumption is overcome only by
clear language overcoming the presumption. First of America
Bank, Rockford, N.A. v. Netsch, 166 Ill. 2d 165, 182, 651 N.E.2d
1105, 1112-13 (1995); People v. Fiorini, 143 Ill. 2d 318, 333,
574 N.E.2d 612, 617 (1991). Here, section 13-204(d) clearly
states the section is to have retroactive effect, but the re-
quired clarity is destroyed by the language that subsection (d)
"shall not operate to affect statutory limitations or repose
rights of any party." 735 ILCS 5/13-204(d) (West 1996). Section
13-204 did not justify the dismissal of Blauvelt's third-party
complaint.
At all times relevant, section 13-214.3(b) of the Code
has stated, in pertinent part:
"An action for damages based on tort,
contract, or otherwise (i) against an attor-
ney arising out of an act or omission in the
performance of professional services *** must
be commenced within 2 years from the time the
person bringing the action knew or reasonably
should have known of the injury for which
damages are sought." 735 ILCS 5/13-214.3(b)
(West 1996).
Deihl maintains the third-party complaint is an action against
him "arising out of an act or omission in [his] performance of
professional services," in common jargon, an act of malpractice.
As we have indicated, the third-party complaint does not set
forth a failure of Deihl's professional duty to Blauvelt but
rather conduct on Deihl's part whereby he shared culpability for
the injuries to plaintiffs. Blauvelt's third-party complaint was
not a complaint alleging a breach of Deihl's duty to him and was
not an action for legal malpractice. Section 13-214.3(b) of the
Code did not determine the time limits for bringing the third-
party complaint.
Finally, we come to Deihl's contention that the issue
of whether Blauvelt's failure to obtain the circuit court's
permission before filing his third-party complaint deprived that
court of jurisdiction to hear that complaint. Section 2-406(b)
of the Code states, inter alia:
"Within the time for filing his or her
answer or thereafter by leave of court, a
defendant may by third-party complaint bring
in as a defendant a person not a party to the
action who is or may be liable to him or her
for all or part of the plaintiff's claim
against him or her." (Emphasis added.) 735
ILCS 5/2-406(b) (West 1996).
Here, the third-party complaint was filed long after Blauvelt was
required to answer, and the record does not indicate that Blau-
velt ever received permission of the court to file the pleading.
However, Deihl never objected to the lack of court permission in
the circuit court and raises the issue for the first time on
appeal.
Deihl asserts that the lack of permission to file the
third-party complaint deprived the circuit court of jurisdiction
of that complaint and rendered it void, requiring us to disregard
it and dismiss the appeal even though the issue is raised for the
first time on appeal. Deihl cites first district cases of Greene
v. Helis, 252 Ill. App. 3d 957, 625 N.E.2d 162 (1993), and
Callaghan Paving, Inc. v. Keeneyville Construction Co., 197 Ill.
App. 3d 937, 557 N.E. 2d 228 (1990), and the fifth district case
of First Robinson Savings & Loan v. Ledo Construction Co., 210
Ill. App. 3d 889, 569 N.E.2d 304 (1991).
Callaghan is most directly on point. There, a plain-
tiff was granted leave of court to file an amended complaint and
did so, but, without obtaining authority, also added an addition-
al defendant. The additional defendant then appeared and moved
to dismiss the complaint against it as being tardy. The motion
was allowed and the plaintiff appealed. There, as here, for the
first time on appeal the issue was raised that the filing of the
amended complaint was a void act because it was done without
statutory authority and constituted an error that was "jurisdic-
tional." The appellate court held the addition of the party was
a nullity and affirmed the order dismissing the complaint as to
that party. Callaghan, 197 Ill. App. 3d at 939-40, 557 N.E.2d at
229-30. In Greene, a complaint was filed against a defendant who
could not be found to serve with process and then died. The
plaintiff, without leave of court, filed an amended complaint
against the personal representative of the estate. The appellate
court held the amended complaint was a nullity and could not be
the basis for a tolling of any statutory period of limitation.
Greene, 252 Ill. App. 3d at 960, 625 N.E.2d at 165. In First
Robinson (210 Ill. App. 3d at 892-93, 569 N.E.2d at 307), a coun-
terclaim filed with the court's permission but without notice to
the plaintiff was held to be a nullity to which a subsequently
filed amended counterclaim could not relate back in order to
overcome a statute of limitations defense.
Neither this court nor the Supreme Court of Illinois
has ever held that obtaining leave of court to bring in an
additional party is a necessary requirement for the circuit court
to have jurisdiction over the proceeding against that additional
party. No doubt many reasons support the statutory requirement
to obtain leave. However, here, any party prejudiced by the
joinder, including the party joined, could have objected in the
trial court but did not do so. Placing jurisdictional signifi-
cance to the leave requirement here would merely result in a
technical windfall to the third-party defendant who did not
object to the lack of leave of court until appeal. Moreover, we
conclude that treating obtaining of leave as an element of
jurisdiction is contrary to the most recent theories of circuit
court jurisdiction.
We first note that the instant proceeding seeks relief
pursuant to actions recognized in common law. No statutory
relief is sought. In the case of In re M.M., 156 Ill. 2d 53, 66-
67, 619 N.E.2d 702, 710 (1993), the supreme court held the
circuit court exceeded its authority in a proceeding under the
Juvenile Court Act of 1987 (Ill. Rev. Stat. 1989, ch. 37, par.
801-1 et seq.) and the Adoption Act (Ill. Rev. Stat. 1989, ch.
40, par. 1501 et seq.) by conditioning the authority of an
appointed guardian's power to consent to the adoption of the ward
upon agreement by the adopting parents to permit the adopted
child to continue contact with the minor's biological family.
The court reasoned the circuit court was proceeding under the
provisions of the two described Acts and, unlike when a common
law proceeding was involved, had jurisdiction to proceed only in
accordance with the provisions of the legislation. Thus, the
fact that here the action involved is one arising from the common
law tends to negate any errors in the failure to obtain the
court's permission to file the third-party complaint from depriv-
ing the circuit court of jurisdiction over the third-party
complaint.
In M.M., then Chief Justice Miller filed a concurrence,
joined by Justice Bilandic, in which he stated:
"I concur in the court's judgment, and
in its determination that a circuit judge is
not authorized to impose special conditions
on a court-appointed guardian's power to
consent to the adoption of a minor.
* * *
Because the circuit courts now are
courts of general jurisdiction and, except in
the review of administrative action, derive
their jurisdiction from the constitution, not
from the legislature, we should not attempt
to breathe new life into terms that can have
no application here. '[T]he bench and bar
are by nature traditionalists and *** with
them old notions die hard. No longer do we
seek statutory justification for the exercise
of jurisdiction; rather the inquiry must be
whether there exists a justiciable controver-
sy, and if so, are there any statutory condi-
tions precedent to judicial intervention.'
In re Estate of Mears, [] 110 Ill. App. 3d
1133, 1138, [443 N.E.2d 289, 293 (1982)].
That a circuit court's jurisdiction over
a certain matter is conferred by the consti-
tution rather than by the legislature does
not mean, however, that a court is free to
act in ways inconsistent with controlling
statutory law, as the appellants would have
it. Clearly, the constitutional source of a
circuit court's jurisdiction does not carry
with it a license to disregard the language
of a statute. As the majority explains, the
statutory provisions applicable here do not
support the special conditions imposed below.
I concur in that reasoning, and I join the
court's judgment." M.M., 156 Ill. 2d at 74-
75, 619 N.E.2d at 714 (Miller, C.J., concur-
ring, joined by Bilandic, J.).
In the case of In re Lawrence M., 172 Ill. 2d 523, 670
N.E.2d 710 (1996), the supreme court was faced with the problem
of whether a circuit court could require the Illinois Department
of Children and Family Services (DCFS) to provide and pay for
inpatient drug-treatment services for a mother whose children
were removed from her custody as a result of drug-related ne-
glect. In answering the question of whether the circuit court
ordering DCFS to make such payment exceeded the circuit court's
jurisdiction, the majority cited with approval the special
concurrence of then Chief Justice Miller in M.M. and stated that
because circuit court jurisdiction is conferred by the constitu-
tion and not by statute, except as to administrative review,
"circuit courts no longer seek statutory justification for the
exercise of jurisdiction." Lawrence M., 172 Ill. 2d at 529, 670
N.E.2d at 714. (Justice Miller dissented in Lawrence M. on
grounds not involving the foregoing reasoning.)
In Mears, the circuit court admitted the will of a
decedent to probate. An heir and legatee filed a timely petition
to contest the will but failed to name the appointed executor
under the will as a party, as required by statute (Ill. Rev.
Stat. 1979, ch. 110
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