National Educational Music Co. v. Rieckhoff
State: Illinois
Court: 4th District Appellate
Docket No: 4-97-0023
Case Date: 09/11/1997
NO. 4-97-0023
IN THE APPELLATE COURT
OF ILLINOIS
FOURTH DISTRICT
NATIONAL EDUCATIONAL MUSIC CO., LTD., ) Appeal from
Plaintiff-Appellee, ) Circuit Court of
v. ) Adams County
GUSTAV RIECKHOFF, d/b/a Quincy School ) No. 96L3
Music Center, )
Defendant-Appellant. ) Honorable
) Dennis K. Cashman,
) Judge Presiding.
_________________________________________________________________
JUSTICE KNECHT delivered the opinion of the court:
After a bench trial in the circuit court of Adams
County, defendant, Gustav Rieckhoff, d/b/a Quincy School Music
Center, was found to have converted property of the plaintiff,
National Educational Music Company, Ltd., after plaintiff had
terminated, for cause, the contract between the two parties.
Judgment was entered in favor of plaintiff in the amount of
$20,584.60. Defendant appeals, alleging the trial court erred in
refusing to grant his motion for leave to file a counterclaim and
allowing one of plaintiff's witnesses to give expert testimony
without being qualified as an expert. We affirm.
Plaintiff, a company based in New Jersey, operates a
program renting band instruments to elementary and high school
students conducted, primarily, through affiliate agreements with
local music stores throughout the country. At the time of the
trial in this case, plaintiff had 180 active licensed affiliates.
On August 20, 1992, plaintiff and defendant entered into an
affiliate agreement whereby defendant would act as an affiliate
for plaintiff, renting and servicing band instruments to the
public in Quincy, Illinois. In late February 1995, plaintiff's
vice president sent defendant a letter stating certain problems
in the business dealings of the two parties needed to be cleared
up or the agreement would be terminated by May 1, 1995. On May
1, 1995, plaintiff's national franchise manager sent defendant
another letter terminating the affiliate agreement.
On January 3, 1996, plaintiff filed a two-count
complaint against defendant. Count I of the complaint was titled
"(Accounting Action)" and sought an accounting of rental payments
for instruments plaintiff alleged defendant had rented to
customers but had not remitted to plaintiff. The count also
requested a judgment be entered in favor of plaintiff for the
amounts found not to have been remitted by defendant. Count II
was titled "(Conversion)" and alleged after the affiliate
agreement between the parties was terminated on May 1, 1995,
defendant refused either to deliver to plaintiff or reimburse
plaintiff for the value of all rental instruments, supplies and
documents pertaining to them provided to defendant by plaintiff
pursuant to the affiliate agreement. Plaintiff requested the
value of its property still held by defendant.
Defendant was served with the complaint on January 16,
1996. On February 15, defendant sent a letter to the trial court
asking for an extension of time to file an answer. The case was
put on the motion calendar of March 11. On March 7, defense
counsel filed an entry of appearance and request for additional
time to plead. On March 11, defendant was given an additional 28
days to plead. Defense counsel filed another motion for an
extension of time to plead on April 4, claiming defendant was out
of town and unable to meet with counsel to prepare and answer.
On April 8, defendant filed a letter with the court requesting
additional time to plead because defense counsel's office had
been heavily damaged by fire on April 6 and additional time would
be needed to reconstruct an answer and counterclaim to
plaintiff's complaint.
On April 22, defendant was given an additional 21 days
to plead. Defense counsel filed an answer on defendant's behalf
on May 14 denying he had failed to remit rental payments and
denying he had kept instruments belonging to plaintiff. The
trial court held a case-management conference on June 24 and set
November 11, 1996, as the date for completion of all discovery
and December 11 as the date for a bench trial. Defendant served
no discovery requests upon plaintiff until October 28, when he
served interrogatories and a request for production of documents.
On that date, defendant also filed a motion to continue the trial
date and a motion for leave to file a counterclaim for
commissions not paid, infringement upon defendant's franchise
territory and unauthorized charges to his account. On November
13, the trial court denied both motions.
On December 2 and 3, defense counsel filed motions to
continue the trial date and a motion to compel discovery,
alleging plaintiff had not complied with all of the production
requested. The motions to continue were denied and the motion to
compel was granted in part. Then, on December 10, defendant
delivered to the office of plaintiff's counsel 120 band
instruments belonging to plaintiff. Trial commenced the next
day, December 11.
During the plaintiff's case, Eugene Garb, plaintiff's
vice president, testified he became part owner of plaintiff in
1980 after working for many years on accounting and financial
matters for plaintiff while employed with an accounting firm. He
testified to the affiliate agreement with defendant and how
defendant breached the agreement. Garb also testified, over
defendant's objection, to the cost of repairing the musical
instruments returned by defendant the day before trial. The
trial court acknowledged instrument repair was not Garb's field
of expertise, but Garb testified he had previously inspected many
instruments that were in need of repairs and he could identify
the needed repairs while not being able to do them himself.
Also, in handling the financial affairs of the company, Garb had
been exposed to the costs for repair work. Therefore, since
defendant had, without notice, turned the instruments over the
day before trial and plaintiff could not have anticipated the
need for a repair expert on the day of trial, the trial court
allowed Garb to testify to the cost of repairing the returned
instruments.
After plaintiff had finished with its evidence,
defendant moved for a directed finding on count I. The trial
court granted his motion, finding there had been no evidence
introduced in regard to rental receipts diverted or otherwise
unaccounted for by defendant.
Defendant presented his evidence and the trial court
found for plaintiff on count II and awarded a judgment of
$20,584.60, of which $8,007 was the cost of repair to the
returned instruments. The remainder represented the value of
over 40 instruments not returned or otherwise accounted for by
defendant.
Defendant first contends it was error for the trial
court to deny his motion for leave to file a counterclaim. A
hearing was held on defendant's motion on November 13, 1996.
There is no transcript of the proceedings in the record.
However, the court's docket entry indicates counsel for both
parties were present that day and arguments were heard. The
trial court denied defendant's motion.
A trial court's decision to deny a motion to amend
pleadings is discretionary and will not be reversed absent a
manifest abuse of that discretion. In re Estate of Nicholson,
268 Ill. App. 3d 689, 695, 644 N.E.2d 47, 51 (1994). Defendant
contends plaintiff did not object to his motion to file the
counterclaim. As previously noted, there is no record of the
hearing on defendant's motion so we have no way of knowing for
certain whether plaintiff objected to the motion, although
plaintiff does not raise that point on appeal. In any case, a
party does not have an absolute right to file a counterclaim any
time he wishes to do so and the timeliness of a request to amend
a pleading may be considered by the trial court. Trans World
Airlines, Inc. v. Martin Automatic, Inc., 215 Ill. App. 3d 622,
627, 575 N.E.2d 592, 595 (1991). Also to be considered is
whether other parties have been prejudiced or surprised. Marsh
v. Nellessen, 235 Ill. App. 3d 998, 1001, 602 N.E.2d 90, 92
(1992).
Defendant argues his counterclaim is for commissions
plaintiff still owes him for rental agreements he procured as its
authorized affiliate and he offers this argument as the reason he
did not return all of plaintiff's instruments in his possession.
While defendant may have a valid claim for commissions, he does
not give any explanation as to why he could not have filed his
counterclaim for the commissions at the time he filed his answer,
except that he needed the discovery from plaintiff with which
plaintiff did not entirely comply. However, defendant knew when
the discovery cutoff date was several months in advance and yet
did not even file any discovery requests until six months after
filing his answer and just four days before the discovery
deadline. A trial court does not abuse its discretion by denying
a party's request to amend pleadings when the party has been
dilatory in conducting discovery. Nicholson, 268 Ill. App. 3d at
695-96, 644 N.E.2d at 52.
Section 2-608(a) of the Civil Practice Law provides any
claim a defendant may have against a plaintiff or other defendant
may be pleaded as a cross-claim and shall be called a counter-
claim. 735 ILCS 5/2-608(a) (West 1996). If a counterclaim is
filed, it is required to be filed as part of the answer. 735
ILCS 5/2-608(b) (West 1996). However, unless the claim is for
contribution, it is not required to be brought in a pending
action but may be brought as a separate action. Thus, defendant
could have brought his action for commissions separately.
Defendant argues the Marsh case stands for the
proposition a counterclaim may be filed at any time if it would
be strategically inadvisable or inconvenient to bring it at the
time an answer is filed. Marsh, 235 Ill. App. 3d at 1001, 602
N.E.2d at 92. However, in Marsh the court was dealing with an
instance where the defendants had already filed affirmative
defenses based on the same theory as the counterclaim they wished
to file only two weeks before trial. The only real difference
between the affirmative defenses and the counterclaim was the
amount of damages. Thus, the plaintiff had notice of the claim
made by the defendants much earlier and was not prejudiced
thereby.
In this case, defendant did not file any affirmative
defenses. Further, there is no indication from defendant's
answer or the rest of the record that defendant asserted at any
time prior to 44 days before trial, when he moved to file his
counterclaim, that plaintiff still owed him commissions, the
breach of the affiliate agreement was precipitated by plaintiff's
interference with defendant's territory and defendant was
justified in withholding plaintiff's instruments. The record
indicates defendant contended earlier he did not have plaintiff's
instruments to return.
We find no abuse of discretion in denying defendant's
motion to file his counterclaim where the theory of his
counterclaim was different from his previous theory of the case
and he had failed to engage in discovery he claimed he needed to
support his counterclaim until shortly before the discovery cut-
off date imposed by the trial court several months before.
Defendant next contends the trial court erred in
permitting Garb to testify to the cost of repairing the instru-
ments defendant returned because he was not an expert on the
subject of musical instrument repair.
The burden of establishing the qualifications of an
expert witness is with the proponent of the witness. Schaffner
v. Chicago & North Western Transportation Co., 129 Ill. 2d 1, 36,
541 N.E.2d 643, 658 (1989). The party seeking to introduce
expert testimony must show the witness has particularized
knowledge or experience in the area upon which the witness is to
express an opinion. Illinois Health Care Ass'n v. Wright, 268
Ill. App. 3d 988, 997, 645 N.E.2d 1370, 1375-76 (1994). A
witness is qualified to give expert testimony if, because of his
knowledge, skill, experience, training or education, he is able
to better form an accurate opinion on the issue in question than
the average person. Hill v. Ben Franklin Savings & Loan Ass'n,
177 Ill. App. 3d 51, 57, 531 N.E.2d 1089, 1093 (1988). If an
expert witness possesses specialized knowledge that will assist
the trier of fact, he may testify concerning that knowledge. Lee
v. Chicago Transit Authority, 152 Ill. 2d 432, 459, 605 N.E.2d
493, 504 (1992). It is within the discretion of the trial court
to determine whether the witness has been qualified. People v.
Jordan, 103 Ill. 2d 192, 208, 469 N.E.2d 569, 576 (1984).
A trial court's decision to accept expert testimony
from a witness may not be overturned absent an abuse of
discretion. Decker v. Domino's Pizza, Inc., 268 Ill. App. 3d
521, 528, 644 N.E.2d 515, 520 (1994).
Garb testified about the instruments he had inspected
that had been turned over to plaintiff's counsel the previous
day. He testified to what repairs were needed and the cost of
those repairs. His testimony was relied upon by the trial court
in calculating damages for charges to get the instruments back
into the condition they were when they were originally delivered
to defendant. Defendant offered no evidence to rebut Garb's
testimony but objected to it on the grounds he was not qualified
to testify about the needed repairs and their costs because his
job did not entail the repair of musical instruments.
Garb testified he was the outside accountant for
plaintiff for approximately 18 years in which time he did
inventory, prepared financial statements and examined plaintiff's
inventory by doing the audits. After 1980 he was employed as a
vice president by plaintiff and became directly involved with the
instruments, seeing them in the repair shop, seeing them in the
condition they were in when they were sent to affiliates and
reviewing with the repair shop workers the costs of repairing the
instruments and what was involved in putting them back in like-
new condition. Specifically, Garb offered detailed testimony
regarding the anatomy of different instruments and the defects he
found in those instruments when he had inspected them the day
before trial.
The trial court found Garb had sufficient knowledge to
testify to the needed repairs and their costs and his testimony
would be helpful in assessing the amount of damages for restoring
the instruments to the condition they were in when assigned to
defendant. Further, the trial court noted that plaintiff's
headquarters was in New Jersey and Garb had come to Illinois for
the trial. Defendant waited until the day before trial to
produce these instruments and plaintiff was not able to bring
another worker from New Jersey quickly enough to inspect the
instruments the night before trial. The trial court found
defendant's arguments on Garb's expertise might have been
stronger had he tendered the instruments to plaintiff months
before as he should have, but he could not preclude plaintiff
from having the opportunity to recover for the damages suffered
in repairing those instruments by waiting to return the
instruments until the eve of trial.
Garb demonstrated knowledge of the repairs necessary to
restore musical instruments to their original condition and the
cost of those repairs above the knowledge of the average person.
Further, he demonstrated knowledge of a specialized nature in
describing the inner workings of specific musical instruments.
This knowledge was of benefit to the trial court in determining
the amount of damages to assess against defendant. We find no
abuse of discretion on the part of the trial court in allowing
Garb's testimony.
The judgment of the trial court is affirmed.
Affirmed.
GARMAN and GREEN, JJ., concur.
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