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Parkway Bank & Trust Co. v. Levine

Citations: 359 N.E.2d 882; 45 Ill. App. 3d 497; 4 Ill. Dec. 49; 1977 Ill. App. LEXIS 2216Docket: 63115

Court: Appellate Court of Illinois; January 24, 1977; Illinois; State Appellate Court

Narrative Opinion Summary

This case involves a dispute over a debt secured by a land trust and attorney's fees following a judgment by confession. The defendants challenged the judgment on the grounds of res judicata and lack of advance notice, arguing that the case should have been dismissed after the debt was fully satisfied and the Lake County case was dismissed with prejudice. The court found that these claims were moot, as the debt had been paid and the related case dismissed, rendering the res judicata claim inapplicable. The primary issue in contention was the entitlement to and the amount of attorney's fees. The court ruled that attorney's fees were permissible according to the note's provisions, despite the vacated judgment by confession, but required evidentiary support beyond a fee schedule. The appellate court reversed the lower court's decision, remanding the case for determination of reasonable attorney's fees based on additional evidence. The court allowed the substitution of the executor as appellant, as the contract action survived the death of one of the original defendants. The appeal was denied, with instructions to the trial court to reassess the attorney's fees award.

Legal Issues Addressed

Attorney's Fees Under Confession of Judgment

Application: The court concluded that attorney's fees could still be awarded based on the note's provisions despite the judgment by confession being vacated, necessitating evidence beyond the fee schedule.

Reasoning: The defendant contended that the judgment was vacated, preventing the allowance of attorney's fees, while the plaintiff argued for fees based on the note's language.

Burden of Proof for Attorney's Fees

Application: The plaintiff was required to provide evidence justifying the attorney's fees beyond the circuit court's schedule, as no evidence was presented at trial.

Reasoning: Thus, it was necessary for the plaintiff to provide evidence beyond the fee schedule to establish the basis for awarding attorney's fees.

Introduction of Defenses on Appeal

Application: The court held that defenses not presented at trial cannot be introduced for the first time on appeal, as established in precedent.

Reasoning: Neither pleadings nor proof were submitted regarding the defense raised, which was not presented at trial, thus it cannot be introduced for the first time on appeal, as established in Kravis v. Smith Marine Inc.

Res Judicata in Debt Settlement Cases

Application: The court determined that the res judicata argument was irrelevant due to the dismissal of the Lake County suit and the full payment of the debt.

Reasoning: The court found that the issue of advance notice was moot due to full payment of the debt, and the Lake County suit's dismissal rendered the res judicata claim irrelevant.

Survival of Contract Actions Post-Death

Application: The court allowed the substitution of an executor as appellant, indicating that a common law contract action survives the death of a party.

Reasoning: The court asserted that the appeal could proceed under the executor's name, as the common law contract action survives the death of a party.