Chapman

Determining that the St. Clair County Circuit Court did not have jurisdiction over a Maryland bank, the Fifth District Appellate Court has reversed a multi-million judgment awarded to the late Amiel Cueto.

Cueto, who died in May 2012, sued American Bank Holdings Inc. and several other defendants, some of whom were later dismissed from the suit, in June 2008 in connection with the collapse of a plan to develop 32 acres of land he owned on the East St. Louis riverfront.

His wife, Elaine Cueto, was substituted as the plaintiff in the case in April 2013.

In the unpublished order it handed down last week, a panel of the Fifth District Appellate Court reversed the default judgments St. Clair County Circuit Court Judge Andrew Gleeson had entered against the bank on the basis of jurisdiction.

The judgments at issue in the case originally totaled slightly more than $98 million, but were later reduced to about $28.4 million and then $7.4 million.

In his suit, Cueto accused the American Bank Holdings and several other defendants of violating the Illinois Consumer Fraud and Deceptive Business Practices Act, as well as committing common law fraud by falsely promising to finance the purchase of his land.

Cueto claimed that he ended up having to sell his land to a different buyer, for about $7.4 million less than the contract price. In addition to the amount of alleged actual damages, Cueto sought punitive damages and attorney fees.

Following Cueto’s July 2008 request for a default judgment, Gleeson entered three separate judgment orders. They awarded him about $7.4 million in compensatory damages, slightly more than $66.5 million in punitive damages and nearly $24.7 million in attorney fees under the Consumer Fraud Act.

After Cueto tried to enforce the judgments by filing them in a Maryland court, the bank sought to vacate and void them, asserting that the St. Clair County Circuit Court lacked personal jurisdiction over it.

To bolster support for its jurisdictional argument, the bank filed an affidavit of its president who swore that American Bank Holdings never conducted business, owned property, had an office or was licensed in Illinois.

The bank president also stated in his affidavit, according to the appellate court order, that none of the defendants in the suit were its employees or subsidiaries and that American Bank Holdings never committed funds toward the purchase of Cueto’s land.

Gleeson denied the bank’s motion to vacate and void the judgments in a June 2009 order, which preserved the $7.4 million award for compensatory damages, reduced the award for punitive damages to $21 million and vacated the attorney’s fee award.

He later, sua sponte, vacated the $21 million award for punitive damages.

In July 2009, the circuit court in Maryland issued an order that temporarily stayed enforcement of the judgments and Gleeson, that same month, entered another sua sponte order that stated he remained “troubled by the jurisdictional issue.”

Gleeson then certified two questions for interlocutory review: 1) whether the trial court had personal jurisdiction over the bank and 2) if American Bank Holdings had waived its right to contest jurisdiction.

The Maryland court in August 2009 determined that the St. Clair County Circuit Court lacked personal jurisdiction over the bank and as such, vacated the judgments.

While Cueto unsuccessfully asked the Maryland Court to set aside its order, American Bank Holdings was successful in seeking a stay of enforcement of the St. Clair County judgment pending its appeal.

The bank filed two appeals, which the Fifth District consolidated and resolved in its recently issued unpublished order that was delivered by Justice Melissa Chapman. Justices Stephen Spomer and Bruce Stewart concurred.

“There was no evidence that American Bank Holdings had a relationship between the parties to the failed contract nor any evidence that American Bank Holdings committed a tortious act,” Chapman wrote for the court.

She added, “However, even if there was some remote connection to the entities involved in this case, there is no evidence that St. Clair County circuit court could exercise personal jurisdiction over American Bank Holdings–specifically or generally.”

Chapman explained that “with no evidence of any connection to the failed transactions at issue, there is no single action within Illinois giving rise to the cause of action, by which American Bank Holdings purposefully availed itself of the benefits of Illinois laws.”

Saying that Cueto failed to prove the bank had sufficient minimum contacts with Illinois in order to provide jurisdiction, Chapman wrote the appeals panel found “the court’s exercise of personal jurisdiction was in violation of federal and state due process.”

“Because the court never had personal jurisdiction over American Bank Holdings, judgments entered against the company were void,” she wrote.

The appeals panel also determined that the bank did not waive its jurisdictional argument when it filed a petition to void the judgment as its first pleading.

Chapman explained, “The combination motion filed by American Bank Holdings satisfied the requirement of section 2-301 of the Code of Civil Procedure that a petition contesting personal jurisdiction must be filed before any other pleading.”

Based on its finding over jurisdiction, the appellate court also rejected Cueto’s cross-appeal that asked it to reinstate the punitive damages award.

“Without personal jurisdiction, there is no basis by which this court could reinstate this judgment,” Chapman wrote.

According to the appellate court clerk’s office, Belleville attorney Michael Nester and Chicago attorney Constantine Trela represented American Bank Holdings.

Belleville attorney Christopher Cueto represented Cueto, a one-time attorney who had represented himself in arguments before the appellate court. Although Amiel Cueto lost his law license in 2004, he was allowed to represent himself and file pro se lawsuits.

Scott

Millar

A St. Clair County class action lawsuit over a security breach to Schnuck Markets’ electronic payment systems has been removed to federal court.

Schnucks late last week filed a notice to remove the suit that Laverne Rippy brought April 25 in St. Clair County Circuit Court to the U.S. District Court for the Southern District of Illinois.

The grocery store chain asserts that the federal court has jurisdiction over the suit because diversity of citizenship between the parties exists, the amount in controversy is more than $5 million and the proposed class exceeds 100 members.

Rippy’s lawsuit stems from a well-publicized security breach that may have compromised the credit and debit card information of millions of Schnucks’ customers between December 2012 and March 2013.

In a timeline previously released to the media, Schnucks said it found out about the issue on March 15, formed a response team on March 19, contacted police on March 20, and began to identify the problem on March 28. It communicated its concerns to the public on March 30.

The grocery store chain has said that only card numbers and expiration dates were stolen, not cardholders’ names, addresses or anything else.

Rippy claims in her suit that the breach not only compromised her information, but also forced her and other members of the proposed class to spend hours canceling their compromised cards, activating replacement cards and re-establishing automatic withdrawal payment authorizations.

The suit, which seeks damages under the Illinois Consumer Fraud and Deceptive Business Practices Act, alleges that Schnucks failed to timely disclose the security breach to its customers, a violation of the Illinois Personal Information Protection Act.

Rippy’s suit proposed a class that would include Illinois plaintiffs who shopped at Schnucks’ Illinois locations five years preceding the data breach.

In the removal notice it filed last week, Schnucks asserts that the federal court has jurisdiction over the suit because diversity of citizenship exists between the parties as it is a Missouri corporation and Rippy is an Illinois resident.

Schnucks also states in its notice that the suit meets the other requirements for removal under the Class Action Fairness Act in that the size of the proposed class is more than 100 members and the amount in controversy exceeds $5 million.

“Schnucks has determined that criminals hacked into its electronic payment systems at 23 stores located in Illinois,” the removal notice states. “Schnucks has further determined that approximately 1,600,000 credit or debit card transactions took place at these Illinois stores during the relevant period.”

An analysis of these transactions, the notice states, showed that about 500,000 unique credit and debit cards were used during the relevant time period and as such, “based on plaintiff’s allegations, the proposed putative class has at least 500,000 members.”

In regards to the amount in controversy, Schnucks asserts that the “Plaintiff and the putative class member’s potential ‘time and effort’ damages alone satisfy the $5 million amount in controversy requirement.”

Belleville attorney Russell K. Scott represents Schnucks and submitted the removal notice on its behalf.

St. Louis attorney Jeffrey A. Millar represents Rippy and the proposed class. Millar on Monday filed a motion for leave to file a first amended complaint and a request for admissions.

Carlson

Madison County Mass Transit District (MCT) and the Agency for Community Transit deny liability for a disabled woman’s injuries suffered while she attempted to board a bus in March 2012.

The agency responded to a suit filed in February over injuries Pamela Jo Byrd allegedly suffered after falling backwards from her wheelchair.

Guardians Laverne F. DeMent and Frances E. Abbett claim Byrd suffered a subdural hemorrhage, experienced pain and suffering, incurred medical costs, lost her enjoyment of a normal life and sustained disability. They blame an MCT employee for Byrd’s injuries.

MCT and the Agency for Community Transit also filed affirmative defenses, saying that if they are at all liable, the amount of fault attributable to the defendants is less than 25 percent of the total fault.

The defendants are represented by Donald J. Ohl of Knapp, Ohl and Green in Edwardsville.

Eric J. Carlson of Byron, Carlson, Petri and Kalb in Edwardsville represent the plaintiffs. They seek a judgment of more than $50,000, plus costs and other relief the court deems just.

Circuit Judge Andreas Matoesian presides.

A case management conference is set at 9 a.m. on May 31.

Madison County Circuit Court case number: 13-L-226.

Boock

Madison County Circuit Judge Dave Hylla has denied Grafton Zipline Adventures’ motion dismiss a suit filed by a woman allegedly injured at the facility’s “Barn Burner” run last October.

Hylla declared the defense motion moot in light of granting plaintiff’s motion to file a first amended complaint.

Plaintiff April Dodge originally filed suit Feb. 15, claiming she was injured when her foot struck a tree trunk at the base of a zip line run. She claims she suffered a broken right heel bone and had to undergo surgery to fix the fracture.

In an amended complaint filed May 3, Dodge added claims of willful and wanton conduct on the part of the company and its employee Michael Quinn saying they acted with reckless disregard for the safety of patrons.

Grafton Zipline and Quinn responded to the complaint last month saying the plaintiff’s claims are barred by an “exculpatory agreement she signed prior to engaging in the ziplining activity.”

Dodge, represented by Jamie L. Boock of Bossiter and Boock in St. Louis, argued against the defense motion to dismiss saying the exculpatory agreement is not enforceable as a matter of law.

“First, zipline courses are statutorily defined as common carriers and as a matter of Illinois public policy, common carriers cannot exempt themselves from liability for their own negligence,” Dodge’s response states.

“Second, the Illinois Legislature has indicated an intention to prohibit the use of exculpatory agreements in the operation of amusement rides by statutorily requiring all amusement ride operators to maintain liability insurance for the bodily injury or death of patrons.”

Dodge also states that Illinois case law holds that a party cannot enforce an exculpatory agreement that purports to waive liability for its own willful and wanton conduct.

According to the complaint, Dodge claims she was unable to brake her descent as she approached the course’s platform. She claims she attempted to brake as instructed by Quinn, but despite her best efforts, the system failed.

Dodge approached the landing platform at a high rate of speed and Quinn was unable to stop her, her suit says. She claims she has been permanently scarred and disfigured and has been caused to suffer fear, stress and anxiety.

She seeks a judgment of more than $50,000.

Jason D. Johnson of HeplerBroom in Edwardsville represents Grafton Zipline Adventures and Quinn.

In Hylla’s May 3 order, he indicated defendants must respond to the first amended complaint with 21 days.

Plaintiff would have 21 days to respond if defendants file a new motion to dismiss. And, defendants would have 14 days to file a reply in support of their motion to dismiss.

Madison County case number 13-L-238.

Lapp

A Madison County religious discrimination suit against an East Alton rent-to-own store has been removed to federal court.

Ralph Calame Jr. sued Aaron’s Inc. on April 1 claiming he was unlawfully fired for his religious beliefs in March 2012.

Calame worked for Aaron’s and was treated well until his regional manager found out he was a pastor in a church, the complaint alleges. After learning about his work with the church, Calame claims the regional manager harassed him at work and eventually fired him in March 2012.

Calame contends Aaron’s violated the federal Civil Rights Act of 1964. He asks for more than $50,000 in damages for lost wages, benefits and costs of the lawsuit.

Attorney Thomas O. Falb of Alton represents Calame.

The removal notice to the Southern District of Illinois shows that attorneys Richard B. Lapp and Kyle R. Hartman of Seyfarth Shaw in Chicago represent Aaron’s.

Madison County Circuit Court Case No. 13-L-521

Starnes

A Roxana property owner fighting a Madison County wrongful death lawsuit is asking the Court to force one of the plaintiffs to respond to interrogatories and requests for production.

Dawson M. Cooper was sued last year by Tiffany Gresham and Toni Leeds, as special administrator of the estate of Gresham’s children – Skye Nichole Gresham and Jason Matthew Gresham II – who perished in a Feb. 5, 2011 apartment fire. The plaintiffs blame Cooper for allowing a faulty stove to remain on the premises and for not having properly working smoke and carbon monoxide detectors, among other things.

Gresham’s boyfriend Michael Macarthy, who lived at the apartment at the time of the fire, was later allowed to intervene in the case as a plaintiff.

Cooper claims that Macarthy has failed to comply with an agreement to supplement discovery answers by May 2.

Attorneys William B. Starnes, II and Jennifer M. Wagner of Reed Armstrong Mudge & Morrissey in Edwardsville represent Cooper.

Macarthy is represented by John Anderson and Andrew Martin of Anderson & Associates in St. Louis.

Gresham is represented by Ryan Mahoney of Swansea.

In a May 14 filing, Cooper’s attorneys state that Macarthy objected to the following questions by arguing they were overbroad, unduly burdensome and irrelevant:

“Have you suffered any personal injury or serious illness since the date of the occurrence? If so, describe the injury or illness, the date when experienced and the names and addresses of persons treating you therefore.

“Please give the names and addresses of all medical doctors or any person who has treated or examined the plaintiff for any physical or mental condition other than the alleged injuries in the past 15 years, and after each name list the condition for which treated or examined.

“Please give the names of any hospitals or institutions to which the plaintiff was admitted, or in which the plaintiff received treatment or examination, for something other than the alleged injuries in the past 15 years and after each name, list the condition for which treated or examined, and the date of such treatment or examination.”

Cooper also sought all investigative reports of police or other investigators pertaining to allegations in the lawsuit, to which Macarthy responded: “Information is equally available to Defendant.”

And, Cooper sought copies of Macarthy’s state and federal income tax returns for the past five years. Macarthy responded that the request was overly broad and harassing.

Cooper states that as of May 10, he has not received Macarthy’s supplemental responses, despite an agreement to do so.

Circuit Judge Andreas Matoesian presides.

Madison County Circuit Court Case No. 2012-L-434

Badgley

A Lenzburg metal products company is being sued by a customer who says he had a steel plate dropped on his hand.

Carey Loeffelholz filed a lawsuit in St. Clair County Circuit Court May 7 against Vasquez Metal Products Inc. and Leonard Vasquez.

Loeffelholz says he was picking up a piece of machinery from the Vasquez Metal Products facility on Backmann Road in May 2011. He claims he was being helped by Leonard Vasquez, who was trying to load a steel plate onto Loeffelholz’s trailer. The customer contends Vasquez did not make sure the area was clear and dropped the steel plate on Loeffelhoz’s hand, smashing it between the plate and the trailer.

Loeffelholz accuses Vasquez and his employer of negligence and asks for more than $100,000 in damages for medical expenses, lost wages and court fees.

Attorney Brad L. Badgley of Bellevile represents him.

St. Clair County Circuit Court Case No. 13-L-239

Marlon Mason filed a lawsuit May 2 in St. Clair County Circuit Court against Randall Peacock, individually and as an employee of The Clean Machine Inc.

According to the complaint, Mason was washing his car at the Clean Machine car wash in December 2011. As he was leaving the car wash Mason claims he was hit from behind by another customer’s truck being driven by Peacock.

Mason accuses Peacock and the Clean Machine of negligence and asks for more than $100,000 in damages and court costs.

He is represented by attorney Justin B. Mattea of Collinsville.

St. Clair County Circuit Court Case No. 13-L-229

Lakin

A Madison County woman is suing the Alton Hospital where she says she slipped and fell on a wet lobby floor.

Marilyn K. Pruitt filed a complaint against Alton Memorial Hospital on May 8 in Madison County Circuit Court.

Pruitt says she visited Alton Memorial Hospital in February 2013. According to the complaint, the woman, who was 70-years-old at the time, slipped and fell on “ice melt, salt and/or liquid which had accumulated on the floor.”

Pruitt accuses Alton Memorial Hospital of negligence and premise liability for allegedly failing to keep the lobby area free from hazards and failing to warn visitors of the wet conditions.

The woman says she seriously injured her knee, femur and hip in the fall. She is asking the defendant to pay more than $50,000 in damages for pain and suffering, disability, medical expenses and loss of earnings.

Attorneys Bradley M. Lakin and Paul W. Johnson of St. Louis represent Pruitt.

Madison County Circuit Court Case No. 13-L-719

Short

An East Alton woman is suing a home improvement store where she says an auger fell from a display and hit her.

Carolyn J. Johnson filed the lawsuit on May 9 in Madison County Circuit Court against Lowe’s Home Center and Tommy O’Brien.

Johnson says she was shopping at the Lowe’s on East Homer Adams Parkway in Alton on Nov. 9, 2012. The customer says she was shopping for an auger, so a Lowe’s employee attempted to remove one from a display stand to show Johnson.

According to the petition, “the auger, which was improperly secured, unexpectedly fell from the display stand striking the plaintiff and causing her to fall to the ground.” Johnson says she suffered painful injuries to her knee and hip.

Johnson accuses the store and its manager, O’Brien, of negligence for allegedly failing to maintain a reasonably safe environment. She says both defendants failed to properly secure the augers and failed to train staff on how to avoid hazards to customers.

Johnson is asking to be paid more than $50,000 in damages for pain and suffering, disfigurement, loss of strength, loss of enjoyment of life and medical costs.

Attorney Keith Short of Edwardsville represents her.

Madison County Circuit Court Case No. 13-L-726