Justice McBRIDE delivered the judgment of the court, with opinion.
¶ 1 Plaintiff Osler Institute, Inc., appeals from the circuit court's granting of defendant Richard Miller's motion to dismiss Osler's complaint pursuant to section 2-619(a)(9) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(9) (West 2012)) and the circuit court's denial of Osler's motion to strike an affidavit. On appeal, Osler argues that: (1) the circuit court erred by granting Miller's section 2-619(a)(9) motion to dismiss on the basis of laches; and (2) the circuit court erred by denying Osler's motion to strike Miller's affidavit in support of his section 2619(a)(9) motion to dismiss. We affirm.
¶ 2 In July 2005, Osler filed suit in Cook County against: defendant Richard Miller; Constance Stanley, Deborah McIntosh, and Thomas Jeffers, who are not parties to this appeal; and Nighthawk Medical Educators, Ltd., which is not a party to this appeal, in case No. 05 CH 11260 (2005 action). According to the complaint, Osler is a "non-profit corporation engaged in medical education" with a principal place
¶ 3 On September 14, 2005, the circuit court entered a consent decree between Osler and Miller, Stanley, McIntosh, and Nighthawk. The consent decree barred Miller, Stanley, McIntosh, and Nighthawk from: competing with Osler; soliciting, contacting, or contracting with any employee of Osler; and acquiring, utilizing or disclosing, directly or indirectly, Osler's trade secrets or confidential information obtained while Miller, Stanley, and McIntosh were employed by Osler. The consent decree also provided:
¶ 4 On May 8, 2006, Osler gave notice that it would present a verified petition for rule to show cause before the circuit court. The attached petition alleged that Miller had violated the consent decree by serving as a faculty member for one of Osler's competitors, MD Exam Prep, and by unlawfully disclosing Osler's confidential information and proprietary trade secrets to MD Exam Prep. Specifically, Osler alleged that MD Exam Prep was offering the same course as Osler, "Radiation Oncology," in the same city as Osler, Louisville, Kentucky, with the same faculty as Osler, on almost exactly the same days as Osler.
¶ 5 On May 26, 2006, Osler filed a fee petition based on the violation alleged in its verified petition for rule to show cause. The fee petition alleged that Osler learned of Miller's violation of the consent decree the week of May 1, 2006. The fee petition also totaled the attorney fees and costs incurred as a result of the violation. The petition stated that, "[c]onsistent with the Consent Decree, Osler reserves the right to seek additional attorneys' fees and other expenses and costs incurred in connection with enforcing the degree for its remaining term, or until September 14, 2008."
¶ 6 In August 2006, the circuit court entered an order that Miller was to pay Osler a total of $13,379.35, the final payment being due on September 21, 2006. The order also stated that the court retained jurisdiction to enforce the terms of the 2005 consent decree.
¶ 7 On September 26, 2008, 12 days after the 2005 consent decree expired, Osler
¶ 8 In November 2009, the Vigo County superior court granted Miller's motion to dismiss the Indiana action, finding that the court lacked subject matter jurisdiction pursuant to the consent decree and also based on the doctrine of comity. See Osler Institute, Inc. v. Miller, No. 84A051003-PL-237, slip op. at 5, 2010 WL 3799508 (Ind.Ct.App. Sept. 30, 2010); see also Hermesdorf v. Wu, 372 Ill.App.3d 842, 850, 310 Ill.Dec. 721, 867 N.E.2d 34 (2007) (a reviewing court may take judicial notice of a written decision that is part of the record in another court).
¶ 9 The court of appeals of Indiana affirmed the dismissal of the Indiana action, but disagreed with the superior court's conclusion that the action was barred by a lack of subject matter jurisdiction or comity considerations. Miller, No. 84A05-1003-PL-237, slip op. at 5. The court first noted:
The court of appeals went on to affirm the dismissal based on res judicata, finding that Osler could have brought its claims in the 2005 action that had been filed in the circuit court of Cook County. Id. at 6-7. The court observed:
¶ 10 In September 2011, Osler filed a complaint in case No. 11 CH 33466 (2011 action).
¶ 12 In April 2012, Miller filed a motion to dismiss Osler's complaint in the 2011 action, alleging that the complaint was duplicative and contained various other deficiencies.
¶ 13 In September 2012, after a hearing, the circuit court granted Miller's motion to dismiss the 2011 complaint, basing its ruling on the insufficient nature of the complaint and the duplicative nature of the action.
¶ 14 In January 2013, Osler filed its first amended supplemental complaint in the instant action which contained the same substantive factual allegations as the supplemental complaint but expanded upon the causes of action, including conversion, trespass to chattels, civil conspiracy, and violation of the consent decree.
¶ 15 In March 2013, Miller filed a motion to dismiss Osler's first amended supplemental complaint pursuant to section 216-9.1 of the Code, or a combined section 2-615 and section 2619 motion to dismiss. See 735 ILCS 5/2-619.1 (West 2012). Specifically, Miller brought his motion under section 2-615, alleging that Osler's complaint was defective, section 2-619(a)(3), alleging that Osler filed duplicative complaints in the supplemental 2005 action and the 2011 action, and section 2-619(a)(9), alleging Osler's complaint must be barred based on the affirmative defense of laches. Specifically, Miller argued that Osler failed to allege in its amended supplemental complaint that Miller was guilty of any acts of deception that delayed Osler's filing of the supplemental 2011 complaint, that Miller did not learn of the alleged violation until after the consent decree had expired, two years after Osler initially learned of the violation, and that because Osler delayed filing suit in the circuit court of Cook County for five years after it learned of the violation, Miller was unable to "secure or locate certain relevant witnesses, documents, web site data, marketing materials, promotional materials and other critical exculpatory evidence which he might have * * * used to properly defend himself against these meritless allegations" and he "did not retain or possess copies of whatever PowerPoint presentations, lecture DVD's [sic], lecture notes, emails and/or correspondence, marketing materials, promotional materials, or website data which might have supported his defense of this claim." In support of the motion, Miller
¶ 16 In August 2013, we affirmed the circuit court's dismissal of the 2011 action as duplicative. Osler Institute, Inc. v. Miller, 2013 IL App (1st) 12-3053-U, 2013 WL 4047633.
¶ 17 On October 1, 2013, the circuit court dismissed the section 2-615 portion of Miller's motion to dismiss, finding that Osler's amended supplemental complaint was "both procedurally and substantively sufficient to state a cause of action and adequately apprise defendant of the nature of the claims he is called upon to answer."
¶ 18 On October 15, 2013, Osler filed a memorandum of law in opposition to Miller's section 2-619 motion to dismiss, arguing that the laches defense did not apply to Miller. The same day, Osler also filed a motion to strike paragraphs 3, 4, and 5 of Miller's affidavit in support of his section 2-619 motion "on the grounds that the statements made in those paragraphs are conclusory."
¶ 19 On October 22, 2013, Miller filed a reply in support of his section 2-619 motion to dismiss in which he also noted his contention pursuant to section 2-619(a)(3) was moot as the circuit court's dismissal of the 2011 complaint had been affirmed on appeal subsequent to Miller's filing of his motion to dismiss.
¶ 20 On November 12, 2013, in a written order, the circuit court found that Osler's motion to strike was without merit and granted Miller's motion to dismiss based on laches.
¶ 21 On appeal, Osler first contends that the trial court erred by dismissing its complaint on the basis of laches.
¶ 22 A motion pursuant to section 2-619 challenges a complaint based on certain defects or defenses. 735 ILCS 5/2-619 (West 2012). Section 2-619(a)(9) provides for dismissal of a claim if it is barred by some affirmative matter. 735 ILCS 5/2-619(a)(9) (West 2012). An "affirmative matter" is any defense other than a negation of the essential allegations of the plaintiff's cause of action. Kedzie & 103rd Currency Exchange, Inc. v. Hodge, 156 Ill.2d 112, 115, 189 Ill.Dec. 31, 619 N.E.2d 732 (1993). In reviewing a dismissal pursuant to a section 2-619 motion, the court must interpret the pleadings and supporting materials in the light most favorable to the nonmoving party. Mo v. Hergan, 2012 IL App (1st) 113179, ¶ 34, 367 Ill.Dec. 755, 982 N.E.2d 905. If the defendant satisfies the initial burden of presenting an affirmative matter, the burden then shifts to the plaintiff to establish that the defense is unfounded or requires the resolution of an essential element of material fact before it is proven. Kedzie, 156 Ill.2d at 116, 189 Ill.Dec. 31,
¶ 23 "Laches is an equitable principle which bars an action where, because of delay in bringing suit, a party has been misled or prejudiced or has taken a course of action different from what the party otherwise would have taken." Senese v. Climatemp, Inc., 289 Ill.App.3d 570, 578, 224 Ill.Dec. 705, 682 N.E.2d 266 (1997). In order to present a successful defense of laches, a defendant must show both that the plaintiff lacked diligence in presenting its claim and the defendant was prejudiced as a result of the delay. Mo, 2012 IL App (1st) 113179, ¶ 36, 367 Ill.Dec. 755, 982 N.E.2d 905. A claim of laches will only be considered present where there is:
The burden is on the defendant to establish laches by a preponderance of the evidence. O'Brien, 281 Ill.App.3d at 834, 217 Ill.Dec. 57, 666 N.E.2d 726. Whether the defense of laches is available to a defendant depends on the facts and circumstances of each case. Nancy's Home of the Stuffed Pizza, Inc. v. Cirrincione, 144 Ill.App.3d 934, 941, 98 Ill.Dec. 673, 494 N.E.2d 795 (1986). In addition, the defense of laches is more than a mere delay in asserting a right. Id. Rather, the defendant must show prejudice or hardship rather than a mere passage of time. Id.
¶ 24 As an initial matter, the parties disagree as to the standard of review. Osler claims that a ruling on a section 2-619 motion to dismiss is reviewed de novo, citing In re Estate of Schlenker, 209 Ill.2d 456, 461, 283 Ill.Dec. 707, 808 N.E.2d 995 (2004), and Piser v. State Farm Mutual Automobile Insurance Co., 405 Ill.App.3d 341, 345, 345 Ill.Dec. 201, 938 N.E.2d 640 (2010). Miller argues that the standard of review for a decision based upon laches is an abuse of discretion, citing Lozman v. Putnam, 379 Ill.App.3d 807, 318 Ill.Dec. 788, 884 N.E.2d 756 (2008), and Hannigan v. Hoffmeister, 240 Ill.App.3d 1065, 181 Ill.Dec. 323, 608 N.E.2d 396 (1992). However, the cases that Miller cites are distinguishable. In Lozman, the circuit court made the factual determination that the doctrine of laches barred the plaintiffs' recovery on certain claims after a full jury trial, rather than applying the doctrine pursuant to a section 2-619 motion to dismiss like in the present case. Lozman, 379 Ill.App.3d at 818-19, 318 Ill.Dec. 788, 884 N.E.2d 756. Hannigan involved a petition for mandamus filed against a government body, not a section 2-619 motion to dismiss in a case between a corporation and an individual. Hannigan, 240 Ill. App.3d at 1074-75, 181 Ill.Dec. 323, 608 N.E.2d 396.
¶ 25 In the present case, we find the circuit court properly applied the defense of laches. First, the record shows that Osler learned of the alleged violation on September 27, 2006, just short of two months after the circuit court had ordered Miller to pay sanctions to Osler, based on Osler's fee petition. However, Osler did not file a claim based on that violation until September 26, 2008, almost two full years after it originally discovered the alleged violation and 12 days after the consent decree expired. Moreover, Osler filed suit in the state of Indiana, despite both having previously filed a petition or rule to show cause and a fee petition for a violation of the consent decree in the circuit court of Cook County and the consent decree's explicit language that the circuit court of Cook County would retain jurisdiction "for the purpose of enforcing or modifying this Consent Decree and for the purpose of granting such additional relief as may be necessary or appropriate." As the circuit court pointed out below:
Osler has alleged nothing to suggest that Miller somehow caused Osler's delay in filing suit for the almost two years after it discovered the violation. As the supreme court explained, the defendant cannot be "guilty of any affirmative act of deception to prevent suspicion and inquiry." Pyle, 12 Ill.2d at 554, 147 N.E.2d 341. Osler argues that Miller's removal of PowerPoint presentations, lecture DVDs, and lecture notes owned by Osler and converting them for his own use constituted an affirmative act of deception that led to the delay. However, it is undisputed that Osler learned of this second alleged violation of the consent decree on September 27, 2006. Even assuming Miller removed the PowerPoint presentations, lecture DVDs, and lecture notes owned by Osler and converted them for his own purposes on September 27, 2006, such actions by Miller still would not explain why Osler waited almost two years, until September 26, 2008, to file suit in the state of Indiana. Osler has never offered any explanation for why it waited almost two years to file. We conclude that Osler lacked the required diligence in pursuing the present action.
¶ 26 Moreover, there is no question that Miller suffered prejudice as a result of Osler's delay in filing suit. First, because Osler waited until after the consent decree expired to file suit, Miller was "lulled into doing that which he would not have done
¶ 27 In addition, because Osler waited until after the consent decree expired and first filed suit in the state of Indiana, Miller was forced to defend multiple lawsuits in two states over a span of years beginning in 2008, based on an alleged violation of the consent decree that Osler learned of in 2006. As an appellate court, we may affirm on any basis in the record, regardless of whether the circuit court relied on that basis. Gallaher v. Hasbrouk, 2013 IL App (1st) 122969, ¶ 17, 378 Ill.Dec. 348, 3 N.E.3d 913. With this principle in mind, we note that the Indiana Court of Appeals found that essentially the same action that Osler has filed in the present case was barred by res judicata because Osler could have filed the action in the circuit court of Cook County but instead chose to file it in the state of Indiana. In doing so, the court noted that Osler learned of the alleged violation almost two full years before the consent decree was set to expire and the "newly discovered information was within the subject matter of the Consent Decree, which was based * * * on Osler's original allegations that Miller had misappropriated Osler's trade secrets. Further, the Illinois court expressly
¶ 28 Osler claims that it filed suit in Indiana because "virtually" every defendant except for Miller resided in the state of Indiana and the conduct complained of occurred in Indiana or Ontario, Canada. However, as even the Indiana Court of Appeals noted, the circuit court of Cook County had expressly retained jurisdiction over the parties to the consent decree for the purpose of enforcing the consent decree and Osler waited almost two years, until after the consent decree expired, to file suit. Osler further argues that it is unaware of any authority that holds allowing two years to pass after learning of a potential claim before filing suit is an unreasonable delay but the cases on which Osler relies are distinguishable. See In re Marriage of Tutor, 2011 IL App (2d) 100187, 353 Ill.Dec. 726, 956 N.E.2d 588; McSweeney v. Buti, 263 Ill.App.3d 955, 201 Ill.Dec. 831, 637 N.E.2d 420 (1994).
¶ 29 In Marriage of Tutor, the appellate court found that the respondent had forfeited the defense of laches because he failed to cite to any page in the record in support of his argument. Marriage of Tutor, 2011 IL App (2d) 100187, ¶¶ 30-31, 353 Ill.Dec. 726, 956 N.E.2d 588. Here, in contrast, Miller has cited to the record in support of his motion to dismiss and also included a supporting affidavit.
¶ 30 In McSweeney, the administrator of a deceased partner's estate and the assignees of the proceeds of a portion of the deceased partner's partnership interest sued the surviving partners for a declaratory judgment, an accounting, and damages for the defendants' unilateral sale of the partnership property to themselves. McSweeney, 263 Ill.App.3d at 956, 201 Ill.Dec. 831, 637 N.E.2d 420. After a trial, the circuit court entered judgment in favor of the plaintiffs and against the defendants. Id. at 958, 201 Ill.Dec. 831, 637 N.E.2d 420. One of the issues on appeal was whether the circuit court erred by not barring the plaintiffs' claim based on the affirmative defense of laches where the claim was filed more than two years after the right to the accounting had accrued. Id. at 961-62, 201 Ill.Dec. 831, 637 N.E.2d 420. The appellate court found:
We first note that the procedural posture of the present case is completely different than that in McSweeney. Here, the defense of laches was addressed in a section 2-619(a)(9) motion to dismiss, while in McSweeney the court addressed the defense of laches in the context of a trial on the issue of liability. Id. at 958, 201 Ill.Dec. 831, 637 N.E.2d 420. Furthermore, the court in McSweeney found no other circumstances that would prejudice the defendants as a result of the delay. Id. at 962, 201 Ill.Dec. 831, 637 N.E.2d 420. In the present case, as discussed above, additional circumstances resulted in prejudice to Miller due to Osler's delay.
¶ 31 Finally, we again observe that whether the defense of laches is available
¶ 32 Osler next contends that paragraphs three, four, and five of Miller's affidavit in support of his motion to dismiss should have been stricken, alleging they are conclusory and technically deficient. Osler concludes that because Miller's affidavit in support of his motion to dismiss had been stricken, his motion to dismiss should have been denied.
¶ 33 Illinois Supreme Court Rule 191(a) (eff. Jan. 4, 2013) provides:
¶ 34 Here, Osler argues that Miller's affidavit was deficient because it was conclusory and because the statements did not set forth with particularity the facts upon which Miller's laches defense was based. Paragraph three of Miller's affidavit stated that he no longer possessed relevant witness information, documents, website data, marketing materials, promotional materials, PowerPoint presentations, lecture DVDs, lecture notes, emails or correspondence, "which [he] may have generated or may have existed" during the period of time covered by the consent decree. Paragraph four states that Miller believed he was in compliance with the consent decree after he was sanctioned for the 2006 Kentucky violation. Paragraph five states that Miller did not receive notice of the alleged violation in the present case until he was served with the Indiana lawsuit between October and December 2008. Miller's affidavit establishes that he believed he was in compliance with the consent decree and that he did not receive notice of a violation of the consent decree until at least October 2008, which would explain why he would no longer be in possession of relevant witness information, documents, website data, marketing materials, promotional materials, PowerPoint presentations, lecture DVDs, lecture notes, e-mails, or correspondence that would have existed during the consent decree period. Osler claims that the term "relevant" is an improper legal conclusion and that Miller was required to identify and name each "missing" document, but fails to cite any case law to support its argument. Illinois Supreme Court Rule 341(h)(7) (eff. July 1, 2008) requires that the argument section of an appellant's brief "shall contain the contentions of the appellant and the reasons therefore, with citation of the authorities and the pages of the record relied on." Failure to support a contention with relevant authority fails to meet this requirement and results in waiver of the argument. Cholipski v. Bovis Lend Lease, Inc., 2014 IL App (1st) 132842, ¶ 53, 384 Ill.Dec. 249, 16 N.E.3d 345. In addition, we disagree with Osler that "relevant" is
¶ 35 In addition, the cases that Osler does cite are distinguishable from the present case. See American Service Insurance Co. v. China Ocean Shipping Co. (Americas), Inc., 402 Ill.App.3d 513, 524, 342 Ill.Dec. 117, 932 N.E.2d 8 (2010) (finding that an affidavit was properly stricken where it decided the definition of the term "insured" for the court and it was unclear whether the affiant had personal knowledge of the insurance policy at issue); Madden v. F.H. Paschen, S.N. Nielsen, Inc., 395 Ill.App.3d 362, 388, 334 Ill.Dec. 315, 916 N.E.2d 1203 (2009) (holding that the statement that an area was "under control" of the defendants at the time of the accident at issue was a legal conclusion rather than a statement of fact); Webber v. Armstrong World Industries, Inc., 235 Ill.App.3d 790, 798-99, 175 Ill.Dec. 889, 601 N.E.2d 286 (1992) (striking down certain averments in an affidavit from the plaintiff's coworker that failed to identify the place and time of exposure to asbestos in a personal injury case based on alleged exposure to asbestos). The cited cases are neither factually similar to the present case nor do they use the same terminology in the affidavits at issue and therefore are inapposite. Accordingly, we find the circuit court properly denied Osler's motion to strike Miller's affidavit and properly relied on Miller's affidavit in support of his motion to dismiss.
¶ 36 For the foregoing reasons, we affirm the judgment of the circuit court.
¶ 37 Affirmed.
Justice GORDON and Justice REYES concurred in the judgment and opinion.