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748 N.E.2d 1248 Page 1
321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178, 46 UCC Rep.Serv.2d 859
(Cite as: 321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178)
West Headnotes
Justice BRESLIN delivered the opinion of the
[1] Appeal and Error 30 893(1) court:
30 Appeal and Error The defendants, Dayna Conry and Mary Plotts,
30XVI Review failed to make payments for consumer goods that
30XVI(F) Trial De Novo they purchased from Sears, Roebuck and Company
30k892 Trial De Novo (Sears) on Sears credit card accounts. After the de-
30k893 Cases Triable in Appellate fendants' debts were discharged in bankruptcy,
Court Sears sued to take possession of its collateral, as-
30k893(1) k. In General. Most serting that it had a purchase money security in-
Cited Cases terest in the merchandise. 810 ILCS 5/9-107 (West
In reviewing the trial court's conclusions of law, the 1998). The trial court ruled Sears had failed to
reviewing court applies a de novo standard of re- prove that the defendants entered into a security
view. agreement with Sears. Sears' motion to reconsider
was denied. We reverse and hold that a security in- of the sales receipts that had been signed by the de-
terest was adequately proven by Sears when it pro- fendants for the goods Sears was seeking to recov-
duced the defendants' signed credit card sales re- er. Immediately above the defendants' signatures on
ceipts incorporating a Sears security agreement by each of these receipts was printed the following
reference and stating that the buyers granted Sears a language, “Purchased under my Sears account and
security interest in the merchandise. security agreement, incorporated by reference. I
grant Sears a security interest in this merchandise
until paid, unless prohibited by law.”
BACKGROUND
Neuroth also identified an exhibit that is entitled
During 1998, the defendants purchased various
“Sears National Bank [,] Sears card account and se-
consumer goods from Sears on Sears credit card ac-
curity agreement.” He testified that this exhibit was
counts. After the defendants failed to make pay-
a copy of the security agreement that went into ef-
ments on their accounts, Sears sued to replevy the
fect on September 1997. The copy of the Sears se-
goods from the defendants in separate cases. The
curity agreement in the record includes the designa-
defendants each filed for chapter 7 bankruptcy (11
tion “9/97.”
U.S.C. § 701 et seq. (1994)) and did not reaffirm
these credit card **1249 ***179 debts with Sears. On cross-examination, Neuroth stated that he be-
After the bankruptcies were discharged, Sears sued lieved the next update of the security agreement
to exercise its right to obtain possession of the was in 1999. He conceded that he had produced
goods by virtue of its purchase money security in- neither signed credit card applications nor signed
terest in the merchandise as collateral. security agreements for the defendants. He stated
that he did not know when the defendants' accounts
After the cases were consolidated, the court heard
were opened. He did not know if the defendants'
evidence and arguments on the merits. Dennis
credit card applications included language indicat-
Neuroth testified that he was employed by Sears in
ing that the applicants agreed to accept each new
the bankruptcy recovery department. He explained
version of the security agreement that Sears might
how a customer opens a Sears credit card account.
send to them. Neuroth testified that it was standard
The customer fills out an application, sends it to
operating procedure that purchases made on a Sears
Sears for review, and if approved, the customer re-
credit card were made under the terms of the secur-
ceives a Sears credit card. The application *999
ity agreement then in force. However, he could not
form contains the Sears security agreement. When
point to specific language in a prior agreement
the credit card is sent to the customer, it is accom-
binding the defendants to the agreement offered in
panied by a copy of the security agreement. Sears
the exhibit.
periodically updates the security agreement and
sends a copy of the update to the credit card holder. The court's written order found that although the
court agreed with Sears' “ ‘composite document’
When a customer purchases consumer goods using
theory, the court [felt] that there must be some
a Sears credit card, the customer signs a sales ticket
proof presented that the defendants had, in fact,
that describes the merchandise and contains lan-
entered into the underlying credit card agreement.”
guage granting Sears a purchase money security in-
The order stated that such “proof [was] lacking in
terest in the merchandise. The customer's signature
this case.” Accordingly, the court entered judgment
is recorded electronically by a Sears computer, and
for the defendants. After Sears' motion for recon-
the signed sales receipt is retained by the customer.
sideration was denied, Sears appealed. Neither
Neuroth identified electronically generated copies Conry nor Plotts submitted appellee briefs on ap-
peal.
END OF DOCUMENT
The material accompanying this summary is subject to copyright. Usage is governed by contract with Thomson Reuters,
West and their affiliates.
Date of Printing: Oct 26, 2010
KEYCITE
Sears, Roebuck & Co. v. Conry, 321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178, 46 UCC
Rep.Serv.2d 859 (Ill.App. 3 Dist.,May 04, 2001) (NO. 3--00--0252, 3--00--0253)
History
Direct History
=> 1 Sears, Roebuck & Co. v. Conry, 321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178, 46
UCC Rep.Serv.2d 859 (Ill.App. 3 Dist. May 04, 2001) (NO. 3--00--0252, 3--00--0253)
Distinguished by
2 In re Sabol, 337 B.R. 195, 58 UCC Rep.Serv.2d 756 (Bankr.C.D.Ill. Feb 06, 2006) (NO.
05-80582, 05-8138) HN: 1,2 (Ill.Dec.)
The material accompanying this summary is subject to copyright. Usage is governed by contract with Thomson Reuters,
West and their affiliates.
Date of Printing: Oct 26, 2010
KEYCITE
Sears, Roebuck & Co. v. Conry, 321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178, 46 UCC
Rep.Serv.2d 859 (Ill.App. 3 Dist., May 04, 2001) (NO. 3--00--0252, 3--00--0253)
The material accompanying this summary is subject to copyright. Usage is governed by contract with Thomson Reuters,
West and their affiliates.
Date of Printing: Oct 26, 2010
KEYCITE
Sears, Roebuck & Co. v. Conry, 321 Ill.App.3d 997, 748 N.E.2d 1248, 255 Ill.Dec. 178, 46 UCC
Rep.Serv.2d 859 (Ill.App. 3 Dist. May 04, 2001) (NO. 3--00--0252, 3--00--0253)
Citing References
Distinguished by
1 In re Sabol, 337 B.R. 195, 199+, 58 UCC Rep.Serv.2d 756, 756+ (Bankr.C.D.Ill. Feb 06, 2006)
(NO. 05-80582, 05-8138) " HN: 1,2 (Ill.Dec.)
Cited
2 Portfolio Acquisitions, L.L.C. v. Feltman, 909 N.E.2d 876, 886, 391 Ill.App.3d 642, 655, 330
Ill.Dec. 854, 864 (Ill.App. 1 Dist. May 20, 2009) (NO. 1-07-3004)
3 In re Sarah Michaels, Inc., 358 B.R. 366, 377, 61 UCC Rep.Serv.2d 819, 819 (Bankr.N.D.Ill. Jan
11, 2007) (NO. 03 B 19465, 05 A 01252) " HN: 2 (Ill.Dec.)
Mentioned
4 Helms v. Certified Packaging Corp., 551 F.3d 675, 681, 67 UCC Rep.Serv.2d 684, 684 (7th
Cir.(Ill.) Dec 30, 2008) (NO. 08-1017, 08-1119) HN: 2 (Ill.Dec.)
Court Documents
Appellate Briefs
31 Dorothy ARRUDA, Melanie Velleco, Blanche I. Sroka, Vincent Kowal & Kathleen Kowal,
Plaintiffs-Appellants, v. SEARS ROEBUCK & COMPANY, Sears National Bank, Stephen J.
Shechtman, Shechtman & Halperin, Preston W. Halperin; Joseph S.U. Bodoff, Douglas A. Giron,
Thomas E. Carlotto, Holly L. Raiano & Dykema Gossett, PLLC, Defendants-Appellees., 2002