1

 2014 IL App (5th) 130227 

 NOS. 5-13-0227, 5-13-0293 cons. 

 IN THE 

 APPELLATE COURT OF ILLINOIS 

 FIFTH DISTRICT 

 

ROBERT SMITH, ) Appeal from the 

 ) Circuit Court of 

 Plaintiff-Appellant, ) Randolph County. 

 ) 

v. ) No. 11-LM-108 

 ) 

JEFF HAMMEL, ) Honorable 

 ) Eugene E. Gross, 

 Defendant-Appellee. ) Judge, presiding. 

____________________________________________________________________________________________ 

JULIE GOSS, ) Appeal from the 

 ) Circuit Court of 

 Plaintiff-Appellee, ) Randolph County. 

 ) 

v. ) No. 10-CH-48 

 ) 

SMITH CHIROPRACTIC CENTER, ) 

 ) 

 Defendant-Appellant ) 

 ) 

(MedStar Ambulance, Inc., Sparta Community ) Honorable 

Hospital, and Quality Health Care Clinic, ) Andrew J. Gleeson, 

Defendants). ) Judge, presiding. 

____________________________________________________________________________________________ 

 

PRESIDING JUSTICE WELCH delivered the judgment of the court, with opinion. 

 Justices Goldenhersh and Stewart concurred in the judgment and opinion. 

 

OPINION

¶ 1 On September 12, 2008, Julie Goss was involved in an automobile collision in 

which she suffered personal injuries. She was treated for those injuries by chiropractor 

NOTICE

Decision filed 07/23/14. The 

text of this decision may be 

changed or corrected prior to 

the filing of a Petition for 

Rehearing or the disposition of 

the same. 
2

Robert Smith, who rendered services in the total amount of $2,777. 

¶ 2 Julie Goss instituted a claim against the driver of the other vehicle/tortfeasor 

through her attorney, Jeff Hammel, seeking recovery for her injuries. That claim was 

settled without the necessity of court action. 

¶ 3 Prior to settlement of the claim, chiropractor Smith had notified Goss and attorney 

Hammel of his statutory lien on any settlement proceeds Goss might receive. That lien is 

provided by the Health Care Services Lien Act (the Act) (770 ILCS 23/1 et seq. (West 

2010)), which provides that every health care provider that renders any medical services 

to an injured person shall have a lien upon all claims and causes of action of the injured 

person for the amount of the health care provider's reasonable charges. 770 ILCS 

23/10(a) (West 2010). The Act requires the health care provider to notify both the injured 

party and the party against whom the claim or cause of action exists of the existence of 

the lien. 770 ILCS 23/10(b) (West 2010). Notice of the lien may be made by registered 

or certified mail or in person. 770 ILCS 23/10(b) (West 2010). 

¶ 4 The Act further provides for adjudication of lien rights under the Act: "On petition 

filed by the injured person or the health care professional or health care provider and on 

the petitioner's written notice to all interested adverse parties, the circuit court shall 

adjudicate the rights of all interested parties ***." 770 ILCS 23/30 (West 2010).1 

 

1

Subsequent to the commencement of this action, effective January 1, 2013, 

section 30 of the Act was amended to add a paragraph providing that "[a] petition filed 
3

¶ 5 After Goss's claim was settled, attorney Hammel filed, in the circuit court of 

Randolph County, a "Petition to Adjudicate Liens" pursuant to section 30 of the Act (No. 

10-CH-48). Chiropractor Smith was notified of the petition to adjudicate liens by regular 

and certified mail. There is no dispute that Smith received a copy of the petition to 

adjudicate liens and a notice of the hearing on the petition. Nevertheless, Smith did not 

appear at the hearing on the petition to adjudicate liens, and in an order entered 

September 8, 2010, he was found to be in default. Smith's lien was therefore "discharged 

and voided." The settlement proceeds were disbursed in accordance with the court's 

order. 

¶ 6 On March 13, 2012, chiropractor Smith filed a "Motion to Vacate Void Order" and 

a "Motion to Declare Order Void," arguing that he had not been personally served with 

summons and a copy of the petition to adjudicate liens, nor had he otherwise submitted 

himself to the jurisdiction of the court. He argued, therefore, that the order finding him in 

default and discharging and voiding his lien was void for lack of personal jurisdiction 

over him. The motions argue that simply sending a copy of the petition and notice of 

hearing is not sufficient to confer personal jurisdiction over a party; personal service of a 

summons and complaint is required. 

¶ 7 After a hearing held April 19, 2012, Smith's motions were denied by order entered 

April 23, 2012. Smith's motion to reconsider was also denied in an order entered May 31, 

 

under this Section may be served upon the interested adverse parties by personal service, 

substitute service, or registered or certified mail." 770 ILCS 23/30 (West 2012). 
4

2013. Smith appeals. 

¶ 8 In a different but related case, also filed in the circuit court of Randolph County, 

chiropractor Smith brought suit against attorney Hammel for conversion (No. 11-LM108). Smith's complaint, filed September 16, 2011, alleged that by failing to have Smith 

personally served with summons and complaint on the petition to adjudicate liens, and by 

appearing in court on the petition and proceeding to have an order entered discharging 

and voiding Smith's lien, Hammel had converted Smith's claim/assets. The suit sought 

damages in the amount of the lien, $2,777. 

¶ 9 Hammel filed a motion to dismiss Smith's complaint, arguing that he had followed 

proper legal process in adjudicating the lien and that the court's order in that case resolved 

all issues. Smith responded that the court had not had personal jurisdiction over him to 

validly adjudicate his lien. 

¶ 10 On March 1, 2012, the circuit court entered an order dismissing Smith's complaint 

for conversion against attorney Hammel. The court found that its order on the petition to 

adjudicate liens was res judicata and that Smith's claim for conversion was barred 

thereby. Smith's motion to reconsider was denied, and Smith appeals. 

¶ 11 Because the two cases present precisely the same issue, they have been 

consolidated for our decision. In both cases, Smith argues that the circuit court's order 

adjudicating his lien rights is void as the court did not have personal jurisdiction over him 

or in rem jurisdiction over the settlement proceeds. We affirm both judgments. 

¶ 12 The parties agree, as do we, that the appropriate standard of review is de novo. 
5

This appeal presents a question of law only, involving the interpretation of a statutory 

provision. It is well settled that where no genuine issue of material fact remains in 

dispute and a circuit court has issued a ruling of law, a reviewing court must use a de 

novo standard of review. In re Estate of McInerny, 289 Ill. App. 3d 589, 596 (1997); see 

also Jayko v. Fraczek, 2012 IL App (1st) 103665, ¶ 3 (a dispute over personal jurisdiction 

presents a question of law, and rulings as to questions of law are considered de novo). 

¶ 13 The parties also agree, as do we, that where personal jurisdiction over the 

defendant is required, an order entered without personal jurisdiction is void ab initio as to 

that defendant and subject to direct or collateral attack at any time. DiNardo v. Lamela, 

183 Ill. App. 3d 1098, 1101 (1989); see also Jayko, 2012 IL App (1st) 103665, ¶ 3. 

Nevertheless, because we find that the proceeding to adjudicate the liens was an in rem

proceeding, we hold that personal jurisdiction over Smith by service of summons was not 

required. 

¶ 14 Personal jurisdiction pertains to the authority of the court to litigate in reference to 

a particular defendant and to determine the rights and duties of that defendant. In re 

Possession & Control of the Commissioner of Banks & Real Estate of Independent Trust 

Corp., 327 Ill. App. 3d 441, 463 (2001). It is black letter law that the alternative to 

personal jurisdiction is in rem jurisdiction or quasi in rem jurisdiction. In re Possession 

of Banks & Real Estate, 327 Ill. App. 3d at 463. This form of jurisdiction is concerned 

with the relationship between the defendant and the state with respect to specific property. 

In re Possession of Banks & Real Estate, 327 Ill. App. 3d at 463. In rem or quasi in rem
6

proceedings do not require personal service of process. In re Possession of Banks & Real 

Estate, 327 Ill. App. 3d at 465. 

¶ 15 A proceeding to adjudicate liens has specifically been held to be an in rem action. 

See Zilinger v. Allied American Insurance Co., 957 F. Supp. 148, 149 (N.D. Ill. 1997); 

Jayko v. Fraczek, 2012 IL App (1st) 103665, ¶ 23. 

¶ 16 In Zilinger, the plaintiffs were injured in an automobile accident and received a 

settlement from their insurance carrier. One of the plaintiffs' union benefit plans asserted 

a lien on the proceeds of the insurance settlement. The plaintiffs filed a motion to 

adjudicate the lien and served the union benefit plan by mail in accordance with Illinois 

Supreme Court Rule 11 (eff. Nov. 15, 1992). Nevertheless, the union benefit plan did not 

appear at the hearing. 

¶ 17 On a motion for remand following removal to federal court, the benefit plan 

argued that the order adjudicating the lien was void because the circuit court had failed to 

obtain personal jurisdiction over it. The benefit plan argued that in order to have a valid 

lien adjudication, the circuit court must first obtain personal jurisdiction through service 

of summons on the parties. The plaintiffs argued that personal jurisdiction was not 

required, the proceeding being one in rem. 

¶ 18 The district court agreed with the plaintiffs that the lien adjudication was an in rem

action which did not require personal service of process: 

 " 'there [is] a res upon which the court is acting.... [The] proceeding 'in rem' is one 

 which ... is brought to enforce a right in the thing itself.... [J]udgments in rem ... 
7

 operate directly upon the property and are binding upon all persons in so far as 

 their interest in the property is concerned.... [A] judgment in rem ... creates no 

 personal liability, especially as against those who, while interested in the property, 

 have not been served with process and have not appeared in the action.' " Zilinger, 

 957 F. Supp. at 149 (quoting Austin v. Royal League, 316 Ill. 188, 193 (1925)). 

¶ 19 The court held that the res was the insurance policy settlement proceeds and that 

the adjudication of the lien was a determination of competing rights in the settlement 

proceeds. Zilinger, 957 F. Supp. at 150. The circuit court's order did not create personal 

liability for the benefit plan, and personal service of summons was not required where 

supreme court rule allowed service by mail. Zilinger, 957 F. Supp. at 150. Accordingly, 

the lien adjudication was valid. 

¶ 20 Jayko v. Fraczek, 2012 IL App (1st) 103665, a decision of the First District of this 

court, is precisely on point and is the case relied upon by the circuit court in reaching its 

decision herein. In Jayko, St. Alexius Medical Center (St. Alexius) appealed from an 

order denying its motion to readjudicate its health care provider's lien under the Act 

against Jayko's personal injury action, arguing that the original adjudication was void 

because St. Alexius had not been personally served with summons. 

¶ 21 Jayko had been injured when he was struck by a car while riding his bike. He 

received treatment at St. Alexius. Jayko filed a lawsuit against the driver and owner of 

the car that had struck him, and St. Alexius notified Jayko's lawyer and the defendantdriver that it was asserting a lien under the Act on the proceeds of the cause of action. St. 
8

Alexius delivered this notice by certified mail, as provided for in section 10(b) of the Act 

(770 ILCS 23/10(b) (West 2006)). Jayko used certified mail to notify St. Alexius of the 

hearing date on the petition for adjudication. St. Alexius did not contend that it did not 

receive the notice. Nevertheless, St. Alexius did not appear at the hearing and its lien was 

adjudicated to $0. 

¶ 22 In its motion to readjudicate the lien, St. Alexius argued that notice by certified 

mail was insufficient to vest the circuit court with personal jurisdiction over it, and that it 

was entitled to be personally served with summons of process. In denying the motion, the 

circuit court stated that it was relying on the decision in Zilinger for the proposition that a 

lien adjudication is an in rem proceeding and does not require service of summons to the 

lienholder because the court does not need to acquire personal jurisdiction. The appellate 

court agreed. 

¶ 23 Applying principles of statutory construction, the appellate court concluded that it 

had been the intent of the legislature to allow both notice of the existence of the lien and 

notice of the hearing on the petition to adjudicate the lien to be made by registered or 

certified mail, or in person. Section 10(b) of the Act refers to "written notice" of the 

existence of the health care provider's lien and specifically provides that service of that 

written notice shall be by registered or certified mail or in person. Section 30 of the Act 

also refers to "written notice" of the petition to adjudicate the lien, but does not 

specifically mention the method of service of this written notice. Construing these two 

statutory provisions together, as it must, the appellate court concluded that the legislature 
9

intended that both notices were adequately served by registered or certified mail or in 

person. The court rejected the notion that the legislature intended to impose on the 

injured plaintiff the added expense and responsibility of filing a complaint and obtaining 

personal service of the complaint. Accordingly the court construed section 30 of the Act 

to provide for written notice of the petition to adjudicate the lien to be served by 

registered or certified mail or in person. Jayko, 2012 IL App (1st) 103665, ¶ 15. 

¶ 24 The court then addressed the question of whether due process considerations 

required personal service of the petition to adjudicate the lien, and it concluded that they 

did not. Relying on the decision in Zilinger, which it found to be "well founded in Illinois 

law" (Jayko, 2012 IL App (1st) 103665, ¶ 22), the court held that Jayko's settlement 

proceeds were a res and that the circuit court's adjudication of the statutory liens thereon 

was an in rem proceeding for which personal service on and personal jurisdiction over the 

health care provider were unnecessary. Thus, Jayko had not only complied with section 

30 of the Act but also satisfied due process when he gave notice to St. Alexius through 

certified mailing. Jayko, 2012 IL App (1st) 103665, ¶ 23. 

¶ 25 Chiropractor Smith argues that the instant proceeding was not one in rem because 

Goss's settlement occurred prior to the filing of any suit. Accordingly, Smith argues, the 

circuit court never acquired in rem jurisdiction over the res, the settlement proceeds. 

Smith argues that Jayko is distinguishable in this respect because in Jayko, the plaintiffpatient had filed suit against the tortfeasor and settled that lawsuit, creating a res under 

the jurisdiction of the court. 
10

¶ 26 Smith's argument is somewhat circular: only by acquiring personal jurisdiction 

over the parties who created the res, the settlement proceeds, does the court acquire in 

rem jurisdiction over the res itself. But, of course, in rem jurisdiction is not acquired by 

obtaining personal jurisdiction over the parties who create the res. In rem jurisdiction 

rests exclusively on the situs of the res. McCallum v. Baltimore & Ohio R.R. Co., 379 Ill. 

60, 69 (1942). The funds need not have been paid into the court in order for the court to 

have in rem jurisdiction over them; the state has in rem jurisdiction over property located 

within its borders. McCallum, 379 Ill. at 69. In any event, perhaps the simple answer to 

this argument is that the court acquired in rem jurisdiction over the res, the settlement 

proceeds, upon the filing of the petition to adjudicate liens. 

¶ 27 In summary, we hold that for purposes of adjudicating Smith's lien, the circuit 

court did not need personal jurisdiction over Smith, nor was Smith required to be 

personally served with summons of process. The court had in rem jurisdiction over the 

settlement proceeds against which the lien had been asserted and could therefore 

adjudicate Smith's rights with respect to that res. Smith having received proper notice by 

mail of the proceeding to adjudicate the lien, and having failed to appear thereon, the 

circuit court did not err in finding Smith to be in default and in adjudicating his lien to $0. 

Accordingly, we affirm the court's order in No. 10-CH-48. 

¶ 28 Furthermore, the circuit court did not err in dismissing Smith's complaint against 

attorney Hammel alleging conversion by Hammel of the property against which Smith's 

lien was asserted. Hammel acted pursuant to a valid court order in disbursing the 
11

settlement proceeds. He cannot be held liable to Smith in conversion. Accordingly, we 

affirm the court's order in No. 11-LM-108. 

¶ 29 For the foregoing reasons the orders of the circuit court of Randolph County are 

hereby affirmed. 

¶ 30 Affirmed. 
 

2014 IL App (5th) 130227 

NOS. 5-13-0227, 5-13-0293 cons. 

IN THE 

APPELLATE COURT OF ILLINOIS 

FIFTH DISTRICT 

ROBERT SMITH, ) Appeal from the 

 ) Circuit Court of 

 Plaintiff-Appellant, ) Randolph County. 

 ) 

v. ) No. 11-LM-108 

 ) 

JEFF HAMMEL, ) Honorable 

 ) Eugene E. Gross, 

 Defendant-Appellee. ) Judge, presiding. 

____________________________________________________________________________________________ 

JULIE GOSS, ) Appeal from the 

 ) Circuit Court of 

 Plaintiff-Appellee, ) Randolph County. 

 ) 

v. ) No. 10-CH-48 

 ) 

SMITH CHIROPRACTIC CENTER, ) 

 ) 

 Defendant-Appellant ) 

 ) Honorable 

(MedStar Ambulance, Inc., Sparta Community Hospital, ) Andrew J. Gleeson, 

and Quality Health Care Clinic, Defendants). ) Judge, presiding. 

____________________________________________________________________________________________ 

Opinion Filed: July 23, 2014

_________________________________________________________________________________________ 

Justices: Honorable Thomas M. Welch, P.J. 

 Honorable Richard P. Goldenhersh, J., and 

 Honorable Bruce D. Stewart, J., 

 Concur 

___________________________________________________________________________________________ 

 

Attorney John D. Alleman, Alleman & Hicks, 310 East Main Street, Carbondale, IL 62901 

for 

Appellant 

___________________________________________________________________________________________ 

Attorney Jeffrey S. Hammel, Jeffrey S. Hammel Law Firm, 23 South First Street, Belleville, IL 

for 62220 

Appellee 

____________________________________________________________________________________________