Opinion ID: 658587
Heading Depth: 2
Heading Rank: 4

Heading: Summary Judgment on Counterclaims

Text: 17 Defendants have appealed the district court's grant of summary judgment on their counterclaims arguing that the court denied Defendants both adequate notice and an opportunity to respond to Plaintiffs' summary judgment motion, as required under Fed.R.Civ.P. 56(c) and Circuit Rule 50. Specifically, Defendants complain that the court failed to afford Defendants the full ten days notice on Plaintiffs' motion, as required by Rules 56(c) and 50. In response, we observe that such objections must be raised before the trial court or they are forever waived. See Tripp v. May, 189 F.2d 198, 199-200 (7th Cir.1951) (holding that a litigant waives any violations of Rule 56(c)'s ten day requirement if he fails first to object before the trial court). Thus, Allied waived its chance to appeal these procedural matters by waiting until this appeal to raise the issue. Furthermore, noncompliance with the ten-day rule, or with other procedural provisions in Rule 56, is not grounds for reversal unless the nonmovant is able to show it could have offered evidence to create a material issue of fact. See Milwaukee Typographical Union No. 23 v. Newspapers, Inc., 639 F.2d 386, 391 (7th Cir.1981) (where no potential disputed material issue of fact exists, a summary judgment will not be disturbed even though the district court disregarded the procedure which should have been followed.); see also Tripp, 189 F.2d at 200; see Ikerd v. Lapworth, 435 F.2d 197, 203 (7th Cir.1970). A failure to afford ten days notice is not grounds for reversal unless the non-movant can show prejudice. Ikerd, 435 F.2d at 203; Chicago-Midwest Meat Ass'n. v. City of Evanston, 589 F.2d 278, 282 (7th Cir.1978). In Chicago-Midwest, we refused to reverse despite noncompliance with the ten-day rule because [i]f we assume the existence of all the facts alleged by [Chicago-Midwest], its challenges to the local ordinances fail nonetheless. See id. at 282. The same is true here. 18 Assuming all the facts alleged in Defendants' counterclaims, all their arguments fail. Defendants breach-of-contract action fails because an unenforceable contract cannot be enforced. Further, Defendants' rescission argument also must ultimately fail. It may be true that if a party is suing to rescind a contract, he must first tender back 6 the consideration, see Pan-American Petroleum & Transp. Co. v. United States, 273 U.S. 456, 47 S.Ct. 416, 71 L.Ed. 734 (1927); United States v. Texarkana Trawlers, 846 F.2d 297 (5th Cir.) cert. denied, 488 U.S. 943, 109 S.Ct. 369, 102 L.Ed.2d 358 (1988); however, here Plaintiffs are not suing to rescind their contract; their contract was already dead by force of law. Finally, Defendants cogently argue that Plaintiffs should not keep all of the severance benefits if the waiver contract fails. While the idea has appeal, Defendants have failed to plead specifically any recoverable claim. We cannot speculate as to the possible merit of hypothetical claims since any of Defendants' possible equitable counterclaims not raised before the trial court have been waived. See House v. Belford, 956 F.2d 711, 720 (7th Cir.1992) (stating that such claims not first raised at the trial court have been waived and cannot be considered on appeal). In this case Defendants may only obtain a set-off of the severance benefits paid from any award determined to be due Plaintiffs. See Hogue, 390 U.S. at 518, 88 S.Ct. at 1152. 19 Therefore, assuming the truth of all the facts alleged by Defendants, its challenges to the district court's summary judgment fail. Since no potential disputed material issue of fact exists, the summary judgment on Defendants' counterclaims will not be disturbed even if the provisions of Fed.R.Civ.P. 56(c) and Circuit Rule 50 were not observed.