American Remodal & Construction, Inc. v. Fernandez

2020 IL App (1st) 192026-U
Appellate Court of Illinois·Decided November 6, 2020·No. 1-19-2026·Unpublished·Cited by 1 cases

Opinion

2020 IL App (1st) 192026-U

SIXTH DIVISION

November 6, 2020

No. 1-19-2026

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

AMERICAN REMODAL & CONSTRUCTION, INC., ) Appeal from the ) Circuit Court of

Plaintiff-Appellee, ) Cook County.

)

v. ) No. 17 M 54900 )

FELIX FERNANDEZ, ) Honorable ) John Hynes,

Defendant-Appellant. ) Judge Presiding.

PRESIDING JUSTICE MIKVA delivered the judgment of the court.

Justices Connors and Harris concurred in the judgment.

ORDER

¶1 Held: Trial court’s judgment in plaintiff’s favor on breach of contract claim affirmed where the evidence at trial demonstrated the existence of a valid oral contract to remodel property, performance by plaintiff, breach by defendant, and resulting injury to plaintiff; trial court’s award of damages was also supported by the evidence at trial.

¶2 Defendant Felix Fernandez appeals from a decision of the trial court awarding plaintiff American Remodal Corporation, Inc. (ARC), an Illinois corporation, $28,828.67, plus costs, on its breach of contract claim. In its ruling, the trial court found ARC substantially performed under a

valid oral contract and that Mr. Fernandez still owed ARC $39,728.67 in compensation for that work. The court reduced the award by $10,900 due to various deficiencies in performance. On appeal, Mr. Fernandez argues that the trial court’s judgment was against the manifest weight of the evidence and ARC failed to make a prima facie showing of a valid contract. For the reasons that follow, we affirm.

¶3 I. BACKGROUND

¶4 On February 28, 2018, ARC filed the operative complaint in this action, alleging breach of contract. ARC also brought a claim for quantum meruit in the alternative, but that claim is not at issue on appeal. The complaint alleged that Mr. Fernandez had entered into an oral contract with ARC to remodel a two-flat apartment building located at 2326 South Wolcott Avenue in Chicago (Wolcott Property) for “the agreed upon sum.” The complaint further alleged that Mr. Fernandez accepted the offer, that ARC fully performed the remodeling work, and that Mr. Fernandez still owed ARC $70,538.02 for labor and materials.

¶5 Mr. Fernandez filed his answer, affirmative defenses, and a counterclaim on April 18, 2018. Mr. Fernandez’s affirmative defenses were that he fully performed under the “alleged agreement;” ARC failed to fully perform under the agreement; ARC failed to state a cause of action; ARC failed to mitigate its damages; and ARC’s claims were barred (1) by the doctrine of unclean hands, (2) due to fraud and illegality, and (3) by its own breach. In his counterclaim, Mr. Fernandez alleged that ARC breached the parties’ contract because it did not finish its remodeling obligations. Mr. Fernandez requested damages of $30,000 for the breach or, in the alternative, the amount ARC had been unjustly enriched.

¶6 A bench trial was held on August 21, 2019. Both Sergio Huerta, a general contractor and the owner of ARC, and Mr. Fernandez testified at trial. Both attested to an agreement between

them for a total rehabilitation of the two-flat apartment building at the Wolcott Property. According to Mr. Huerta, the parties agreed Mr. Fernandez would pay Mr. Huerta $35 an hour and Mr. Huerta’s employees $25 an hour, Mr. Fernandez would pay for all materials purchased for the job, and ARC would receive a bonus upon the completion of the project equaling 10% of the total charges. Mr. Huerta testified that he obtained the permit from the city “as a favor” for Mr. Fernandez and that they negotiated the agreement thereafter. According to Mr. Huerta, Mr. Fernandez said his “right-hand man” Luis Ballesteros would be present at the worksite the entire time and would monitor the work done by each individual.

¶7 Mr. Huerta testified that after obtaining a building permit for the property on June 6, 2013, he began construction in the first or second week of January 2014. He kept his own records regarding the hours he and his employees worked, which were submitted as exhibits at trial. He testified that he would give these time sheets to Mr. Fernandez or one of Mr. Fernandez’s employees periodically. He testified that no one ever said there was an issue with the hourly breakdown. Included in the time sheets were notes concerning cash payments made to Mr. Ballesteros’s uncle who did tuckpointing work at the Wolcott Property. Mr. Huerta testified that he wrote those payments down “so that [he] kn[e]w that [he] gave it to [Mr. Fernandez]” and so he could “tell Mr. Fernandez *** [he] paid [Mr.] Ballesteros this week and [Mr. Ballesteros] paid his uncle.”

¶8 In addition to the time sheets, Mr. Huerta testified that he provided Mr. Fernandez or one of Mr. Fernandez’s employees receipts for materials purchased for the Wolcott Property every two or three weeks. Mr. Huerta testified that Mr. Fernandez would, at various times, reimburse him for materials or pay him in advance for materials purchased for the Wolcott Property. When Mr. Huerta hired a subcontractor, he would get an estimate of the cost from the subcontractor, notify

Mr. Fernandez, and then Mr. Fernandez would give him the money, “but not—not the whole thing. Only what is necessary. Like, let’s say the roofer, right. If he says, ‘I need $3,000’ ” then Mr. Huerta would tell Mr. Fernandez, “I need this much to continue the project, but I need $3,000 extra so I can, you know, give to the roofer. But usually, he give me 10,000, 15,000, 20,000, you know. I mean, you can see the checks.” A record of checks Mr. Fernandez made out to ARC— usually for between $10,000 and $20,000, for work on the Wolcott Property starting in January 2013 and ending in October 2014—was included as a joint exhibit.

¶9 According to the permit inspection history, submitted as evidence by both parties, inspectors from the Department of Buildings gave final approval of the Wolcott Property in November 2014. Mr. Huerta testified that “the job was completed” after that approval. Mr. Huerta also testified that he reached out to Mr. Fernandez requesting payment in full for his work, but Mr. Fernandez “kept pushing it” and never paid the final amount due.

¶ 10 Mr. Fernandez testified as an adverse witness during ARC’s case in chief. He stated that he was a joint owner of the Wolcott Property with his son, Antonio Fernandez. Mr. Fernandez testified that he contracted with Mr. Huerta to do work on the property after previously hiring him for a different remodeling project. He testified that discussions on the Wolcott Property began in March 2013 and led to an agreement in early 2014 that ARC would “do the remodeling and two permits.” Mr. Fernandez testified that the parties agreed to a flat rate of $120,000. However, when confronted with his deposition testimony—where he specifically stated the $120,000 figure was an approximation and not a flat rate that the parties agreed to for the work—Mr. Fernandez testified, “[u]nder my credit, I was—thought that it was going to be no more than 120. And it was going to be—maybe I [was] mistaken that I did—that I didn’t pay attention on that.” He agreed, however, that the parties did not put any conditions on the fees and acknowledged that, as he was

getting older, he was starting to have memory problems.

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American Remodal & Construction, Inc. v. Fernandez, 2020 IL App (1st) 192026-U (Ill. Ct. App. 2020).

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