Balmadrid v. Gupta

2024 IL App (1st) 230016-U
CourtAppellate Court of Illinois
DecidedOctober 28, 2024
Docket1-23-0016
StatusUnpublished

This text of 2024 IL App (1st) 230016-U (Balmadrid v. Gupta) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balmadrid v. Gupta, 2024 IL App (1st) 230016-U (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 230016-U No. 1-23-0016

FIRST DIVISION October 28, 2024

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ____________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ____________________________________________________________________________

JOSE C. BALMADRID, ) Appeal from the Circuit Court ) of Cook County, Illinois, Plaintiff-Appellant, ) ) ) ) No. 20 L 012128 v. ) Consolidated with 20 L 012674 ) NAWAL GUPTA and SATYA GUTPA, ) ) Defendants-Appellees. ) The Honorable ) Thomas More Donnelly, ) Judge Presiding.

JUSTICE PUCINSKI delivered the judgment of the court. Justices Lavin and Cobbs concurred in the judgment.

ORDER

¶1 Held: We affirm the circuit court’s order granting defendants’ motion for a directed finding and dismissing plaintiff’s action, as well as the subsequent order denying plaintiff’s corresponding motion to reconsider. We also deny plaintiff’s motion for summary judgment that was filed in this court and taken with the case.

¶2 Plaintiff-appellant Jose C. Balmadrid (plaintiff) appeals after the circuit court granted

defendants Nawal Gupta and Satya Gupta’s motion for a directed finding and then denied

plaintiff’s corresponding motion to reconsider. For the following reasons, we affirm the circuit 1-23-0016

court. We also deny plaintiff’s “Motion for Summary Judgment on Breach of Contract,” filed in

this court while this appeal was pending.

¶3 BACKGROUND

¶4 The record reflects that this appeal stems from the same factual basis as a prior lawsuit

commenced by plaintiff in 2015 (case no. 15 L 5084) that led to a prior Rule 23 order of this court,

Balmadrid v. Gupta, 2018 IL App (1st) 171183-U. We review that 2018 Rule 23 order, especially

as plaintiff relied on it heavily in his subsequent circuit court filings and his submissions to this

court in the instant appeal.

¶5 The complaint that commenced the prior lawsuit is not in the record in this appeal, but its

allegations are summarized in the 2018 Rule 23 order. In essence, plaintiff sued Satya Gupta

(Satya) and her daughter, Nawal Gupta (Nawal), alleging he was deprived of his rightful interests

in two real estate properties.

¶6 Specifically, plaintiff alleged that in 2009, Satya and her late husband, Om Gupta, offered

plaintiff the opportunity “to join a ‘real estate investment venture’ for the purpose of purchasing

various properties.” Balmadrid, 2018 IL App (1st) 171183-U, ¶ 5. At the time, plaintiff operated

a real estate brokerage business out of a multi-unit residential building at 2454-60 West Peterson

Avenue in Chicago (the “Peterson property”), where plaintiff also resided with his family. In

October 2009, plaintiff orally proposed that Om and Satya acquire the Peterson property, and they

allegedly agreed. Id. ¶ 6.

¶7 Broadway Bank foreclosed on the Peterson property in November 2009, and a judicial sale

was scheduled. Id. In December 2009, Om allegedly sent plaintiff a proposal to form a limited

liability company (LLC) and requested that plaintiff prepare an “LLC Partnership Agreement,”

-2- 1-23-0016

but there is no evidence that an LLC was actually created or that any partnership agreement was

signed. Id.

¶8 Om purchased the Peterson property at the judicial sale in December 2009. Id. ¶ 7.

According to plaintiff, Om and Satya orally agreed that plaintiff would manage and maintain co-

ownership of the property, and that plaintiff would receive a management fee based on rental

income from the property. Id. In addition, Om and Satya allegedly orally agreed with plaintiff to

conduct a year-end accounting and to distribute net proceeds equally among the partners involved

in the LLC partnership. Id.

¶9 Plaintiff further alleged that, “acting pursuant to his duties under the LLC Partnership

Agreement,” he assisted in the purchase of a second property at 8156 South Kingston Avenue (the

“Kingston property”). Id. ¶ 8. Om allegedly purchased that property in the name of his daughter,

Nawal. Id.

¶ 10 Plaintiff asserted that in November 2010, Om filed an eviction complaint in the circuit

court to evict plaintiff from the Peterson property. Id. ¶ 9. Nawal allegedly posted letters at the

property informing tenants of a change in management. Id. Plaintiff alleged that he was forced to

resign as property manager, and that defendants never provided the promised year-end accounting.

Id. Plaintiff alleged that Om, Satya, and Nawal’s actions “constituted a breach of contract and

fiduciary duty” owed to plaintiff as a “partner to the LLC.” Id. As a result, he lost his business

office and family residence in the Peterson building, as well as his share of ownership and rental

income from the Peterson and Kingston properties. Id.

-3- 1-23-0016

¶ 11 In the prior action, the circuit court granted defendants’ motion to dismiss and then denied

plaintiff’s motion to reconsider. Id. ¶ 11. Plaintiff appealed, arguing that he had stated a cause of

action for breach of contract against both Nawal and Satya. 1

¶ 12 This court found that plaintiff failed to allege sufficient facts to support a breach of contract

claim against Nawal. Id. ¶ 19. However, we concluded that plaintiff alleged enough to maintain a

claim against Satya: “Taking all of plaintiff’s factual allegations as true and drawing all reasonable

inferences in his favor, plaintiff’s complaint, although at times inartfully drafted, alleged the

existence of an oral March 2009 partnership agreement between himself, Om, and Satya to engage

in a real estate investment venture.” Id. ¶ 20. That is, plaintiff’s complaint “sufficiently alleged the

existence of an oral partnership agreement with Satya, Satya’s breach of the agreement, and that

plaintiff suffered damages in the form of his lost share of the net proceeds as a result.” Id.

Accordingly, we reversed the circuit court’s judgment insofar as it dismissed the breach of contract

claim against Satya, and we remanded for further proceedings. Id. ¶ 21.

¶ 13 The record in this appeal does not reveal what proceedings, if any, occurred on remand

under the original case number, no. 15 L 5084. Rather, it appears that plaintiff proceeded by filing

new complaints that were assigned new case numbers. 2

¶ 14 Plaintiff’s 2019 Lawsuit

¶ 15 The record reflects that in 2019, plaintiff initiated a new lawsuit (no. 19 L 1763) against

Satya. The record in this appeal does not contain a corresponding complaint. However, the record

contains an August 2019 order in that case, in which the circuit court (Hon. Diane M. Shelley)

1 As plaintiff did not argue on appeal that he asserted a valid claim for breach of fiduciary duty, our Rule 23 order found that he forfeited any challenge to dismissal of that claim. Id. ¶ 16. 2 According to one of defendants’ filings in the circuit court, “After winning his appeal, Plaintiff did not wait for the Appellate Court’s remand” but “filed a new complaint in 2019 that was renumbered to a 2020 case, and then filed a third case in 2020 that was consolidated.”

-4- 1-23-0016

denied Satya’s motion to dismiss the complaint. The order reflects that Satya sought dismissal on

the ground that plaintiff failed to state a cause of action for oral breach of contract. The circuit

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2024 IL App (1st) 230016-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balmadrid-v-gupta-illappct-2024.