Banana Stand Acquisitions, LLC v. Levenfeld Pearlstein, LLC

CourtAppellate Court of Illinois
DecidedMay 12, 2026
Docket1-25-1948
StatusUnpublished

This text of Banana Stand Acquisitions, LLC v. Levenfeld Pearlstein, LLC (Banana Stand Acquisitions, LLC v. Levenfeld Pearlstein, LLC) 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
Banana Stand Acquisitions, LLC v. Levenfeld Pearlstein, LLC, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 251948-U No. 1-25-1948 Order filed May 12, 2026 Second Division

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 DISTRICT ______________________________________________________________________________ BANANA STAND ACQUISITIONS LLC, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) No. 25 L 2906 ) LEVENFELD PEARLSTEIN, LLC, and HAROLD D. ) Honorable ISRAEL, ) Daniel J. Kubasiak, ) Judge, presiding. Defendants-Appellees. )

PRESIDING JUSTICE VAN TINE delivered the judgment of the court. Justices Ellis and D.B. Walker concurred in the judgment.

ORDER

¶1 Held: We affirm the circuit court’s order granting defendants’ motion to compel arbitration.

¶2 Plaintiff Banana Stand Acquisitions, LLC (“BSA”) appeals from the circuit court’s order

compelling arbitration. For the reasons that follow, we affirm.

¶3 I. BACKGROUND No. 1-25-1948

¶4 BSA filed a one-count complaint for legal malpractice against defendants Levenfeld

Pearlstein, LLC, a law firm, and Harold D. Israel, one of the firm’s attorneys. BSA alleged that it

held a perfected security interest as the “first position secured creditor” in the assets of a distressed

debtor named Triple Aught Design, LLC (Triple Aught). As part of their representation of BSA,

defendants were responsible for maintaining that security interest. In March 2023, BSA informed

defendants that it wanted to foreclose on its security interest in Triple Aught. Defendants revealed

that they had mistakenly allowed BSA’s security interest to lapse. Defendants advised BSA to wait

90 days before foreclosing on the security interest because the security interest could be “re-

perfected” during that time, thereby restoring BSA’s position as Triple Aught’s first secured

creditor. BSA did as defendants advised. However, during the 90-day period, Triple Aught’s

business “decline[d] precipitously,” which impaired the value of its assets. BSA alleged that if it

had foreclosed in March 2023, BSA could have asserted control over Triple Aught’s assets sooner

and prevented the decline.

¶5 Defendants filed a motion to either compel arbitration or dismiss BSA’s complaint

pursuant to section 2-619(a)(9) of the Code of Civil Procedure (735 ILCS 5/2-619(a)(9) (West

2024)). Defendants argued that Noah Wrubel, on behalf of BSA’s predecessor Newco LLC,

retained defendants for legal representation for the Triple Aught investment. Wrubel, on behalf of

Newco, signed a March 14, 2021, attorney-client agreement that defined the scope of

representation, the parties’ rights and obligations, and included an arbitration provision.

Defendants contended that although Newco was not yet incorporated when Wrubel signed the

agreement, Newco eventually incorporated on November 3, 2021, under the name of “Banana

Stand Acquisition[sic] LLC.”

-2- No. 1-25-1948

¶6 In support of its motion, defendants attached (1) the signed attorney-client agreement; and

(2) attorney Harold D. Israel’s affidavit. The attorney-client agreement provides, in relevant part,

that defendants would represent “ ‘Newco LLC’ (name to be changed upon formation, and referred

to in this letter as ‘Company’) in connection with the Company’s analysis about whether to invest

in Triple Aught Design, LLC (‘Triple Aught’).” Attorney Israel would “have the primary

responsibility for” “analyzing Triple Aught’s current debt and equity documents (including if

possible, talking to certain of the parties) to determine how to best structure such an investment

(or to not invest).” If Newco decided to invest in Triple Aught, defendants would be responsible

for “documenting the transaction” and other “additional matters as agreed upon going forward.”

The attorney-client agreement provided defendants’ hourly rates and required an initial retainer

payment of $6,500. The attorney-client agreement incorporated an attached “Standard Terms of

Engagement for Legal Services,” and specified that those terms would “govern both the present

engagement and any future assignments [defendants] accept from [Newco].” Those terms included

the following arbitration provision:

“Dispute Resolution. Any demands, claims or controversies arising out of or

relating to this contract or the services provided by our firm, (including, but not limited to,

fees or costs, breach of contract, tort claims or professional negligence), shall be settled by

binding arbitration before ADR Systems of America in Chicago[,] Illinois and in

accordance with the Arbitration Rules of ADR Systems of America, and judgment upon

the award rendered by the arbitrator may be entered in any court or tribunal having

jurisdiction thereof. Either party may commence the arbitration process called for in this

agreement by filing a written demand for arbitration with ADR Systems of America. The

-3- No. 1-25-1948

arbitration will be conducted in accordance with the ADR Systems of America Arbitration

Rules and Procedures in effect at the time of filing of the demand for arbitration. The parties

will select one arbitrator from ADR Systems of America’s panel of neutrals and will share

equally in the costs. The prevailing party shall be awarded attorney[] fees. The party

seeking enforcement shall be entitled to an award of all costs, fees and expenses, including

attorney[] fees, to be paid by the party against whom enforcement is ordered.”

¶7 The attorney-client agreement advised Wrubel to contact defendants if he had any

questions, “comments, concerns or changes” to the terms and requested a signature to indicate

agreement to “the terms and conditions set forth in the attachment.” Wrubel signed the attorney-

client agreement “[o]n behalf of Newco LLC (to be updated upon establishment of Company).”

¶8 Israel’s affidavit attested that he performed legal services for BSA as specified in the

attorney-client agreement and that there were no other agreements between BSA and defendants.

Israel attested that Newco “was later formed under the name Banana Stand Acquisition[sic] LLC.”

He further attested that after receiving the signed attorney-client agreement, defendants assigned

Newco a client number and case number. After BSA’s incorporation, defendants continued to bill

BSA under the same client and case number.

¶9 In response, BSA argued that it was not a party to the attorney-client agreement between

Newco and defendants, and was not Newco’s successor. BSA also contended that Wrubel did not

have the authority to execute a contract on its behalf before it even existed. In addition, BSA argued

that the arbitration provision was procedurally unconscionable because defendants never fully

informed Wrubel of the ramifications of the arbitration provision, citing Dick-Ipsen v. Humphrey,

Farrington & McClain, P.C., 2024 IL App (1st) 241043.

-4- No. 1-25-1948

¶ 10 In support of its response, BSA attached (1) what appears to be a website printout from the

Delaware Division of Corporations indicating that “Banana Stand Acquisition[sic] LLC” was

incorporated on November 3, 2021, several months after Wrubel signed the agreement; (2)

Wrubel’s affidavit; and (3) an e-mail chain between Wrubel and defendants regarding the

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