Blackhawk Building, LLC v. Stanton

2025 IL App (2d) 230278-U
CourtAppellate Court of Illinois
DecidedAugust 5, 2025
Docket2-23-0278
StatusUnpublished

This text of 2025 IL App (2d) 230278-U (Blackhawk Building, LLC v. Stanton) 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
Blackhawk Building, LLC v. Stanton, 2025 IL App (2d) 230278-U (Ill. Ct. App. 2025).

Opinion

2025 IL App (2d) 230278-U No. 2-23-0278 Order filed August 5, 2025

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

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

BLACKHAWK BUILDING, LLC, ) Appeal from the Circuit Court ) of Kane County. Plaintiff-Appellant, ) ) v. ) No. 18-L-140 ) JOSEPH A. STANTON, ) Honorable ) Mark A. Pheanis, Defendant-Appellee. ) Judge, Presiding. ______________________________________________________________________________

JUSTICE JORGENSEN delivered the judgment of the court. Presiding Justice Kennedy and Justice Mullen concurred in the judgment.

ORDER

¶1 Held: Trial court’s judgment was against the manifest weight of the evidence, where, even deferring to the court’s credibility findings, the remaining evidence reasonably reflected that plaintiff proved fraud and breach of contract. Reversed and remanded for a determination of appropriate damages and attorney fees.

¶2 Plaintiff, Blackhawk Building, LLC (Blackhawk), sued defendants, Joseph A. Stanton

(Stanton), Robert Di Pasquantonio, Jeanette Di Pasquantonio, and EAT Restaurant Group, Inc.

(EAT), asserting claims of fraud/fraudulent inducement and breach of contract arising out of 2025 IL App (2d) 230278-U

Blackhawk’s purchase of a commercial property from Stanton. 1 On July 24, 2023, after a bench

trial, the trial court entered judgment on Stanton’s behalf and, on November 27, 2023, awarded

him attorney fees and costs. Blackhawk appeals. 2

¶3 I. BACKGROUND

¶4 We note that, in the first appeal in this case, Blackhawk Building, LLC v. Stanton, 2022 IL

App (2d) 210452, we provided a detailed background summarizing the parties’ claims through

summary judgment. However, we again deem it necessary to recount much of that background,

to provide context for trial court’s judgment at trial and the claims before us on appeal.

¶5 A. EAT’s Lease and the Contract Between Blackhawk and Stanton

¶6 Stanton owned the property at 524 West State Street in Geneva and on it built a multiunit

commercial building, which he leased to various businesses. Beginning in December 2006, EAT,

which was owned by the Di Pasquantonios, leased from Stanton and operated the Urban Grille

restaurant in one of the units. In January 2011, Stanton and EAT extended the lease, effective

December 1, 2011, to November 30, 2018. In relevant part, the lease required EAT to pay Stanton

rent on the first day of each month and contained a variable rent schedule, under which the monthly

rent was $17,500 in October and November 2013 and increased to $17,850 per month in December

1 Blackhawk voluntarily dismissed its claims against EAT and the Di Pasquantonios, EAT’s sole

owners, when the Di Pasquantonios were discharged in bankruptcy. Neither EAT nor the Di Pasquantonios

are involved in the appeal. 2 On June 16, 2025, this court granted the parties’ joint motion for status of the appeal. We

acknowledged that, due to an unfortunate clerical error, submission of the appeal for decision had been

delayed. Accordingly, we elected to dispense with oral argument and accelerated the appeal for decision.

We thank the parties for requesting a status update and apologize for the administrative error.

-2- 2025 IL App (2d) 230278-U

2013. The lease also defined what constituted a default: in pertinent part, a default included “[t]he

failure of [EAT] to pay an installment of Rent when due,” where “such failure continue[d] for [10]

days after written notice thereof by [Stanton] to [EAT].”

¶7 At some point before November 2013, Stanton decided to sell the property. He hired Jake

Finley to broker the sale. On November 21, 2013, Blackhawk, which was owned by David and

Susan Wagenaar, and Stanton agreed to purchase terms. Blackhawk agreed to purchase the

property for $4,100,000. (The sale price was later reduced to $3,975,000.) Blackhawk also agreed

to purchase (and Stanton agreed to assign to Blackhawk) all leases that were then in effect at the

property, including EAT’s lease. They signed a “Purchase Sale Agreement” (contract) reflecting

their agreed terms. Under paragraph 4 of the contract, Stanton was required to deliver to

Blackhawk certain due-diligence materials and allow Blackhawk access to his books and records

relating to the property. Blackhawk retained the right to terminate the contract for any reason for

45 days after the materials were delivered.

¶8 Paragraph 5 of the contract stated, in pertinent part, as follows:

“5. Conditions Precedent to Closing

(a) The following are conditions to closing for [Blackhawk’s] benefit, unless they are

waived by [Blackhawk] *** in writing prior to Closing: (i) [Stanton] shall not be

in default of any *** covenant or obligation under this [contract], (ii) all of

[Stanton’s] representations and warranties set forth in this Agreement shall remain

true and correct in all respects as of the Closing Date, *** (v) [Stanton] shall obtain

an estoppel certificate dated within ten (10) days of Closing (the “Tenant Estoppel

Certificate”) *** from each tenant under every Lease in a form reasonably

acceptable to [Blackhawk] and [Blackhawk’s] lender disclosing no material

-3- 2025 IL App (2d) 230278-U

defaults thereunder and no terms which are materially different from Leases

delivered to [Blackhawk].

(b) Upon failure of any of the foregoing conditions precedent, [Blackhawk] may

terminate this [contract] and [Blackhawk] shall be entitled to a return of the Deposit

and all obligations under this [contract] shall terminate. Notwithstanding the

foregoing, if a condition precedent to [Blackhawk’s] obligations to close shall fail

by virtue of a default by [Stanton] of an express obligation under this [contract],

then [Blackhawk] reserves its rights on account of such default.

(c) As used herein, the term [‘]Material Adverse Change[’] shall mean an adverse

change in the Property, the income generated or to be generated from the Property

and/or the expenses to be incurred in operating the Property, including (without

limitation) if any of the followings occurs with respect to any single tenant or group

of tenants comprising at least 10% of either the occupied space of the Property or

the gross rent of the Property: (i) ceasing operation from the Property (i.e. going

“dark”); (ii) monetary default under or termination of their respective Leases[;] (iii)

the announcement that it shall be closing its store at the Property or that it has or

intends to file for bankruptcy; or (iv) a material adverse change in the credit

worthiness of such tenant(s). Any announcement shall be based upon

correspondence or an announcement from such tenant or an otherwise credible or

verifiable source including media announcements.” (Emphases added.)

Paragraph 5(d) provided, in pertinent part, that the failure of any of the foregoing conditions

precedent entitled Blackhawk, at its option, to terminate the contract without liability.

-4- 2025 IL App (2d) 230278-U

¶9 Paragraph 7 addressed prorations at closing. Notably, paragraph 7(a) required the parties

to prorate all rents under the leases collected prior to closing but specified: “The parties shall not

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2025 IL App (2d) 230278-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackhawk-building-llc-v-stanton-illappct-2025.