Chicagoland & Painting 123, LLC v. Lustig

Appellate Court of Illinois·Decided August 20, 2026·No. 1-25-1062·Unpublished

Opinion

2026 IL App (1st) 251062-U No. 1-25-1062

Order filed August 20, 2026

Fourth 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 JUDICIAL DISTRICT

CHICAGOLAND PAINTING 123 LLC d/b/a ) Appeal from the FIVE STAR PAINTING OF NORTH SHORE, ) Circuit Court of ) Cook County.

Plaintiff and Counterdefendant-Appellee, )

)

v. ) No. 24 M2 01563 )

SHELDON M. LUSTIG, ) Honorable ) James Allegretti Defendant and Counterplaintiff-Appellant. ) Judge Presiding.

PRESIDING JUSTICE NAVARRO delivered the judgment of the court.

Justices Ocasio and Quish concurred in the judgment.

ORDER

¶1 Held: The trial court’s judgment following a bench trial finding in favor of plaintiff and against defendant on plaintiff’s breach of contract claim and on defendant’s breach of contract counterclaim is not against the manifest weight of the evidence. The trial court erred in dismissing defendant’s counterclaim brought pursuant to the Illinois Mechanics Lien Act for failing to timely release the lien (770 ILCS 60/35 (West 2024)).

Affirmed in part and reversed in part. Cause remanded.

¶2 Defendant-Counterplaintiff, Sheldon M. Lustig (Lustig), appeals from the trial court’s judgment finding in favor of Plaintiff-Counterdefendant, Chicagoland Painting 123 LLC, doing business as Five Star Painting of North Shore (Five Star), and against Lustig on Five Star’s breach of contract claim and on Lustig’s breach of contract counterclaim following a bench trial. He also

appeals from the court’s order granting Five Star’s section 2-619 motion to dismiss (735 ILCS 5/2- 619 (West 2024)) on his counterclaim alleging a claim under the Illinois Mechanics Lien Act (Act) (770 ILCS 60/35 (West 2024)) for failing to timely release the lien. On appeal, Lustig contends that the trial court’s judgment on Five Star’s breach of contract claim and his breach of contract counterclaim is against the manifest weight of the evidence. He also argues the court erred in dismissing his counterclaim for failure to release the lien because the statutory penalty under the Act for failing to timely release the lien is mandatory. For the following reasons, we affirm the court’s judgment in favor of Five Star and against Lustig on the parties’ breach of contract claims, and we reverse the court’s order granting Five Star’s motion to dismiss Lustig’s counterclaim for failing to timely release the lien.

¶3 I. BACKGROUND

¶4 In April 2020, the parties entered into a contract whereby Lustig would pay Five Star $18,435 for Five Star to provide painting services at Lustig’s residence. In January 2021, Five Star recorded a lien with the Cook County Clerk’s Office against Lustig’s property, alleging that Lustig did not pay the full amount owed under the contract. In April 2024, Five Star filed a complaint for breach of contract against Lustig based on his failure to pay.

¶5 Five Star’s complaint alleged as follows. Lustig paid Five Star a down payment of about $9,000, after which Five Star provided painting services in a workmanlike manner pursuant to Lustig’s directions. At the time that Five Star provided the painting services, Lustig was remodeling the interior of his residence such that there were multiple contractors at the site. Five Star was “required to work around numerous other subcontractors including electricians, a plumber, tile installers, and more.” During the parties’ final walkthrough inspection after Five Star had finished the painting services, Lustig refused to pay Five Star the additional money owed under

the contract, and he ordered Five Star’s manager off the property. Five Star alleged that Lustig breached the contract by failing to pay the full amount owed, and it requested the court enter judgment in the amount of $9,217.50, plus interest of $4,977.45, and attorney fees.

¶6 Five Star attached to its complaint the contract that provided, among other things, “Five Star will always do a walk around with the customer at the end of the job to ensure that the customer is completely satisfied with the final product” and “[a]ll work to be completed in a workmanlike manner according to standard practices.” It also contained a provision stating that, “[i]n the event suit is brought, the prevailing party shall recover its attorney fees and costs.”

¶7 Lustig’s Counterclaims

¶8 Lustig alleged three counterclaims, including breach of contract, “negligent property damage,” and failure to release the lien pursuant to section 35 of the Act (770 ILCS 60/35 (West 2024)).

¶9 In Lustig’s breach of contract claim, he alleged that Five Star failed to complete the work specified in the contract and that its work was “incomplete, non-conforming and of poor quality.” He alleged that Five Star “refused to correct hundreds of spots where little or no paint had been applied or where paint was found on the floor or other inappropriate areas, where the painting was clumpy or otherwise of poor quality, unprofessional and extremely non- workmanlike.” Lustig further alleged that Five Star breached the contract because it used the first- floor powder room for cleaning even though Lustig instructed Five Star not to use that room. As a result, Five Star damaged the sink and wallpaper in that room. Lustig claimed that he suffered damages due to Five Star’s actions because he had to pay over $15,000 to complete or correct Five Star’s work and to make the repairs to the powder room.

¶ 10 In Lustig’s claim for “negligent property damage,” he alleged that Five Star breached its duty of care by failing to complete the painting in a workmanlike manner and by ignoring Lustig’s instructions not to use the powder room for cleaning. He alleged that, as a result, Five Star negligently caused damage to the powder room.

¶ 11 In Lustig’s claim for failure to release the lien under section 35 of the Act, he alleged that on January 14, 2021, Five Star filed a lien against his property pursuant to the Act. On January 8, 2023, Lustig sent a demand letter to Five Star, in which he demanded Five Star either file suit to foreclose the lien or release the lien. Five Star failed to file suit to enforce the lien. On March 15, 2024, Lustig sent Five Star a demand pursuant to section 35 of the Act to record a release or satisfaction of the lien within 10 days, after which Five Star failed to do so. Lustig alleged that, due to Five Star’s failure to record a timely release or satisfaction of the lien within 10 days, Five Star was liable to Lustig under the Act in the amount of $2,500, plus attorney fees and costs.

¶ 12 Lustig attached to his counterclaim the lien Five Star filed against Lustig’s property. Lustig also attached his March 15, 2024, demand letter, in which he stated that Five Star failed to file suit or release the lien within 30 days of its January 8, 2023, demand letter and that, pursuant to the Act, Five Star must record a satisfaction and release of the lien within 10 days.

¶ 13 Five Star’s Section 2-619.1 Motion to Dismiss Lustig’s Claims for Negligence and Failure to Release the Lien

¶ 14 Five Star moved to dismiss Lustig’s negligence claim under section 2-615 of the Code of Civil Procedure (Code) (735 ILCS 5/2-615 West 2024)), arguing that the negligence claim was insufficient because, under the Moorman doctrine, Lustig could not recover in tort for purely economic losses where the parties have a contract. See Olson v. Ferrara Candy Co., 2025 IL App (1st) 241126, ¶ 43 (“The Moorman doctrine, also known as the economic loss doctrine, states that there can be no recovery in tort for purely economic losses.”).

Free access — add to your briefcase to read the full text and ask questions with AI

Chicagoland & Painting 123, LLC v. Lustig, (Ill. Ct. App. 2026).

Chicagoland & Painting 123, LLC v. Lustig (Chicagoland & Painting 123, LLC v. Lustig) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Erlenbush v. Largent
819 N.E.2d 1186 (Appellate Court of Illinois, 2004)
Foutch v. O'BRYANT
459 N.E.2d 958 (Illinois Supreme Court, 1984)
Eychaner v. Gross
779 N.E.2d 1115 (Illinois Supreme Court, 2002)
Krzyminski v. Dziadkowiec
695 N.E.2d 1275 (Appellate Court of Illinois, 1998)
Southwest Bank of St. Louis v. POULOKEFALOS
931 N.E.2d 285 (Appellate Court of Illinois, 2010)
Gateway Concrete Forming Systems, Inc. v. Dynaprop XVIII: State Street LLC
826 N.E.2d 1051 (Appellate Court of Illinois, 2005)
Kensington's Wine Auctioneers & Brokers, Inc. v. John Hart Fine Wine, Ltd.
909 N.E.2d 848 (Appellate Court of Illinois, 2009)
Porter v. Decatur Memorial Hospital
882 N.E.2d 583 (Illinois Supreme Court, 2008)
Webster v. Hartman
749 N.E.2d 958 (Illinois Supreme Court, 2001)
Chicago's Pizza, Inc. v. Chicago's Pizza Franchise Limited USA
893 N.E.2d 981 (Appellate Court of Illinois, 2008)
Schultz v. Performance Lighting, Inc.
2013 IL 115738 (Illinois Supreme Court, 2013)
Scepurek v. The Board of Trustees of the Northbrook Firefighters' Pension Fund
2014 IL App (1st) 131066 (Appellate Court of Illinois, 2014)
Patrick Engineering, Inc. v. The City of Naperville
2012 IL 113148 (Illinois Supreme Court, 2012)
Staes and Scallan, P.C. v. Orlich
2012 IL App (1st) 112974 (Appellate Court of Illinois, 2012)
Trutin v. Adam
2016 IL App (1st) 142853 (Appellate Court of Illinois, 2016)
Gataric v. Colak
2016 IL App (1st) 151281 (Appellate Court of Illinois, 2016)
Koshinski v. Trame
2017 IL App (5th) 150398 (Appellate Court of Illinois, 2017)
Wade v. Stewart Title Guaranty Co.
2017 IL App (1st) 161765 (Appellate Court of Illinois, 2017)
Gateway-Walden, LLC v. Pappas
2018 IL App (1st) 162714 (Appellate Court of Illinois, 2018)
Russo v. Corey Steel Co.
2018 IL App (1st) 180467 (Appellate Court of Illinois, 2018)