CJ Investment Properties, LLC v. Express Medical Care, LLC

2024 IL App (5th) 230783-U
Appellate Court of Illinois·Decided November 19, 2024·No. 5-23-0783·Unpublished

Opinion

NOTICE

2024 IL App (5th) 230783-U NOTICE

Decision filed 11/19/24. The This order was filed under text of this decision may be NO. 5-23-0783 Supreme Court Rule 23 and is changed or corrected prior to not precedent except in the the filing of a Petition for IN THE limited circumstances allowed Rehearing or the disposition of under Rule 23(e)(1).

the same.

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT

CJ INVESTMENT PROPERTIES, LLC, ) Appeal from the ) Circuit Court of

Plaintiff-Appellee, ) St. Clair County.

)

v. ) No. 21-CH-204 )

EXPRESS MEDICAL CARE, LLC, ) KEVIN M. HAZLETT, DEBBIE J. HAZLETT, ) and CITI MORTGAGE INC., )

)

Defendants )

) Honorable

(Express Medical Care, LLC, Kevin M. Hazlett, and ) Julie K. Katz, Debbie J. Hazlett, Defendants-Appellants). ) Judge, presiding.

JUSTICE BARBERIS delivered the judgment of the court.

Presiding Justice Vaughan and Justice Boie concurred in the judgment.

ORDER

¶1 Held: We affirm where the circuit court did not err by granting plaintiff’s motion for summary judgment.

¶2 The St. Clair County circuit court entered a default judgment in favor of plaintiff, CJ Investment Properties, LLC, and against defendants, Express Medical Care, LLC and Kevin M. Hazlett. Plaintiff filed a judgment lien on personal property owned by defendants Kevin Hazlett and Debbie Hazlett. Plaintiff subsequently filed a complaint for foreclosure on the lien, as well as a motion for summary judgment. The circuit court granted the motion for summary judgment, in part, and entered a judgment of foreclosure. Defendants appeal each of the court’s orders, arguing

that they are not personally liable for the debts of Express Medical Care, LLC. For the following reasons, we affirm.

¶3 I. Background

¶4 On November 2, 2020, plaintiff filed a first amended four-count complaint against defendants Express Medical Care, LLC and Kevin Hazlett in St. Clair County (case No. 19-AR- 547). In count I, plaintiff, a business engaged in the leasing and development of commercial real estate, alleged that Express Medical Care, LLC breached its lease agreement with plaintiff and defaulted on said lease. Plaintiff requested that the circuit court find defendants in default and award plaintiff “back rent and penalties including [plaintiff’s] cost and attorney’s fees and interest, in an amount in excess of $155,000.00, pursuant to the lease agreement and for any further relief this court deems just.” In count II, plaintiff alleged that Express Medical Care, LLC and Kevin Hazlett signed a promissory note in the amount of $15,342.90 for real estate property taxes and requested a “judgment pursuant to the promissory note against Defendant Express Medical Care, LLC and Kevin Hazlett including [plaintiff’s] cost and attorney’s fees and interest, in an amount in excess of $155,000.00, pursuant to the note and for any further relief this Court deems just.” In count III, plaintiff alleged that Kevin Hazlett signed a guarantee agreement with plaintiff to pay the promissory note for real estate property taxes in the principal amount of $15,342.90 and that Kevin Hazlett had refused to make the payment. Plaintiff demanded immediate payment upon the guarantee and sought “damages, including [plaintiff’s] costs and attorney’s fees and interest, in an amount in excess of $155,000.00, pursuant to the Guarantee Agreement and for any further relief this Court deems just.” Count IV of the complaint made identical allegations to the allegations set forth in count II of the complaint.

¶5 On January 22, 2021, plaintiff filed a joint motion for default judgment, judgment on lease, and possession. Plaintiff alleged that neither defendant filed a responsive pleading to the complaint and that defendants were in default.

¶6 On April 1, 2021, following a hearing, 1 the circuit court entered a written order that provided as follows:

“Plaintiff’s motion for default judgment and possession is hereby Granted.

Judgment in favor of plaintiff CJ Investment Properties LLC and against Defendants Express Medical Care, LLC and Kevin Hazlett in the amount of $217,709.70. Plaintiff is Granted possession of the premises located at 5031 North Illinois, Fairview Heights, IL.

Eviction of Defendants is stayed for 30 days from today’s date.”

¶7 On August 6, 2021, plaintiff recorded a judgment lien with the St. Clair County Recorder of Deeds. Plaintiff recorded the judgment lien “on real estate and any improvement owned by Kevin Hazlett based on a Judgment in favor of CJ Investment Properties LLC against Kevin Hazlett and others on April 1, 2021, in the Circuit Court of St. Clair County, Illinois in the amount of $217,709.70 (judgment attached).”

¶8 On December 22, 2021, plaintiff filed a complaint against, inter alia, defendants, Kevin and Debbie Hazlett in St. Clair County (21-CH-204). 2 Plaintiff alleged that defendant Kevin Hazlett owned Express Medical Care, LLC and that he signed a personal guarantee. Plaintiff alleged facts detailing the prior litigation in case No. 19-AR-547, including the fact that the circuit court entered a judgment on April 1, 2021, in favor of plaintiff and against defendants Kevin Hazlett and Express Medical Care, LLC in the amount of $217,709.70. Plaintiff alleged that the

1 A transcript from the hearing has not been included in the record on appeal. It appears from the record that defendant Kevin Hazlett, also a practicing attorney, appeared at the hearing.

2 Express Medical Care, LLC was not a named defendant in the complaint.

judgment remained unpaid despite numerous attempts to contact Kevin Hazlett. Plaintiff alleged that it filed a judgment lien against an O’Fallon, Illinois, property owned by Kevin and Debbie Hazlett on August 6, 2021. Plaintiff requested, inter alia, a judgment to foreclose on the $217,709.70 lien upon the premises owned by the Hazletts plus attorney fees, court costs, and expenses.

¶9 On December 12, 2022, plaintiff filed an amended judgment lien. The amended judgment lien contained the same information as the judgment lien previously filed on August 6, 2021.

¶ 10 On January 25, 2022, defendant Kevin Hazlett, also a practicing attorney, entered an appearance on behalf of himself and Debbie Hazlett. Also on that date, Kevin Hazlett filed an answer to the complaint, denying the allegations that he “owned a business called Express Medical Care, LLC” and that he “signed a personal guarantee.” The answer alleged that neither the previously entered default judgment nor the judgment lien filed by plaintiff reflected “the apportionment of the judgment among/between the defendants.” Kevin and Debbie Hazlett further denied that plaintiff was entitled to a $217,709.70 lien on their property plus interest, attorney fees, court costs, and expenses. Thus, Kevin and Debbie Hazlett requested that the circuit court deny plaintiff’s prayer in its entirety.

¶ 11 On April 1, 2022, the circuit court granted plaintiff leave to file a first amended complaint to add defendant Citi Mortgage Inc., the company that owned the mortgage on the property owned by the Hazletts. Plaintiff filed the first amended complaint on July 19, 2022, adding Citi Mortgage Inc. as a defendant.

¶ 12 On October 3, 2022, the attorney for defendant Citi Mortgage Inc. filed an entry of appearance. On October 25, 2022, Citi Mortgage Inc. filed an answer and affirmative defenses.

Citi Mortgage Inc. alleged that there was no legal basis for plaintiff’s judgment to take priority over its mortgage on the property.

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CJ Investment Properties, LLC v. Express Medical Care, LLC, 2024 IL App (5th) 230783-U (Ill. Ct. App. 2024).

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