Damaschke v. Mick

2021 IL App (1st) 210101-U
CourtAppellate Court of Illinois
DecidedDecember 22, 2021
Docket1-21-0101
StatusUnpublished

This text of 2021 IL App (1st) 210101-U (Damaschke v. Mick) 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
Damaschke v. Mick, 2021 IL App (1st) 210101-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 210101-U

THIRD DIVISION December 22, 2021

No. 1-21-0101

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 ______________________________________________________________________________ DANIEL J. DAMASCHKE, Individually and on behalf of ) Illinois Hospitality Partners, LLC, an Illinois Corporation, ) Appeal from ) the Circuit Court Plaintiff-Appellant-Cross-Appellee, ) of Cook County ) v. ) 2000-CH-005549 ) DONNA J. MICK, and Illinois Hospitality Partners, LLC, ) Honorable an Illinois Corporation, ) Caroline Kate Moreland, ) Judge Presiding Defendants-Appellees-Cross-Appellants. )

JUSTICE McBRIDE delivered the judgment of the court. Presiding Justice Gordon and Justice Burke concurred in the judgment.

ORDER

¶1 Held: Circuit court erred by not performing an analysis before granting defendant’s motion to dismiss plaintiff’s complaint on grounds that there was another action pending between the same parties for the same cause. Defendant’s cross-appeal arguing that forum non conveniens is an alternative basis for dismissing the complaint was rejected because the circuit court had not sufficiently analyzed this ground.

¶2 Daniel J. Damaschke’s complaint against his business partner, Donna J. Mick, in which

he alleged she would neither help manage and fund their company, Illinois Hospitality Partners,

LLC, (IHP) nor agree to sever their relationship, was dismissed by the circuit court of Cook

County pursuant to section 2-619(a)(3) of the Code of Civil Procedure (735 ILCS 2-619(a)(3) 1-21-0101

(West 2020)) (Code), because “there was an existing case [in Madison County, Illinois] between

these parties relating to the same issues when this case was filed.” Damaschke argues that by

denying Mick’s alternative dismissal argument of forum non conveniens, the court acknowledged

that Damaschke’s suit has a legitimate and substantial connection to Cook County, which

enhanced Mick’s burden to show facts justifying dismissal under section 2-619(a)(3), and that

Mick failed to meet her burden. 735 ILCS 5/2-619(a)(3) (West 2020). Mick responds that

dismissal was warranted because her Madison County pleading and the two affidavits she

tendered were clear and convincing proof that both suits concern the same parties and the

singular issue of her partner’s mismanagement of IHP. On cross-appeal, she contends that the

circuit court should not have rejected her forum non conveniens argument because all of the

relevant factors weigh in favor of transfer. Damaschke counters that her argument relies on

unsupported conclusions rather than facts.

¶3 The dismissal order was entered on January 4, 2021. In the circuit court, Damaschke filed

a notice of appeal 28 days later, on February 1, 2021, and Mick filed a notice of cross-appeal two

days after that, on February 3, 2021. We have jurisdiction over the appeal and cross-appeal. See

Ill. S. Ct. R. 301 (eff. Feb. 1, 1994); Ill. S. Ct. R. 303 (eff. Jan. 1, 2015).

¶4 Damaschke alleged the following in the eight-page, four-count complaint that he filed

individually and on behalf of IHP against Mick and IHP on August 25, 2020. Damaschke and

Mick are 50/50 partners who each contributed $60,000 to form IHP in 2019. IHP is in the

business of operating five video gaming parlors in Illinois through five respective subsidiary

corporations. None of the six limited liability companies has an operating agreement. The

principal office of IHP and its five subsidiaries is located in Summit, Cook County, Illinois. The

-2- 1-21-0101

registered agent of IHP and its five subsidiaries is located in Bridgeview, Cook County, Illinois.

Four of the five gaming parlors are located in Cook County and the other one is located to the

north, in Winnebago County, Illinois. Damaschke resides in Bridgeview, Cook County, Illinois.

Mick resides to the south, in Edwardsville, Madison County, Illinois. IHP’s subsidiaries have not

generated sufficient revenue to cover their expenses since 2019, Mick has not cooperated with

Damaschke’s requests to manage and fund the business, and the partners have been unsuccessful

in negotiating an end to their business relationship. Since 2019, Damaschke has lent more than

$100,000 to the subsidiaries to meet business expenses and avoid defaulting on lease payments

which he personally guaranteed. Consequently, he has agreed “to sell the assets of four of the

IHP Subsidiaries for a cash payment.” (Damaschke did not disclose details about the asset sale,

such as which four of the five subsidiaries it concerned, the buyer’s name, or the sales price.)

Damaschke further alleged that Mick refuses to cooperate with the sale of assets for the benefit

of IHP’s members. In Count I of his complaint, Damaschke seeks a declaratory judgment that

Mick must cooperate as necessary to effectuate the asset sale. In Count II, Damaschke claims

Mick’s conduct is in breach of her fiduciary duties, which entitles him to compensatory and

punitive damages. In Count III, Damaschke seeks dissociation of Mick from IHP pursuant to the

judicial authority granted by the Limited Liability Company Act. See 805 ILCS 180/35-45(6)

(West 2020) (setting out three grounds for a member's expulsion by judicial determination). In

the alternative, in Count IV, Damaschke seeks judicial dissolution of IHP and equitable winding

up of its affairs. See 805 ILCS 180/35-1(A)(4)(c) (West 2020).

¶5 The Madison County complaint that was filed on June 12, 2020 is 85 pages long, and 15

of the 17 counts are brought by Mick’s husband, Jeff Mick, suing individually or derivatively on

-3- 1-21-0101

behalf of Lacey’s Place, LLC (Lacey’s Place), which is not part of IHP. Lacey’s Place is Jeff

Mick’s 25/75 partnership as of 2013 with Jeffery Lynn Rehberger, who is referred to as

“Senior.” Senior is related to Jeffrey Joseph Rehberger, who is referred to as “Junior.” We

outline the lengthy complaint only to the extent necessary to set out Damaschke and Mick’s

appellate arguments. Lacey’s Place operates or operated 38 licensed video gaming terminal

establishments in Addison, Beecher, Belvidere, Berwyn, Bradley, Champaign, Channahon,

Clinton, Crestwood, Crete, Decatur, Dekalb, Dolton, Georgetown, Hanover Park, Harvey,

Hickory Hills, Justice, Kankakee, Lake Zurich, Lynwood, Markham, Matteson, McHenry,

Midlothian, Minooka, Monee, North Riverside, Plano, River Grove, Romeoville, South Elgin,

Stone Park, and Westville, Illinois. Lacey’s Place allows video gaming on its premises through a

“terminal operator,” which, on information and belief, is Junior’s limited liability company,

Lucky Lincoln Gaming. Both of the Micks and both of the Rehbergers reside in Madison

County. Senior is the registered agent for Lacey’s Place. In 2019, the Illinois Gaming Board

denied license applications for the Lacey’s Place locations in Belvidere, Clinton, River Grove,

DeKalb, and Crestwood. On information and belief, in order to circumvent the license denial,

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

Related

Doutt v. Ford Motor Co.
659 N.E.2d 89 (Appellate Court of Illinois, 1995)
A. E. Staley Manufacturing Co. v. Swift & Co.
419 N.E.2d 23 (Illinois Supreme Court, 1980)
Chesler v. People
722 N.E.2d 668 (Appellate Court of Illinois, 1999)
Zavell & Associates, Inc. v. CCA Industries, Inc.
628 N.E.2d 1050 (Appellate Court of Illinois, 1993)
Eads v. Consolidated Rail Corp.
847 N.E.2d 601 (Appellate Court of Illinois, 2006)
Paul v. Gerald Adelman & Associates, Ltd.
858 N.E.2d 1 (Illinois Supreme Court, 2006)
McClain v. Illinois Central Gulf Railroad
520 N.E.2d 368 (Illinois Supreme Court, 1988)
Jackson v. Callan Publishing, Inc.
826 N.E.2d 413 (Appellate Court of Illinois, 2005)
Combined Insurance Co. of America v. Certain Underwriters at Lloyd's, London
826 N.E.2d 1089 (Appellate Court of Illinois, 2005)
Kellerman v. MCI Telecommunications Corp.
493 N.E.2d 1045 (Illinois Supreme Court, 1986)
Langenhorst v. Norfolk Southern Ry. Co.
848 N.E.2d 927 (Illinois Supreme Court, 2006)
Favia v. Ford Motor Co.
886 N.E.2d 1182 (Appellate Court of Illinois, 2008)
Performance Network Solutions v. Cyberklix
966 N.E.2d 396 (Appellate Court of Illinois, 2012)
LUCIE B. v. Department of Human Services
2012 IL App (2d) 101284 (Appellate Court of Illinois, 2012)
Whittmanhart, Inc. v. CA, INC.
932 N.E.2d 520 (Appellate Court of Illinois, 2010)
Dawdy, Jr. v. Union Pacific R.R. Co.
797 N.E.2d 687 (Illinois Supreme Court, 2003)
Shulte v. Flowers
2013 IL App (4th) 120132 (Appellate Court of Illinois, 2013)
Performance Network Solutions v. Cyberklix US
2012 IL App (1st) 110137 (Appellate Court of Illinois, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
2021 IL App (1st) 210101-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/damaschke-v-mick-illappct-2021.