Eastern Seafood Co., Inc. v. Barone

625 N.E.2d 664, 252 Ill. App. 3d 871, 192 Ill. Dec. 509, 1993 Ill. App. LEXIS 1214
CourtAppellate Court of Illinois
DecidedAugust 10, 1993
Docket1-92-2859
StatusPublished
Cited by4 cases

This text of 625 N.E.2d 664 (Eastern Seafood Co., Inc. v. Barone) 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
Eastern Seafood Co., Inc. v. Barone, 625 N.E.2d 664, 252 Ill. App. 3d 871, 192 Ill. Dec. 509, 1993 Ill. App. LEXIS 1214 (Ill. Ct. App. 1993).

Opinion

JUSTICE DiVITO

delivered the opinion of the court:

Plaintiff Eastern Seafood Company, Inc., filed this breach of contract action against defendants Nicholas Barone and unknown owners of a restaurant, Alfredo’s, among others, for nonpayment of over $30,000 in seafood deliveries. After a bench trial, the circuit court found defendant Nicholas Barone personally liable for the debt. It held that the liability of another defendant, Innocenzo DeLuliis, and of the restaurant had been discharged in bankruptcy and that other defendants should be dismissed. We affirm.

At trial, Mario Falco, president of plaintiff Eastern Seafood, testified that he took seafood orders from DeLuliis and Barone starting in 1987 or 1988. He did not know defendants Theresa Barone, 9905 West 55th Street, Inc. 1 (9905 West), or First Illinois Bank & Trust. Prior to January 31, 1989, plaintiff was paid by Alfredo’s, Inc., and after that was paid by Atron, Inc. (Atron). Plaintiff had not been paid for the deliveries between May 1988 and August 1989, however, so it claimed $30,734.80 in DeLuliis’ bankruptcy proceeding. It received only $2,520.20 from the bankruptcy estate. Falco explained how an invoice accompanies each delivery and is signed by the chef or owner at the time of delivery.

James Rubino, former manager of Eastern Seafood, testified that he had done business with Barone since 1982, when Barone ran the restaurant. Payments were timely until the restaurant was remodeled in 1987 or 1988, at which time “[p]ayments got real slow to none.” At Barone’s direction, he would go to the restaurant on Sunday evenings and collect a check, which often was returned for insufficient funds, or cash from Barone and no one else. Around early 1989, when Eastern Seafood no longer extended credit to the restaurant, Barone told him, “I want to improve my restaurant on the seafoods.” He was under the impression that Barone and DeLuliis were partners.

Joseph Maffei, a meat-packing company owner, testified that he had been doing business with Barone for 17 years. During that time, Barone had a pizzeria and a pizza supply house, and he then was involved with Alfredo’s and several other restaurants. Maffei had conducted business with Alfredo’s from the time it opened. He understood that DeLuliis and Barone were partners, and no one ever told him that the principals of Alfredo’s had changed in any way. He first ran into problems with bill payment when the remodeling occurred. Barone never said he was not paying the bills on the ground that he was not responsible for them. Eventually Maffei stopped doing business with Alfredo’s, and like Eastern Seafood, he filed a claim in De-Luliis’ bankruptcy proceeding.

Theresa Barone, Barone’s wife, explained the history of the site of the restaurant. From approximately 1972 to 1982, the building housed a restaurant known as Barone’s of Countryside, which was owned and operated by Barone. In 1982 or so, the restaurant became Alfredo’s, and the building was orally leased to DeLuliis and her husband “in some type of partnership.” Although at trial she testified that Barone did not work at Alfredo’s from 1986 through 1990, in a deposition she had said he had no other employment during that time and “probably” was at the restaurant. Despite her position as secretary of Atron, she did not know what business it did; likewise, she was unfamiliar with the affairs of 9901 West, which she presumed was in the restaurant business. Nevertheless, she verified a number of 9901 West checks from 1988 with Barone’s signature and the notation “Alfredo’s.” She could not say what their purpose was, though some were payable to restaurant vendors and others to the Illinois Departments of Labor and of Revenue. One check was payable to Barone, with the notation “petty cash.”

DeLuliis, Barone’s ex-brother-in-law and sole stockholder in Alfredo’s, Inc., testified that he had been the chef at the restaurant until January 1989. As partners, he and Barone had opened Alfredo’s after Barone of Countryside, which Barone had owned, closed. To remodel the restaurant prior to opening as Alfredo’s, DeLuliis had invested more than $20,000 and Barone had contributed a smaller sum. Shortly after the second remodeling at Christmas 1987 or 1988, he testified, he decided to leave when Barone told him “I got to take over on my own.” At a deposition, however, he had said the takeover occurred when the remodeling loan came through and Barone started pouring the foundation for the restaurant expansion. When Barone began managing the restaurant, 8 to 12 months before DeLuliis left, bills were not paid, and it was Barone’s decision not to pay plaintiff. Asked about the restaurant’s expenses and receipts, he replied “we take care of some of the bills and the rest Nick Barone took care of.” At Barone’s request, Alfredo, Inc., paid Barone’s wife as a partner, but Barone was the real partner.

DeLuliis conceded that he had formed Alfredo’s, Inc., in 1983 with $25,000 and that he was the sole shareholder. While operating the restaurant, he made mortgage payments on the property and paid the restaurant’s operating expenses, such as employees and suppliers from the Alfredo’s, Inc., account. Although he had been joined as a defendant in this lawsuit in January 1990, he claimed he was unaware of this when he filed for personal bankruptcy in July 1990 even though his bankruptcy petition listed the same amount for which Eastern Seafood brought this suit. DeLuliis explained that even though his bankruptcy petition had listed Eastern Seafood and a number of other vendors to Alfredo’s and had stated that only he owned and operated Alfredo’s, Inc., he merely signed the petition at his attorney’s direction and did not know what was in it. He also did not know that Eastern Seafood had received anything from his bankruptcy estate. Later, in plaintiff’s rebuttal case, DeLuliis testified that Barone “always took whatever he wanted” from the cash register in addition to the mortgage payment. DeLuliis admitted, however, that he himself had done most of the hiring, firing, and ordering.

Barone, testifying as an adverse witness, recounted that he had been in the restaurant business for 25 or 30 years; he had owned perhaps more than 20 restaurants during that time and franchised 10 others. At his deposition, he had explained that when DeLuliis ceased working at the restaurant in January 1989, the restaurant ownership had been “left *** in limbo to see what was [sic] the hell was going on.” He testified that he had paid the mortgage on the building since January 1989, but he explained that the reason he had indicated at his deposition that he had been paying it for “a couple of years” prior to the deposition was that he paid it on occasions when Alfredo’s could not afford to do so. As for the payments to his wife, he had merely provided consulting services to DeLuliis, for which his wife received $150 a week. He conceded that the restaurant’s liquor license had been in the name of Barone of Countryside, but he insisted that he had instructed DeLuliis many times to change it to Alfredo’s, Inc.

As their first witness, defendants called Theresa Barone. She explained that her husband had operated a restaurant in La Grange Park, but in 1984, Barone’s ex-wife became the owner, so he became unemployed until he ran a restaurant in Bellwood in 1985-86.

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Bluebook (online)
625 N.E.2d 664, 252 Ill. App. 3d 871, 192 Ill. Dec. 509, 1993 Ill. App. LEXIS 1214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-seafood-co-inc-v-barone-illappct-1993.