Harding v. Shi

2025 IL App (1st) 240317
Appellate Court of Illinois·Decided August 4, 2025·No. 1-24-0317·Published

Opinion

2025 IL App (1st) 240317

No. 1-24-0317

FIRST DIVISION

August 4, 2025

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

SHEARIE HARDING, ) Appeal from the Circuit Court of ) Cook County.

)

Plaintiff-Appellant, )

)

v. ) No. 2023 M1-118353 )

MEIFANG SHI and RICHLAND GLOBAL, ) INC., )

) The Honorable

Defendants-Appellees. ) Stephen A. Swedlow, ) Judge Presiding.

JUSTICE PUCINSKI delivered the judgment of the court, with opinion.

Justices Cobbs and Lavin concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, who formerly leased an apartment from defendant Meifang Shi, appeals from the circuit court’s dismissal of her action, in which she alleged violations of the Chicago Residential Landlord and Tenant Ordinance (RLTO) pertaining to security deposits. The trial court dismissed the action after defendants provided proof that plaintiff’s former roommate paid the entirety of the security deposit for the lease in question. For the following reasons, we affirm.

¶2 BACKGROUND

¶3 In May 2023, plaintiff and Kenneth Turner (who is not a party to this action) together executed a lease with defendant Shi (hereinafter landlord) to rent an apartment located at 3527 South Parnell Avenue in Chicago. The lease identified both plaintiff and Turner as tenants, and it indicated that three children would also reside with them. Both plaintiff and Turner signed the lease.

¶4 The lease specified a one-year term beginning on July 1, 2023, with monthly rent of $3100. The lease also called for a payment of a security deposit of $5000, which was to be held by defendant Richland Global, Inc. (Richland) on the landlord’s behalf.

¶5 It is undisputed that Turner paid the entire $5000 security deposit to Richland. The record reflects that plaintiff and Turner moved into the premises in early July 2023.

¶6 Plaintiff Vacates the Premises and Demands Payment From the Landlord

¶7 On July 24, 2023, plaintiff’s counsel sent a letter to the landlord advising that plaintiff had been the victim of domestic violence by a household member and, thus, “your lease with [plaintiff] is terminated.” Plaintiff’s counsel indicated that she had left the apartment, but that Turner continued to reside at the premises and remained obligated to pay rent.

¶8 In the same letter, plaintiff’s counsel demanded return of the $5,000 security deposit plus additional penalties and fees totaling $16,500. Plaintiff’s counsel alleged that the landlord had failed to disclose information about the bank holding the security deposit or to provide a receipt, in violation of RLTO section 5-12-080. Chicago Municipal Code § 5-12-080 (amended July 28, 2010). Plaintiff’s counsel stated: “The penalty under the law is two times the deposit amount plus attorney fees and immediate return of the deposit. Therefore, demand is now made for this security deposit violation of $10,000.00 plus return of deposit of $5000.00 for a total of $15,000.00.”

Plaintiff’s counsel stated that he had incurred $1,500 in fees and thus “the total demand is $16,500.”

¶9 Landlord Releases Plaintiff From the Lease but Denies Any Further Obligation

¶ 10 On August 4, 2023, the landlord responded by letter from its counsel to plaintiff’s counsel. The landlord stated it had no objection to termination of the lease with respect to plaintiff, and the landlord “agree[d] to release [plaintiff] from any further obligation or liability pursuant to the lease.” However, the landlord stated it would not terminate the lease with respect to Turner.

¶ 11 Regarding the security deposit, landlord’s counsel stated that it had been paid by Turner. Attached to the letter was a receipt from Richland indicating the $5000 deposit had been paid from a checking account in Turner’s name. Because Turner paid the security deposit and continued to reside at the apartment, landlord’s counsel denied that plaintiff was entitled to return of the security deposit or any other payments.

¶ 12 Plaintiff Commences This Action

¶ 13 On August 21, 2023, plaintiff filed a complaint against the landlord and Richland, alleging violations of section 5-12-080 of the RLTO. Although her complaint attached a copy of the lease, its allegations made no mention of Turner. Plaintiff alleged that “Pursuant to the terms of the Lease, Plaintiff paid to Defendant $5,000 for a security deposit.”

¶ 14 Plaintiff alleged that in violation of section 5-12-080 of the RLTO, the landlord “never disclosed the address of the financial institution” where the $5,000 security deposit was held and “never provided Plaintiff with a proper security deposit receipt.” Plaintiff alleged that she terminated the lease on July 24, 2023, but that defendants failed to return the security deposit despite her demand.

¶ 15 The complaint cited section 5-12-080(f)(1) of the RLTO, by which if a landlord fails to comply with section subsections 5-12-080(a) through (e), “the tenant shall be awarded damages in an amount equal to two times the security deposit plus interest at a rate determined in accordance with RLTO section 5-12-081.” Chicago Municipal Code § 5-12-080(f)(1) (amended July 28, 2010).

¶ 16 Plaintiff’s complaint sought the $5,000 security deposit, plus “the statutory penalty of two times the $5000 security deposit, or $10,000.” Thus, plaintiff sought a total judgment of $15,000, “plus attorney’s fees, interest, and costs.”

¶ 17 Defendants’ Motion to Dismiss

¶ 18 In January 2024, the landlord and Richland (represented by the same counsel), moved to dismiss pursuant to section 2-619 of the Code of Civil Procedure (735 ILCS 5/2-619 (West 2022)), claiming that affirmative matter warranted dismissal of plaintiff’s claims. Defendants attached to that motion the August 4, 2023, letter to plaintiff’s counsel, which in turn attached the receipt of Turner’s payment of the security deposit. Defendants primarily argued that plaintiff was not entitled to return of the security deposit because Turner, not plaintiff, was the person who made the payment.

¶ 19 Separately, defendants asserted that plaintiff’s suit could not proceed because Turner was still in possession of the premises and remained subject to the lease. Because the premises were still occupied, they contended “none of the tenants are entitled to the return of any portion of the security deposit until possession is tendered back to the landlord.” Defendants also asserted that plaintiff was not entitled to any damages “given that she never made any payment” of the security deposit. Defendants’ motion also noted that Richland is not the landlord or owner of the leased premises.

¶ 20 On January 19, 2024, plaintiff filed a response in which she acknowledged that Turner paid the security deposit but maintained she still had a right to seek its return and damages for twice the amount of the deposit under section 5-12-080(f). She argued that although she did not pay the deposit, she had the rights of any tenant under the RLTO, as the RLTO “does not limit a tenant’s rights to only the ones paying the rent or paying the security deposit.” She noted that the lease identified her as a tenant under the lease and that it specified that all persons executing the lease “shall be jointly and severally liable for the performance of each and every agreement” thereunder. She noted the lease “did not state that only the person who paid the deposit has the statutory or contractual rights” to it.

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Harding v. Shi, 2025 IL App (1st) 240317 (Ill. Ct. App. 2025).

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