Harrington v. Miller

2025 IL App (1st) 250004-U
Appellate Court of Illinois·Decided September 22, 2025·No. 1-25-0004·Unpublished

Opinion

2025 IL App (1st) 250004-U

FIRST DIVISION

September 22, 2025

No. 1-25-0004

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

ELIZABETH HARRINGTON, ) Appeal from the ) Circuit Court of

Plaintiff-Appellant, ) Cook County.

)

v. ) No. 23 L 4884 )

SHARON MILLER, an individual, BOARD OF ) DIRECTORS OF THE 1520 NORTH STATE PARKWAY ) CONDOMINIUM ASSOCIATION, an Illinois ) not-for-profit corporation, EFM, LLC, a Delaware limited ) liability company, TOUGH, LLC, a Delaware limited ) liability company, TIFF, LLC, a limited liability company, ) ERIC ACHEPOHL, an individual, and SCOTT HIRSCH, ) an individual, ) Honorable ) Michael F. Otto,

Defendants-Appellees. ) Judge Presiding.

JUSTICE HOWSE delivered the judgment of the court.

Presiding Justice Fitzgerald Smith and Justice Lavin concurred in the judgment.

ORDER

¶1 Held: We affirm the judgment of the circuit court of Cook County granting defendants’

motion to dismiss plaintiff’s complaint; however, we vacate that portion of the judgment dismissing the complaint with prejudice because plaintiff can plead a set of facts that would entitle plaintiff to relief; therefore, the cause is remanded with directions to grant plaintiff leave to file an amended complaint.

¶2 Plaintiff, Elizabeth Harrington, filed a complaint for breach of contract and breach of fiduciary duties against defendants, Sharon Miller, individually, the Board of Directors of the 1520 North State Parkway Condominium Association, an Illinois not-for-profit corporation (“the

Board”), EFM, LLC, a Delaware limited liability company, Tough, LLC, a Delaware limited liability company, TIFF, LLC, a Delaware limited liability company, Eric Achepohl, individually, and Scott Hirsch, individually. The circuit court of Cook County granted defendants’ motions to dismiss the complaint based on the affirmative defense of the statute of limitations, with prejudice. For the following reasons, we affirm in part, vacate in part, and remand with directions.

¶3 BACKGROUND

¶4 Plaintiff is the owner of three condominium units in the 1520 North State Parkway building. The Condominium Association (“association”) for the building is governed by the Board. There is in effect an “Amended and Restated Declaration of Condominium Ownership for 1520 North State Parkway and ByLaws” for the condominium (hereinafter the “declaration” and “by-laws”). The association’s by-laws state that each unit owner is a member of the association and requires that each member of the Board be an owner or a designee of a corporate or other legal entity owner. Defendant Sharon Miller is the President of the Board, Eric Achepohl is the Treasurer of the Board, and Scott Hirsch is the Secretary of the Board. Plaintiff’s complaint alleges that Achepohl and Hirsch are the Chief Executive Officer and Chief Financial Officer, respectively, of an organization that manages Miller’s investments and legal affairs.

¶5 Plaintiff’s complaint alleged that prior to 2009, Miller owned one unit in the building, and between 2009 and November 2017 Miller, through legal entities, acquired every unit in the building other than plaintiff’s units. The complaint alleged that the legal entities through which Miller acquired all of the other units in the building are defendants EFM, LLC, Tough, LLC, and TIFF, LLC, and that Achepohl and Hirsch acquired their positions on the Board as the legal owners of those entities on behalf of Miller. In sum, plaintiff alleged that Miller directly or

indirectly controls all of the units in the building other than plaintiff’s units. (Defendants do not refute that allegation on appeal.)

¶6 Plaintiff alleged that in Spring 2016 defendants undertook construction work to renovate and combine the units Miller controlled. Plaintiff alleged that the construction work was “grossly defective and caused catastrophic structural damage” (which plaintiff’s complaint refers to as “defects”) to plaintiff’s units rendering them uninhabitable, and that the “defects” “destroyed the vast majority of the value” of plaintiff’s units. Plaintiff alleged, “[a]ll Defendants are responsible for the damage caused to [plaintiff’s units] and the Buildings [sic] Common Elements as a result of the construction work and defects, but none of them has taken any action to remediate the damage or to pay for repairs and remediation.” Plaintiff also alleged that “the Boards [sic] inaction to address any of the Defects has been ongoing and continues to this day.”

¶7 Count I of plaintiff’s complaint was for breach of contract against all defendants. Count I was based on Article XVI(1), Article XX, and Article XXIII of the declaration. The declaration is attached to plaintiff’s complaint. Article XVI(1) of the declaration requires the Board to engage a corporate trustee in the event of a loss in excess of $50,000 or in the event of any loss resulting in the destruction of a major portion of one or more units “for the purpose of receiving and disbursing the insurance proceeds resulting from any loss.” Article XX provides, in pertinent part, as follows:

“No alterations of any Common Elements, or any additions or improvements thereto, shall be made by any Unit owner without the prior written approval of the Board. The Board may authorize and charge as common expenses (or in the case of Building Limited Common Elements or Limited Common Elements may charge to the Unit owner or Unit owners benefitted thereby) alterations and

improvements of and additions to, the Common Elements including the Building Limited Common Elements; provided, however, any Unit Owner may make alterations, additions or improvements within his Unit without the prior written approval of the Board, provided that they do not affect other Units or the Common Elements, but in any event, such Unit Owner shall be responsible for any damage to other Units, the Common Elements, or the Property as a result of such alterations, additions or improvements.”

¶8 “Count 36” in plaintiff’s complaint alleged that defendants, “and particularly Miller, individually,” breached Article XVI and Article XX by failing to (a) seek and/or “legitimately obtain” Board approval for the construction, (b) disclose the scope of work to plaintiff, (c) remediate the defects defendants were responsible for causing, (d) tender the claim to the insurance carrier and (e) appoint a trustee to oversee remediation.

¶9 Article XXIII provides for a right of first refusal as to any sale or lease of a unit. Plaintiff’s complaint alleged defendants, collectively, and “Miller, in particular,” breached Article XXIII “by purchasing units surreptitiously and without disclosing the sale to the Board.” Plaintiff further alleged that defendants breached Article XXIII by failing to (a) provide that each member of the Board shall be one of the owners, (b) stopping Miller and defendants from acquiring title to each of the other units or requiring Miller do so "in a proper and legitimate manner" and allowing "them to have more than one seat on the Board by clandestinely purchasing all the other units,” and (c) engaging in self-dealing for those purposes.

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

Harrington v. Miller, 2025 IL App (1st) 250004-U (Ill. Ct. App. 2025).

2025 IL App (1st) 250004-U (Harrington v. Miller) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Harris Trust & Savings Bank v. McCray
316 N.E.2d 209 (Appellate Court of Illinois, 1974)
Roark v. MacOupin Creek Drainage District
738 N.E.2d 574 (Appellate Court of Illinois, 2000)
Biggerstaff v. Moran
671 N.E.2d 781 (Appellate Court of Illinois, 1996)
Reyes v. Walker
833 N.E.2d 379 (Appellate Court of Illinois, 2005)
Axia, Inc. v. I. C. Harbour Construction Co.
501 N.E.2d 1339 (Appellate Court of Illinois, 1986)
Portfolio Acquisitions, L.L.C. v. Feltman
909 N.E.2d 876 (Appellate Court of Illinois, 2009)
Mullberg v. Johnson
91 N.E.2d 63 (Appellate Court of Illinois, 1950)
Brown v. Goodman
498 N.E.2d 854 (Appellate Court of Illinois, 1986)
Carney v. Donley
633 N.E.2d 1015 (Appellate Court of Illinois, 1994)
Senior Housing, Inc. v. Nakawatase, Rutkowski, Wyns & Yi, Inc.
549 N.E.2d 604 (Appellate Court of Illinois, 1989)
In Re Estate of Garrett
322 N.E.2d 213 (Appellate Court of Illinois, 1975)
Vancura v. Katris
939 N.E.2d 328 (Illinois Supreme Court, 2010)
In Re Marriage of Hendry
949 N.E.2d 716 (Appellate Court of Illinois, 2011)
Carlson v. Fish
2015 IL App (1st) 140526 (Appellate Court of Illinois, 2015)
Peters v. Riggs
2015 IL App (4th) 140043 (Appellate Court of Illinois, 2015)
Klancir v. BNSF Railway Company
2015 IL App (1st) 143437 (Appellate Court of Illinois, 2015)
Racquet v. Grant
741 N.E.2d 1008 (Appellate Court of Illinois, 2000)
J.S. Riemer, Inc. v. The Village of Orland Hills
2013 IL App (1st) 120106 (Appellate Court of Illinois, 2013)
Porada v. Lavelle
2018 IL App (1st) 171818 (Appellate Court of Illinois, 2018)