Hobbs, Sr v. Goncharko

CourtDistrict Court, N.D. Illinois
DecidedSeptember 3, 2025
Docket1:25-cv-03398
StatusUnknown

This text of Hobbs, Sr v. Goncharko (Hobbs, Sr v. Goncharko) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hobbs, Sr v. Goncharko, (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Steven E. Hobbs, Sr.,

Plaintiff, No. 25 CV 3398 v. Judge Lindsay C. Jenkins Igor Goncharko, et al.

Defendants.

MEMORANDUM OPINION AND ORDER Steven Hobbs, Sr., appearing pro se, filed suit against the property owners and leasing agents involved in the renting of his Chicago apartment. He has introduced claims of racial discrimination, disability discrimination, and retaliation under the Fair Housing Act, as well as a discriminatory breach of contract claim under 42 U.S.C. § 1981. Before the court are two motions to dismiss for failure to state a claim, filed by Coldwell Banker Residential Real Estate LLC (“Coldwell Banker”), a real estate company, and property owners Igor Goncharko and 5120 South LLC (“Goncharko” and “5120 South” or, jointly, “Goncharko/5120”). Goncharko/5120’s motion is denied in part and granted in part. [Dkt. 16, 39]. Coldwell Banker’s motion is granted in full.

I. Background To decide the motion to dismiss, the court accepts as true all well-pleaded allegations set forth in Plaintiff’s first amended complaint and draws all reasonable inferences in his favor. Thomas v. Neenah Joint Sch. Dist., 74 F.4th 521, 522 (7th Cir. 2023).

Plaintiff Hobbs is a Chicago resident and commercial mortgage broker. [Dkt. 8 ¶ 5].1 Prior to April 2024, he agreed to rent an apartment from The Stewardship Group LLC and The Stewardship Group Washington Park, LLC (“The Stewardship Group”). [Id. ¶¶ 9, 12]. Coldwell Banker facilitated the parties’ lease, which Hobbs alleges—at $2,000 per month—exceeds the affordable-housing rent cap set by the City of Chicago in its Emergency Relief for Affordable Multifamily Properties Program (ERAMP). [Id. ¶¶ 10, 15, 22]. He alleges that Coldwell Banker failed to disclose ERAMP terms when “facilitat[ing] the lease electronically.” [Id. ¶ 22].

1 Citations to docket filings generally refer to the electronic pagination provided by CM/ECF, which may not be consistent with page numbers in the underlying documents. In April 2024, Hobbs alleges that he entered into a purchase agreement with The Stewardship Group to “buy the property for affordable housing purposes,” but that the group instead sold the property to Goncharko and 5120 South. [Id. ¶¶ 13– 14, 7–8]. Hobbs alleges that the sale “breached th[e purchase] agreement without cause,” thereby violating ERAMP and resulting in an unpaid $78,000 mechanics lien “for unpaid consulting services.” [Id. ¶ 13]. Hobbs, who is Black, also alleges that denying him “a fair opportunity to purchase” the property was “racially motivated.” [Id. ¶ 14].

Hobbs also claims that the following occurred at some unspecified point during his tenancy, which continued under Goncharko and 5120 South’s ownership. He repeatedly requested and was refused repairs due to “severe neglect” of the property, which included “mice infestations, no main entrance locks, inadequate lighting, improper maintenance, and water leakage from the roof.” [Id. ¶ 16]. In particular, he alleges that his unit had a three-foot hole in the bedroom ceiling, and that “non- African American tenants received better living conditions.” [Id. ¶ 15]. He also alleges that, when he sought payment for the unpaid lien, Goncharko “used a racial slur (‘N- word’) and told him to ‘get off my land.’” [Id. ¶ 20].

Goncharko and 5120 South filed for eviction on January 15, 20252—allegedly “without proper service, followed by a fraudulent 5-day notice on February 15.” [Id. ¶ 19]. At some point, Goncharko also allegedly locked Hobbs’s car in the property’s lot, “claiming he couldn’t park there for not paying rent.” [Id. ¶ 21].

An insurance dispute soon followed. On February 6, Hobbs slipped on the unit’s allegedly unmaintained, icy front porch steps and suffered a spinal injury “causing severe pain and mobility issues.” [Id. ¶ 17]. He claims that “Defendants … ignor[ed] requests for the property’s insurance provider for the fall, which [he] believes was due to his race and disregard of his disability status.” [Id. ¶¶ 18, 23]. He believes that the eviction, restricted access to his car, and insurance dispute were all retaliatory. [Id. ¶¶ 19, 21, 23].

Hobbs has sued The Stewardship Group, Coldwell Banker, Goncharko, and 5120 South for violations of the Fair Housing Act (“FHA”) and Civil Rights Act, based on alleged racial and disability discrimination, retaliation, and breach of the purchase agreement. [Id. ¶¶ 27–30]. Both Coldwell Banker and Goncharko/5120 have moved to dismiss all claims against them pursuant to Federal Rule of Civil Procedure 12(b)(6).

2 The complaint alleges this date, so the court takes it as true, though it notes that Goncharko says the eviction proceedings began in November 2024. [Dkt. 39 at 4.] Hobbs acknowledges this earlier date in a response brief. [Dkt. 44 at 4.] For purposes of resolving the motion, the specific date is irrelevant. II. Legal Standard A motion to dismiss under Rule 12(b)(6) tests the legal sufficiency of the plaintiff's claims. A plaintiff's right to relief must be “plausible, rather than merely speculative,” which requires him to allege “just enough details about the subject matter of the case to present a story that holds together.” Russell v. Zimmer, Inc., 82 F.4th 564, 570–71 (7th Cir. 2023) (cleaned up). Although the court takes well- pleaded factual allegations as true, conclusory allegations are insufficient to avoid dismissal. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Pro se complaints are construed “generously,” and reviewed “by substance, not label,” United States v. Hassebrock, 21 F.4th 494, 498 (7th Cir. 2021); United States v. Sutton, 962 F.3d 979, 984 (7th Cir. 2020). The filings must nonetheless adhere to procedural rules. See Johnson v. Prentice, 29 F.4th 895, 903 (7th Cir. 2021).3

III. Analysis Hobbs’s four-count complaint alleges that the defendants violated various statutes including 42 U.S.C. §§ 3604(b) (racial discrimination in housing), 3604(f) (disability discrimination in housing), 3617 (retaliation), and 1981 (discriminatory breach of contract). [Dkt. 8 ¶ 27–30] His responses in opposition to the motions to dismiss also raise claims for deceptive practices, municipal code violations, defamation, and intentional infliction of emotional distress. [Dkts. 26 at 3; 47 at 10]. A plaintiff, however, “cannot amend his or her complaint to state new claims in such a motion.” Smith v. Dart, 803 F.3d 304, 311 (7th Cir. 2015). The court will thus consider only the violations of the Fair Housing Act and Civil Rights Act raised in Hobbs’s first amended complaint. It addresses each in turn.

A. 42 U.S.C. § 3604(b) Hobbs has sued under § 3604(b), which makes it unlawful to “discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, religion, sex, familial status, or national origin.” Two questions follow. First, whether the statute covers defendants’ alleged post-acquisition actions and behaviors. Second, whether Hobbs has sufficiently pleaded discrimination—as to each defendant—in connection with those activities.

1. Post-Acquisition Claims In Bloch v. Frischholz, the Seventh Circuit held that § 3604(b) applied to post- acquisition claims involving constructive eviction and discriminatory rules that are

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