Jurkovic v. Boulder Developers, Inc.

2021 IL App (1st) 200940-U
CourtAppellate Court of Illinois
DecidedNovember 12, 2021
Docket1-20-0940
StatusUnpublished
Cited by1 cases

This text of 2021 IL App (1st) 200940-U (Jurkovic v. Boulder Developers, Inc.) 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
Jurkovic v. Boulder Developers, Inc., 2021 IL App (1st) 200940-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 200940-U

FIFTH DIVISION November 12, 2021 No. 1-20-0940

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

FRANCES JURKOVIC, ) Appeal from the ) Circuit Court of Cook County. ) Plaintiff-Appellant, ) ) v. ) Case No. 18 L 2299 ) BOULDER DEVELOPERS, INC., ) Honorable Diane M. Shelley, ) Judge Presiding. ) Defendant-Appellee. )

JUSTICE CONNORS delivered the judgment of the court. Presiding Justice Delort and Justice Cunningham concurred in the judgment.

ORDER

¶1 Held: The trial court did not err when it concluded that plaintiff did not prove damages for her breach of contract claim and when it found that plaintiff did not prove intent to defraud for her claim under the Mechanics Lien Act; affirmed.

¶2 Plaintiff, Frances Jurkovic, appeals from the trial court’s order that entered judgment

in favor of defendant, Boulder Developers, Inc., and against plaintiff on her claims for breach of

contract and violation of the Mechanics Lien Act (770 ILCS 60/1 (West 2018)). On appeal,

plaintiff contends the trial court erred when it determined that she was not entitled to any No. 1-20-0940

damages on her breach of contract claim and when it found she did not prove intent to defraud

for her claim under the Mechanics Lien Act claim. We affirm.

¶3 I. BACKGROUND

¶4 This case is based on a breach of contract action between plaintiff and defendant. In

December 2016, plaintiff and defendant entered into a contract for the construction project on

plaintiff’s residence and in February 2017, plaintiff terminated defendant’s services due to

defects in defendant’s work.

¶5 Plaintiff’s Complaint and Defendant’s Counterclaim

¶6 After defendant filed a mechanics lien on plaintiff’s property, plaintiff filed a

complaint against defendant that alleged as follows. In 2016, plaintiff began remodeling her

home in Chicago by converting a two-flat residential building into a single-family home. In

December 2016, she replaced her original construction company with defendant and entered into

a building contract with defendant for the project. The contract price for the project was

$296,836. The contract allowed for change orders and plaintiff executed four change orders

totaling $27,886. The total price for the work contained in the contract including the change

orders was $321,002. Plaintiff made a $100,000 down payment to defendant at the time the

parties executed the contract, and she also paid $27,886 for the change orders.

¶7 Defendant started working on the project in October 2016. During the next five

months, defendant performed deficient work, which included, inter alia, the failure to level floor

joists and the ceiling. Defendant also failed to comply with the plans, specifications, and relevant

building standards and codes, which included failing to build stairs that complied with

construction permit drawings and the Chicago Building Code. Due to the defects, plaintiff

terminated defendant’s services in February 2017.

-2- No. 1-20-0940

¶8 Defendant gave plaintiff documents reflecting that the total amount for its labor costs

and expenses was $87,400.19. With a 20% profit and management fee added to that amount, the

total amount defendant spent was $104,880.23. According to plaintiff, she had already paid

$127,886, so defendant should have refunded her $23,005.77. Instead, defendant filed a

mechanics lien against her in March 2017 for $93,636, which was based on a false methodology.

Plaintiff alleged she retained another construction company to complete the work and she spent

$75,000 to correct defendant’s defective work. Many of the items that defendant completed had

to be fixed or completely redone, including, inter alia, steel posts in the kitchen, a beam on the

second floor at the roof, wooden framing throughout the home, and stairs between the floors.

¶9 Plaintiff asserted claims for breach of contract and violation of the Mechanics Lien

Act (770 ILS 60/1, et seq.) (West 2018)). In plaintiff’s breach of contract claim, she alleged that

defendant did not conduct its work according to the plans and specifications provided by

plaintiff, failed to comply with the building code, and failed to correct or remedy construction

deficiencies in a timely manner. As a result of defendant’s breaches, plaintiff sustained damages

when she paid for defendant’s defective work. In plaintiff’s claim for violation of the Mechanics

Lien Act, she alleged that in March 2017, defendant filed a mechanics lien against her property

in the amount of $93,636, knowing that it included fraudulent and inflated calculations for the

amount. Defendant recorded a release of the lien on December 14, 2017.

¶ 10 Plaintiff attached to her complaint the “Contractor’s Notice and Claim for Mechanics

Lien” filed by defendant that stated as follows. Defendant entered into a contract with plaintiff

on December 9, 2016, to perform demolition, electrical, flooring and tile, and carpentry work on

her property. Defendant performed its part of the contract and plaintiff terminated the contract.

The initial contract price was $296,836, and plaintiff requested an additional $27,886 in change

-3- No. 1-20-0940

orders. Plaintiff paid defendant a total of $127,886 and was entitled to credits in the amount of

$103,200 for the work that defendant did not complete as a result of plaintiff terminating the

contract. After allowing for credits, deductions, and set offs, plaintiff owed defendant $93,636.

¶ 11 Defendant’s Counterclaim

¶ 12 Defendant filed a counterclaim against plaintiff for breach of contract that alleged as

follows. The parties entered into a contract for the building project in December 2016 for

$296,836, plus an additional $27,886 in change orders, for a total of $321,002. Plaintiff paid

defendant a $100,000 down payment and $27,886 for the change orders. In February 2017, four

months after defendant began working on the project, the project was nearly complete, and

plaintiff terminated defendant’s services. Plaintiff refused to pay defendant the amount agreed

upon in the contract and owed defendant $221,522.

¶ 13 Bystander’s Report of the Bench Trial

¶ 14 The record on appeal does not contain a transcript of the February 2020 bench trial.

On November 12, 2020, the trial court issued a bystander’s report pursuant to Illinois Supreme

Court Rule 323(c) (eff. Jul. 1, 2017). The report states as follows. Plaintiff hired defendant, a

contractor, to rehab her home. Plaintiff subsequently terminated defendant’s services and

contended that defendant’s work had significant defects. Plaintiff alleged that she had been

damaged from defendant’s overcharges, the costs to repair defendant’s faulty work, and the

fraudulent mechanics lien that defendant filed in the amount of $93,636 on her property.

Defendant contended that its work was merely unfinished and that any defects were the result of

work done by plaintiff’s prior contractor and because plaintiff prematurely terminated defendant

before it could complete the work.

-4- No. 1-20-0940

¶ 15 At trial, plaintiff’s retained expert, Chris Perry, identified numerous defects in the

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2021 IL App (1st) 200940-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jurkovic-v-boulder-developers-inc-illappct-2021.