Montes v. Gomez-Pietrzyk

2024 IL App (1st) 231433-U
CourtAppellate Court of Illinois
DecidedNovember 1, 2024
Docket1-23-1433
StatusUnpublished

This text of 2024 IL App (1st) 231433-U (Montes v. Gomez-Pietrzyk) 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
Montes v. Gomez-Pietrzyk, 2024 IL App (1st) 231433-U (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 231433-U

SIXTH DIVISION November 1, 2024

No. 1-23-1433

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 DISTRICT

NIVALDO MONTES, DDS and ) MONTES DDS, SC, an Illinois ) corporation, ) ) Appeal from the Plaintiffs-Appellants, ) Circuit Court of ) Cook County, v. ) Chancery Division ) ARACELI GOMEZ PIETRZYK, ) No. 2020 CH 04597 MARIO GARCIA, MARIA ) GARCIA, FOSTER & ) The Honorable ASSOCIATES, CPA, LLC, an ) Anna Helen Oregon limited liability ) Demacopoulos, company, CARL FOSTER, and ) Judge Presiding. DEBRA FRANZKE, ) ) Defendants-Appellees. )

PRESIDING JUSTICE TAILOR delivered the judgment of the court. Justices C.A. Walker and Gamrath concurred in the judgment.

ORDER

¶1 Held: The judgment of the circuit court is affirmed. Because the plaintiffs’ malpractice complaint was time-barred under the discovery rule, the circuit court properly granted summary judgment to defendants and properly denied plaintiffs’ post- summary judgment motions. No. 1-23-1433

¶2 I. BACKGROUND

¶3 Nivaldo Montes owned a dental practice. His former office manager and bookkeeper,

Araceli Gomez-Pietrzyk, allegedly stole from his practice for more than two decades. In June of

2020, Montes and his professional dental practice group (together, Montes) filed a complaint

against Gomez-Pietrzyk, Gomez-Pietrzyk’s sister Maria Garcia, Gomez-Pietrzyk’s brother-in-law

Mario Garcia, and the dental practice’s former accountants: Carl Foster, Deborah Franzke, and

their firm, Foster & Associates (F&A). The complaint against Gomez-Pietrzyk alleged that she

“engaged in several schemes to embezzle funds from the Practice,” including “inflat[ing] the hours

that she and other family members worked so that they could claim entitlement to higher wages,

*** writ[ing] off accounts for services rendered to her family members without authorization,”

and “pay[ing] herself and other employees directly from the Practice’s operating accounts, rather

than using the Paychex payroll service, which would have automatically withheld payroll taxes.”

The complaint alleged that Gomez-Pietrzyk “concealed these acts by classifying many of these

transactions as ‘employee loans’ to the practice without basis, and without [Montes’s] knowledge

or consent.”

¶4 The first amended complaint asserted a single count of professional malpractice against

F&A, which alleged that F&A breached their duty to Montes by “[f]ail[ing] to take reasonable

steps to prevent Gomez-Pietrzyk from carrying out her embezzlement scheme; *** [f]ail[ing] to

take reasonable steps to alert [Montes] of Gomez-Pietrzyk’s fraudulent scheme when they knew

or should have known about the fraud; *** [p]repar[ing] and fil[ing] tax returns in conformance

with Gomez-Pietrzyk’s fraudulent bookkeeping that did not properly account for the Practice’s tax

obligations; *** [f]ailing to take reasonable steps to advise Dr. Montes of known errors in the tax

returns that they prepared;” and “[o]therwise fail[ing] to exercise due care to carry out their duties

2 No. 1-23-1433

to [Montes].” In October of 2020, F&A filed a counterclaim against Montes for unpaid

professional fees. After discovery, F&A moved for summary judgment, asserting that Montes’s

claim was time-barred because it was filed beyond the applicable two-year limitations period. 735

ILCS 5/13-214.2(a) (West 2020).

¶5 For support, F&A pointed to Montes’s answer to one of its interrogatories, which requested

information about Montes’s communications with F&A. In his response, Montes stated:

“Sometime in September of 2017, Dr. Montes spoke to Carl Foster over the telephone.

During this conversation, Foster advised [Montes] that for several years the Practice had

been issuing wages as advancements and not reporting the wages or paying the necessary

taxes related to wages. This was the first time that anyone from [F&A] communicated with

Dr. Montes directly regarding the issue related to reporting wages to employees. At this

time, [Montes] had no knowledge that this conduct was taking place for several years.

Additionally, [Montes] had no knowledge of Gomez-Pietryzk’s fraud. This caused

[Montes] to question Gomez-Pietrzyk’s bookkeeping practice. Gomez-Pietrzyk responded

by falsely stating that she engaged in the practice of recording payments as advancements

because the practice lacked sufficient income to cover the operating expenses. This was a

material misrepresentation which concealed Gomez-Pietrzyk’s theft. In fact, any

deficiency in operating income resulted from Gomez-Pietrzyk’s misappropriation of

Practice funds.”

¶6 During his deposition, Montes similarly admitted that during his September 2017 phone

call with Foster, Foster “apprise[d]” him of the fact that “the practice had been issuing wages as

advancements and not reporting the wages or paying the necessary taxes related to wages” and

that this had been going on for years, which “caused [Montes] to question Gomez-Pietrzyk's

3 No. 1-23-1433

bookkeeping practice.” Montes said that after this conversation, he “did an investigation to

determine what to make of what [Foster] was telling [him].” Montes also admitted that Foster said

these issues “were detrimental to [his] practice that should be looked into relating to how the

bookkeeping was being done,” and that if he had “hired an outside person to look into his booking

and finances” at that time, they “probably would have seen something was going on.” Montes did

not investigate further at that time, however, because he “trusted” Gomez-Pietrzyk and accepted

the explanation she gave him about the bookkeeping irregularities.

¶7 F&A argued that because Montes’s testimony established that he was on notice that he had

sustained an injury that was wrongfully caused in September 2017, his complaint, which was not

filed until June of 2020, was barred by the two-year statute of limitations.

¶8 In response, Montes submitted an affidavit, in which he stated that in his September 2017

phone call with Foster, Foster “did not inform [him] *** that [Gomez-Pietrzyk] was not properly

reporting her own wages or the wages of [his] employees.” He averred that Foster simply “advised

[him] that [he] should be paying [himself] more salary just as he had advised [him] in prior years”

and said, “I had no prior knowledge that [Gomez-Pietrzyk] was not properly reporting employee

wages and that as a result of that practice my income was being overstated *** until well after

[Gomez-Pietrzyk] quit my employment” in 2018.

¶9 After hearing arguments from the parties, the circuit court granted F&A’s motion for

summary judgment. There is no transcript of the hearing, but the Bystander’s Report indicates that

the court found no genuine issue of material fact and that the statute of limitations had lapsed prior

to the suit being filed. It stated that Montes admitted that he was on notice of “advances” being

made to his employees in September 2017, and because he did not authorize these advances, he

was on inquiry notice of all defalcations by the bookkeeper and his accountant that could have

4 No. 1-23-1433

been discovered on reasonable inquiry. The court then entered final judgment pursuant to Supreme

Court Rule 304(a).

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2024 IL App (1st) 231433-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montes-v-gomez-pietrzyk-illappct-2024.