P-Three Development v. Therm Flo

CourtAppellate Court of Illinois
DecidedJune 30, 2026
Docket1-25-0567
StatusUnpublished

This text of P-Three Development v. Therm Flo (P-Three Development v. Therm Flo) 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
P-Three Development v. Therm Flo, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 250567-U No. 1-25-0567 First Division June 30, 2026

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 ___________________________________________________________________________

P-THREE DEVELOPMENT, LLC, ) Appeal from the ) Circuit Court of Plaintiff, ) Cook County. ) v. ) No. 2021 L 000011 THERM FLO, INC.; ZONATHERM ) PRODUCTS, INC.; N+2, LLC; NETRIX ) Honorable BUILDING, LLC; CYBER WORKPLACE ) Thomas More Donnelly, RECOVERY SERVICES, LLC; EMP ) Judge, Presiding. TECHNOLOGY HOLDINGS, LLC; AOP ) INVESTMENTS, LLC; CYBER ) INNOVATION LABS, LLC; NETWORK AND MANAGED HOSTING SERVICES, ) LLC; NETWORK AND MANAGED ) HOSTING SERVICES-IL, LLC; CDGI NAP ) SERVICES, LLC; INFRASTRUCTURE ) STRATEGIES GROUP, LLC; 2005 AOP ) FAMILY TRUST; JOHN H. PRESSMAN ) a/k/a JACK PRESSMAN; and the ) “OMNIBUS PARTNERSHIP”; ) Defendants-Appellees, ) (Ravi K. Kadiyala, Intervenor-Appellant). ) ____________________________________________________________________________

JUSTICE COBBS delivered the judgment of the court. Presiding Justice Fitzgerald Smith and Justice Howse concurred in the judgment. No. 1-25-0567

ORDER

¶1 Held: Intervenor-appellant’s brief is hereby stricken, and the appeal is dismissed for failure to comply with Illinois Supreme Court Rule 341.

¶2 Intervenor-appellant Ravi K. Kadiyala sought to intervene in the underlying litigation

between P-Three Development, LLC (P-Three) and defendant-appellee Therm Flo, Inc., pursuant

to section 2-408(a)(3) of the Code of Civil Procedure (735 ILCS 5/2-408(a)(3) (West 2024)).

Kadiyala now appeals the circuit court’s denial of his request for intervention. For the reasons that

follow, Kadiyala’s brief is hereby stricken and the appeal dismissed.

¶3 I. BACKGROUND

¶4 Although we ultimately dismiss this appeal, we deem it necessary to set out in some detail

the course and substance of the proceedings in the lower court. The facts that follow have been

gathered from relevant portions of the 17 volumes and more than 15,000 pages which comprise

the common law record.

¶5 This litigation has as its genesis the purchase of equipment and materials from two

adjacent, but separate, data centers, one identified as the 1221 site and the other as the 1331 site,

located in Mount Prospect, Illinois. In 2011, Therm Flo, Inc., and Zonatherm Products, Inc.

(collectively, Therm Flo) entered into several contracts with Cyber Workplace Recovery Services

(CWRS), Emp Technology Holdings LLC (EMP), and related entities, controlled by John H.

Pressman, a/k/a John Pressman, and Anna Pressman (collectively, the Pressman defendants), for

services and equipment related to the 1221 data center. The Pressman defendants failed to make

the payments required under those agreements, and in October 2013, Therm Flo sued and won a

judgment against the Pressman defendants for, inter alia, breach of contract. The parties

subsequently negotiated a settlement whereby the Pressman defendants agreed to pay Therm Flo

-2- No. 1-25-0567

$1 million and additionally executed a $350,000 promissory note, secured by equipment located

at the centers. The terms of the agreement were detailed in the “Settlement Agreement” and the

“Secured Settlement Note” (Settlement Note), dated July 24, 2014. 1

¶6 In December 2015, P-Three purchased the data center located at the 1221 site. Notably,

Kadiyala was, at all times relevant, P-Three’s sole manager and sole employee. To finance the

acquisition, Kadiyala borrowed approximately $4.2 million from T2 Capital LLC (T2), secured by

a mortgage on the property and equipment. Kadiyala personally guaranteed the T2 mortgage.

¶7 As a part of the transaction, P-Three purchased from Therm Flo, and Therm Flo assigned

to P-Three, its rights under the $253,000 Settlement Note. Additionally, P-Three purchased certain

equipment from the Pressman defendants, as documented by a bill of sale, effective December 16,

2015. The bill of sale included a release (the Release), also dated December 16, 2015, whereby P-

Three, through Kadiyala as its authorized signatory, “irrevocably and unconditionally release[d]

and forever discharge[d]” the Pressman defendants from all claims “arising from, based upon, or

related to” the Settlement Note that arose under Therm Flo.

¶8 Notwithstanding the 2015 Release, on January 4, 2021, P-Three filed its first four-count

complaint against the Pressman defendants, the Therm Flo defendants, Netrix Building, LLC, and

N+2, LLC (the Netrix defendants). As alleged in the complaint and attached as an exhibit, on

February 28, 2019, P-Three sent a notice of default and demand letter to the Pressman defendants

for payment on the $253,000 Settlement Note. The complaint also acknowledged that, in 2013, the

1 Although not entirely clear from the record, the equipment which served as security for the Settlement Note was located at both the 1221 and the 1331 data center sites.

-3- No. 1-25-0567

owner of the 1331 data center filed for bankruptcy, and its assets were purchased by the Netrix

defendants. 2

¶9 Between 2021 and 2022, P-Three filed a first, a second, and a third amended complaint.

Notably, on February 3, 2022, upon learning that P-Three had filed a legal malpractice suit against

it, Barber Law Offices, LLC, which had represented P-Three from the inception of this litigation,

moved for and was granted leave to withdraw its representation. On April 1, 2022, Seiden Law

Group entered its appearance on behalf of both P-Three and Kadiyala.

¶ 10 On March 15, 2023, P-Three filed its fourth amended complaint. Count I of the complaint

sought a confession of judgment against the Pressman defendants for nonpayment on the

Settlement Note. Count II alleged a breach of note, not only against the Pressman defendants, but

against all defendants on the theory that they had formed a de facto partnership or joint venture

rendering each liable on the note. Count III petitioned to pierce the corporate veil of those corporate

entities controlled by the Pressman defendants and to hold the Pressman principals personally

liable for the breach. Finally, count IV asserted a claim against the Netrix defendants for possession

of and/or money damages for equipment located at the 1331 data center site.

¶ 11 The trial court ordered all defendants to respond to P-Three’s fourth amended complaint

by April 12, 2023, and to issue discovery. Beginning in April 2023, defendants filed their answers

to the complaint, and each asserted therein the December 2015 Release as an affirmative defense.

A copy of the Release was attached as an exhibit.

2 In November 2013, Netrix acquired all of the equipment located at the 1331 data center site “free and clear of all liens, claims, encumbrances and interests.” In re Cyber Development Group Int’l, LLC, No. 13-B-34214, (Bankr. N.D. Ill. Nov. 21, 2013).

-4- No. 1-25-0567

¶ 12 In response to defendants’ answers to the complaint, P-Three denied each defendant’s

affirmative defenses. Relying on Kadiyala’s affidavit, P-Three asserted that the Release provided

by defendants in support of their affirmative defenses was a forgery.

¶ 13 On September 15, 2023, following the close of discovery, the Therm Flo defendants filed

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