Panos v. Diakatos

CourtAppellate Court of Illinois
DecidedMarch 31, 2026
Docket1-25-0909
StatusUnpublished

This text of Panos v. Diakatos (Panos v. Diakatos) 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
Panos v. Diakatos, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 250909-U

FIRST DIVISION March 31, 2026

No. 1-25-0909

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 ______________________________________________________________________________

PETER PANOS, ) Appeal from the Circuit Court of ) Cook County. Plaintiff-Appellant, ) ) v. ) ) No. 22 L 011340 PETROS DIAKATOS, PETER LOBA, GO! ) GROCER MANAGEMENT, INC., PAUL ) STELLATOS, and GREGORY STELLATOS, ) ) Honorable Daniel J. Kubasiak, Defendants-Appellees. ) Judge Presiding. ______________________________________________________________________________

JUSTICE HOWSE delivered the judgment of the court. Presiding Justice Fitzgerald Smith and Justice Cobbs concurred in the judgment.

ORDER

¶1 Held: We reverse the order granting summary judgment to defendants. The moving defendants failed to demonstrate that their right to a judgment of no liability was clear and free from doubt. Plaintiff provided evidence in support of each element of his causes of action raised in this appeal and defendants failed to show that there was no genuine issue of material fact entitling them to judgment as a matter of law.

¶2 Plaintiff filed this case against two of his former business partners after their small

grocery store businesses failed. Plaintiff also asserted claims against the company from whom he

and his partners essentially acted as franchisees, as well as the two individuals who founded that

company. The trial court granted summary judgment to the company and its two principals 1-25-0909

against claims that they were liable for conversion, tortious interferences with business

relationships, and civil conspiracy. Plaintiff now appeals the order in which the trial court found

that those defendants were entitled to judgment as a matter of law. For the following reasons, we

reverse and remand the matter for further proceedings.

¶3 BACKGROUND

¶4 Plaintiff Peter Panos and defendant Petros Diakatos, who are brothers-in-law, went into

business together to open some small neighborhood grocery stores. Defendant Paul Stellatos

(Stellatos) and his brother Gregory Stellatos are the founders of the Go Grocer Brands. Go

Grocer owns and operates its own grocery stores, and it also enters into franchise-type licensing

agreements where it allows third parties to open stores using the Go Grocer name and trademarks

in exchange for a fee. When Go Grocer licenses its name to third parties, it provides consulting

services and marketing for the third-party stores.

¶5 In 2019, Panos and Diakatos entered into two licensing agreements to open two Go

Grocer stores in Chicago: one at 5441 N. East River Road and one at 5419 N. Sheridan Road.

Panos and Diakatos formed two separate corporations which owned these stores, and Panos and

Diakatos each held 50% equity in the companies. The licensing agreements Panos and Diakatos

executed for the Go Grocer stores are for 10-year terms, and Panos and Diakatos agreed to pay

3% of their gross revenue to defendant Go Grocer Management, Inc. Under the licensing

agreements, Panos and Diakatos were also required to purchase certain prepackaged fruits,

premade sandwiches and wraps, and other items from Go Grocer Management, Inc.

¶6 Plaintiff Panos contributed all the startup capital for the River Road location by using

$150,000 sourced from his mother. According to Panos, the startup capital was a loan, which

was memorialized in writing, and the corporation was repaying the loan in $2,000 monthly

-2- 1-25-0909

payments. Defendants argue that the $150,000 from Panos’s mother was a gift and the

corporations had no legal obligation to repay the money. For the other location, the Sheridan

Road store, Panos and Diakatos obtained a Small Business Administration loan using asset

information from Panos and his mother. Defendant Diakatos had limited assets at the time, so his

information was not submitted to the SBA. Diakatos did not contribute any of his own funds

upfront for either of the stores. Nonetheless, the parties agreed to split net profits 50/50. Both

Panos and Diakatos were to receive salaries from the companies, and both men provided labor to

run the companies, with Panos managing and operating one location and Diakatos managing and

operating the other.

¶7 In January 2021, Panos and Diakatos decided to open a third Go Grocer location at 1323

West Armitage Ave. Panos and Diakatos signed a lease for the property and began construction

to convert it into a grocery store. Stellatos oversaw the construction of the store space for the

Armitage location by lining up the subcontractors and sequencing the installation. During the

course of the construction, Panos and Diakatos began to become short on funds to complete the

build-out and open the store.

¶8 At the same time as Panos and Diakatos were trying to open the Armitage location,

another individual, defendant Peter Loba, was looking to open his second Go Grocer store. Loba

had already secured an SBA loan to provide funding for opening the new store. With the SBA

loan proceeds, Loba had purchased most of the equipment required to run a Go Grocer store, but

he could not receive the necessary approvals from the City of Chicago to open a store at his

planned location. Loba secured the SBA loan with a personal guaranty that was secured by the

equipment and by a mortgage on his personal home.

-3- 1-25-0909

¶9 Stellatos, as a result of his involvement in the planned Armitage store and because of his

role as a principal of Go Grocer, was aware of Panos and Diakatos’s financial issues and Loba’s

issue with lacking a suitable location, so he introduced Loba to Panos and Diakatos. The idea

was that Loba would bring his loan proceeds and equipment to Panos and Diakatos’s store

location so that the parties could provide the missing piece that the other needed to successfully

open a store. For this Armitage location, ownership of the business was apportioned 60% to

Loba, 20% to Panos, and 20% to Diakatos, based on Loba providing more of the financial

backing. Net profits for the Armitage store were to be apportioned pro rata to the ownership

interests: 60% to Loba, 20% to Panos, and 20% to Diakatos. There was no written partnership

agreement.

¶ 10 Beginning in October 2021, Panos ceased receiving distributions from the River Road

and Sheridan locations. Diakatos, however, continued to receive payouts from these locations.

Panos also claims that Diakatos began to engage in other malicious conduct against him,

including locking him out of the stores, shutting him out of the business accounts, and refusing to

provide him with an accounting of the stores’ financial information.

¶ 11 Beginning in March 2022, Stellatos began to offer advice by email to Panos, Loba, and

Diakatos about steps they might need to take to save the business at the Armitage location.

Stellatos suggested removing the store equipment to another location or to open another location

with the equipment from the Armitage store in order to have a “clean start.”

¶ 12 In April 2022, the $2,000 per month loan repayments for the $150,000 provided by

Panos’s mother for the River Road store ceased. Email communications between Panos and

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

Related

Clarage v. Kuzma
795 N.E.2d 348 (Appellate Court of Illinois, 2003)
Golden v. Marshall Field & Co.
479 N.E.2d 1211 (Appellate Court of Illinois, 1985)
Kinzer v. Fidelity and Deposit Co. of Maryland
652 N.E.2d 20 (Appellate Court of Illinois, 1995)
Adams v. Northern Illinois Gas Co.
809 N.E.2d 1248 (Illinois Supreme Court, 2004)
Brooks v. City of Peoria
712 N.E.2d 387 (Appellate Court of Illinois, 1999)
Willett v. Cessna Aircraft Co.
851 N.E.2d 626 (Appellate Court of Illinois, 2006)
City of Rock Falls v. Chicago Title & Trust Co.
300 N.E.2d 331 (Appellate Court of Illinois, 1973)
Seymour v. Collins
2015 IL 118432 (Illinois Supreme Court, 2015)
Fox v. Seiden
2016 IL App (1st) 141984 (Appellate Court of Illinois, 2016)
Rosenberger v. United Community Bancshares, Inc
2017 IL App (1st) 161102 (Appellate Court of Illinois, 2017)
Lewis v. Lead Industries Ass'n
2020 IL 124107 (Illinois Supreme Court, 2020)
Kornick v. Goodman
2023 IL App (2d) 220197 (Appellate Court of Illinois, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
Panos v. Diakatos, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panos-v-diakatos-illappct-2026.