Para Dynamic Enterprises, LLC v. Lamb-Ferrara

2022 IL App (3d) 210259-U
CourtAppellate Court of Illinois
DecidedNovember 22, 2022
Docket3-21-0259
StatusUnpublished

This text of 2022 IL App (3d) 210259-U (Para Dynamic Enterprises, LLC v. Lamb-Ferrara) 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
Para Dynamic Enterprises, LLC v. Lamb-Ferrara, 2022 IL App (3d) 210259-U (Ill. Ct. App. 2022).

Opinion

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).

2022 IL App (3d) 210259-U

Order filed November 22, 2022 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

PARA DYNAMIC ENTERPRISES, LLC, ) Appeal from the Circuit Court as assignee of Purple Shovel, LLC, ) of the 12th Judicial Circuit, ) Will County, Illinois Plaintiff-Appellant, ) ) v. ) ) COLLEEN LAMB-FERRARA, as ) Administrator of the Estate of Matthew J. ) Appeal No. 3-21-0259 Lamb, deceased, ) Circuit No. 20-CH-502 ) Defendant-Appellee, ) ) and ) ) MATT LAMB STUDIOS, LLC, ) Honorable ) John C. Anderson, Defendant. ) Judge, Presiding ____________________________________________________________________________

PRESIDING JUSTICE O’BRIEN delivered the judgment of the court. Justices Daugherity and Hauptman concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: Trial court erred in granting summary judgment where a genuine issue of material fact exists as to whether the court should pierce the corporate veil. ¶2 Plaintiff Para Dynamic Enterprises, LLC, and defendant Colleen Lamb-Ferrara, as

administrator of the Estate of Matthew J. Lamb, deceased, filed cross-motions for summary

judgment in Para Dynamic’s action to pierce the corporate veil of Matt Lamb Studios, LLC and

reach the assets in Lamb’s estate. The trial court denied Para Dynamic’s summary judgment

motion and granted the Estate’s summary judgment motion. Para Dynamic appealed. We reverse

and remand.

¶3 I. BACKGROUND

¶4 Matt Lamb Studios, LLC (Studios) was incorporated on September 26, 2007. An amended

operating agreement was executed in January 2009 providing for two member classes: A and B.

Class A members were Sheila Lamb Gabler and David Sabin, who were designated the managers

of Studios and in charge of operations. The Class B member was Matt Lamb, Ltd., which was to

contribute assets in the form of pieces of Matt Lamb’s artwork. Matt Lamb was a renowned artist

who showed his artwork around the world. Gabler and Colleen Lamb-Ferrara were his daughters.

Lamb died on February 18, 2012, and an estate was opened and remained pending in Florida.

Lamb-Ferrara was designated the estate’s personal representative after Gabler was removed as

executor.

¶5 On July 31, 2012, Studios entered into a contract with Purple Shovel, LLC, a logistics

services company, to transport, secure and store Lamb’s artwork. Gabler executed the contract.

Studios did not pay for the services rendered by Purple Shovel. Purple Shovel assigned its rights

to Studios’ receivables to Para Dynamic in December 2017. It also assigned any interest, title or

right to Lamb’s artwork that Purple Shovel held as collateral, of which Para Dynamic took control

in January 2018. Para Dynamic filed a complaint in February 2019 against Studios and obtained a

$1,178,003.31 judgment by default in September 2019.

2 ¶6 Para Dynamic filed a citation to discover assets against Studios, which Studios did not

answer. A citation examination deposition took place with Gabler in December 2019. She testified

that she was Lamb’s daughter and the sole owner of Studios. Studios was a “shell company” set

up during Lamb’s lifetime “just in case.” Gabler explained that no one used Studios; it was an

“empty company” with “no reason for it.” She was the company’s registered agent “to hold it.”

Studios currently had no assets, never had any assets, and never generated any revenue. Gabler

denied that Studios owned any of the trademarks identified as purportedly owned by Studios. To

her recollection, there were no managers or members of Studios. Documents provided by the

Secretary of State’s office listed her as the manager and she agreed she was the manager. The

documents also indicated Studios was not in good standing as of September 1, 2019, and Gabler

did not know if it was in good standing prior to that date. Gabler did not know she was listed as a

contact on the MattLamb.com website.

¶7 Gabler and Lamb operated Studios together during his lifetime. They handled the tax

returns together and she managed them after his death. She continued to manage Studios after

Lamb died. Lamb had contracted with Purple Shovel before he died to transport his artwork from

Spain to Ireland but the art was stolen in transit. She did not know if Lamb had negotiated with

Purple Shovel for himself or on behalf of Studios. She did not know if Lamb, and subsequently

the Estate, owned Lamb’s artwork. Gabler was the initial executor of Lamb’s estate prior to being

removed. At that time, the estate owned more than 5000 pieces of artwork.

¶8 Para Dynamic recorded the $1,178,003.31 judgment against Studios on February 20, 2020.

Para Dynamic then filed the instant action the same month, seeking to pierce the corporate veil

and satisfy the judgment against Studios from the assets of the Estate. In the complaint, Para

Dynamic alleged, in part, that “Following Matt Lamb’s death *** Studios contracted with Purple

3 Shovel.” The complaint further alleged that Gabler and Lamb managed Studios. The Estate

answered the complaint and attached a copy of the contract between Gabler and Purple Shovel

indicating a $45,750 fee for Purple Shovel’s services with 18% interest per year on unpaid

balances. Studios was involuntarily dissolved on March 13, 2020. In July 2020, the trial court

entered a default judgment against Studios.

¶9 Para Dynamic and the Estate both moved for summary judgment in March 2021. In its

summary judgment motion, Para Dynamic argued that the Estate was the sole beneficiary of

Studios’s operation and Studios’s entire business was to transport and store Lamb’s artwork, which

became assets of the Estate, which became the sole beneficiary of Studios’s actions. Para Dynamic

argued these facts established Lamb’s equitable ownership in Studios. In support of its motion,

Para Dynamic attached the transcripts from Gabler’s deposition.

¶ 10 In its summary judgment motion, the Estate argued that the contract with Purple Shovel

was executed after Lamb’s death, Lamb was not a member or owner of Studios and was not an

alter ego of Studios. Attached to the Estate’s summary judgment motion was a list of pieces of

artwork and the rights to them that Matt Lamb, Ltd. was to contribute to Studios as an initial capital

contribution per the amended operating agreement. Also attached to the Estate’s summary

judgment motion was an affidavit from David Para, the sole and managing member of Para

Dynamic, which held a 47% interest in Purple Shovel. The affidavit, dated October 4, 2018, was

submitted in the federal case Para Dynamic initially filed against Gabler and Studios, which was

dismissed for lack of jurisdiction. Para Dynamic Enterprises, LLC v. Gabler, No. 18-CV-04579

(N.D. IL 2018). In the affidavit, Para attested that it was after Lamb’s death that Gabler and Purple

Shovel executed the contract for Purple Shovel to secure and transport Lamb’s artwork to several

exhibitions held to honor his legacy. Para further attested that the negotiations began around Spring

4 2012 and the communications were mainly with Gabler and Jonathan Daudell, whom Para

described as the executive director of Studios.

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