Petey's Two Real Estate, LLC v. Goedert

2024 IL App (1st) 220960, 253 N.E.3d 996
CourtAppellate Court of Illinois
DecidedAugust 2, 2024
Docket1-22-0960
StatusPublished
Cited by3 cases

This text of 2024 IL App (1st) 220960 (Petey's Two Real Estate, LLC v. Goedert) 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
Petey's Two Real Estate, LLC v. Goedert, 2024 IL App (1st) 220960, 253 N.E.3d 996 (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 220960

SIXTH DIVISION August 2, 2024

No. 1-22-0960

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT

PETEY’S TWO REAL ESTATE, LLC; ASHTON ) DRIVE, LLC; CHICAGO TITLE LAND TRUST ) COMPANY, as Trustee Under a Trust Agreement Dated ) October 8, 1973 and Known as Trust No. 996, ) CHICAGO TITLE LAND TRUST COMPANY, as ) Trustee Under a Trust Agreement Dated December 4, ) Appeal from the 1970 and Known as Trust No. 1147; and PETER ) Circuit Court of KATTOS, ) Cook County ) Plaintiffs-Appellants, ) No. 2019 L 000983 ) v. ) The Honorable ) Jerry A. Esrig, THOMAS GOEDERT and DOMMERMUTH, COBINE, ) Judge Presiding. WEST, GENSLER, PHILIPCHUCK, COORIGAN & ) BERNHARD, LTD. ) ) Defendants-Appellees. ) )

JUSTICE TAILOR delivered the judgment of the court, with opinion. Presiding Justice Oden Johnson and Justice C.A. Walker concurred in the judgment and opinion

OPINION

¶1 This legal malpractice action arises out of a condemnation action. Critical to an

understanding of why the plaintiffs-condemnees’ malpractice action against their attorney fails is

that their appraisal expert, in determining the value of their condemned property, violated the “unit No. 1-22-0960

rule” by adding the value of the land to the value of the improvements. Our supreme court has

explained:

“[T]he fair market value of improved property is not the sum of the value of the building

and the value of the land computed separately. For this purpose, the whole does not

necessarily equal the sum of the parts. The value of unimproved land, adaptable for any

use, may diminish, as land, when improved by the construction of a building and so

committed to a particular use. For similar reasons, the construction of a building may not

produce an increment in value equal to its cost, since the improvement may not be desirably

situated. To avoid misleading and confusing the jury, the evidence may properly be

confined to the value directly at issue, that is, the value of the improved land as a whole.”

Department of Public Works & Buildings v. Lotta, 27 Ill. 2d 455, 456-57 (1963).

The defendant attorneys could not have rescued the plaintiffs-condemnees from the consequences

of that fatal defect in their appraiser’s opinion of value, a value the plaintiffs-condemnees refused

to abandon in the condemnation proceeding. For this and other reasons, we affirm the decision of

the circuit court.

¶2 I. BACKGROUND

¶3 The plaintiffs-condemnees, who we refer to collectively as the plaintiffs, are (a) two limited

liability companies, Petey’s Two Real Estate, LLC, and Ashton Drive, LLC; (b) two land trusts,

Chicago Title Land Trust Company Trust No. 996, and Chicago Title Land Trust Company Trust

No. 1147; and (c) Peter Kattos. Peter Kattos and his wife are members of the limited liability

companies, which in turn are beneficiaries under the land trusts, which in turn hold title to real

property located at the intersection of U.S. Route 6 and U.S. Route 45 in Orland Park, Illinois.

Kattos operates a business on a portion of the property known as Petey’s II Restaurant and Lounge.

2 No. 1-22-0960

¶4 In 2006, the Illinois Department of Transportation (IDOT) brought a condemnation action

for a portion of the property owned by the plaintiffs for a road improvement project. After a decade

of litigation, the underlying court determined that the preliminary compensation paid by IDOT to

the plaintiffs to acquire their property at the commencement of the case was far in excess of its

actual fair market value and, therefore, entered a judgment against the plaintiffs in the amount of

the excess compensation plus interest. In the instant legal malpractice action, the plaintiffs alleged

that their attorney, Thomas Goedert, and the firm he was employed by, Dommermuth, Cobine,

West, Gensler, Philipchuck, Corrigan & Bernhard, Ltd. (Dommermuth), were negligent in their

representation and that, as a proximate result, the plaintiffs were damaged in the amount of the

excess compensation judgment against them. We summarize the condemnation proceedings and

allegations in the legal malpractice complaint below.

¶5 A. The IDOT Condemnation Action

¶6 On November 14, 2006, IDOT invoked its “quick-take” eminent domain power to acquire

fee simple title to approximately two acres of real property owned by plaintiffs. One of the parcels

IDOT sought to acquire was improved with the restaurant and would have required the restaurant

to be demolished or at least remodeled to reduce its footprint. Goedert, who at the time was

employed by the law firm Neal & Leroy, LLC (Neal & Leroy), appeared on behalf of the plaintiffs.

On December 27, 2006, IDOT deposited $3,202,000 in preliminary compensation with the Cook

County Treasurer, which vested IDOT with title to the property. On January 18, 2007, the circuit

court entered an order allowing Marquette Bank, Neal & Leroy, LLC, Ashton Drive, LLC, and

Petey’s Two Real Estate, LLC to withdraw $3,102,000, leaving $100,000 on deposit with the Cook

County Treasurer. On April 4, 2008, after Kattos refused to demolish the restaurant, IDOT

3 No. 1-22-0960

amended its complaint to reduce the size of the taking, and on May 7, 2008, IDOT obtained an

order vesting title in accordance with the reduced taking.

¶7 1. The Parties Disclose Property Valuation Experts

¶8 In September 2015, IDOT disclosed its appraisal expert Frank Lorenz, who valued the

taking at $1.52 million, with no damages to the remainder. Plaintiffs were still represented by

Goedert, who by that time was employed by Crane, Heyman, Simon, Welch & Clar (Crane).

Goedert, on behalf of the plaintiffs, disclosed an expert appraiser, Joseph Thouvenell, who

prepared a written appraisal of the subject property.

¶9 On November 18, 2015, the Honorable Alexander White, the judge hearing the

condemnation action, closed discovery except for expert depositions. After Thouvenell’s

deposition, the court allowed him to issue a final appraisal report. Thouvenell’s final appraisal

report, which was issued on December 15, 2015, concluded that the value of the taking exceeded

the $3.2 million in preliminary compensation paid by IDOT in 2006.

¶ 10 2. The Circuit Court Bars Plaintiffs’ Valuation Expert

¶ 11 On March 21, 2016, IDOT filed two motions in limine to bar Thouvenell’s testimony and

opinions. In its first motion, IDOT argued that Thouvenell’s valuation contained several flaws that

made his opinion inadmissible as a matter of law. IDOT’s second motion challenged six of the

seven comparable properties that Thouvenell relied on for his opinion of the value of the subject

property. IDOT did not challenge Thouvenell’s reliance on “comparable 5A.” On May 25, 2016,

Goedert, who was still employed by Crane, requested an extension of time to respond to both

motions. Goedert then requested four successive extensions of time to respond, on June 24, 2016,

August 25, 2016, October 17, 2016, and December 19, 2016. The first four requests were made by

Goedert while he was still employed by Crane. Only the last request for an extension, which was

4 No. 1-22-0960

filed on December 19, 2016, was made by Goedert after he became employed by Dommermuth.

Despite seeking five extensions of time, Goedert never filed a response to IDOT’s motions

in limine. On March 30, 2017, Judge White granted IDOT’s motions in limine and barred

Thouvenell’s testimony.

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2024 IL App (1st) 220960, 253 N.E.3d 996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peteys-two-real-estate-llc-v-goedert-illappct-2024.