Phoenix & Associates, Inc. v. Gilberts Development, LLC

2025 IL App (2d) 240342-U
CourtAppellate Court of Illinois
DecidedJanuary 14, 2025
Docket2-24-0342
StatusUnpublished

This text of 2025 IL App (2d) 240342-U (Phoenix & Associates, Inc. v. Gilberts Development, LLC) 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
Phoenix & Associates, Inc. v. Gilberts Development, LLC, 2025 IL App (2d) 240342-U (Ill. Ct. App. 2025).

Opinion

2025 IL App (2d) 240342-U No. 2-24-0342 Order filed January 14, 2025

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

PHOENIX & ASSOCIATES, INC., ) Appeal from the Circuit Court ) of Kane County. ) Plaintiff-Appellee and Cross-Appellant, ) ) v. ) No. 21-CH-44 ) GILBERTS DEVELOPMENT, LLC, et al., ) ) Honorable Defendant-Appellant and Cross- ) Divya K. Sarang, Appellee. ) Judge, Presiding.

JUSTICE MULLEN delivered the judgment of the court. Justices McLaren and Jorgensen concurred in the judgment.

ORDER

¶1 Held: Evidence did not support quantum meruit award where plaintiff failed to introduce evidence as to value of benefit conferred on defendant; trial court properly denied plaintiff’s mechanic’s lien claim where plaintiff did not prove existence of valid contract between the parties.

¶2 I. INTRODUCTION

¶3 Defendant, Gilberts Development, LLC, appeals the judgment of the circuit court of Kane

County entering judgment in the amount of $113,092 in favor of plaintiff, Phoenix & Associates,

Inc., on the fourth count of its complaint alleging a claim in quantum meruit. The trial court entered 2025 IL App (2d) 240342-U

judgment in favor of Gilberts Development on the other three counts (mechanic’s lien, breach of

contract, unjust enrichment). On appeal, Gilberts Development asserts that Phoenix failed to prove

all of the elements of such a claim and that the claim is barred, in part, by the statute of limitations.

Phoenix has also filed a cross-appeal in which it argues that the trial court erred in dismissing the

first count of its complaint seeking to enforce a mechanic’s lien. For the reasons that follow, we

affirm in part and reverse in part.

¶4 II. BACKGROUND

¶5 The instant case arises out of a long-term relationship between the parties pursuant to which

Phoenix provided certain professional and other services to Gilberts Development with respect to

property owned by Gilberts Development in the Village of Gilberts known as The Conservancy.

The Conservancy is a residential development. Phoenix began performing services for Gilberts

Development in the fall of 2014 and continued to do so until, according to Phoenix, June 2020. In

the course of their dealings, Gilberts Development paid Phoenix a total of $1,208,972.80. Phoenix

alleged another $225,000 is due, as pleaded in its four-count complaint.

¶6 George Kanagin (George) is an employee of Phoenix who holds the title of Director of

Land Use, Entitlement, and Compliance. George is certified by the Army Corps of Engineers as a

Storm Water Pollution Prevention Program 1 (SWPPP) representative. Constance Kanagin

(Constance) is the president of Phoenix. Evon Kanagin (Evon) performs administrative duties and

is also a SWPPP representative. Troy Mertz is the manager of Gilberts Development. Brent

Schroeder, who is not a party, is the owner of two companies that perform paving, snowplowing,

and excavation (Schroeder Asphalt Services, Inc., and Elite Enterprises) that have worked with

both Gilberts Development and Phoenix, including with respect to The Conservancy.

1 Alternately, Storm Water Pollution Prevention Plan. -2- 2025 IL App (2d) 240342-U

¶7 Schroeder explained that The Conservancy, being residential construction, requires a

SWPPP, which typically involves placing a silt fence to keep dirt out of the storm sewers. An

SWPPP requires periodic inspections to ensure that “whatever the plan says is actually being done

on the site.” A properly trained inspector must be appointed to represent the builder (here, Gilberts

Development). George is such an inspector. In addition to periodic inspections, an inspection must

be performed and a report filed following a “harsh” weather event.

¶8 George testified that Mertz approached him at a municipal meeting and subsequently

retained Phoenix to do environmental and other work regarding the development of The

Conservancy. Thus, George acted as the SWPPP representative for Gilberts Development with

various regulatory agencies.

¶9 Pursuant to a Planned Unit Development with the Village of Gilberts, Gilberts

Development had certain obligations outside of the site of The Conservancy. Specifically, Gilberts

Development was to build two deep wells, a water treatment plant, and make improvements to an

adjoining road (Freeman Road). Mertz testified that he never asked Phoenix to perform services

at the water treatment plant or Freeman Road.

¶ 10 Phoenix produced 36 invoices in support of its claim. Some of the invoices are disputed;

some are duplicative of others. We will not set forth their contents in detail; rather, we will discuss

them as they are pertinent to the issues raised by the parties.

¶ 11 A meeting occurred in either the spring or fall of 2017 at which Evon, Mertz, and Shroeder

were present. Evon testified that the purpose of the meeting was to discuss unpaid invoices. Evon

stated that the meeting was “very casual and friendly.” Mertz “was very nice and friendly and

assured” her that the invoices would be paid. Mertz encouraged her to bid on more work. Evon

felt “pretty positive” that Phoenix would get paid. Schroeder also testified regarding this meeting.

-3- 2025 IL App (2d) 240342-U

He stated that he had been asked to “kind of broker a meeting between” Phoenix and Gilberts

Development. Phoenix was “looking for past due invoices,” and Mertz was “looking for clarity on

what he was paying for.” Mertz wanted “proposals before work happened so he knew what he was

approving or what he was not approving.” Schroeder could not recall the year this happened other

than saying it was when George broke his hip, which he believed was in 2018.

¶ 12 A second meeting regarding outstanding invoices took place in approximately April 2019.

George, Mertz, and Schroeder met in Schroeder’s truck. Schroeder testified that George asked

Mertz about outstanding invoices he said were due. Mertz questioned “some of the invoices, and

it escalated.” Schroeder added that “they both decided to part ways at that time and neither one of

them wanted to work with each other.” Mertz testified, “I made it clear to everyone in the car that

I would never employ Phoenix & Associates again.” He added that prior to the email, “I was telling

him for months not to work on my project.” Subsequent to the meeting in the truck, Phoenix

provided Gilberts Development with two waivers of lien in the amounts of $25,722.50 and

$21,155. The waivers state they are for work related to “snow services” and “stormwater inspection

and maintenance” respectively.

¶ 13 About the time of the second meeting, Jennifer Bridgeman, who, at that time, worked for

Phoenix in an administrative capacity, sent an email dated March 18, 2019, to Schroeder, Mertz,

George, Evon, and Constance. The email states, “Below is the final updated summary of dollars

due to Phoenix for work rendered at Conservancy including inspections and maintenance through

March 15.” It adds, “Phoenix has notified all parties that we will no longer be rendering SWPPP

inspections or maintaining site compliance.” The final balance set forth is $111,685.50.

¶ 14 George testified that in July 2019, he had a discussion with Mertz concerning SWPPP

inspections. George testified, “[T]here was a discussion about me not doing them because of my

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2025 IL App (2d) 240342-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-associates-inc-v-gilberts-development-llc-illappct-2025.