Pozniak v. Duba

2022 IL App (1st) 192530-U
Appellate Court of Illinois·Decided March 31, 2022·No. 1-19-2530·Unpublished

Opinion

2022 IL App (1st) 192530-U FOURTH DIVISION

March 31, 2022

Nos. 1-19-2530 & 1-20-0832 (cons.)

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

ANDRZEJ POZNIAK, ) Appeal from the ) Circuit Court of

Plaintiff-Appellee and Cross-Appellant, ) Cook County )

v. )

) No. 17 L 001544

ROGER E. DUBA, CHURCHILL CABINET COMPANY, ) CHICAGO GAMING COMPANY, and UNKNOWN ) OTHERS, ) Honorable ) Margaret Ann Brennan,

Defendants-Appellants and Cross-Appellees. ) Judge Presiding.

PRESIDING JUSTICE REYES delivered the judgment of the court.

Justices Lampkin and Martin concurred in the judgment.

ORDER

¶1 Held: Affirming the judgment of the circuit court of Cook County awarding quantum meruit damages on a terminated contract.

¶2 Plaintiff Andrzej “Andrew” Pozniak (Andrew), a licensed roofer, entered into a roof damage consulting agreement with defendants Roger E. Duba (Roger), Churchill Cabinet Company (Churchill Cabinet), and Chicago Gaming Company (Chicago Gaming). After defendants terminated the agreement and failed to pay Andrew for his services, he filed a complaint in the circuit court of Cook County. Following a bench trial, the circuit court awarded

damages in the amount of $89,265 plus costs to Andrew under a quantum meruit theory, based on the termination of the agreement. Defendants contend on appeal that the trial court erred as a matter of law by finding the roof damage consulting agreement to be valid and enforceable as Andrew allegedly (a) performed the work in his capacity as a public adjuster, in violation of the Illinois Insurance Code (215 ILCS 5/1 et seq. (West 2016)); (b) engaged in the unauthorized practice of law; and/or (c) had “unclean hands.” In his cross-appeal, Andrew primarily contends that the trial court improperly calculated his damages. As discussed herein, we affirm.

¶3 BACKGROUND

¶4 The Original Roofing Work

¶5 Churchill Cabinet manufactures wood partitions, fixtures, and cabinets for video gaming machines. Chicago Gaming manufactures and distributes video gaming terminals, arcade machines, and pinball, foosball, and pool tables. Both companies operate in a commercial building located in the 4600 block of West 19th Street in Cicero, Illinois (the building). Roger and/or other members of the Duba family own and manage the companies and the building.

¶6 Defendants retained Vojtek Zaca (Vojtek) and his company BRZ Construction Group, Inc. (BRZ) to perform painting and roofing work at the building. The subcontractors hired by Vojtek/BRZ painted some or all of the roof with the incorrect paint, which caused a rubber membrane on the roof to deteriorate and the roof to leak. The building and its contents sustained damage.

¶7 The Agreement and Andrew’s Services

¶8 In addition to being a licensed roofer, Andrew is also a licensed public adjuster, i.e., an insurance professional which a policyholder may hire to assist in the settlement of an insurance claim with his own insurer, known as a “first-party claim.” Andrew owns and manages Lake

Shore Public Adjusters Group LLC (Lake Shore) and other companies. After learning of the roof damage from one of his employees at the time – Ewa Matys, Vojtek’s former spouse – Andrew contacted Roger.

¶9 The parties subsequently entered into a roof damage consulting agreement dated April 3, 2015. Pursuant to the agreement, defendants retained Andrew to provide advice and consultation regarding the necessary repairs or replacement of the roof. Defendants agreed to pay Andrew 33% of all recovered amounts. Although a recital in the roof damage consulting agreement initially provided that “the Owners intend to pursue all remedies available to recover from others, including Owner’s Insurance Company,” the reference to “Owner’s Insurance Company” was crossed out and a handwritten note was added: “No – not our insurance company. They were not at fault.”

¶ 10 Roger did not want to file a direct claim against the insurance carrier for Churchill Cabinet or Chicago Gaming for the damage. A claim was instead filed against Travelers Insurance Company (Travelers), which provided liability insurance for BRZ, the company which was responsible for the inferior roof work at the building. In a letter to Travelers dated April 11, 2015, Roger provided Andrew’s contact information and referred to him as “our roof consultant.” Travelers assigned its claims specialist Dawn McKeever (McKeever) to this matter.

¶ 11 Andrew participated in multiple inspections of the roof. After an inspection of the roof with Eric Koretge (Koretge), a general contractor retained by McKeever, Travelers initially offered to pay $190,600, consisting of the actual cash value of $146,041.32, plus reimbursement for $44,558.67 in temporary repairs which had already been made. Andrew responded that he did not agree with the proposed scope of the work and that he noticed “many defects” in the insurer’s estimate. Among other things, Travelers generally asserted that the proper measure of

damages was the depreciated value of the 17-year-old roof, whereas Andrew opined that the replacement of the roof was necessary. Andrew prepared his own roof replacement estimate of approximately $1.2 million in October 2015. When Andrew requested another inspection, Koretge brought a roofing contractor to the building.

¶ 12 On January 8, 2016, Travelers raised its offer to $416,500. At Andrew’s direction, his employee Katarzyna “Kasia” Stadnik asked McKeever for support for Travelers’ position that it did not owe the replacement cost value.

¶ 13 Roger subsequently sent Andrew a number of letters on Churchill Cabinet stationery. In a letter dated January 29, 2016, Roger claimed that Andrew’s roofers (not Vojtek’s) had “criminally destroyed” the roof. In a letter dated February 2, 2016, Roger terminated the roof damage consulting agreement. He claimed that Andrew had misrepresented his role, by presenting himself as a roofer and a consultant and not a public adjuster. Roger also asserted that Andrew repeatedly attempted to have Roger sign a letter to the insurance company falsely stating an inflated cost of roof repairs. Roger informed Andrew that neither he nor the other defendants own the building, asserting: “Since I have no interest in the building nor do the tenants, you cannot hold us liable.” In a letter dated February 5, 2016, Roger accused Andrew of “fraudulent scheming” and opined that the 33% fee under their agreement was “excessive and absurd.”

¶ 14 Roger then informed Travelers that the contract with Andrew had been terminated. Although Roger acknowledged the 33% fee in the roof damage consulting agreement, he claimed that he had left his glasses at home and could not read the agreement when it had been presented to him. Roger indicated that defendants’ attorney had advised Roger that he would have to pay some amount for Andrew’s work, but not the 33%.

¶ 15 Defendants accepted Travelers’ offer, and a check for $461,058.67 ($416,500 +

$44,558.67 for temporary repairs) to Churchill Cabinet was deposited on March 16, 2016.

¶ 16 The Complaint and Initial Proceedings

¶ 17 Andrew filed a four-count complaint against defendants. In count I (breach of contract), he alleged that defendants failed to perform under their agreement by refusing to pay him 33% of the recovered amounts. In the alternative, Andrew asserted an unjust enrichment count (count II) and a quantum meruit count (count III). In count IV, Andrew alleged that Roger fraudulently misrepresented his ownership of the building and his ability to bind Churchill Cabinet and Chicago Gaming to the roof damage consulting agreement.

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