PPP-SCH Inc v. SVAP Hoffman Plaza, L.P.

2023 IL App (1st) 220022-U
CourtAppellate Court of Illinois
DecidedMay 3, 2023
Docket1-22-0022
StatusUnpublished

This text of 2023 IL App (1st) 220022-U (PPP-SCH Inc v. SVAP Hoffman Plaza, L.P.) 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
PPP-SCH Inc v. SVAP Hoffman Plaza, L.P., 2023 IL App (1st) 220022-U (Ill. Ct. App. 2023).

Opinion

2023 IL App (1st) 220022-U

THIRD DIVISION May 3, 2023

No. 1-22-0022

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 ______________________________________________________________________________

PPP-SCH INC. and YAMAN PARMAKSIZ, ) Appeal from the ) Circuit Court of Plaintiffs-Appellants/Cross-Appellees, ) Cook County. ) v. ) ) SVAP HOFFMAN PLAZA, L.P., SVAP HOFFMAN PLAZA GP ) LLC, SVAP GP LLC, MICHELLE McCARTNEY, STERLING ) ORGANIZATION, and SKYLINE DEVELOPMENT, LLC, ) ) No. 2016 CH 14315 Defendants ) ) (SVAP HOFFMAN PLAZA, L.P., SVAP HOFFMAN PLAZA ) GP LLC, SVAP GP LLC, and STERLING ORGANIZATION, ) Honorable ) Daniel J. Kubasiak Defendants-Appellees/Cross-Appellants). ) Judge Presiding. _____________________________________________________________________________

PRESIDING JUSTICE McBRIDE delivered the judgment of the court. Justices Reyes and Burke concurred in the judgment.

ORDER ¶1 Held: Affirming summary judgment for Landlord and against Tenant in a conversion action where Tenant failed to provide any evidence of damages. Denial of Landlord’s request for attorney fees also affirmed where the basis for granting attorney fees was raised for the first time on appeal. 22-0022

¶2 This case involves a commercial landlord-tenant dispute. Specifically, plaintiff PPP-SCH,

Inc. (Tenant), brought conversion claims against defendants, SVAP Hoffman Plaza L.P., SVAP

Hoffman Plaza GP LLC and SVAP GP LLC (collectively Landlord), after Landlord removed

Tenant’s property from the leased premises. 1 Landlord, however, contended that the parties’

lease had expired, that Landlord had provided the required notice to Tenant to vacate the

property, and that, pursuant to the parties’ lease, Tenant had waived its rights under the Forcible

Entry and Detainer Act and specifically authorized Landlord to remove Tenant’s property after

Tenant refused to surrender the premises. Throughout the litigation, the parties generally argued

as to the enforceability of the lease provision, with Tenant contending that the lease provision

violated public policy. The trial court, however, ultimately concluded that it need not determine

whether the provision was enforceable. The court found that, even if Landlord’s actions were

authorized by the lease, Landlord had wrongly withheld Tenant’s property after removing it.

However, at summary judgment, the court found that, two years after the close of discovery,

there was still no evidence as to the fair market value of any of the property at issue in Tenant’s

conversion claims. The court entered summary judgment in Landlord’s favor, but rejected

Landlord’s request for attorney fees. In this court, Tenant challenges the court’s grant of

summary judgment for Landlord. Landlord cross-appeals, arguing that the trial court erred in

denying its request for attorney fees.

¶3 This lawsuit began on November 1, 2016, when Tenant filed a complaint against

Landlord, alleging claims of trespass, private nuisance, conversion, and a request for an

injunction. Tenant alleged that it was a month-to-month tenant and occupant of commercial

1 There were several different iterations of the parties involved as plaintiffs and defendants during the course of these proceedings. For convenience, this court will collectively refer to plaintiffs as “Tenant,” and defendants as “Landlord,” except in instances where differentiating the particular plaintiff or defendant is necessary. 2 22-0022

property located at 1029 North Roselle Road in Hoffman Estates (the premises), in which it

operated a Papa John’s Pizza restaurant. Tenant further alleged it had received a letter from

Landlord on September 27, 2016, notifying Tenant of Landlord’s intention to demolish the

premises on November 1, 2016. Tenant stated that it notified Landlord on October 31, 2016, that

it was still in possession of the premises, that the scheduled demolition should be “halted

immediately,” and that “any attempt to dispossess” Tenant must be “done pursuant to the

Forcible Entry and Detainer Act.” Tenant further asserted that on November 1, 2016, Landlord

unlawfully dispossessed Tenant of the premises by changing the locks, and unlawfully removed

Tenant’s “personal property, business equipment, furniture, and/or fixtures” from the premises.

¶4 The next day, on November 2, 2016, Tenant filed an emergency motion for a temporary

restraining order against Landlord. Tenant again alleged that it was unlawfully dispossessed of

commercial property that it was entitled to occupy, and sought the “entry of a temporary

restraining order against [Landlord] preventing [Landlord] *** from trespassing and/or

demolishing the property occupied by [Tenant] or otherwise interfering with [Tenant]’s ongoing

use and enjoyment [of] the property.”

¶5 On November 7, 2016, Landlord filed a motion to dismiss pursuant to section 2-619 of

the Code of Civil Procedure (Code), alleging that Tenant could not maintain the claims in its

complaint, because it did not have a possessory interest in the premises, and because Landlord’s

acts were specifically authorized by the expired lease between the parties.

¶6 On November 8, 2016, the court entered an order granting Tenant’s Emergency Motion

for a Temporary Restraining Order, concluding that Tenant had established a clear and

ascertainable right in need of protection, a likelihood of success on the merits, irreparable harm

absent injunctive relief, and no adequate remedy at law. Tenant was “restored to possession” of

3 22-0022

the premises. The court noted that it was “now treat[ing]” the motion for a temporary restraining

order as a motion for a preliminary injunction, and scheduled the matter for hearing on

November 30, 2016.

¶7 On November 21, 2016, Landlord filed a verified answer and affirmative defenses.

Landlord admitted that it had served Tenant with notice that Tenant’s belongings would be

removed and put in storage if Tenant did not vacate by October 31, 2016, and generally denied

the remaining allegations. As affirmative defenses, Landlord alleged (1) that the lease required

Tenant to surrender the premises on or before October 31, 2016, and that Tenant had no right to

possession on November 1, 2016; (2) that the equitable doctrine of “unclean hands” barred

Tenant’s claim because it had wrongfully withheld possession of the premises; (3) that the lease

specifically authorized Landlord to enter into the premises and remove Tenant in the event of a

default; and (4) that Tenant had no right to use and enjoyment of the premises where it had

defaulted under the Lease by failing to surrender the premises.

¶8 The same day, Landlord filed a “Verified Counterclaim” against Tenant. Landlord

alleged it needed to begin demolition of the premises on November 1, 2016, to deliver the

premises to a new tenant. As a “direct and proximate result” of Tenant’s breach and failure to

surrender the premises by October 31, 2016, Landlord claimed damages in an amount exceeding

$14 million, including damages accruing under the lease for wrongfully holding over, for

construction delays, and for losing the new tenant.

¶9 On November 30, 2016, the court held an evidentiary hearing on Tenant’s motion for a

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2023 IL App (1st) 220022-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ppp-sch-inc-v-svap-hoffman-plaza-lp-illappct-2023.