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

2023 IL App (1st) 220022-U
Appellate Court of Illinois·Decided May 3, 2023·No. 1-22-0022·Unpublished

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.

¶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.

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

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 preliminary injunction, at which the court heard testimony, including from Yaman Parmaksiz, the president and shareholder of the Papa John’s franchise which had been operating out of the premises. Following testimony, the court noted that it had presided over a

“summary proceeding *** a few weeks ago, and based upon the contents of the verified complaint as well as the verified motion for a temporary restraining order, and as [Landlord] had not filed the verified answer to essentially contest the accuracy of any of the allegations contained within the complaint, [the court had]

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

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