Real Estate Resource Management, LLC v. 1000 South Michigan, LLC

2020 IL App (1st) 190461-U
CourtAppellate Court of Illinois
DecidedSeptember 9, 2020
Docket1-19-0461
StatusUnpublished

This text of 2020 IL App (1st) 190461-U (Real Estate Resource Management, LLC v. 1000 South Michigan, 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
Real Estate Resource Management, LLC v. 1000 South Michigan, LLC, 2020 IL App (1st) 190461-U (Ill. Ct. App. 2020).

Opinion

2020 IL App (1st) 190461-U

THIRD DIVISION September 9, 2020

No. 1-19-0461

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

REAL ESTATE RESOURCE MANAGEMENT, LLC, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County. ) v. ) No. 06 CH 7033 ) 1000 SOUTH MICHIGAN, LLC, and ) GUY GARDNER, ) ) Defendants ) ) Honorable (Adam Wilhite, Third-Party Citation Respondent- ) Alexander P. White, Appellant). ) Judge Presiding. ______________________________________________________________________________

PRESIDING JUSTICE HOWSE delivered the judgment of the court. Justices Ellis and Cobbs concurred in the judgment.

ORDER

¶1 Held: We affirm the judgment of the circuit court of Cook County; the trial court’s decision finding the landlord in contempt for withholding two rent payments and a security deposit alleged to be property of a judgment debtor and its order to turnover the funds to the judgment creditor were not an abuse of discretion.

¶2 This is an appeal by a third-party citation respondent in a supplementary proceeding.

Plaintiff sought to collect on a judgment he obtained against defendant Guy Gardner in the

underlying case. Plaintiff issued a citation to discover assets to third-party citation respondent,

Adam Wilhite. In response to the citation, Wilhite denied possessing any property belonging to 1-19-0461

Guy. After an evidentiary hearing, the trial court entered an order finding Wilhite possessed

property belonging to Guy and entered an order of contempt for failure to turnover funds to

plaintiff. Wilhite appealed. For the following reasons we affirm the decision of the trial court.

¶3 BACKGROUND

¶4 On April 13, 2010, a judgment was entered against defendants, 1000 South Michigan,

LLC and Guy Gardner, in favor of plaintiff, Real Estate Resource Management, LLC, in the

amount of $956,000 stemming from a contract dispute which award was affirmed by this court in

a previously filed appeal. See Real Estate Resource Management, LLC v. 1000 South Michigan,

LLC, No. 1-10-1298 (Ill. 2011) (unpublished order under Illinois Supreme Court Rule 23).

¶5 Third-party respondent Wilhite was the owner and lessor of a townhome located in

Chicago (Townhome). He entered into a written lease which listed Guy’s wife, Ania Gardner,

and his brother, Gary Gardner, as lessees. After the term of the lease expired, Wilhite and Ania

agreed to extend the lease for two additional months on a month-to-month basis for January and

February 2016. Wilhite also held a security deposit.

¶6 On January 21, 2016, Wilhite was served with a third-party citation to discover assets

(Citation) in the supplementary proceeding pursuant to section 2-1402 of the Illinois Code of

Civil Procedure (Code), 735 ILCS 5/2-1402 (West 2016).

¶7 In response to the Citation, Wilhite denied he possessed any property owned by Guy.

Wilhite tendered copies of certain checks he received from Guy’s brother Gary which he

identified as rent payments on the Townhome as well as a security deposit. On May 2, 2017,

Wilhite also sat for his deposition.

-2- 1-19-0461

¶8 On June 13, 2017, plaintiff filed a petition for rule to show cause against Wilhite seeking

a finding of contempt and immediate turnover of January and February 2016 rents on the

Townhome as well as the security deposit.

¶9 On September 21, 2017, the trial court commenced a hearing on plaintiff’s contempt

petition. The record in this matter does not contain a record of proceedings or a bystander’s

report of the September 21, 2017 proceedings. After hearing testimony and argument, the trial

court entered an order denying the request for turnover of February 2016 rent and continued the

balance of plaintiff’s contempt petition to a future date for further proceedings.

¶ 10 On May 8, 2018, at the hearing on plaintiff’s contempt petition, both testimony and

argument were again heard by the trial court. On this date, Wilhite testified as the sole witness.

¶ 11 Wilhite testified that at all relevant times, he was the owner of the Townhome located at

1240 W. Monroe Street, Chicago, Illinois. On September 29, 2014, Wilhite rented the

Townhome pursuant to a lease agreement executed by Guy’s brother Gary and Guy’s wife Ania.

The approved occupants of the Townhome were Guy’s wife and children.

¶ 12 The parties stipulated that the security deposit for the Townhome was paid by Guy’s

brother Gary in the amount of $2,750 and certain rental payments were made to Wilhite by

Guy’s brother.

¶ 13 Wilhite testified without objection to various email communications between him and

Guy’s wife Ania. On January 17, 2016, Wilhite received email correspondence from Ania

stating:

“Thank you, [Wilhite]. I’ll let you know by the end of the day. I just want to

confirm budget with Guy and let [Guy’s brother Gary] know about our decision.”

¶ 14 On January 18, 2016, Ania sent Wilhite email correspondence stating:

-3- 1-19-0461

“Guy and I would like to continue our lease at [the Townhome] another month,

until the end of February, 2016, at $2,700 per month. Guy, please confirm this

information to [Wilhite] via email. Thank you.”

¶ 15 On January 25, 2016, Wilhite sent Ania email correspondence stating:

“Ania, I wanted to reach out regarding payment of rent for February. I would ask

that if you’re paying me by check that it is not a check from an account shared by

you and Guy. If that is all you can provide, then I would ask you to get me a

cashier’s check from the bank. Reason being is that I do not want to be receiving

anything from an account Guy is associated with. I have received multiple

subpoenas from some attorney asking that I appear in court, and getting a check

from an account Guy is associated with will cause me problems that I don’t want.

He is technically not on the lease as you know, so it needs to come from you or

[Guy’s brother Gary]. Not sure what the plan was there, but I just wanted to make

sure we are all on the same page. Give me a call if you would like to discuss.

Thanks.”

¶ 16 That same day, Ania sent responsive email correspondence to Wilhite’s email stating:

“[Wilhite], I understand. I told Guy that we need to pay cash and that was the

only way we could have stayed here another month. It’s been very challenging

living with Guy, and the main reason for me moving is to physically separate

myself from him and his problems. I wasn’t aware of until recently.”

¶ 17 Wilhite sent a responsive email to Ania the same day thanking her and stating:

“I’m just getting subpoenas almost every week and I don’t want to get pulled into

it. Glad we’re on the same page.”

-4- 1-19-0461

¶ 18 The Townhome was vacated around March 7, 2016. Wilhite held the security deposit

totaling $2,750 for approximately a year. Wilhite testified there were a lot of damages and the

costs of repair for these damages exceeded the security deposit. Wilhite also testified that he

made some improvements to the Townhome in advance of listing it for sale.

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2020 IL App (1st) 190461-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/real-estate-resource-management-llc-v-1000-south-michigan-llc-illappct-2020.