Rivtis v. Woma, Inc

2022 IL App (1st) 210147-U
CourtAppellate Court of Illinois
DecidedMarch 31, 2022
Docket1-21-0147
StatusUnpublished
Cited by3 cases

This text of 2022 IL App (1st) 210147-U (Rivtis v. Woma, Inc) 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
Rivtis v. Woma, Inc, 2022 IL App (1st) 210147-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (1st) 210147-U

No. 1-21-0147

Filed March 31, 2022

Fourth Division

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 DISTRICT

TATYANA RIVTIS, and ) Appeal from the ANNA (ANYA) RIVTIS, ) Circuit Court of ) Cook County. Plaintiffs, ) ) v. ) ) WOMA, INC., VOLKAN TURAN, ) MINT REMODELING CORPORATION, ) No. 18 CH 09199 GERMUSKA MARKO d/b/a MARKO QUALITY, ) and FATHER & SON RODRIGUEZ LAWN CARE INC., ) ) Defendants. ) ) Honorable (Tatyana Rivtis, Plaintiff-Appellee v. Volkan Turan, ) Patrick J. Sherlock Defendant-Appellant). ) Judge, presiding.

Justice MARTIN delivered the judgment of the court. Justices Lampkin and Rochford concurred in the judgment.

ORDER

¶1 Held: Vacatur of judgment against debtor corporation for reasons unrelated to the merits did not require vacatur of judgment against corporation’s owner who was personally liable as guarantor on a promissory note. Award of attorney fees was proper. No. 1-21-0147

¶2 Volkan Turan, the sole owner of a home rehabilitation company, executed a promissory

note in conjunction with a loan of $50,000 he received from Tatyana Rivtis. After a bench trial,

the circuit court found that Turan and his company, Mint Remodeling Corporation (Mint), were

jointly and severally liable on the note and entered judgment against them and in favor of Rivtis.

In a subsequent proceeding, the court found that Tatyana1 was also entitled to an award of

$13,331.15 in attorney fees. Following denial of the defendants’ motion to reconsider, the circuit

court sua sponte vacated the judgment against Mint. The judgment against Turan remained and he

appeals. We affirm. 2

¶3 I. JURISDICTION

¶4 On October 26, 2020, the court issued a written order entering judgment in favor of

Tatyana, and against Turan and Mint, in the amount of $50,000 plus $6041.67 in interest, along

with attorney fees. On November 30, 2020, the court issued an order specifically awarding Tatyana

$13,331.15 in attorney fees. Turan filed a motion to reconsider the trial court’s judgment on

December 21, 2020. On January 13, 2021, the court entered a written order denying the defendants’

motion to reconsider. Thereafter, on January 14, 2021, the court sua sponte entered an order

vacating the judgment against Mint. Turan filed a timely notice of appeal on February 10, 2021.

Accordingly, this court has jurisdiction to consider this matter, pursuant to Illinois Supreme Court

Rules 301 and 303. See Ill. S. Ct. R. 301 (eff. Feb. 1, 1994); R. 303 (eff. July 1, 2017).

¶5 II. BACKGROUND

¶6 The trial testimony and pleadings reveal that Turan, for at least 20 years prior, had solely

owned and operated a small company called Mint Remodeling Corporation (Mint). Turan, through

We refer to the appellee by first name to distinguish her from her daughter, Anna Rivtis. 1

In adherence with the requirements of Illinois Supreme Court Rule 352(a) (eff. July 1, 2018), this 2

appeal has been resolved without oral argument upon the entry of a separate written order. -2- No. 1-21-0147

Mint, was engaged in the business of remodeling and rehabilitating real estate. One such home

remodeling project undertaken by Mint was located at 3517 N. Keating Avenue in Chicago

(Keating property).

¶7 The Keating property was owned by an entity known as Woma, Inc. (Woma), which was

in turn owned by Wilma Wyngaart. Turan was the general contractor responsible for rehabbing

the Keating property. In exchange for his work, and upon the sale of the Keating property, Turan

was to receive 50% of the sale proceeds.

¶8 In 2017, Turan met with an acquaintance, Anna Rivtis, and they discussed his involvement

in the Keating property. Turan explained to Anna that he had invested $60,000 of his own funds

into the rehabilitation and needed an infusion of capital to complete the work. After discussing the

potential profit from the sale of the Keating property, Anna suggested the possibility that her

mother, Tatyana, may have an interest in loaning Turan funds so that he could complete the project.

Anna explained that her mother had experience in loaning money and investing in such projects.

¶9 Prior to meeting with Tatyana, Turan sent Anna a “template” of a promissory note. Anna

filled in the address, dollar amount, and other “minor things.” Turan told Anna he would personally

guarantee the loan and that, instead of interest, he would pay Tatyana 17% of the profit from the

sale of the Keating property.

¶ 10 Tatyana and Turan eventually spoke and agreed to meet so that they could further discuss

a potential loan to Turan. On August 23, 2017, Tatyana and Turan met at a coffee shop where

Tatyana agreed to loan Turan $50,000 as an “investor” in the Keating property. They both signed

a document titled “Promissory Note,” which stated in relevant part:

“For value received $50,000.00 (fiftythousandUSdollar) received (hereinafter referred to

as principal), as borrowed capital for project at 3517 N Keating, Chicago, IL 60641, I

-3- No. 1-21-0147

understand (“Debtor”) Volkan Turan as president of Mint Remodeling Corporation ***

Barrington, Hills, IL 60010 promises to pay to Tatyana Rivits full $50,000.00

(fiftythousandUSdollar) as principal plus 17% of the profit earned before tax (tax free)

from the project, property tax and other discussed charges will be prorated at the time of

sale based on 17% of this share.

Said sum will be paid in 2 different cashier checks, 1 for the $50,000.00

(fiftythousandUSdollar) and remaining balance as a separate cashier check, within 10 days

after closing of the property to Tatyana Rivtis.

This note shall at the option of any party hereto be due with two weeks notice prior closing

of the property.

In the event this note shall be in default, and placed with an attorney for collection, then

the undersigned agree to pay all reasonable attorney fees and costs of collections. Payments

not paid with five (5) days of the due date shall be subject to a late charge of 5% of

payment.

***

Guaranty

We the undersigned jointly and severally guarantee the prompt and punctual payment of

all monies due under the aforesaid now and agree to remain bound until fully paid.

Debtor: Mint Remodeling Corporation ***” [sic]

¶ 11 After signing the note, Tatyana and Turan proceeded to Tatyana’s bank, where she tendered

him a cashier’s check in the agreed amount of $50,000. At Turan’s request, the check was made

payable to Mint. Shortly thereafter, Turan deposited the check into Mint’s company bank account.

Upon depositing the check, Turan—by way of a wire transfer—used $40,213 of the $50,000 to

-4- No. 1-21-0147

pay his personal residential mortgage, which at the time was in arrears.

¶ 12 Some months later, in May 2018, Tatyana texted Turan demanding repayment of her

investment. Turan neither responded to Tatyana’s demand for repayment, nor did he inform

Tatyana that he had used the borrowed money to pay off the mortgage on his house.

¶ 13 In July, Tatyana’s daughter, Anna, recorded a mechanic’s lien on the Keating property.

The mechanic’s lien asserted that Anna had performed certain work to improve the property, at

the direction of Turan, and Anna had not been paid. Tatyana and Anna then filed a joint complaint

in the circuit court.

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2022 IL App (1st) 210147-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivtis-v-woma-inc-illappct-2022.