Safe Zone Services, LLC v. Linn-Mathes, Inc.

Appellate Court of Illinois·Decided August 14, 2026·No. 1-25-1219·Published

Opinion

2026 IL App (1st) 251219

No. 1-25-1219

Opinion filed August 14, 2026 Sixth Division

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

SAFE ZONE SERVICES, LLC, )

)

)

Plaintiff-Appellant, )

Appeal from the Circuit Court v. )

of Cook County.

)

LINN-MATHES, INC.; RAYMUNDO RIVERA; ) JLL CONSTRUCTION SERVICES, INC.; CIBC )

No. 21 L 9062

BANK USA; ROOSEVELT-WESTERN ) CURRENCY EXCHANGE, INC.; and ) BELMONT BANK AND TRUST, )

The Honorable

)

John J. Curry. Jr. and Johnathan Defendants )

Clark Green,

)

Judge, presiding.

(Linn-Mathes, Inc.; Raymundo Rivera; JLL ) Construction Services, Inc.; Roosevelt-Western ) Currency Exchange, Inc.; and Belmont Bank and ) Trust, Defendants-Appellees). )

JUSTICE HYMAN delivered the judgment of the court, with opinion. Justice Pucinski concurred in the judgment and opinion. Presiding Justice C.A. Walker concurred in part and dissented in part, with opinion.

OPINION

¶1 Charles Avery and Raymundo Rivera co-owned Safe Zone Services, LLC (Safe Zone), which provides excavation and hauling services for construction sites. After their business relationship ended, Rivera transferred his 49% membership interest in Safe Zone to Avery but

retained several construction projects, including the Emmett Project. This appeal concerns ownership of payment for over $200,000 in work Safe Zone completed before the transfer took effect.

¶2 Months after the transfer, Linn-Mathes, Inc. (Linn-Mathes), the general contractor on the Emmett Project, issued checks to Rivera and his employer, JLL Construction Services, Inc. (JLL), for work Safe Zone completed before the transfer. Safe Zone then sued Rivera and JLL for breach of contract, conversion, and unjust enrichment. The complaint also alleged breach of contract against Linn-Mathes and included currency exchange and a bank as defendants for negotiating the checks. Additionally, Safe Zone alleged Rivera failed to pay invoices for services Safe Zone provided to JLL.

¶3 The trial court granted summary judgment for defendants, finding Safe Zone agreed to transfer payments for its past work to Rivera. The court also found Linn-Mathes did not breach its contract by issuing payment to Rivera and that the financial institutions were not liable for negotiating the checks.

¶4 Avery argues the trial court erred in (i) granting summary judgment, (ii) vacating a default order entered against JLL, and (iii) denying his motion for attorney’s fees.

¶5 We agree with Avery in part. The trial court erroneously equated the transfer of the Emmett Project with the transfer of payment for work Safe Zone completed before the transfer. When read together, the membership interest purchase agreement and assignment transferred the Emmett Project prospectively but did not affect compensation for labor and services Safe Zone furnished before the transfer. We therefore reverse the summary judgment in favor of Rivera and JLL and remand with instructions to enter summary judgment in favor of Safe Zone as to the ownership of the January and February checks.

¶6 Because the judgments in favor of Linn-Mathes and the financial institutions rested on the conclusion that Rivera owned the proceeds, we reverse those judgments and remand for further proceedings consistent with this opinion.

¶7 Finally, we affirm the order vacating JLL’s default. We lack jurisdiction to review the denial of attorney’s fees.

¶8 BACKGROUND

¶9 Safe Zone, owned by Avery, provides excavation, waste removal, and traffic control services for construction sites. Rivera worked in various capacities for several construction companies, including JLL. In 2019, Avery and Rivera agreed that Rivera would acquire a 49% membership interest in Safe Zone in exchange for using his industry contacts to secure work for the company. Rivera continued working for JLL and used Safe Zone’s services on numerous projects, resulting in $98,000 in unpaid Safe Zone invoices (hereinafter, open invoices).

¶ 10 In September 2020, Safe Zone entered into a subcontract agreement with general contractor Linn-Mathes to perform excavation and hauling work for a Chicago Housing Authority development known as the Emmett Project. During October and early November 2020, Safe Zone provided services on the project of $123,835 and $77,286, respectively.

¶ 11 On November 6, 2020, Rivera transferred his membership interest in Safe Zone back to Avery through a membership interest purchase agreement (MIPA) and an assignment of limited liability company membership interest (Assignment). The parties do not dispute that before they executed the MIPA and Assignment, Safe Zone had already furnished more than $200,000 in labor and services on the Emmett Project.

¶ 12 Under the MIPA, Rivera retained, and Avery waived and relinquished “all right, title, and interest in and to” several construction projects, including the Emmett Project, in exchange for $100. Rivera also agreed to indemnify and hold Avery and Safe Zone harmless against losses, damages, costs, and expenses arising from those retained projects. The MIPA does not address payment for work Safe Zone completed before November 6. Nor does the MIPA state that compensation attributable to labor and services Safe Zone had already furnished before closing would pass to Rivera.

¶ 13 Under the Assignment, Rivera transferred and assigned to Avery “all of [his] right, title, and interest in and to an undivided forty-nine (49%) interest” in Safe Zone and directed that “all future distributions and payments on account of the Membership Interest hereby assigned be paid to [Avery.]” Further, Rivera “acknowledge[d] that all amounts that [he] may otherwise be entitled to from the Company have been received.” Rivera “forever waive[d] any and all rights and claims to the Membership Interest, assets of the Company, or any related interest herein.”

¶ 14 Avery and Rivera later submitted a change order to Linn-Mathes transferring the Emmett Project from Safe Zone to JLL. Avery e-mailed the change order to Jamie Bell, Linn-Mathes’s project manager. Bell responded with an e-mail and attachment showing that Linn-Mathes owed (i) $123,835 for October work already completed by Safe Zone, (ii) $77,286 for November work already completed by Safe Zone, and (iii) $165,037 remaining under the contract after transfer to JLL. In addition, Linn-Mathes and JLL entered into a new subcontract.

¶ 15 In December 2020, Avery e-mailed Bell requesting that Safe Zone’s payments be mailed to him. Bell responded that Linn-Mathes would require a lien waiver before issuing payment.

Linn-Mathes instead sent the lien waiver to Rivera, who signed it as an authorized representative of Safe Zone and returned it.

¶ 16 Linn-Mathes then issued a check payable to Safe Zone in the amount of $123,835 for its October 2020 work (the January check). Rivera picked up the check and cashed it at Roosevelt- Western Currency Exchange, Inc. (Roosevelt-Western). In his deposition, Rivera said Avery met him at the currency exchange and endorsed the check. Avery denies doing so and claims Rivera forged his signature.

¶ 17 In February 2021, Avery e-mailed Bell, Rivera, and others again and advised Linn-Mathes that only he had authority to collect payments on behalf of Safe Zone. On February 22, 2021, Linn-Mathes e-mailed lien waivers to Avery and Rivera, stating that a joint check for $77,286 for the November 2020 work would be issued to Safe Zone and JLL. In response, Avery sent an e-mail asking that Linn-Mathes “make that check out to JLL. I’m not sure why the first payment was submitted to Safe Zone, but going forward, this next payment needs to be made directly to JLL.” He later sent an e-mail to Rivera and Bell again asking that the payment be made to JLL, stating that “Safe Zone had nothing to do with the project” and that “[a]ny audits, waivers, etc[.] I won’t be apart [sic] of.”

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Safe Zone Services, LLC v. Linn-Mathes, Inc., (Ill. Ct. App. 2026).

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