Sohaey v. Van Cura

607 N.E.2d 253, 240 Ill. App. 3d 266, 180 Ill. Dec. 359
CourtAppellate Court of Illinois
DecidedDecember 30, 1992
Docket2-92-0049
StatusPublished
Cited by57 cases

This text of 607 N.E.2d 253 (Sohaey v. Van Cura) 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
Sohaey v. Van Cura, 607 N.E.2d 253, 240 Ill. App. 3d 266, 180 Ill. Dec. 359 (Ill. Ct. App. 1992).

Opinion

JUSTICE UNVERZAGT

delivered the opinion of the court:

On March 17, 1987, plaintiffs, Dr. Manutchehr Sohaey, Minoo Sohaey, and Dr. Mehdi Behinfar, brought an action in Du Page County circuit court to recover for economic damages incurred as a result of their purchase of a shopping center. Plaintiffs’ complaint, as amended and supplemented, contained 11 counts.

Counts I, II and VIII, against defendant Mark X. Van Cura, claimed negligence, breach of fiduciary duty and violation of the Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (Ill. Rev. Stat. 1989, ch. 121½, par. 261 et seq.). Counts III, V, VII and VIII, against defendant Coldwell Banker, claimed negligence, breach of contract, intentional tort, and violation of the Consumer Fraud Act. Counts IV, VI and VIII against defendant Frank Kotnaur, claimed negligence, intentional tort, and violation of the Consumer Fraud Act. Count IX, against Kennedy Development Group, Inc. (KDG), claimed violation of the Consumer Fraud Act. Counts X and XI, against defendants Medical Business Consultants, Inc., its president, Wheeler E. Chapman, and employee, Joan Mleko (MBC defendants), claimed negligent misrepresentation and breach of contract. Coldwell Banker filed a three-count counterclaim (count III was later withdrawn) for commission fees from plaintiffs. Counts I and II of the counterclaim sounded in quantum meruit and breach of contract.

KDG settled with plaintiffs prior to trial. Also before the trial, the trial court entered summary judgment in favor of the MBC defendants on the two counts against them. The jury returned verdicts in favor of Van Cura on counts I and II against him. The jury returned verdicts in favor of Kotnaur and Coldwell Banker on counts III and IV. The trial court directed verdicts in favor of Kotnaur on count VI and Coldwell Banker on counts V and VII and in favor of Coldwell Banker on counts I and II of its counterclaim. The trial court also entered judgment in favor of Coldwell Banker and Kotnaur on count VIII. 1

Stated in summary form, plaintiffs’ appeal raises the following issues:

(1) whether the jury verdicts in favor of Van Cura on counts I and II were against the manifest weight of the evidence;

(2) whether the trial court erred in granting summary judgments for the MBC defendants;

(3) whether the trial court erred in barring the testimony of two of plaintiffs’ expert witnesses;

(4) whether the jury verdicts in favor of Kotnaur on count III and Coldwell Banker on count IV were against the manifest weight of the evidence;

(5) whether the trial court erred in directing verdicts in favor of Kotnaur on count VI and in favor of Coldwell Banker on count VII and the two counts of its counterclaim;

(6) whether the trial court erred in entering judgment in favor of Kotnaur and Coldwell Banker on count VIII;

(7) whether the jury was properly instructed;

(8) whether the trial court erred in certain of its pretrial discovery orders;

(9) whether the trial court erred in certain of its pretrial conference rulings; and

(10) whether the trial court erred in certain of its rulings during the trial.

Plaintiffs allege economic damages arising from their purchase of the Market Square Shopping Center (Market Square) located in Schaumburg, Illinois. The Market Square sale closed on August 5, 1986. Plaintiffs paid $4,350,000 for Market Square.

Plaintiffs suffered economic losses from their purchase of Market Square. These losses were generally in the form of lower than expected rental income, which was not sufficient to cover mortgage payments and other necessary expenses of ownership of Market Square. Plaintiffs had expected the rental income flow from Market Square to cover the expenses of ownership. Plaintiffs presented several expert witnesses who opined that plaintiffs paid substantially more for Market Square than it was worth because many of the tenants were behind on their rents due to undisclosed financial difficulties or stores believed to be open had closed or had not yet opened.

Plaintiffs claimed that several of their agents acted alone and in concert to cause them to suffer these economic losses. They allege that Mark X. Van Cura was their attorney for the Market Square transaction and that Van Cura negligently breached his fiduciary duties to them by concealing information from them and encouraging them to go ahead with the purchase when it was not in their best interest. Plaintiffs testified that if Van Cura had made them aware of this information and had properly advised them, they would not have gone ahead with the purchase of Market Square. Plaintiffs contend that Van Cura did not act in their best interest because of a conflict of interest. Plaintiffs testified they did not know until after the closing that Van Cura was acting as a real estate broker for the transaction and would receive a buyer’s side commission from the transaction. Van Cura countered that he was not plaintiffs’ attorney in the Market Square deal, that he did not negligently breach his fiduciary duties to plaintiffs, and that plaintiffs knew he was acting as a real estate broker and would get a commission from the transaction. The jury returned verdicts in favor of Van Cura on the negligence and breach of fiduciary duties counts directed against him.

Plaintiffs next claimed that they suffered damages due to the conduct of the MBC defendants. Plaintiffs testified they relied on information provided by the MBC defendants which caused them to go ahead with the Market Square purchase when they otherwise would not have. They claim that the MBC defendants, whom plaintiffs had contracted with for advice on the financial soundness of the proposed purchase of Market Square, made negligent misrepresentations and breached the contract thus causing damages. The trial court granted the MBC defendants’ motions for summary judgment on the two counts against them.

Plaintiffs also claim that they were damaged by the conduct of Kotnaur and his employer, Coldwell Banker. Plaintiffs testified that they believed Kotnaur was acting as their real estate broker in the Market Square sale. Plaintiffs claimed Kotnaur and Coldwell Banker negligently failed to conform to the standard of care required of real estate brokers and therefore breached their fiduciary duties to plaintiffs. Plaintiffs also charged Coldwell Banker with breach of contract, and Kotnaur and Coldwell Banker with intentional tort sounding in civil conspiracy, and violation of the Consumer Fraud Act. Plaintiffs claim damages from all of the charged conduct. Kotnaur denied that he was a real estate broker for the plaintiffs. The trial court directed verdicts in favor of Kotnaur and Coldwell Banker on the counts charging intentional tort and in favor of Coldwell Banker on its counterclaims and entered judgment in favor of Kotnaur and Coldwell Banker on the violation of the Consumer Fraud Act counts. The jury returned verdicts in favor of Kotnaur and Coldwell Banker on the negligence counts.

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Cite This Page — Counsel Stack

Bluebook (online)
607 N.E.2d 253, 240 Ill. App. 3d 266, 180 Ill. Dec. 359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sohaey-v-van-cura-illappct-1992.