The Law Offices of Brendan R. Appel, Inc v. Georgia's Restaurant and Pancake House, Inc

2023 IL App (1st) 220588-U
Appellate Court of Illinois·Decided April 28, 2023·No. 1-22-0588·Unpublished·Cited by 1 cases

Opinion

2023 IL App (1st) 220588-U No. 1-22-0588

Order filed April 28, 2023 FIFTH 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

THE LAW OFFICES OF BRENDAN R. APPEL, LLC ) Appeal from the and BRENDAN R. APPEL, ) Circuit Court of ) Cook County.

Plaintiffs-Appellants, )

)

v. )

)

GEORGIA’S RESTAURANT AND PANCAKE HOUSE, ) No. 18L006214 INC., an Illinois Corporation, and HARRY KULUBIS, )

)

Defendants )

)

(Georgia’s Restaurant and Pancake House, Inc., an Illinois ) Honorable Corporation, ) Christopher Lawler, ) Marcia Maras,

Appellee). ) Judges Presiding.

JUSTICE LYLE delivered the judgment of the court.

Presiding Justice Delort and Justice Mitchell concurred in the judgment.

ORDER

¶1 Held: We affirm the judgment of the circuit court over plaintiffs’ contentions that the circuit court erred in granting the motion for summary judgment, that the court violated their due process rights in denying the motion for reconsideration, and that the court erred in denying the motion for Supreme Court Rule 137 sanctions.

¶2 This appeal arises following the circuit court’s grant of summary judgment in favor of appellee, Georgia’s Restaurant and Pancake House, Inc. (Georgia’s Restaurant), on plaintiffs’, The Law Offices of Brendan R. Appel, LLC (Appel Firm) and Brendan R. Appel1, claims of defamation and false light based on online reviews of Mr. Appel and the Appel Firm written by defendant Harry Kulubis. Mr. Appel alleged that Mr. Kulubis wrote the negative reviews in retaliation for a breach of contract action that Mr. Appel filed against Mr. Kulubis and Georgia’s Restaurant after Mr. Appel represented them in commercial litigation. During the pendency of the proceedings, Mr. Kulubis died, and Georgia’s Restaurant moved for summary judgment on the basis that Mr. Appel’s claims against it were derivative of his claims against Mr. Kulubis. The circuit court granted the motion.

¶3 On appeal, Mr. Appel contends that the circuit court erred in granting the motion for summary judgment where his claims against Georgia’s Restaurant were not affected by Mr. Kulubis’ death because he demonstrated that Georgia’s Restaurant committed independent wrongdoing. He maintains that his claims survived even after Mr. Kulubis’ death because Mr. Kulubis’ tortious conduct was imputed to Georgia’s Restaurant. Mr. Appel also asserts that the court violated his substantive due process rights by failing to adequately review his motion for reconsideration. Finally, he contends that the circuit court abused its discretion in denying his motion for sanctions where Georgia’s Restaurant filed a meritless and misleading motion to dismiss his complaint. For the reasons that follow, we affirm the judgment of the circuit court.

1 For clarity, we will collectively refer to plaintiffs as the singular “Mr. Appel” unless otherwise noted.

¶4 I. BACKGROUND

¶5 Mr. Appel is a licensed attorney in Illinois who is the sole owner of the Appel Firm. In 2012, Georgia’s Restaurant and Mr. Kulubis retained Mr. Appel and the Appel Firm to represent them in a commercial litigation action. After the suit was resolved, Mr. Appel alleged that Georgia’s Restaurant and Mr. Kulubis failed to pay his legal fees. Mr. Appel filed suit against Mr. Kulubis and Georgia’s Restaurant seeking to recover damages based on their failure to pay the Appel Firm’s invoices. Georgia’s Restaurant’s nonpayment of Mr. Appel’s fees is not at issue in the instant appeal.

¶6 In his complaint in the case at bar, Mr. Appel alleged that during the pendency of the action to recover fees, Mr. Kulubis “with actual malice on his own behalf and on behalf of Georgia’s [Restaurant]” began a “campaign to smear and besmirch” the reputation of Mr. Appel and his firm. This included Mr. Kulubis posting a review of the Appel Firm on Yelp.com and other websites where Mr. Kulubis made allegedly defamatory statements about Mr. Appel’s representation. Mr. Appel also alleged that Mr. Kulubis filed a complaint with the Illinois Attorney Registration and Disciplinary Commission (ARDC). Years later, Mr. Kulubis posted an “updated” review, which Appel claimed contained more defamatory statements. Mr. Appel pled claims for defamation per se and false light based on the reviews and the ARDC filings.

¶7 Both Mr. Kulubis and Georgia’s Restaurant filed motions to dismiss the complaint arguing that the lawsuit violated the Citizen Participation Act (735 ILCS 110/1 et seq. (West 2018)), commonly referred to as the anti-SLAPP (Strategic Lawsuits Against Public Participation) statute. Mr. Kulubis and Georgia’s Restaurant argued that the suit was a meritless strategic lawsuit brought in retaliation for Mr. Kulubis’ exercise of his right to free speech. Mr. Kulubis also alleged that his

reviews were not actionable because the reviews reflected the truth or represented his opinion. Mr. Kulubis and Georgia’s Restaurant also asserted that Mr. Appel failed to state a cause of action for defamation per se and false light.

¶8 Mr. Appel filed a response to the motions arguing that they were frivolous because Mr. Kulubis’ conduct did not constitute participation in government. Mr. Appel maintained that Mr. Kulubis and Georgia’s Restaurant attempted to obscure the “government nexus” requirement for anti-SLAPP actions despite Mr. Appel pointing out the deficiency to their attorneys.

¶9 The court denied the motions to dismiss finding that Mr. Appel’s complaint sufficiently alleged the causes of action and that Mr. Kulubis and Georgia’s Restaurant had failed to demonstrate that the lawsuit was an improper SLAPP suit because Mr. Kulubis did not create and publish the statements to further any protected right or otherwise participate in government.

¶ 10 Mr. Appel subsequently filed a motion for sanctions pursuant to Supreme Court Rule 137 (eff. Jan. 1, 2018) based on the anti-SLAPP statute motions. Mr. Appel alleged that Mr. Kulubis and Georgia’s Restaurant attempted to mislead the circuit court by misstating the law and purposefully omitting relevant factors through the use of selective quoting. Particularly, Mr. Appel alleged that Mr. Kulubis and Georgia’s Restaurant attempted to obscure the “government nexus” element in their motions and declined Mr. Appel’s offer to withdraw their motions after he identified the error. Mr. Appel maintained that the court should award him fees to compensate him for defending against the patently frivolous motion.

¶ 11 The court denied Mr. Appel’s motion for sanctions finding that although Georgia’s Restaurant and Mr. Kulubis’ conduct may have been “unprofessional,” they moved to dismiss the

complaint as a SLAPP in “good faith.” The court determined that it did not believe the conduct warranted Rule 137 sanctions, and elected to not award Mr. Appel attorney fees.

¶ 12 Mr. Appel subsequently filed an amended complaint, which added reference to a review Mr. Kulubis wrote of the Appel Firm and Mr. Appel on Avvo.com that mirrored the reviews Mr. Kulubis posted on Yelp.com and the Appel Firm’s Facebook page. The amended complaint also clarified the prayer for relief that Mr. Appel’s request for compensatory damages included general presumed damages.

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The Law Offices of Brendan R. Appel, Inc v. Georgia's Restaurant and Pancake House, Inc, 2023 IL App (1st) 220588-U (Ill. Ct. App. 2023).

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