VAC Enterprises, Inc. v. Yang

2023 IL App (2d) 220292-U
Appellate Court of Illinois·Decided May 17, 2023·No. 2-22-0292·Unpublished

Opinion

No. 2-22-0292

Order filed May 17, 2023

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

VAC ENTERPRISES, INC., ) Appeal from the Circuit Court ) of McHenry County.

Plaintiff-Appellant, )

)

v. ) No. 21-CH-166 )

CHITAI YANG, ) Honorable ) Michael J. Chmiel,

Defendant-Appellee. ) Judge, Presiding.

JUSTICE KENNEDY delivered the judgment of the court.

Justices Jorgensen and Birkett concurred in the judgment.

ORDER

¶1 Held: The trial court properly dismissed, for failure to state a cause of action, plaintiff’s complaint for specific performance of a contract for the purchase of real property.

Plaintiff failed to allege the existence of a valid, binding, and enforceable contract that was sufficiently definite and certain in all its terms.

¶2 Plaintiff, VAC Enterprises, Incorporated, filed a complaint against defendant, Chitai Yang, seeking specific performance of an alleged contract to purchase real property. Plaintiff also filed an emergency motion for a temporary restraining order (TRO) to enjoin defendant from selling the property to another purchaser. Defendant filed (1) a response to the motion for a TRO, (2) a motion to dismiss the complaint under section 2-615 of the Code of Civil Procedure (Code) (735 ILCS

5/2-615 (West 2020)), and (3) a motion to dismiss the complaint under section 2-619 of the Code (id. § 2-619). The trial court denied plaintiff’s motion for a TRO and later granted defendant’s motions and dismissed the complaint without prejudice. Thereafter, plaintiff filed an amended complaint raising essentially the same claims. Defendant filed a motion to dismiss the first- amended complaint under section 2-615 of the Code, which the trial granted. Plaintiff timely appealed. Plaintiff contends that the trial court erred in (1) dismissing its amended complaint under section 2-615 of the Code, (2) dismissing its initial complaint under both section 2-615 and section 2-619 of the Code, and (3) denying its motion for a TRO. We affirm.

¶3 I. BACKGROUND

¶4 A. The Initial Complaint

¶5 On November 18, 2021, plaintiff filed its initial complaint against defendant, seeking specific performance of an alleged contract to purchase a Wonder Lake property (Property) owned by defendant. The complaint also sought a TRO and a preliminary injunction barring defendant from selling the Property to another purchaser.

¶6 According to the initial complaint, before May 18, 2021, defendant allowed plaintiff “to enter, inspect, maintain, and rent the premises, while [d]efendant was out of the country in Taiwan.” While defendant was in Taiwan, plaintiff and defendant began discussing a possible sale of the Property to plaintiff. The parties then exchanged various e-mails, which according to plaintiff, resulted in a valid, binding, and enforceable contract for the sale of the Property. (The complaint alleged that Vic Crisci was an officer of plaintiff. All communications referenced herein took place between Crisci, on behalf of plaintiff, and defendant.)

¶7 The e-mails, which were attached to the initial complaint as Exhibit A, contain the following relevant exchange:

¶8 On May 18, 2021, plaintiff e-mailed defendant, indicating that “per [their] conversation,” plaintiff attached an “updated contract for [defendant’s] review.” Attached to the e-mail was a document titled “Articles of Agreement for Warranty Deed” (Original Articles). The Original Articles were attached to the initial complaint as Exhibit B. The Original Articles identified the Property and contained the following relevant provision:

“2. PURCHASE PRICE: The Purchaser agrees to pay Seller the sum of Three Hundred Twenty Thousand Dollars ($320,000.00) in the following manner:

A. Closing on June 24th, 2021;

B. Articles for deed agreement is for a period of 60 months commencing on June 24th, 2021. This agreement can be prepaid without penalty at anytime [sic]

prior to the 60 months expiring;

C. A monthly payment of $825.00 starting on July 24th, 2021, inclusive of real estate taxes shall be paid on the 24th of each month to the Seller through June 24th, 2026[,] or until the principal balance is paid in full. Any additional payments made by Purchaser will be credited towards the principal balance starting on July 24th, 2021.”

The Original Articles were unsigned.

¶9 On May 21, 2021, defendant responded by e-mail:

“Let me understand what you are proposing which are [sic] different from what we talked about over the phone:

• Interest only

• no down

• mortgage rate at 3.30%

Here is what I am proposing:

• rate at 3.30%

• $20,000.00 down, I like to see some down payments for good faith purposes

• monthly payment - interest $825.00 + principal $200.00 = $1025.00; some principal payments make me feel better • Amortization schedule for the 1st year, if you want to make additional principal payments for any given period, the Excel will be able to calculate the remaining balance;

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• I think this is fair to both of us, $200.00 a month principal payment is less than half of what traditional mortgage would be Your thoughts?”

¶ 10 On May 24, 2021, plaintiff responded, stating in relevant part:

“What we discussed was basically no interest financing and all payments above the $825 will go toward principal over the 60 months. I asked you to work with me because you wouldn’t negotiate on the $320k purchase price. At the end of 5 years, I will be at or around a 260k balance owed to you after additional principal payments I will be making.

What I plan will be roughly 10k per year in principal payments over the 5 years. I don’t want to lock into a set monthly amount above the $1025 because the winter months could be slower. But I’m fine with a minimum monthly payment of $1025 which includes the taxes. I’d be willing to put 5k down today and give you 5k at the end of July.”

¶ 11 Later that day, defendant responded:

“[T]o summarize:

1. you will be making a $1025.00 @month payment for the next 60 months then a balloon payment

2. total of $10,000.00 down, $5000.00 now and $5000.00 at the end of July 3. You plan to make additional principal payment roughly $10,000.00 @year

Do I get it right? Is this what you agree upon?

I am OK with this plan, you can start using the house for weekend renter now except the garage but you will not take possessing [sic] of the house until I remove all my belongings out of the house[.]”

¶ 12 On May 25, 2021, plaintiff responded that “all is agreeable on items 1, 2 and 3 you listed[.]” Plaintiff stated that he believed that a car and certain furnishings were included. Defendant responded that those items were not included and would be addressed in a separate sales agreement. Defendant concluded: “Again, you can use the house for weekend rental for now, but no possessing of the house, we will make final agreement when I am there in person. When do you plan to make your first payment?” The parties then exchanged several e-mails on whether the parties had agreed that certain items were included in the sales price. Defendant ultimately told plaintiff: “[Y]ou can have the car, boat and household items in the house for $6000.00.”

¶ 13 On May 27, 2021, plaintiff offered defendant $4000 for the “car, boat and personal property” with “the option to pay it on the back end of the 60 month term or at any time prior.”

¶ 14 Later that day, defendant responded:

“I will meet you in the middle Here are [sic] what we have agreed upon:

1. you will be making a $1025.00 @month payment for the next 60 months then a balloon payment

2. total of $10,000.00 down, $5000.00 now and $5000.00 at the end of July 3. You plan to make additional principal payment roughly $10,000.00 @year for next 5 years

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VAC Enterprises, Inc. v. Yang, 2023 IL App (2d) 220292-U (Ill. Ct. App. 2023).

2023 IL App (2d) 220292-U (VAC Enterprises, Inc. v. Yang) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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