Xcel Supply Inc. v. Horowitz

2025 IL App (1st) 232354-U
CourtAppellate Court of Illinois
DecidedMay 2, 2025
Docket1-23-2354
StatusUnpublished

This text of 2025 IL App (1st) 232354-U (Xcel Supply Inc. v. Horowitz) 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
Xcel Supply Inc. v. Horowitz, 2025 IL App (1st) 232354-U (Ill. Ct. App. 2025).

Opinion

2025 IL App (1st) 232354-U FIRST DISTRICT, SIXTH DIVISION May 2, 2025

Nos. 1-23-2354 and 1-24-0281, cons.

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 JUDICIAL DISTRICT _____________________________________________________________________________

XCEL SUPPLY INC., ) ) Plaintiff-Appellant and Cross-Appellee, ) Appeal from the v. ) Circuit Court of ) Cook County, Illinois. VICTOR HOROWITZ, ) ) No. 2009 L 004771 Defendant ) ) Honorable (Hydra Properties, LLC, ) James E. Hanlon, Jr., ) Judge Presiding. Third-Party Respondent-Appellee and ) Cross-Appellant). ) _____________________________________________________________________________

JUSTICE GAMRATH delivered the judgment of the court. Presiding Justice Tailor and Justice C.A. Walker concurred in the judgment.

ORDER

¶1 Held: (1) In supplementary proceeding by judgment creditor against third-party citation respondent, respondent’s gratuitous payment of judgment debtor’s bills did not render it subject to the judgment; and (2) respondent, a limited liability company, is not entitled to attorney fees and costs under section 15(a)(3) of the Rights of Married Persons Act (750 ILCS 65/15(a)(3) (West 2022)). Nos. 1-23-2354 and 1-24-0281, cons.

¶2 In 2015, plaintiff-appellant Xcel Supply Inc. obtained a judgment of $468,021.87 against

Victor Horowitz. Xcel sought to collect the judgment by initiating postjudgment proceedings

under section 2-1402 of the Code of Civil Procedure (735 ILCS 5/2-1402 (West 2020)) against

respondent-appellee Hydra Properties, LLC, a company owned by Victor’s wife, Ahuva

Horowitz.

¶3 On November 21, 2023, the trial court denied Xcel’s motion for a turnover order against

Hydra, finding Xcel failed to show Hydra held income or property belonging to Victor. On

December 21, 2023, the trial court dismissed Xcel’s petition to discover assets against Hydra.

Xcel appeals from both orders. Hydra cross-appeals from the trial court’s January 9, 2024, denial

of its motion for attorney fees pursuant to section 15(a)(3) of the Rights of Married Persons Act

(750 ILCS 65/15(a)(3) (West 2022)). We affirm.

¶4 I. BACKGROUND

¶5 On April 22, 2009, Xcel filed a breach of contract suit against Victor. Following a bench

trial, on July 17, 2015, the trial court entered judgment in favor of Xcel and awarded it

$468,021.87 plus statutory interest. We affirmed in Xcel Supply, LLC v. Horowitz (Xcel I), 2017

IL App (1st) 152277-U. To collect on the judgment, Xcel served its first citation to discover

assets upon Hydra on September 14, 2015.

¶6 A. Facts Regarding Hydra

¶7 Hydra was formed in 2008 as a limited liability company (LLC). 99% of Hydra is owned

by Ahuva; the remaining 1% is owned by Hydra Holdings, LLC, which is wholly owned by

Ahuva. Hydra holds membership interests in three LLCs: Sundance Methadone Treatment

Center, LLC, Rock Island Supportive Living, LLC, and Fort Armstrong Realty, LLC. All its

-2- Nos. 1-23-2354 and 1-24-0281, cons.

income is derived from membership distributions in these three LLCs and is deposited in

Hydra’s checking account (“Hydra Account”), not Ahuva’s personal accounts.

¶8 In a deposition on May 4, 2016, Ahuva testified she was a full-time occupational

therapist. Although she owned Hydra, she did not know what an LLC was or what the letters

“LLC” stood for. Ahuva did not organize Hydra and did not know who did. She had no duties or

responsibilities for the company, and she was unsure what its purpose was or whether it did

anything. She believed it was formed “[t]o hold assets for Sundance Company and Rock Island,”

but she did not know what it meant for an LLC to hold assets. She could not recall if she had

seen any financial statements or balance sheets for the company. She explained: “[T]hese kind of

things just go over me. *** I’m busy with my kids, the home, and my work. And I leave the

work up to my husband ***.”

¶9 Ahuva testified that she had check signing authority for the Hydra Account and wrote

checks from that account to pay family expenses, such as insurance payments, dry cleaning bills,

and educational expenses for her children. She did not know where the money in the account

came from or whether Victor had check writing authority. “I don’t really see him writing

checks,” she said. “I have them all.” Ahuva denied having a conversation about needing to get

assets out of Victor’s name and put them in her company instead.

¶ 10 B. Procedural History

¶ 11 The present action concerns Xcel’s third turnover motion against Hydra, which it filed in

September 2023. We summarize Xcel’s prior turnover motions briefly.

¶ 12 On May 16, 2016, Xcel filed its first turnover motion against Hydra, seeking turnover of

$5,220 in checks from the Hydra Account, which Hydra paid directly to Victor in 2015. On

October 13, 2016, the trial court entered a turnover order in the amount of $5,220. We affirmed

-3- Nos. 1-23-2354 and 1-24-0281, cons.

in Xcel Supply LLC v. Horowitz (Xcel II), 2018 IL App (1st) 162986, ¶ 60, based on Victor’s

admission in an affidavit that he cashed the checks and spent the money in question.

¶ 13 On August 15, 2017, Xcel filed its second turnover motion, seeking turnover of $84,561,

representing checks from the Hydra Account that Victor allegedly wrote to third parties in 2015.

The trial court initially entered a judgment against Hydra in the amount of $78,811, finding that

some of the checks were assets controlled by Victor and used for his benefit. The court

commented on Ahuva’s deposition testimony, finding it “completely incredible,” and stating “it

[is] very clear that her knowledge of Hydra and its finances is either completely lacking or she

was being coy.”

¶ 14 Hydra moved to reconsider, arguing there was insufficient factual foundation regarding

the dates the checks were tendered to third parties and the use and beneficiary of the proceeds.

Hydra further argued that no Illinois case “holds that the holder of an investment portfolio who

does not know all the ins and outs of the portfolio forfeits her ownership interests through lack of

such knowledge.” The trial court granted Hydra’s motion to reconsider and withdrew its

judgment order. Xcel did not appeal.

¶ 15 On April 26, 2021, Xcel moved for leave to issue a second citation to discover assets

upon Hydra, alleging that Victor assigned a chose in action to Hydra (Hydra Properties LLC v.

Siebzener, No. 11-CH-12530 (Cir. Ct. Cook County)), a case which Hydra settled. Xcel claimed

it was entitled to the settlement proceeds. It further speculated Hydra “may have” added

additional sources of income, and it could not rely on Ahuva’s testimony to determine whether

Hydra was holding assets for Victor, since she was “totally ignorant of all things related to

Hydra.”

-4- Nos. 1-23-2354 and 1-24-0281, cons.

¶ 16 The trial court granted Xcel’s motion. Following service of the citation on Hydra, the

court ordered Hydra to produce certain documents and records and directed Hydra to appear for

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Bluebook (online)
2025 IL App (1st) 232354-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xcel-supply-inc-v-horowitz-illappct-2025.