Zahdan v. Frontline Business Enterprise Inc. , 2024 IL App (1st) 221351 ( 2024 )


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    2024 IL App (1st) 221351
    SIXTH DIVISION
    March 22, 2024 Filing Date
    No. 1-22-1351
    ______________________________________________________________________________
    IN THE
    APPELLATE COURT OF ILLINOIS
    FIRST JUDICIAL DISTRICT
    ______________________________________________________________________________
    AHMAD ZAHDAN and AZ SPE, LLC, an Illinois       )
    Limited Liability Company,                      )                   Appeal from the
    )                   Circuit Court of
    Plaintiffs-Appellees,       )                   Cook County.
    )
    v.                                          )                   No. 16 L 4450
    )
    FRONTLINE BUSINESS ENTERPRISE INC., an Illinois )                   The Honorable
    Corporation, and SYED AHMED,                    )                   Daniel J. Kubasiak,
    )                   Judge, Presiding.
    Defendants-Appellants.      )
    JUSTICE ODEN JOHNSON delivered the judgment of the court, with opinion.
    Justices Hyman and C.A. Walker concurred in the judgment and opinion.
    OPINION
    ¶1        Defendants Frontline Business Enterprise Inc. and Syed Ahmed appeal from an order of
    the Cook County circuit court granting a motion for summary judgment in a breach of contract
    action by plaintiffs, Ahmad Zahdan and AZ SPE, LLC. On appeal, defendants contend that the
    circuit court erred in finding that they breached the real estate contract by breaching the fuel
    supply management agreement (FSMA) because the FSMA was not incorporated into the real
    No. 1-22-1351
    estate contract. Alternately, defendants contend that, (1) even if they breached the real estate
    contract by breaching the FSMA, the circuit court abused its discretion in ordering rescission
    and, (2) even if they breached the real estate contract, the circuit court erred in denying
    defendants’ motion to reconsider when they presented evidence of unjust enrichment. For the
    following reasons, we affirm.
    ¶2                                          I. BACKGROUND
    ¶3         The background information for this appeal comes from the circuit court’s written opinion
    filed on May 27, 2022, granting summary judgment in favor of plaintiffs.
    ¶4         According to the complaint, plaintiffs became the owner of the gas station property located
    at 225 North Western Avenue in Chicago. In February 2016, defendants desired to purchase
    the property from plaintiffs, and as a result, AZ, Ahmed, and Ahmed’s future entity “Frontline”
    negotiated an agreement under which defendants agreed to purchase the property from
    plaintiffs. The sale was accomplished through a real estate sales contract dated February 29,
    2016, in which Frontline purchased the property for $800,000. The contract also contained a
    provision that stated as follows:
    “Ahmed [sic] understands and acknowledges that this Agreement and the
    consummation of this Agreement are subject to and conditioned upon Ahmad and AZ SPE
    Affiliate entering into a fuel supply management agreement in substantially the form
    attached hereto as Exhibit ‘I’ (the ‘Fuel Supply Management Agreement.’)”
    The contract additionally provided that AZ could terminate the contract and regain possession
    of the property in the event of a breach by defendants. The contract and the FSMA were
    executed simultaneously.
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    No. 1-22-1351
    ¶5          Under the FSMA, which provided for a 25-year term, all purchases of motor fuel by
    defendants would be arranged by Zahdan at a rate of two cents over “rack,” which referred to
    the price of gasoline sold by a refinery to a licensed fuel distributor and is used as the baseline
    to set the price that the distributor charges to a retail gasoline station. After the closing, Zahdan
    deeded the property to Frontline. Plaintiffs alleged that, at the time Ahmed signed the FSMA
    for Frontline, he had no intention of ever buying fuel from or through Zahdan. Subsequent to
    the closing, defendants never purchased any fuel from or through plaintiffs. Zahdan alleged
    that, since the closing, he was “ready, willing and able” to perform the obligations he owed
    under the FSMA. Plaintiffs alleged that defendants failed to perform under the FSMA and also
    refused to vacate the property and to return it to plaintiffs’ ownership.
    ¶6          On May 3, 2016, plaintiffs filed a three-count complaint against defendants alleging breach
    of contract, seeking specific performance and alternatively rescission. Plaintiffs subsequently
    filed a first amended verified three-count complaint on September 8, 2017, alleging that
    defendants breached the contract and FSMA by refusing to purchase petroleum products
    through Zahdan. The amended complaint alleged breach of contract (count I) and sought
    specific performance (count II) and alternatively rescission (count III). Defendants’ answer
    and affirmative defenses asserted duress, unclean hands, unconscionability, impossibility and
    impracticality, and illegality.
    ¶7          After discovery was completed, plaintiffs filed a motion for summary judgment on January
    3, 2022, pursuant to section 2-1005 of the Code of Civil Procedure (Code) (735 ILCS 5/2-1005
    (West 2020)). Plaintiffs argued that there were no genuine issues of fact that prevented entry
    of judgment in their favor that defendants breached the contracts.
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    No. 1-22-1351
    ¶8         In their motion for summary judgment, plaintiffs cited additional uncontested facts as
    follows: Ahmed had been the operator of the gas station at the property since 2014, and his
    original landlord was Harjinder Singh. Ahmed was a sophisticated businessman with an
    accounting degree. He owned and operated two gas stations on land he owned, and he owned
    and operated his own real estate company and was familiar with negotiating and reviewing real
    estate contracts. Ahmed operated the gas station under Tawakul 786, Inc., and the gas sold by
    the station was supplied by Singh’s entity under the Sandhu supply agreement.
    ¶9         On or about October 1, 2014, Ahmed, through a new entity named State Oil Petroleum,
    Inc., entered into a 10-year fuel supply agreement with Gas Depot Oil Company (Gas Depot).
    On April 24, 2015, pursuant to a consent judgment, plaintiffs became the owner of the property.
    In February 2016, plaintiffs still owned the property, but Ahmed wanted to purchase it.
    Defendants’ attorney negotiated the terms of the contract and FSMA with plaintiffs’ attorney,
    Ahmed was aware that the FSMA was a condition of closing, and he and his attorney received
    copies of the contract and FSMA before the closing. Prior to closing, defendants’ attorney
    advised Ahmed that he had an existing fuel supply agreement with Gas Depot and warned that
    he might have to choose between the existing agreement and the FSMA. Despite the existing
    Gas Depot agreement, Ahmed personally negotiated with Zahdan about the terms of the
    FSMA, including the price for each gallon of fuel. During the negotiation and closing of the
    contract and FSMA, Ahmed told his attorney about perceived duress but admitted in his
    deposition that he still closed anyway. Although Ahmed received a draft of the FSMA early in
    the negotiation process, Ahmed never attempted to make the FSMA contingent on a release of
    the Gas Depot agreement or some other arrangement, nor did he tell his attorney to advise
    plaintiffs’ attorney about the issue. Nor did Ahmed ever tell Zahdan that he thought the terms
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    No. 1-22-1351
    of the FSMA were unfair. Defendants’ attorney was unaware of any threats by Zahdan to evict
    Ahmed prior to the closing, he never sent plaintiffs’ attorney any e-mails claiming that
    plaintiffs threatened to evict Ahmed, and he did not refuse to sign the FSMA on behalf of
    defendants. During the closing, there was no shouting or fighting between Zahdan and Ahmed.
    ¶ 10         In addition to the purchase price, condition precedent, and the provision for breach, the
    contract also reserved ownership interest in and revenue from the ATM, vacuums, and air
    pumps located at the station to Zahdan. The contract imposed an indemnification obligation on
    defendants with respect to any liabilities or claims relating in any way to their acquisition and
    use of the property and contained an attorney fee provision. The contract also contained an
    agreement that the parties would cooperate and take further actions that were reasonably
    necessary to effectuate the purposes of the contract.
    ¶ 11         The FSMA provided for a 25-year term for the purchase of all motor fuel by defendants at
    the rate of two cents over “rack.” The provision in the FSMA for gasoline to be sold at two
    cents over rack ensured that Zahdan would receive a stream of income after selling the property
    to defendants. Subsequent to the closing, however, the defendant never purchased any fuel
    from or through Zahdan. Additionally, defendants refused to accept Zahdan’s continued
    ownership of the ATM, vacuum equipment, and air pumps at the property, and Zahdan
    received no revenue since the closing. Zahdan was ready, willing, and able to perform the
    obligations owed under the FSMA, and defendant admitted that Zahdan never refused to
    perform under the FSMA. Defendants failed to perform under the FSMA and also refused to
    vacate the property and return it to plaintiffs’ ownership even though plaintiffs were ready,
    willing, and able to return the $800,000 purchase price to defendants.
    -5-
    No. 1-22-1351
    ¶ 12         Defendants filed a response in opposition to plaintiffs’ summary judgment motion,
    contending that they did not breach the contract because nothing in the real estate contract
    required them to purchase petroleum products through Zahdan; rather, the contract’s condition
    precedent required them to enter into an FSMA, which they did. Defendants argued that there
    was no language that incorporated the terms of the FSMA into the contract in either document.
    Defendants further asserted that genuine issues of material fact existed as to whether plaintiffs
    could enforce the FSMA because Zahdan was not licensed as a gasoline distributor and, thus,
    the FSMA was unenforceable. Defendants also stated that plaintiffs were not entitled to
    summary judgment on their specific performance or rescission claims.
    ¶ 13         The circuit court found that there were no genuine issues of material fact that prevented
    judgment on any element of plaintiffs’ breach of contract claim. The court noted that
    defendants did not dispute that they entered into the contract and the FSMA, plaintiffs
    established that they fully performed their obligations under the contract by transferring
    ownership of the property to defendants, and no issue of fact appeared to exist that Zahdan was
    able to perform under the FSMA. The circuit court also noted that the contract specifically
    provided that it was conditioned on defendants’ entering into the FSMA and, in turn, the FSMA
    required defendants to purchase all fuel supplies for the station through Zahdan for a 25-year
    period. The circuit court found that defendants expressly admitted that they never purchased
    any gasoline from Zahdan and had no intent to abide by the terms of the FSMA when they
    executed it. The court further found that defendants did not raise any genuine issue of material
    fact as to plaintiffs’ ability to establish defendants’ breach of contract in their response.
    ¶ 14         The circuit court concluded that plaintiffs fully performed their obligations under the
    contract but that defendants admittedly entered into those agreements with the knowledge and
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    No. 1-22-1351
    intent not to perform their side of the bargain. The court found that plaintiffs’ damages were
    clear and that defendants’ affirmative defenses did not overcome plaintiffs’ entitlement to
    summary judgment. The circuit court accordingly granted plaintiffs’ motion for summary
    judgment on the breach of contract claim (count I) and the rescission claim (count III).
    ¶ 15         The circuit court found that rescission was an appropriate remedy considering the facts of
    the case, namely that the premise of count III was that the contract was conditioned on
    defendants’ assent to and compliance with the FSMA and because defendants showed that they
    would not perform under the FMSA. The court concluded that plaintiffs should regain title to
    the property in exchange for repayment to defendants of the $800,000 purchase price as
    plaintiffs showed and that defendants failed to dispute that there were any genuine issues of
    fact as to the rescission claims. The circuit court applied the test for rescission and noted that
    defendants’ failure to abide by the FSMA was clearly material to the dispute, as the contract
    specifically provided that it was conditioned on defendants’ entry into the FSMA.
    Additionally, the court noted that, even if it were possible to determine Zahdan’s damages to
    date, the potential loss of future business is generally incapable of adequate compensation and
    establishes that the damage to plaintiffs could not be remedied by a monetary award.
    ¶ 16         The circuit court also addressed defendants’ affirmative defenses and found that they did
    not overcome plaintiffs’ right to summary judgment. Defendants asserted affirmative defenses:
    duress, unclean hands, unconscionability, impossibility and impracticability, and illegality.
    However, defendant did not raise any issue of fact preventing the entry of summary judgment
    in plaintiffs’ favor. The court noted that Ahmed was a sophisticated businessman with years
    of experience owning and operating gas stations as well as a real estate investment company.
    Additionally, Ahmed was always represented by counsel. The circuit court found those facts
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    No. 1-22-1351
    dispositive of defendants’ affirmative defenses. The circuit court accordingly entered summary
    judgment in favor of plaintiffs on breach of contract and rescission.
    ¶ 17         On May 27, 2022, defendants filed a motion for reconsideration, asserting that the circuit
    court erred in granting summary judgment and in ordering rescission as a remedy. Defendants
    argued that the circuit court did not address their arguments that breach of the FSMA could
    not constitute breach of the contract or that there remained an issue of fact as to whether
    plaintiffs even complied with the FSMA such that they could enforce it. Rather, defendants
    argued, the circuit court chose to accept plaintiffs’ version of events as truth at the summary
    judgment stage. Regarding the rescission, defendants argued that the record reflected that the
    circuit court’s decision to order rescission was not an informed one and that the parties could
    not return to their respective precontract provisions. Moreover, defendants argued that they
    made substantial improvements to the property at their own expense in 2020 and that the
    rescission order allowed plaintiffs to retain the benefits of those improvements at defendants’
    expense.
    ¶ 18         That same day, defendants filed a motion for stay of enforcement pending resolution of
    their motion for reconsideration, which was granted on June 8, 2022. Plaintiffs subsequently
    filed a motion to strike Ahmed’s affidavit that was attached to defendants’ motion for
    reconsideration because it contained evidence not produced during discovery and was not new
    evidence in violation of Illinois Supreme Court Rule 191 (eff. Jan. 4, 2013).
    ¶ 19         In a subsequent written order, the circuit court denied defendants’ motion for
    reconsideration on September 1, 2022. With respect to defendants’ argument that the court
    erred in holding that the contract required them to perform under the FSMA when both were
    separate agreements, the court found that such argument lacked merit, as they ignored the plain
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    No. 1-22-1351
    language of the contract and the FSMA, as well as the evidence presented proving that
    defendants had no intention to perform under the FSMA. The court also found that defendants’
    arguments regarding summary judgment on the rescission claim lacked merit and evidentiary
    support. With respect to reconsideration of whether rescission was a proper remedy, the circuit
    court noted that defendants’ claim regarding improvements made to the property was not newly
    discovered evidence, in that it could have been raised in defendants’ response to the summary
    judgment motion, and defendants’ attempt to seek reconsideration on what was not newly
    discovered evidence was improper. Moreover, the court found that defendants never produced
    this material in discovery. The court also agreed that defendants’ failure to produce this
    evidence previously was a violation of Rule 191. It therefore struck Ahmed’s affidavit and
    found that any arguments related to improvements made to the property were waived. The
    court further noted that defendants never raised the inability to return the parties to the
    status quo as an affirmative defense, and they were therefore barred under section 2-613 of the
    Code (735 ILCS 5/2-613 (West 2020)) from raising it in a motion to reconsider. The court
    noted that the case began in 2016 and defendants’ voluntary decision to make improvements
    to the property was made four years after litigation began and with full knowledge that
    plaintiffs sought rescission and a return of the station to their ownership. The court also noted
    that defendants had possessed the property for over six years at the time of its decision. Finally,
    the circuit court found that restoration to the status quo ante simply required the rescinding
    party to return any consideration it received from the other party under the contract pursuant
    to Fogel v. Enterprise Leasing Co. of Chicago, 
    353 Ill. App. 3d 165
    , 173 (2004), which was
    what it ordered. The court rejected defendants’ theory that a return to the status quo ante
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    No. 1-22-1351
    required defendants to still possess the property under a lease with an option to purchase for
    $800,000.
    ¶ 20         Defendants filed their notice of appeal on September 2, 2022, and a motion for a stay of
    enforcement pending appeal on September 15, 2022. The circuit court entered an order on
    September 27, 2022, setting the time for it to rule on defendants’ motion and for the approval
    and filing of any bond to October 26, 2022.
    ¶ 21         The circuit court records end at that point; however, on February 14, 2023, plaintiffs filed
    a motion in this court to lift the stay of enforcement previously entered by the circuit court on
    October 26, 2022, and included a copy of the circuit court’s order. Courts of review may take
    judicial notice of matters that are readily verifiable from sources of indisputable accuracy.
    Bayview Loan Servicing, LLC v. Starks, 
    2022 IL App (2d) 210056
    , ¶ 12. Accordingly, we
    therefore take judicial notice of the circuit court’s order granting defendants’ motion for stay
    of enforcement of its April 29, 2022, and September 1, 2022, orders pending defendants’
    appeal. The order further prohibited defendants from transferring, conveying, assigning, or
    otherwise further encumbering the subject property at 225 North Western Avenue in Chicago.
    ¶ 22                                            II. ANALYSIS
    ¶ 23         We have jurisdiction to consider this appeal under Illinois Supreme Court Rule 303(a) (eff.
    July 1, 2017), as defendants filed their notice of appeal on September 2, 2022, one day after
    their motion to reconsider was denied by the circuit court.
    ¶ 24         On appeal, defendants contend that the circuit court erred in finding that they breached the
    real estate contract by breaching the FSMA because it was not incorporated into the real estate
    contract. Alternately, defendants contend that, (1) even if they breached the real estate contract
    by breaching the FSMA, the circuit court abused its discretion in ordering rescission and,
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    No. 1-22-1351
    (2) even if they breached the real estate contract, the circuit court erred in denying defendants’
    motion to reconsider when they presented evidence of unjust enrichment.
    ¶ 25                             A. Summary Judgment Standard of Review
    ¶ 26         This case was decided on summary judgment. The purpose of summary judgment is not to
    try a question of fact but rather to determine whether one exists. In re Estate of Reeder, 
    2023 IL App (3d) 210361
    , ¶ 15. Summary judgment should only be granted if the pleadings,
    depositions, admissions on file, and affidavits, when viewed in the light most favorable to the
    nonmoving party, show that there is no genuine issue as to any material fact and that the
    moving party is clearly entitled to a judgment as a matter of law. 735 ILCS 5/2-1005(c) (West
    2020); Estate of Reeder, 
    2023 IL App (3d) 210361
    , ¶ 15. Although summary judgment is to
    be encouraged as an expeditious manner of disposing of a lawsuit, it is a drastic measure and
    should be allowed only where the right of the moving party is clear and free from doubt. Estate
    of Reeder, 
    2023 IL App (3d) 210361
    , ¶ 15.
    ¶ 27         A genuine issue of fact precluding summary judgment exists where the material facts are
    disputed or, if the material facts are undisputed, reasonable persons might draw different
    inferences from the undisputed facts. Wolff v. Bethany North Suburban Group, 
    2021 IL App (1st) 191858
    , ¶ 29. On a summary judgment motion, once the moving party has demonstrated
    the right to judgment, the burden shifts to the nonmoving party to present evidence showing a
    genuine issue of material fact or that the moving party is not entitled to judgment as a matter
    of law. Id. ¶ 30. The nonmoving party may not rely solely upon its pleadings to raise an issue
    of material fact, nor is mere argument alone sufficient to raise such an issue. Performance
    Food Group Co. v. ARBA Care Center of Bloomington, LLC, 
    2017 IL App (3d) 160348
    , ¶ 18.
    - 11 -
    No. 1-22-1351
    We review the circuit court’s decision to grant summary judgment de novo. Wolff, 
    2021 IL App (1st) 191858
    , ¶ 30.
    ¶ 28          Our review of the record reveals that there was no evidence of any genuine issue of material
    fact or showing that plaintiffs were not entitled to judgment as a matter of law. Nor have
    defendants raised any issues of material fact on appeal, as we discuss in more detail below.
    ¶ 29                                           B. Breach of Contract
    ¶ 30          The circuit court found that defendants breached both the contract and the FSMA, despite
    defendants’ arguments to the contrary. Defendants raise the same arguments on appeal that
    they presented to the circuit court, namely that the contract and the FSMA did not incorporate
    each other into their terms and were separate agreements. Because they were separate
    agreements, defendants contend, breach of the FSMA could not be construed as breach of the
    real estate contract, and the circuit court erred by concluding as a matter of law that defendants
    breached the FSMA and the contract. We disagree.
    ¶ 31          We review de novo the interpretation of a contract. Timan v. Ourada, 
    2012 IL App (2d) 100834
    , ¶ 24. Whether a breach of contract occurred, however, is a question of fact, and the
    court’s finding will not be disturbed on appeal unless it was against the manifest weight of the
    evidence. 
    Id.
     The elements of a breach of contract claim are (1) the existence of a valid and
    enforceable contract, (2) performance by the plaintiff, (3) breach of contract by defendant, and
    (4) resultant injury to the plaintiff. 
    Id.
    ¶ 32          Here, the record establishes that the real estate contract and FSMA were valid and
    enforceable contracts between the parties. Additionally, plaintiffs established, and the circuit
    court specifically found, that plaintiffs fully performed their obligations under both contracts.
    The court also found that based on the evidence before it, namely Ahmed’s deposition and
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    No. 1-22-1351
    defendants’ former counsel’s deposition, that defendants purposely breached the FSMA
    because they never intended to honor it, which in turn resulted in a breach of the real estate
    contract. Plaintiffs also established damages as a result of defendants’ breach. We find that
    plaintiffs substantiated their breach of contract claim. Although defendants presented
    affirmative defenses in their response to the summary judgment motion, the circuit court found
    that they did not overcome defendants’ intentional breach of the contracts. Such findings were
    not against the manifest weight of the evidence based on the record.
    ¶ 33          We also reject defendants’ claim that the FSMA was not part of the real estate contract.
    The real estate contract clearly contains a clause that it was subject to and conditioned upon
    the parties entering into the FSMA, which was also attached to the contract. Defendants’
    incredulous argument that the contract and FSMA were not incorporated into each other
    ignores this plain and unambiguous language of the contract.
    ¶ 34          We conclude that the circuit court properly entered summary judgment for plaintiffs on
    their breach of contract claim against defendants.
    ¶ 35                                          C. Rescission Remedy
    ¶ 36          Defendants alternatively contend that even if they breached the FSMA and the contract,
    the circuit court erred in ordering rescission. We disagree.
    ¶ 37          Rescission of a contract refers to cancellation of that contract, so as to restore the parties to
    the status quo ante, the status before they entered into the contract. Hassan v. Yusuf, 
    408 Ill. App. 3d 327
    , 353 (2011). Rescission is an equitable remedy, the application of which is left
    largely to the discretion of the circuit court. 
    Id.
     A reviewing court will not disturb that decision
    unless it clearly resulted from an abuse of discretion. Newton v. Aitken, 
    260 Ill. App. 3d 717
    ,
    719 (1994); Hassan, 
    408 Ill. App. 3d at 353
    . A court may award rescission where there is
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    No. 1-22-1351
    material breach, fraud, or mutual agreement. Newton, 
    260 Ill. App. 3d at 719
    . The material
    breach in this sense refers to a breach with regard to a matter “ ‘of such a nature and of such
    importance that the contract would not have been made without it.’ ” 
    Id.
     (quoting Felde v.
    Chrysler Credit Corp., 
    219 Ill. App. 3d 530
    , 539 (1991)).
    ¶ 38          The remedy of rescission contemplates voiding the contract as if it had never existed,
    returning the parties to their precontract status. 
    Id.
     A court will not grant rescission where the
    status quo ante cannot be restored. 
    Id.
     Additionally, the remedy of rescission generally requires
    each party to return to the other the value of the benefits received under the rescinded contract.
    Id. at 720.
    ¶ 39          Here, the court found not only that plaintiffs suffered immeasurable damages due to
    defendants’ conduct but also, and more importantly, that defendants admitted that they never
    intended to honor the FSMA. Defendants admitted their intention to disregard the provisions
    of the FSMA despite negotiating the terms of the FSMA and reviewing it prior to its execution.
    Such behavior constitutes a material breach for purposes of rescission, as the real estate
    contract was contingent on defendants’ execution of and adherence to the FSMA. Had
    defendants indicated that they would not honor the FSMA, it is clear that the contract would
    not have been made. Based on the record before us, we cannot say that the circuit court abused
    its discretion in allowing rescission of the contract as a remedy for the defendants’ breach.
    ¶ 40                                  D. Denial of Motion to Reconsider
    ¶ 41          Finally, defendants contend in the alternative that the circuit court abused its discretion in
    denying their motion for reconsideration based on the evidence they presented of unjust
    enrichment to plaintiffs. As noted above, defendants, in their motion for reconsideration,
    argued for the first time that rescission of the contract would result in unjust enrichment to
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    No. 1-22-1351
    plaintiffs due to the over $800,000 of capital improvements it made to the property in 2020.
    Defendants now make the same argument on appeal.
    ¶ 42         The purpose of a motion to reconsider is to bring to a court’s attention (1) newly discovered
    evidence, (2) changes in the law, or (3) errors in the court’s previous application of existing
    law. River Plaza Homeowner’s Ass’n v. Healey, 
    389 Ill. App. 3d 268
    , 280 (2009). A
    reconsideration motion is not the place to raise a new legal theory or factual argument. 
    Id.
    Legal theories and factual arguments not previously made are subject to forfeiture. 2460-Clark,
    LLC v. Chopo Chicken, LLC, 
    2022 IL App (1st) 210119
    , ¶ 31.
    ¶ 43         Our standard of review for a motion to reconsider is determined by the basis of the motion.
    In re Commonwealth Edison Co. Illinois Consumer Fraud Litigation, 
    2023 IL App (1st) 220105
    , ¶ 19. Where, as here, the motion was based on new matters, whether additional facts
    or new legal theories, the standard of review is abuse of discretion. 
    Id.
    ¶ 44         We find that the circuit court did not abuse its discretion in denying defendants’ motion for
    reconsideration. The record establishes that this dispute between the parties arose in 2016 when
    litigation was commenced by plaintiffs. In both their initial complaint and first amended
    complaint, plaintiffs sought rescission of the contract as a remedy, so defendants were well
    aware of the possibility that rescission could be awarded. Despite this, defendants chose to
    make substantial improvements to the property in 2020, more than four years after litigation
    began. Additionally, defendants failed to disclose this during discovery and attempted to
    improperly introduce this evidence and their theory of unjust enrichment for the first time
    during their motion for reconsideration. As a sanction for violation of Illinois Supreme Court
    Rule 191 (eff. Jan. 4, 2013), Ahmed’s affidavit was stricken, this evidence was not considered,
    and the argument was considered forfeited. The circuit court properly rejected defendants’ new
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    No. 1-22-1351
    theory and factual evidence on the motion to reconsider and did not abuse its discretion in
    denying the motion to reconsider on that basis.
    ¶ 45                                 E. Motion to Lift Stay of Enforcement
    ¶ 46         As noted above, plaintiffs filed a motion to lift the circuit court’s stay of enforcement order
    pending appeal. Plaintiffs sought a lift of the stay based on defendants’ alleged violation of the
    stay order by attempting to transfer a portion of the business and otherwise diminish the value
    of the property.
    ¶ 47         Defendants filed a response on February 27, 2024, stating that the plaintiffs’ claims are
    either totally untrue or greatly exaggerated. Defendants additionally state that there are
    violations at the gas station that prevent operation at this time.
    ¶ 48         We decline to address the motion or response because our resolution of this appeal makes
    it unnecessary to consider this motion.
    ¶ 49                                            CONCLUSION
    ¶ 50         For the foregoing reasons, the judgment of the circuit court of Cook County is affirmed.
    ¶ 51         Affirmed.
    - 16 -
    No. 1-22-1351
    Zahdan v. Frontline Business Enterprise Inc., 
    2024 IL App (1st) 221351
    Decision Under Review:       Appeal from the Circuit Court of Cook County, No. 16-L-4450;
    the Hon. Daniel J. Kubasiak, Judge, presiding.
    Attorneys                    Michael Lee Tinaglia and Brian J. Olszewski, of Law Offices of
    for                          Michael Lee Tinaglia Ltd., of Park Ridge, for appellants.
    Appellant:
    Attorneys                    John J. Conway, of Sullivan Hincks & Conway, of Oak Brook,
    for                          for appellees.
    Appellee:
    - 17 -
    

Document Info

Docket Number: 1-22-1351

Citation Numbers: 2024 IL App (1st) 221351

Filed Date: 3/22/2024

Precedential Status: Precedential

Modified Date: 3/22/2024