BackgroundIn 2006, Haso, Samel and Albin Meseljevic started development of a 40-unit commercial condominium project in Chicago. At some point, the Meseljevics incorporated the project as 1633 Farwell Ave. LLC. On April 11, 2006, Beta entered into a contract with Haso pursuant to which Beta would perform electrical work on the project. On May 8, 2006, Parkway entered into a construction mortgage contract with Haso and Samel, identified in the contract as “grantor[s]” and “borrower[s].” Parkway recorded the mortgage on May 11, 2006. The mortgage was modified and/or renewed several times, with 1633 Farwell Ave. LLC being added as a grantor/borrower in October 2007. On May 1, 2008, Parkway accepted a promissory note executed by all three Meseljevics and by Haso as “operating manager” of 1633 Farwell Ave. LLC. On August 5, 2008, Beta recorded a mechanic’s lien against 16 of the condominium units after the Meseljevics failed to pay Beta $136,200 due for Beta’s work on the project.
On August 29, 2008, Parkway filed a verified mortgage foreclosure complaint naming as defendants the Meseljevics individually; 1633 Farwell Ave. LLC.; the board of managers of 1633 Farwell Ave. LLC.; Benz Kitchens; Beta; and unknown owners and record claimants. Parkway alleged the Meseljevics had not made any payments on the mortgage since April 2008. It requested a judgment of foreclosure on its construction mortgage secured by the promissory note, an order of possession and sale and an order terminating all defendants’ rights to possession of the property.
On January 26, 2009, the court entered an order of default against all defendants and granted Parkway’s motion for a judgment of foreclosure and sale. In March 2009, the court vacated the default judgment against Beta in order to allow Beta to assert the priority of its mechanic’s lien over Parkway’s mortgage. Beta then filed a verified answer to Parkway’s complaint and a counterclaim against Parkway and the Meseljevics; 1633 Farwell Ave. LLC.; the board of managers of 1633 Farwell Ave. LLC.; Benz Kitchens; Beta; and unknown owners and record claimants. The counterclaim asserted Beta’s lien had priority over any other interests, including Parkway’s mortgage. It asked for a judgment against Parkway for the $136,200 lien amount, plus costs, and/or a judgment extinguishing the interest of any other necessary party to the extent sufficient to satisfy that amount.
Judge(s): Themis N. Karnezis
Jurisdiction: Illinois Court of Appeals, First District
Related Categories: Contracts , Finance / Banking , Property
|Circuit Court Judge(s)|
|Trial Court Judge(s)|
|Appellant Lawyer(s)||Appellant Law Firm(s)|
|Andjelko Galic||Law Offices of Andjelko Galic|
|Appellee Lawyer(s)||Appellee Law Firm(s)|
|Eugene Kraus||Scott & Kraus LLC|
|Blair Lazarus||Scott & Kraus LLC|
|Jason Sleezer||Scott & Kraus LLC|