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Sullivan v. Chapman Plumbing, Inc.

United States District Court, Seventh Circuit

May 5, 2013

JAMES T. SULLIVAN, etc., et al., Plaintiffs,
v.
CHAPMAN PLUMBING, INC., and CHAMPION PLANNING AND CONTRACTING, INC., Defendants.

MOTION FOR ENTRY OF JUDGMENT AGAINST ROY WILSON CHAPMAN IV

VIRGINIA M. KENDALL, District Judge.

NOW COME Plaintiffs, JAMES T. SULLIVAN, etc., et al., by their attorneys, DOUGLAS A. LINDSAY, JOHN W. LOSEMAN, and BRIAN T. BEDINGHAUS, with ROETZEL & ANDRESS, LPA, of counsel, and move this Court pursuant to Fed.R.Civ.P. 69(a), Illinois Supreme Court Rule 277(h), and 735 ILCS 5/2-1402(f)(1) to enter Judgment against ROY WILSON CHAPMAN IV ("Roy Chapman"), president of Defendant, CHAPMAN PLUMBING, INC., in the amount of $10, 513.90. In support hereof, Plaintiffs states:

1. On May 26, 2009, Judgment was entered in favor of Plaintiffs and against Defendants, CHAPMAN PLUMBING, INC., and CHAMPION PLANNING AND CONTRACTING, INC., jointly and severally, in the amount of $530, 820.89.

2. On November 12, 2012, Plaintiffs served CHAPMAN PLUMBING, INC., with a Citation to Discover Assets by corporate service on its president, Roy Chapman. True and correct copies of the Citation, Citation Notice, and completed Affidavit of Service are attached hereto as Exhibit A.

3. Citation required production of certain documents on or before December 4, 2012, and appearance by Roy Chapman at Plaintiffs' attorneys' office for examination on December 11, 2012. See Exhibit A.

4. On December 3, 2012, CHAPMAN PLUMBING, INC. filed for Chapter 7 Bankruptcy in Case No. 12 B 47618.

5. On February 6, 2013, Plaintiffs served a Citation to Discover Assets on RBS CITIZENS d/b/a CHARTER ONE BANK ("Charter One").

6. Pursuant to the Citation document request, Charter One produced copies of bank account statements from an account of CHAPMAN PLUMBING, INC.

7. The Charter One checking account statements reveal that $10, 513.90 was transferred from CHAPMAN PLUMBING, INC.'s checking account after the date the Citation was served on CHAPMAN PLUMBING, INC. on November 12, 2012. True and correct copies of Charter One checking account statements for CHAPMAN PLUMBING, INC.'s checking account ending in x9473 covering the period from November 1, 2012 through February 28, 2013, and an "Affidavit of Keeper of Records, " are attached hereto as Exhibit D.

8. Specifically, the statements show following transfers occurred after service of the Citation: Debits:

Other Debits:

Checks:

See Exhibit D. True and correct copies of check numbers 2532 and 2533, supplied by Charter One, are attached hereto as Exhibit E.

9. Illinois Supreme Court Rule 277(h) provides that "[a]ny person who fails to obey a citation... may be punished for contempt."

10. 735 ILCS 5/2-1402(f)(1) provides in relevant part:

The citation may prohibit the party to whom it is directed from making or allowing any transfer or other disposition or, or interfering with, any property not exempt from the enforcement of a judgment therefrom... belonging to the judgment debtor or to which he or she may be entitled to which may thereafter be acquired by or become due to him or her... The court may punish any party who violates the restraining provision of a citation as and for a contempt...

735 ILCS 5/2-1402(f)(1).

11. The president of a corporation who transfers or permits the transfer of corporate assets in violation of the prohibitions of a citation to discover assets is personally liable for the transfers. Divane v. Sundstrand Electric Co., Inc., No. 03 C 5728, 2004 WL 1323287 at *2 (N.D.Ill. June 14, 2004) (citing City of Chicago v. Air Auto Leasing Co., 297 Ill.App.3d 873 (1988)); see also Laborers' Pension Fund v. Dominic Jr., Inc., No. 02 C 3321, 2003 WL 21310282 * 2-4 (N.D.Ill. June 5, 2003).

12. Roy Chapman violated the restraining provisions of the Citation by transferring and permitting the transfer of $33, 389.99 from the Charter One checking account of CHAPMAN PLUMBING, INC., after the date he was served with the Citation.

13. Plaintiffs request judgment be entered against ROY WILSON CHAPMAN IV in the amount of $10, 513.90, which is the amount of the transfers made after service of the Citation.

14. As of May 3, 2013, after all payments have been applied, a total amount of $540, 895.71 remains due to Plaintiffs, which amount includes $530, 820.89 in judgment principal and $10, 074.82 in judgment interest.

WHEREFORE, Plaintiffs, JAMES T. SULLIVAN, etc., et al., request the Court to enter judgment in favor of Plaintiffs and against ROY WILSON CHAPMAN IV in the amount of $10, 513.90, and to award additional relief in favor of Plaintiffs as the Court deems appropriate.

EXHIBIT A

YOUR FAILURE TO APPEAR AS HEREIN DIRECTED MAY CAUSE YOU TO BE ARRESTED AND BROUGHT BEFORE THE COURT TO ANSWER TO A CHARGE OF CONTEMPT OF COURT, WHICH MAY BE PUNISHABLE BY IMPRISONMENT IN THE COUNTY JAIL.

YOU ARE REQUIRED TO DO THE FOLLOWING UPON RECEIVING THIS CITATION UNTIL FURTHER ORDER OF THE COURT IN ACCORDANCE WITH ILLINOIS SUPREME COURT RULE 277(f), OR UNTIL THIS CITATION IS DISMISSED BY THE COURT OR BY STIPULATION:

YOU ARE REQUIRED TO APPEAR at the offices of Roetzel & Andress, 20 South Clark Street, Suite 300, Chicago, Illinois, on December 11, 2012, at 2:00 p.m., to be examined under oath concerning the property or income of, or indebtedness due or owed to CHAPMAN PLUMBING, INC., and CHAMPION PLANNING AND CONTRACTING, INC. ("Judgment Debtors"). This Citation examination shall be conducted by deposition as provided by the rules of this Court for depositions.

YOU ARE REQUIRED TO PRODUCE at the offices of Roetzel & Andress, 20 South Clark Street, Suite 300, Chicago, Illinois, on or before December 4, 2012, all documents of every nature containing information concerning any assets, property, income of, or any indebtedness due or owed to the Judgment Debtors, including without limitation, documents reflecting the following (for the period from July 1, 2010, to the present, unless indicated otherwise):

(i) All accounts with any banking institution, savings and loan association, or credit union, certificates of deposit, money market and mutual fund accounts, trust accounts and funds, checking accounts, savings accounts, money market accounts, pension plans, and retirement accounts, whether held in the name of a Judgment Debtor or in any Judgment Debtor's name with another person or company, including without limitation, all cancelled checks, all deposited checks, and a copy of each detailed account statement;
(ii) All loans and promissory notes; loan or other financing applications; financial statements and reports;
(iii) All purchase or sale contracts, property listings, deeds, mortgages, trust agreements or assignments, leases, sale/leaseback contracts, and management contracts, made or executed by any Judgment Debtor pertaining to any real estate in which any Judgment Debtor has an interest or has had any interest since July 1, 2010;
(iv) Evidence of all monies owed to any Judgment Debtor, whether due, overdue, or to become due to a Judgment Debtor, including but not limited ...

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