Filed: Sep. 08, 2015
Latest Update: Sep. 08, 2015
Summary: MOTION FOR ENTRY OF EX PARTE JUDGMENT BY CONFESSION GERALDINE BROWN , Magistrate Judge . NOW COMES the plaintiff, PNC Bank, National Association, successor to National City Bank of Michigan/Illinois ("PNC"), by and through its attorneys, Thomas J. Dillon, Nicholas S. Maragos, and McFadden & Dillon, P.C., and moves for entry of ex parte judgment by confession against Market Square Restaurant, Inc., formerly known as Uncle Tom's, Inc. ("Market Square"), and Sam Pappas ("Mr. Pappas") (toget
Summary: MOTION FOR ENTRY OF EX PARTE JUDGMENT BY CONFESSION GERALDINE BROWN , Magistrate Judge . NOW COMES the plaintiff, PNC Bank, National Association, successor to National City Bank of Michigan/Illinois ("PNC"), by and through its attorneys, Thomas J. Dillon, Nicholas S. Maragos, and McFadden & Dillon, P.C., and moves for entry of ex parte judgment by confession against Market Square Restaurant, Inc., formerly known as Uncle Tom's, Inc. ("Market Square"), and Sam Pappas ("Mr. Pappas") (togeth..
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MOTION FOR ENTRY OF EX PARTE JUDGMENT BY CONFESSION
GERALDINE BROWN, Magistrate Judge.
NOW COMES the plaintiff, PNC Bank, National Association, successor to National City Bank of Michigan/Illinois ("PNC"), by and through its attorneys, Thomas J. Dillon, Nicholas S. Maragos, and McFadden & Dillon, P.C., and moves for entry of ex parte judgment by confession against Market Square Restaurant, Inc., formerly known as Uncle Tom's, Inc. ("Market Square"), and Sam Pappas ("Mr. Pappas") (together, the "Defendants"). In support thereof, PNC states as follows:
1. The above-captioned cause was filed on September 4, 2015 and is presently pending before this Court.
2. PNC asserts in its Complaint (i) a claim against Market Square for breach of contract arising out of a Small Business Equity Line of Credit Agreement executed on or about June 2, 2003 by Mr. Pappas and Sylvia Pappas, as President and Secretary of Market Square, respectively, in favor of PNC with an available credit limit of $115,000.00 (the "Agreement"), and (ii) a claim against Sam Pappas for breach of contract arising out of a Guaranty of Payment — Waiver of Rights executed on or about June 2, 2003 by Mr. Pappas in favor of PNC (the "Guaranty"). A true and accurate copy of the document encompassing both the Agreement and the Guaranty is attached to the Complaint as Exhibit B and is incorporated herein by reference.
3. The Illinois Code of Civil Procedure provides, in pertinent part:
[A]ny person for a debt bona fide due may confess judgment by himself or herself or attorney duly authorized, without process. The application to confess judgment shall be made . . . in the county in which one or more of the defendants reside. . . .
735 ILCS 5/2-1301(c).
4. In pertinent part, the Agreement expressly provides as follows:
Borrower and each Guarantor hereof jointly and severally authorize any attorney at law to appear in any Court of Record in the State of Illinois or any other State or Territory of the United States after the indebtedness evidenced by and arising under this Agreement becomes due and admit the maturity of this Agreement, the amount due thereon, and the jurisdictional facts thereof, and waive the issuing and service of process, and confess judgment against such Borrower and/or Guarantor in favor of the holder of this Agreement for the amount then appearing due and costs of suit (including, but not limited to, attorneys' fees) and thereupon to waive all errors, rights of appeal and stay of execution. This is a joint and several warrant of attorney. Borrower and each Guarantor hereby waive and release any and all claims or causes of action which such Borrower and/or Guarantor might have against any attorney acting under the terms of the authority which such Borrower and/or Guarantor has granted herein arising out of or connected with the confession of any judgment. Should Borrower or any Guarantor enter an appearance in such cause of action and commence any proceeding to open or vacate a judgment taken by confession hereunder and seek to defend against that judgment, such Borrower and/or Guarantor shall be liable for and hereby agrees to pay all additional expenses of Lender including attorneys' fees, expenses and court costs incurred in connection with the collection of the obligations evidenced by this Agreement and all costs of any nature incurred by Lender under any of the documents executed in connection with this Agreement.
(Complaint Ex. B at 6.)
5. In pertinent part, the Guaranty provides as follows:
Each Guarantor hereof jointly and severally authorizes any attorney at law to appear in any Court of Record in the State of Illinois or any other State or Territory of the United States after the indebtedness evidenced by and arising under the above Agreement becomes due and admit the maturity of such Agreement, the amount due thereon, and the jurisdictional facts thereof, and waive the issuing and service of process, and confess judgment against such Guarantor in favor of the holder of such Agreement for the amount then appearing due and costs of suit (including, but not limited to, attorneys' fees) and thereupon to waive all errors, rights of appeal and stay of execution. This is a joint and several warrant of attorney. Each Guarantor hereby waives and releases any and all claims or causes of action which such Guarantor might have against any attorney acting under the terms of the authority which such Guarantor has granted herein arising out of or connected with the confession of any judgment. Should any Guarantor enter an appearance in such cause of action and commence any proceeding to open or vacate a judgment taken by confession hereunder and seek to defend against that judgment, such Guarantor shall be liable for and hereby agrees to pay all additional expenses of Lender including attorneys' fees, expenses and court costs incurred in connection with the collection of the obligations evidenced by this Agreement and all costs of any nature incurred by Lender under any of the documents executed in connection with this Agreement.
(Id.)
6. PNC submits herewith as Exhibit A the Affidavit of Arlene Foster, a Vice President of PNC Bank, verifying the Agreement and the Guaranty and setting forth the amounts due under the Agreement and the Guaranty.
7. PNC also submits herewith as Exhibit B a Confession executed by Wendy Kaleta Gattone, a licensed Illinois attorney, on behalf of the Defendants, confessing Judgment against the Defendants pursuant to the express provisions of the Agreement and Guaranty authorizing same.
WHEREFORE, plaintiff, PNC Bank, National Association, successor to National City Bank of Michigan/Illinois, respectfully requests that this Honorable Court, pursuant to the express confession of judgment provisions of the Agreement and Guaranty along with the Confession submitted herewith, (i) enter judgment by confession in favor of PNC and against the defendant, Market Square Restaurant, Inc., on Count I of the Complaint; (ii) enter judgment by confession in favor of PNC and against the defendant, Sam Pappas, on Count II of the Complaint; and (iii) grant such further and additional relief as this Court may deem just and proper.
Respectfully submitted,
/s/ Nicholas S. Maragos
_______________________________________
Thomas J. Dillon (ARDC#3124223) One of the attorneys for plaintiff, PNC
t.dillon@mcdillaw.com Bank, National Association, successor
Nicholas S. Maragos (ARDC#6306503) to National City Bank of
n.maragos@mcdillaw.com Michigan/Illinois
McFADDEN & DILLON, P.C.
120 S. LaSalle Street, Suite 1335
Chicago, Illinois 60603
(312) 201-8300
Exhibit A
IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
PNC BANK, NATIONAL ASSOCIATION,
successor to National City Bank
of Michigan/Illinois,
Plaintiff, Case No.
v.
Judge:
MARKET SQUARE RESTAURANT, INC.,
formerly known as Uncle Tom's, Inc., Magistrate:
and SAM PAPPAS,
Defendants,
AFFIDAVIT
I, Arlene Foster, being first duly sworn, depose and upon my oath state that if called to testify in these proceedings, I would testify as follows:
1. I am the Vice President of the Commercial Banking — Asset Resolution Team of PNC Bank, National Association, successor in interest to National City Bank of Michigan/Illinois ("PNC"), I am a duly authorized representative of PNC, the plaintiff in the above-captioned cause, and I am duly authorized to make this affidavit on behalf of PNC.
2. Pursuant to my duties as an officer of PNC, I have personal knowledge of the matters related to the loan transaction between PNC and the defendants, Market Square Restaurant, Inc. ("Market Square") and Sam Pappas ("Mr. Pappas") (together, the "Defendants"), and the documents maintained in the ordinary course of business of PNC relative to the transaction as further set forth in this Affidavit. I have reviewed the allegations of the Complaint for Confession filed on behalf of PNC in the above-captioned cause and they are true.
3. PNC Bank is a national banking association, the main office of which is located in the State of Pennsylvania, and organized under the laws of the State of Delaware. On November 6, 2009, the Comptroller of Currency certified the merger of National City Bank and PNC Bank. A true and correct copy of the Certificate detailing the bank succession is attached to the Complaint as Exhibit A and is incorporated herein by reference.
4. A true and correct copy of the Small Business Equity Line of Credit Agreement dated June 2, 2003 with an available credit limit of $115,000.00, executed by Mr. Pappas, as President of Market Square, and Sylvia Pappas, as Secretary of Market Square, in favor of PNC (the "Agreement") is attached to the Complaint as Exhibit B and incorporated herein by reference.
5. A true and correct copy of the Guaranty of Payment — Waiver of Rights, executed by Sam Pappas on June 2, 2003 in favor of PNC and jointly and severally guarantying the prompt payment of Market Square's indebtedness to PNC evidenced by and arising under the Agreement (the "Guaranty"), is attached to the Complaint as the last page of Exhibit B and incorporated herein by reference.
6. Market Square is and has been in default under the terms and conditions of the Agreement as a result of its failure to make payments required by the Agreement in a timely manner.
7. By virtue of Market Square's failure to pay its indebtedness to PNC as stated above, Mr. Pappas is liable to PNC for payment of the entire balance due under the Agreement. Mr. Pappas has failed and refused to pay the amounts due and owing to PNC under the Agreement, so Mr. Pappas is and has been in default under the terms and conditions of the Guaranty.
8. As a result of the aforesaid defaults by Market Square and Mr. Pappas of their obligations to PNC under the Agreement, as of September 2, 2015 there is due and owing to PNC from Market Square and Mr. Pappas the following:
Principal: $ 103,332.47
Interest: $ 2,521.59
____________
TOTAL $ 105,854.06
A true and correct copy of PNC's payoff (the "Payoff) for the Agreement, prepared in the regular course of business of PNC, is attached hereto and made a part hereof as Exhibit 1.
9. In addition to the foregoing, Market Square and Mr. Pappas agreed to reimburse PNC for attorneys' fees and related costs incurred by PNC in enforcing its rights arising out of the Agreement and the Guaranty. As of the filing of this Affidavit, PNC has incurred attorneys' fees in connection with this matter in the amount of $2,500.00.
10. The matters set forth in this affidavit are true in substance and in fact and are based upon my own personal knowledge thereof and upon my review and reliance upon of the relevant business records of PNC, which are attached hereto as exhibits. If called as a witness I could and would testify competently thereto.
FURTHER AFFIANT SAYETH NOT.
_____________________________________
Arlene Foster, duly authorized
representative of the plaintiff, PNC
Bank, National Association, successor
to National City Bank of
Michigan/Illinois
Subscribed and Sworn to
before me this 4TH day of
September, 2015
_____________________
Notary Public
Exhibit 1
Exhibit B
IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION
PNC BANK, NATIONAL ASSOCIATION,
successor to National City Bank
of Michigan/Illinois,
Plaintiff, Case No. 15-CV-07837
v.
Judge:
MARKET SQUARE RESTAURANT, INC.,
formerly known as Uncle Tom's, Inc., Magistrate:
and SAM PAPPAS,
Defendants.
CONFESSION
Defendants, Market Square Restaurant, Inc. and Sam Pappas, jointly and severally, by their attorney, Wendy Kaleta Gattone, Esq., waive service of process and confess that there is due to plaintiff, PNC Bank, National Association, successor to National City of Michigan/Illinois, under the Credit Agreement and Guaranty at issue in the above-captioned cause, the following amounts as of September 2, 2015:
Principal: $ 103,332.47
Interest: $ 2,521.59
TOTAL $ 105,854.06
Defendants, Market Square Restaurant, Inc. and Sam Pappas, agree that judgment may be entered against them, jointly and severally, for the total set forth above and for costs and attorneys' fees and hereby release and waive all rights as authorized in the Warranty of Attorney and the Waiver of Rights set forth in the Credit Agreement and Guaranty.
Respectfully submitted,
/s/ Wendy Kaleta Gattone
Attorney for defendants,
Market Square Restaurant, Inc. and
Sam Pappas
Wendy Kaleta Gattone (ARDC#6226119)
w. gattone@mcdillaw.com
McFadden & Dillon, P.C.
120 S. LaSalle Street, Suite 1335
Chicago, Illinois 60603
(312) 201-8300