ELECTRONICALLY FILED 11/25/2015 1:33 PM 2015-L-012057 CALENDAR: T IRCOIE COURT OF IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOWDK COUNTY, ILLINOIS COUNTY DEPARTMENT - LAW DIVISION. LAW DIVISION CLERK DOROTHY BROWN UNITED INVESTORS, INC., ) ) Plaintiff ) ) v. ) No. ) KARYN’S ON GREEN, INC., and ) Amount Claimed: $112,097.84, plus JERROLD H. SCHERER ) attorney's fees and costs ) Defendant. ) VERIFIED COMPLAINT Plaintiff, UNITED INVESTORS, INC., by and through its attomeys, CARY G. SCHIFF & ASSOCIATES, complains against Defendants, KARYN’S ON GREEN, INC., and JERROLD H. SCHERER , as follows: COUNT I- Breach of Contract (Karyn’s on Green, Inc.) 1. On or about August 26, 2009, UNITED INVESTORS, INC., an Illinois Corporation (“Landlord”), entered into a written lease agreement (“Lease”) with KARYN’S ON GREEN, INC., an Illinois corporation ("Tenant"), for the commercial property commonly known as 130 S. Green Street, Chicago, IL 60607 (“Premises”). See Lease attached here as Exhibit A' 2. On or about August 26, 2009, JERROLD H. SCHERER, an individual (Guarantor”), executed a Guarantee of Lease for the Premises (“Guaranty”). See Lease attached here as Exhibit A and Guaranty attached here as Exhibit B* 3, The Lease had a commencement date of January 1, 2010 (“Commencement * Page 26 of the Lease has been redacted to remove Defendant, Jerrold H. Scherer’s social security number. 2 The Guarantee has been redacted to remove Jerrold H. Scherer’s social security number. 1ELECTRONICALLY FILED 11/25/2015 1:33 PM 2015-1-012057 PAGE 2 of 7 Date”) and ending date of December 31, 2014.. See Lease attached here as Exhibit A and Lease Rider attached here as Exhibit C. 4. Pursuant to Section 2.01 of the Lease and the lease rider (“Lease Rider”) attached to the Lease, Tenant was obligated to make monthly base rent payments (“Base Rent") of $9,566.82 from January 1, 2014 through December 31, 2014. See Lease Rider attached here as 5, Pursuant to Section 2.04 of the Lease, in addition to the Base Rent, Tenant was obligated to pay its pro rata share of real estate taxes (“RET”) for the Premises, in the amount of $500.00 per month. See Lease attached here as Exhibit A. 6. Pursuant to Section 8.01 of the Lease, Tenant placed a security deposit of $25,000.00. See Lease attached here as Exhibit A. 7. Pursuant to Section 10.01 of the Lease, in addition to Base Rent, Tenant was obligated to pay its pro rata share of common area maintenance expenses (“CAM Expenses”) for the Premises in the amount of $750.00 per month. See Lease attached here as Exhibit A. 8 Pursuant to Section 21.03 of the Lease, Landlord is entitled to recover all reasonable attomeys’ fees and costs incurred by Landlord in enforcing the provisions of the Lease. See Lease attached here as Exhibit A. 9. On or about June 10, 2014, Tenant exercised the option to renew the Lease effective January 1, 2015. See Option Renewal Letter attached here as Exhibit D. 10, On or about July 25, 2014, the Parties executed an amendment to the Lease (“Lease Amendment”) whereby the lease term was extended from December 31, 2014 to December 31, 2019 (“Expiration Date”). See Lease Amendment attached here as Exhibit E. i Pursuant to the Lease Amendment Tenant was obligated to make monthly Base 2ELECTRONICALLY FILED 11/25/2015 1:33 PM 2015-L-012087 PAGE 3 of 7 Rent payments of $9,853.82 from January 1, 2015 through December 31, 2015. See Lease Amendment attached here as Exhibit E 12. Tenant defaulted on its Lease obligations by failing to pay full Base Rent since September 2014. Landlord claims damages in the amount of $117,097.84 for unpaid Base Rent from September 1, 2014 through June 30, 2015 plus Accelerated Base Rent from July 1, 2015 through the August 31, 2015, calculated as follows Unpaid Base Rent (09/01/2014 — 12/31/2014 at $9,566.82 per month) $ 38,267.28 Unpaid Base Rent (01/01/15 ~ 06/30/2015 at $9,853.82 per month) $ 59,122.92 Accelerated Base Rent (07/01/15 ~ 08/31/15 at $9,853.82 per month) $19,707.64 Total Unpaid Damages $117,097.84 13, Tenant defaulted on its Lease obligations by failing to pay its pro rata share of the RET for the Premises from May 1, 2014 through August 31, 2015, at a rate of $500.00 per month. Landlord claims damages in the amount of $8,000.00 ($500.00 x 16 months) for Tenant's proportionate share of RET from May 1, 2014 through August 31, 2015. 14, Tenant defaulted on its Lease obligations by failing to pay its pro rata share of CAM Expenses for the Premises from May 1, 2014 through August 31, 2015, at a rate of $750.00 per month, Landlord claims damages in the amount of $12,000.00 ($750.00 x 16 months) for Tenant’s proportionate share of CAM Expenses from May 1, 2014 through August 31, 2015 15. On or about February 3, 2015, Plaintiff filed a forcible entry and detainer action against Tenant for non-payment of rent, in the matter of United Investors, Inc., As Agent v. Karyn’s on Green, Inc., and All Unknown Occupants, Case No.: 2015-M1-702336. 16, On or about June 15, 2015, a money judgment for $90,914.65 was entered in favor of Landlord and against Tenant in the matter of United Investors, Inc., As Agent v, Karyn's2015-1-012057 PAGE 4 0f7 ELECTRONICALLY FILED 11/25/2015 1:33 PM ‘on Green, Inc., and All Unknown Occupants, for Base Ren, RET, and CAM Expenses due and owing through June 2015. 17. Tenant vacated the Premises on or about June 2015. 18. In an effort to mitigate its damages, Landlord made reasonable efforts to re-rent the Premises. However, Landlord was unable to re-rent the Premises until September 1, 2015 19. There is now due to Landlord from Tenant, after allowing Tenant all just credits, deductions and set-offs, total damages in the amount of $21,183.19, calculated as follows: Total Base Rent (09/01/2014 - 06/30/2015) $97,390.20 Total Accelerated Base Rent (07/01/15 ~ 12/31/19) $19,707.64 Total RET (05/01-2014 — 08/31/15) $8,000.00 Total CAM Expenses (05/01-2014 ~ 08/31/15) $ 12,000.00 Security Deposit (8 25,000.00) Money Judgment (Rent, CAM, and RET through 06/2015) (8 90,914.65) Total Unpaid Damages $ 21,183.19 20, Landlord claims total damages of $21,183.19 against Tenant as Base Rent, ‘Accelerated Rent, and CAM Expenses and RET through August 31, 2015, plus any additional amounts that become due under the Lease in an amount to be determined at trial 21. Landlord also claims all reasonable costs, expenses, and attorneys’ fees incurred in enforcing the terms of the Lease. 22. Landlord has performed all of its obligations under the Lease. WHEREFORE, Plaintiff, UNITED INVESTORS, INC., by and through its attorneys, CARY G. SCHIFF & ASSOCIATES, prays the Court to enter a judgment i favor and against Defendant, KARYN’S ON GREEN, INC., in the amount of $21,183.19; plus any additional rent, and/or damages that become due under the Lease in an amount to be determined at trial; plus all reasonable costs, expenses, and attomey’s fees incurred by Plaintiff in enforcing the terms of the Lease; and any other relief that this Court may deem just and proper. 4ELECTRONICALLY FILED 1/25/2015 1:33 PM 2015-L-012087 PAGE 5 of 7 COUNT II- Breach of Personal Guaranty (Jerrold H. Scherer) 1-22, Landlord re-states and re-alleges paragraphs 1 through 22 of Count J as if fully stated herein. 23. The Guaranty states, in its entirety: “In consideration of making by the Lessor of the foregoing LEASE AND RIDER dated by and between UNITED INVESTORS INC. and for the premises located at 130 South Green Street Chicago, IL 60607 at the request of the undersigned and in reliance on this guarantee the undersigned hereby absolutely and unconditionally guarantee the payment of the rent to be paid by the Lessee and the performance by the Lessee of the terms, conditions, covenatns and agreements of the Lease, and the understinged agree and promise to pay all the Lessor’s expenses including reasonable attorney fees incurred by the Lessor in enforcing all obligations of the Lessee under the Lease or incurred by the Lessor in enforcing this guarantee. Notwithstanding anything contained herein, the undersigned guarantee the Lease for one ear after Lessor has received possession of the premises and Lease has Vacated the premises.” See Lease attached here as Exhibit A and Guarantee attached here as Exhibit B. 24, — Guarantor's obligations under the Guaranty remain in full force and effect. 25. Tenant has not cured its default under the Lease and Guarantor has not otherwise satisfied Tenant’s obligations under the Lease. credits, follows’ 26. There is now due to Landlord from Guarantor, after allowing Guarantor all just deductions and set offs, total damages in the amount of $112,097.84, calculated as Total Base Rent (09/01/2014 - 06/31/2015) $ 97,390.20 Total Accelerated Base Rent (07/01/15 ~ 12/31/19) $19,707.64 Total RET (05/01-2014 ~ 08/31/15) $8,000.00 $ Total CAM Expenses (05/01-2014 ~ 11/31/15) 12,000.00 Security Deposit ($_25,000.00) Total Unpaid Damages $ 112,097.84ELECTRONICALLY FILED 11/25/2015 1:33 PM 2015-L-012057 PAGE 6 of 7 27. Landlord claims total damages of $112,097.84 against Guarantor as Base Rent; Accelerated Rent; RET, and CAM Expenses due through August 31, 2015; plus any additional amounts that become due under the Lease in an amount to be determined at trial. 28. Landlord also claims all reasonable costs, expenses, and attomeys’ fees incurred by Landlord in connection with enforcing the terms of the Lease. WHEREFORE, Plaintiff, UNITED INVESTORS, INC., by and through its attomeys, CARY G. SCHIFF & ASSOCIATES, prays the Court to enter a judgment in its favor and against Defendant, JERROLD H. SCHERER, in the amount of $112,097.84; plus any additional rents and/or damages due under the Lease in an amount to be determined at trial; plus all reasonable expenses, costs, and attomey’s fees incurred by Landlord in the enforcement of the Lease; and any other relief which this court may deem good and proper. Yuleidy Joa, Attomeys for Plaintiff Cary G. Schiff & Associates 134 N. LaSalle Street #1720 Chicago, IL 60602 Telephone: 312-419-1130 Atty. #14516ELECTRONICALLY FILED 11/25/2015 1:33 PM 2015-L-0120S7 PAGE 7 0f7 Verification by Certification Under the penalties as provided by law pursuant to Section 1-109 of the Code of Civil Procedure, the undersigned certifies that the statements set forth in this Verified Complaint are true and correct, except to matters therein stated to be on information and belief and as to such ‘matters the undersigned cert that she verily believes the same to be true. | A ain Heather Smalee- Starke