MHM Properties and Management is suing law firm Morton J. Rubin, P.C., alleging a failure in representation in connection with the purchase of condominium units in the Peoria Street Condominium complex.
The suit was filed by attorney Robert J. McLaughlin, of the firm of Hart McLaughlin & Eldridge, on behalf of plaintiff MHM Properties and Management LLC, in Cook County Circuit Court.
The suit alleges that, in 2018 and 2019, MHM completed the purchase of three condominium units, in Chicago's Fulton Market neighborhood, with Morton J. Rubin serving as the company’s legal representation in the transactions. The suit alleges that Morton J. Rubin failed to complete due diligence in connection to ensuring there were no rental caps on the units.
MHM alleges that Morton J. Rubin knew MHM was concerned about any existence of rental caps, as the company sought to use the units as investment properties. The suit also alleges that the law firm informed MHM that there were no rental caps on the units prior to each of the three purchases.
In total, the suit alleges MHM spent $1.725 million on the three units. Yet, in May 2020, MHM discovered a rental cap would block them from immediately leasing out one of their units.
MHM is requesting a jury trial and seeking damages of more than $50,000.