Months after a state appeals court said an agreement enforced by a Marina City landlord was unenforceable because it had been signed under duress, that landlord has agreed to settle claims brought by a journalist, who claimed he had been illegally kicked out of his condo because he published articles critical of the business activities of the husband of the president of his building’s homeowners’ association.
In early September, journalist Steven Dahlman and property manager and real estate agent Michael Michalak inked an agreement, ending years of contentious litigation over Michalak’s decision to not renew the lease held by Dahlman and his wife eight years ago.
Under the deal, Dahlman will receive $5,000, which he said is sufficient to reimburse him for certain expenses he and his wife “incurred moving out and relocating unexpectedly.”
The agreement does not include any requirement that Dahlman and his wife can recover their former dwelling, nor any punitive damages from Michalak.
Dahlman and Michalak had been in court against each other since 2018, when Dahlman first sued Michalak in Cook County Circuit Court.
Dahlman is the publisher and editor of the news site Loop North News, a local site that reports on news about people who live and work in Chicago’s downtown neighborhoods, including River North, Streeterville and Gold Coast. This included news about homeowners’ associations at downtown condominium buildings, including at the Marina City complex, 300 N. State Street.
According to Dahlman’s lawsuit, he and his wife rented condos in the building from Michalak, including one that Dahlman used as an office from 2010-2014.
According to court documents, the Dahlmans annually renewed their lease until 2015, when Michalak allegedly threatened them and told them he no longer wanted them as tenants.
At that time, allegedly believing Michalak could jeopardize their ability to find another apartment to rent, Dahlman signed an agreement in which he allegedly agreed to not sue Michalak over the lease renewal.
Dahlman, however, filed suit three years later. In that lawsuit, Dahlman asserted Michalak booted them from their condo at the behest of the condo building’s association president Ellen Chessick.
According to court documents, Dahlman believed he was targeted for retaliation over articles he had published that discussed consumer complaints and a class action lawsuit against dining deals website Restaurant.com. The CEO of Restaurant.com was Ellen Chessick’s husband, Kenneth Chessick, who is also a doctor and lawyer.
Restaurant.com was sold in 2020 amid lawsuits and reports of large numbers of customer complaints and financial trouble.
In his lawsuit against Michalak, Dahlman alleged he had no tenancy issues, so Michalak’s decision not to renew the lease amounted to illegal retaliation, violating a Chicago city ordinances that governs relations between residential tenants and landlords.
Dahlman asserted Michalak had met with Ellen Chessick shortly before he refused to renew Dahlman’s lease. Dahlman noted Michalak admitted to that meeting in an answer filed in response to Dahlman’s lawsuit. Further, Dahlman has noted Michalak has never attempted to offer an alternative explanation for the decision to not renew the lease.
Initially, a Cook County judge granted Michalak’s request to dismiss the lawsuit, saying the agreement Dahlman signed meant he could not sue.
However, on appeal, a three-justice panel of the Illinois First District Appellate Court ruled in December 2022 that the agreement was not enforceable, because Dahlman had signed it under economic duress.
Settlement talks followed, resulting in the deal to end the litigation.
Dahlman represented himself in the proceedings, admittedly with advice from an attorney.
Michalak was represented by attorneys with the firm of Fritzshall & Pawlowski, of Chicago.