IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

ADMINISTRATIVE DISTRICT COUNCIL 1 )

OF ILLINOIS OF THE INTERNATIONAL )

UNION OF BRICKLAYERS AND ALLIED ) Case No. 12 C 233

CRAFTWORKERS, AFL-CIO, )

) Judge Der-Yeghiayan

Judgment Creditor, )

) Magistrate Judge Finnegan

v. )

)

MASONRY COMPANY, INC., )

)

Judgment Debtor, )

MOTION FOR JUDGMENT AGAINST MARTA POWROZNIK

FOR VIOLATION OF CITATION TO DISCOVER ASSETS

Judgment Creditor Administrative District Council 1 of Illinois of the International Union

of Bricklayers and Allied Craftworkers, AFL-CIO (the “Union”), through its attorneys, respectfully

moves pursuant to Fed.R.Civ.P. 69(a)(1) and 735 ILCS 5/2-1402(f)(1) for a judgment order against

Marta Powroznik for her violation of a citation to discover assets issued to Judgment Debtor

Masonry Company, Inc. (“Company”). In support of this motion, the Union submits as follows:

1. On December 11, 2012, this Court entered judgment against the Company and in

favor of the Union, in the amount of $817,670.53 (“Judgment”). To date, the Company has not paid

anything toward the Judgment. 

2. Pursuant to the Judgment, the Union requested that the Court Clerk issue a citation

to discover assets to the Company as judgment debtor, which the Clerk did on December 17, 2012

(“Citation,” a copy of the Citation is attached as Exhibit A).

3. On January 7, 2013, the Union’s process server served the Citation on the Comapny’s

registered agent (a copy of the affidavit of service is attached as Exhibit B). Later that same day, the
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Union’s lawyer forwarded the Citation to the Company’s lawyer by email, which confirmed that the

Citation “was served on Masonry Company, Inc. today at its registered agent’s address (shown on

the citation). Masonry Company must abide by the citation freeze or the Union will seek to hold its

principals in contempt.” (A copy of that email is attached as Exhibit C.)

4. Through post-judgment discovery, the Union obtained a copy of the January 2013

bank statement for the Company’s checking account at Fifth Third Bank (“Bank”) (a copy of the

statement is attached as Exhibit D). The statement shows that, after January 7, 2013, $43,287.18 in

withdrawals were made from the account. The signature card for the account indicates that the only

person with authorization to make withdrawsfrom the account was the Company’s president, Marta

Powroznik (a copy of the signature card is attached as Exhibit E).

5. In pertinent part, Rule 69(a) of the Federal Rules of Civil Procedure states:

The procedure on execution, in proceedings supplementary to and in

aid of a judgment, and in proceeding on and in aid of execution shall

be in accordance with the practice and procedure of the state in which

the district court is held[.]

6. Under Illinois law, a judgment creditor may have issued and serve on the judgment

debtor a citation to discover assets to enforce a money judgment. See 735 ILCS 5/2-1402. Service

of a citation to discover assets on a judgment debtor creates a lien on all of the judgment debtor’s

assets in favor the judgment creditor. City of Chi. v. Air Auto Leasing Co., 697 N.E.2d. 788, 791 (1st

Dist. 1998). This is not limited to property in the direct possession of the judgment debtor, but also

includes assets of the judgment debtor held in bank accounts. In re Porayko, 2013 U.S. App. LEXIS

1919 (7th Cir. 2013). 
$7,138.00 of this amount derives from two checks, in the respective amounts of 1

$6,372.00 and $766.00, that are dated in December 2012, but which posted to the account on January

15 and 22, 2013, respectively. The fact that the checks were written before service of the citation

does not relieve Ms. Powroznik from liability for this violation ofthe citation hold, as a citation hold

requires the judgment debtor to stop payment on any outstanding checks, and a corporate judgment

debtor’s principal’s failure to stop payment creates personal liability for that principal. Laborers'

Pension Fund v. A & C Envtl., Inc., 2005 U.S. Dist. LEXIS 7892, *10-11 (N.D.Ill. Apr. 19, 2005)

(“Thus, when A & C Environmental received the citation, it had the ability to stop payment on any

checks not yet cashed. By failing to do so, A & C Environmental violated the terms of the citation

by allowing the funds represented by the checks to be transferred to the payees.”).

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7. A citation to discover assets “may prohibit the party to whom it is directed from

making or allowing any transfer or other disposition of, or interfering with, any property not exempt

from the enforcement of a judgment therefrom,” 735 ILCS 5/2-1402(f)(1), as the Union’s Citation

did (Ex. A at 3). A citation that includes this asset transfer prohibition does “not allow payments to

trade creditors or to third parties for any purpose [and] there is no exception in the statute for

transfers in the ordinary course of business.” Laborers' Pension Fund v. Dominic Jr., Inc., 2003 U.S.

Dist. LEXIS 9454, *7-8 (N.D. Ill. 2003). A corporate officer who violates the asset transfer

prohibiton of a citation will be “liable for the transfer of corporate property, not withstanding the fact

that he acted in his capacity as a corporate officer.” Id.

8. The Company’s January 2013 statement from the Bank shows that, after service of

the Citation on the Company on January 7, 2013, Ms. Powroznik (who was the only authorized

signer on the account (Ex. E)) withdrew $43,287.18 from the account in violation of the Citation’s

asset transfer prohibition. Accordingly, this Court should enter judgment against Ms. Powroznik,

personally, “for the amounts that [s]he caused to be transferred from the accounts of [Company] after

the service of the citation,” id. at *10, i.e., $43,287.18.1
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WHEREFORE, the Union respectfully asks the Court to issue an order, in the form of the

order attached or otherwise, entering judgment against Marta Powroznik, personally, in the amount

of $43,287.18.

Barry M. Bennett

Josiah A. Groff

DOWD, BLOCH & BENNETT

8 South Michigan Avenue, 19 Floor th

Chicago, IL 60603

(312) 372-1361 

Respectfully submitted,

 /s/ Josiah A. Groff 

Attorney for 

Administrative District Council 1 of Illinois

of the International Union of Bricklayers and

Allied Craftworkers, AFL-CIO

March 6, 2013