IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

PAWNEE LEASING CORPORATION, )

)

Plaintiff, )

) Case No.

v- )

) Amount Claimed: $172,595.26 plus

) prejudgment interest at the rate of 24% per

) annum, plus attorneys’ fees and costs

)

MIDWEST MEDICAL SYSTEMS, INC., )

MELROSE PARK IMMEDIATE )

CARE LTD, GOWHAR KHAN, and )

TABISH KHAN )

)

Defendants. )

VERIFIED COMPLAINT

NOW COMES Plaintiff PAWNEE LEASING CORPORATION (“Pawnee”), by and

through its counsel, and for its Verified Complaint against Defendants MIDWEST MEDICAL

SYSTEMS, INC. (“Midwest Medical”), MELROSE PARK IMMEDIATE CARE LTD (“Melrose

Park”), GOWHAR KHAN (“G. Khan”), and TABISH KHAN (“T. Khan”) (collectively, the

“Defendants”), states as follows:

PARTIES

1. Pawnee is a Colorado corporation with its principal place ofbusiness located at 700

Centre Avenue, Fort Collins, Colorado 80526, and is fully authorized to do business in the State

ofIllinois.

2. Midwest Medical is an Illinois corporation with its principal place of business

located at 1177 N. Highland Ave., Aurora, Illinois 60506.

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3. Melrose Park is an Illinois corporation with its principal place of business located

at 106 N. 19th Ave., Melrose Park, Illinois 60160.

4. T. Khan is a citizen ofthe State of Illinois who resides at 2309 Bilter Rd, Aurora,

Illinois 60502.

5. G. Khan is a citizen ofthe State ofIllinois who resides at 2309 Bilter Rd, Aurora,

Illinois 60502.

JURISDICTION AND VENUE

6. Jurisdiction is appropriate in this Court pursuant to 28 U.S.C. § 1332(a)(1)

insomuch as the parties are of diverse citizenship and the amount in controversy exceeds

$75,000.00, exclusive of interest and costs.

7. Venue is proper in this Court pursuant to 28 U.S.C. §1391(b)(1) and (2), because a

substantial part ofthe events or omissions giving rise to Pawnee’s claims occurred in thisjudicial

district, and because the Defendants reside in thisjudicial district.

BACKGROUND

8. On or about May 28, 2019, Pawnee as lender, and Midwest Medical, as borrower,

entered into an Equipment Finance Agreement (the “Agreement”) for the financing of certain

equipment more specifically identified therein (the “Equipment”). A true and correct copy ofthe

Agreement is attached hereto as Exhibit 1.

9. To induce Pawnee to enter into the Agreement with Midwest Medical, Melrose

Park executed a corporate guaranty in which it guaranteed the full and prompt payment and 

performance of all of Midwest Medical’s obligations under the Agreement (the “Melrose Park

Guaranty”). A true and correct copy ofthe Melrose Park Guaranty is attached hereto as Exhibit 2.

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10. To induce Pawnee to enter into the Agreement with Midwest Medical, G. Khan

executed a guaranty in which he personally guaranteed the full and prompt payment and 

performance of all of Midwest Medical’s obligations under the Agreement (the “G. Khan

Guaranty”). A true and correct copy ofthe G. Khan Guaranty is attached hereto as Exhibit 3.

11. To induce Pawnee to enter into the Agreement with Midwest Medical, T. Khan

executed a guaranty in which he personally guaranteed the full and prompt payment and 

performance of all of Midwest Medical’s obligations under the Agreement (the “T. Khan

Guaranty”). A true and correct copy ofthe T. Khan Guaranty is attached hereto as Exhibit 4.

12. Pursuant to the Agreement, Midwest Medical granted Pawnee a first priority

security interest in the Equipment. See Exhibit 1,^4.

13. Pawnee perfected its first priority security interest in the Equipment by filing its

UCC-1 Financing Statement with the Illinois Secretary of State. A true and correct copy of the

UCC-1 Financing Statement is attached hereto as Exhibit 5.

14. Pursuant to the Agreement, Midwest Medical was to make six (6) monthly

payments of $99.00, and sixty (60) monthly payments of $3,207.09. See Exhibit 1, Schedule B.

15. Midwest Medical made nine (9) of the sixty-six (66) total monthly payments due 

under the Agreement, but failed to make the payment for March 15, 2020, and all payments due 

thereafter.

16. Melrose Park has failed to make payments under the Agreement and Melrose Park

Guaranty.

17. G. Khan has failed to make payments under the Agreement and G. Khan Guaranty.

18. T. Khan has failed to make payments under the Agreement and T. Khan Guaranty.

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19. Failure to make payments when due is an Event of Default under the Agreement,

Melrose Park Guaranty, G. Khan Guaranty, and T. Khan Guaranty (collectively the “Guaranties”).

See Exhibit 1, 11 and the Guaranties.

20. As a result ofthe default under the Agreement, Pawnee is entitled to the return of

the Equipment, payment ofthe accelerated balance discounted at the rate offour percent (4%) per

annum, plus late fees, prejudgment interest, attorneys’ fees and costs, and all other reliefprovided

under the Agreement. See Exhibit 1,^6, 11.

21. Pursuant to the Agreement, Pawnee is entitled to late fees and other assessments.

See Exhibit 1,^6.

22. Pursuant to the Agreement, Pawnee is entitled to prejudgment interest at the rate of

twenty-four percent (24%) per annum on any unpaid damages. See Exhibit 1, 11.

23. Pawnee demanded payment from the Defendants pursuant to the Agreement and

Guaranties, but the Defendants have failed and refused to make payment.

24. Pawnee has demanded return of the Equipment from Midwest Medical, but

Midwest Medical has failed and refused to return the Equipment.

25. Pawnee has fully performed its obligation under the terms of the Agreement and 

Guaranty.

COUNT I - BREACH OF CONTRACT

AGAINST DEFENDANT MIDWEST MEDICAL SYSTEMS, INC.

26. Pawnee repeats and realleges Paragraphs 1 through 25 as though fully set forth

herein.

27. Midwest Medical defaulted under the Agreement by failing and refusing to make

payments when due.

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28. Because of Midwest Medical’s default under the Agreement, Midwest Medical is

indebted to Pawnee in the amount of$ 172,595.26, plus prejudgment interest at twenty-four percent

(24%) per annum, plus attorneys’ fees and costs.

WHEREFORE, Plaintiff PAWNEE LEASING CORPORATION respectfully requests

that the Court enter judgment in its favor and against Defendant MIDWEST MEDICAL

SYSTEMS, INC. in the amount of $172,595.26, plus prejudgment interest at the rate of twentyfour percent (24%) per annum, plus attorneys’ fees and costs, as well as all other such reliefwhich

this Court deemsjust.

COUNT II - REPLEVIN

AGAINST DEFENDANT MIDEST MEDICAL SYSTEMS, INC.

UNDER 735 ILCS § 5/19-101, et seq.

29. Pawnee repeats and realleges Paragraphs 1 through 28 as though fully set forth

herein.

30. This claim is brought pursuant to Illinois Code of Civil Procedure § 19-101 et seq.

31. Pawnee has a first priority security interest in the Equipment.

32. Due to Midwest Medical’s default under the Agreement, Pawnee is entitled to the

return of an exclusive possession ofthe Equipment, specifically one (1) Tempsure RF Generator

with Tempsure Envi Face & Body Application.

33. Midwest Medical is wrongfully and unlawfully detaining the Equipment from

Pawnee.

34. The Equipment has not been taken for any tax, assessment, or fine levied by virtue

of any law ofthis State against the property ofPawnee, nor seized under any lawful process against

the goods and chattels of Pawnee subject to such lawful process, nor held by virtue of an order of

replevin against Pawnee.

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35. Pawnee estimates the value of the Equipment at $19,575.00, depending on

condition.

36. Pawnee has made demand upon Midwest Medical for the return ofthe Equipment,

but Midwest Medical refuses to surrender the Equipment voluntarily.

37. Upon information as belief, the Equipment is located at 1177 N. Highland Ave.,

Aurora, Illinois 60506.

WHEREFORE, PAWNEE LEASING CORPORATION, respectfully request that this

Court enter an Order directing the U.S. Marshall to use all necessary force to repossess the

Equipment, or any portion thereof from 1177 N. Highland Ave., Aurora, Illinois 60506, or

wherever it may be found, and enter a judgment against MIDWEST MEDICAL SYSTEMS, INC. 

for the value of any portion of the Equipment not so returned, plus attorneys’ fees and costs, as

well as all other and further reliefwhich this Court deemsjust.

COUNT III - DETINUE

AGAINST DEFENDANT MIDWEST MEDICAL SYSTEMS, INC.

38. Pawnee repeats and realleges Paragraphs 1 through 37 as though fully set forth

herein.

39. Midwest Medical is wrongfully retaining possession and control ofthe Equipment.

40. Due to Midwest Medical’s default under the Agreement, Pawnee is entitled to the

return of and the exclusive possession ofthe Equipment.

41. Midwest Medical refuses to surrender the Equipment despite demand.

WHEREFORE, PAWNEE LEASING CORPORATION, respectfully requests that this

Court enter an Order compelling MIDWEST MEDICAL SYSTEMS, INC. to surrender the

Equipment to Pawnee at a place and time directed by Pawnee within fourteen (14) days of this

Court’s entry ofjudgment.

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COUNT IV - BREACH OF GUARANTY

AGAINST DEFENDANT MELROSE PARK IMMEDIATE CARE LTD

42. Pawnee repeats and realleges Paragraphs 1 through 41 as though fully set forth

herein.

43. Melrose Park defaulted under the Melrose Park Guaranty by failing or refusing to

make payments when due.

44. Because ofMelrose Park’s default under the Melrose Park Guaranty, Melrose Park

is indebted to Pawnee in the amount of $172,595.26, plus prejudgment interest at twenty-four

percent (24%) per annum, plus attorneys’ fees and costs.

WHEREFORE, Plaintiff PAWNEE LEASING CORPORATION respectfully requests

that the Court enterjudgment in its favor and against Defendant MELROSE PARK IMMEDIATE

CARE LTD in the amount of $172,595.26, plus prejudgment interest at the rate of twenty-four

percent (24%) per annum, plus attorneys’ fees and costs, as well as all other such reliefwhich this

Court deemsjust.

COUNT V - BREACH OF GUARANTY

AGAINST DEFENDANT GOWHAR KHAN

45. Pawnee repeats and realleges Paragraphs 1 through 44 as though fully set forth

herein.

46. G. Khan defaulted under the G. Khan Guaranty by failing or refusing to make

payments when due.

47. Because of G. Khan’s default under the G. Khan Guaranty, G. Khan is indebted to

Pawnee in the amount of $172,595.26, plus prejudgment interest at twenty-four percent (24%) per

annum, plus attorneys’ fees and costs.

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WHEREFORE, Plaintiff PAWNEE LEASING CORPORATION respectfully requests

that the Court enterjudgment in its favor and against Defendant GOWEAR KHAN in the amount

of $172,595.26, plus prejudgment interest at the rate oftwenty-four percent (24%) per annum, plus

attorneys’ fees and costs, as well as all other such reliefwhich this Court deemsjust.

COUNT VI - BREACH OF GUARANTY

AGAINST DEFENDANT TABISH KHAN

48. Pawnee repeats and realleges Paragraphs 1 through 47 as though fully set forth

herein.

49. T. Khan defaulted under the T. Khan Guaranty by failing or refusing to make

payments when due.

50. Because of T. Khan’s default under the T. Khan Guaranty, T. Khan is indebted to

Pawnee in the amount of $172,595.26, plus prejudgment interest at twenty-four percent (24%) per

annum, plus attorneys’ fees and costs.

WHEREFORE, Plaintiff PAWNEE LEASING CORPORATION respectfully requests

that the Court enter judgment in its favor and against TABISH KHAN in the amount of

$172,595.26, plus prejudgment interest at the rate of twenty-four percent (24%) per annum, plus

attorneys’ fees and costs, as well as all other such reliefwhich this Court deemsjust.

PAWNEE LEASING CORPORATION,

By: /s/ Joanna Pizzo

One ofIts Attorneys

Debra Devassy Babu (ARDC 6282743)

Joanna Pizzo (ARDC 6333193)

Askounis & Darcy P.C.

444 N. Michigan Ave., Suite 3270

Chicago, IL 60611

ddevassy@askounisdarcy.com

jpizzo@askounisdarcy.com

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VERIFICATION

Under penalties as provided by law, the undersigned certifies that the statements set forth

in the Complaint are true and correct, except as to matters therein stated to be on information and

belief, and as to such matters, the undersigned certified as aforesaid that he verily believes the

same to be true.

Kenny Fitzgerald Date

Vice President of Legal and Asset Management

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