Settlement reached in ‘Windy City Rehab’ lawsuit over work on Lincoln Square home

“Windy City Rehab” stars Alison Victoria Gramenos and Donovan Eckhardt have reached a settlement with a Lincoln Square couple who sued over the renovation of their home on the popular HGTV show, their attorneys said.

In the lawsuit, filed in December 2019, James and Anna Morrissey alleged problems with the roof, windows, exterior masonry and hallway bathroom of a home they purchased that had been featured on the first season of the show.

An attorney for the Morrisseys, Robert McLaughlin, declined to provide details about the settlement, saying the parties agreed to keep the terms confidential.

He and attorneys for Gramenos and Eckhardt praised the settlement.

“From the beginning, it was my intention to design a great house in a great neighborhood,” Gramenos said in a statement. “Fortunately all issues involved in the litigation are settled.”

Eckhardt said in an email through his attorney that “he looks forward to moving on with other business opportunities in the future.”

The Morrisseys sued Gramenos, Eckhardt, contractor Ermin Pajazetovic and related business entities for fraud, claiming they were sold a $1.36 million home with a failing roof, poorly installed windows, deteriorating masonry and a shower that leaked through the kitchen ceiling below.

At one point Gramenos’ Bucktown home entered the legal battle, when the Morrisseys sought a temporary restraining order to block the sale of the home, saying they feared Gramenos was trying to shield her personal assets from a judgement collection if they won their suit. A Cook County judge denied the request in October 2020, and Gramenos sold her home this October after about a year on and off the market.

Wednesday, Gramenos’ attorney, Daniel Lynch, issued a statement calling the settlement “a mutually beneficial resolution of this matter.” McLaughlin said in a statement the parties had “amicably” resolved the issue.

Gramenos, the designer and host, and Eckhardt, the former lead contractor, purchased, renovated and flipped homes in Chicago on the popular show.

Season 2 of “Windy City Rehab” followed the breakdown in the relationship of the once close friends. They ran into trouble with the city for alleged building violations and were involved in a slew of lawsuits, many of which have been settled or dropped.

They remain subject to a lawsuit brought by a family of investors who said they were not properly repaid. In July, Cook County Judge Allen Walker had agreed to mediate settlement negotiations.

Another lawsuit alleging Gramenos and Eckhardt owe a pair of suburban Chicago lenders money also remains ongoing. An attorney for Eckhardt, James Skyles, has previously disputed that Eckhardt owes the lenders money.

Lynch has previously said the dispute is “another in a series of claims arising out of the fallout of the ongoing business divorce” between Gramenos and Eckhardt.

Additional episodes of Season 2 were slated to premiere late this year, but have been pushed back to 2022. Gramenos said the show is filming Season 3.

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