166 Symphony Way, LLC v. U.S. Property Investments Group, LLC

2022 IL App (2d) 210510-U
Appellate Court of Illinois·Decided November 16, 2022·No. 2-21-0510·Unpublished

Opinion

No. 2-21-0510

Order filed November 16, 2022

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(l).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

166 SYMPHONY WAY, LLC and ) Appeal from the Circuit Court THE HAIGHT COMPANY, ) of Kane County.

)

Plaintiffs-Appellees/Cross-Appellants, )

)

v. ) No. 18-CH-72 )

U.S. PROPERTY INVESTMENTS ) GROUP, LLC, ) Honorable ) Kevin T. Busch,

Defendant-Appellant/Cross-Appellee. ) Judge, Presiding.

PRESIDING JUSTICE BRENNAN delivered the judgment of the court.

Justices McLaren and Jorgensen concurred in the judgment.

ORDER

¶1 Held: We affirm the trial court’s findings preserving the easement. We reverse and remand as to attorney fees. Affirmed in part; reversed and remanded in part.

¶2 In 1987, plaintiffs, 166 Symphony Way and The Haight Company (collectively referred to as HC) entered into a land swap and easement agreement with the former owners of the neighboring property now owned by defendant, U.S. Property Investment Group, LLC (USP). The easement ran with the land. HC, the dominant tenant, would have access to a 20-foot-wide lane running along the eastern wall of its building such that HC could, among other things, access its

delivery door. In 2014, USP purchased the neighboring property and became the owner of the servient estate. The parties soon began to disagree as to the proper use of the easement. HC’s position was that it used the easement as it always had, and USP was looking for any reason to terminate the easement. USP’s position was that HC, coincidently, increased its use of the easement due to the wedding business that it had started simultaneously to USP’s purchase.

¶3 HC filed a four-count complaint in chancery court. HC sought the removal of barriers placed by USP over a curb cut that HC used to access the easement (count I). HC also sought the withdrawal of USP’s recordings of termination of the easement, which USP had filed based on its belief that HC had violated paragraphs 8 (concerning insurance), 6(a) (concerning blocking the easement), and 6(b) (concerning misuse of the easement so as to constitute a nuisance or violation of law or ordinance) of the written easement agreement (counts II and III). HC asked that the court eliminate the apparent discretion afforded to USP in paragraph 7 of the easement agreement to unilaterally terminate the easement. Last, HC alleged a prescriptive easement over a curb cut, which it used to access the easement.

¶4 USP filed a counter-complaint, pleading three counts for declaratory judgment of termination, based on allegations HC had violated paragraphs 8, 6(a), and 6(b). In the alternative, it pleaded breach of contract, again alleging HC had violated paragraphs 8, 6(a), and 6(b).

¶5 The trial court conducted a bench trial and ruled in favor of HC, with some qualifications. It determined that there had been no material breach of paragraphs 8, 6(a), and 6(b) and declared all recordings of termination null and void. It also ordered that USP remove barriers to accessing the easement from the curb cut, but in a manner different to that requested by HC. The court determined that HC had the right to access the easement over the curb cut, because access in that manner had been contemplated by the original parties to the agreement. The court stated that, in

the alternative, if the original parties had not contemplated the right to access the easement over the curb cut, that right had been acquired by prescriptive easement. The court also ordered that, moving forward, USP could not make a unilateral decision that the easement had been terminated and would, instead, need to obtain the written agreement of the parties or a court order. Finally, in addressing attorney fees, the court referenced both the agreement’s fee-shifting provision and its indemnification clause in determining that, in effect, each party pay its own fees.

¶6 USP appeals, challenging the trial court’s findings in relation to preserving the easement. HC cross-appeals, arguing that the trial court erred in not awarding it attorney fees. For the reasons that follow, we affirm the trial court’s ruling preserving the easement, and reverse and remand as to the question of attorney fees. Affirmed in part; reversed and remanded in part.

¶7 I. BACKGROUND

¶8 Plaintiffs, referred to collectively as HC, include: (1) 166 Symphony Way, LLC, the sole owner of which is Linda Haight, and which owns the 166 Symphony building; and (2) The Haight Company, the owners of which are Linda’s adult children, Doree Haight, John Haight, and Kari Goodmay, and which leases some but not all of the space in the 166 Symphony building. Defendant, USP, the owners of which are Bogdan and Sandra Stanek, purchased the real estate located at 220 Spring Street in April 2014. A portion of the 220 Spring property is subject to a 1987 easement agreement.

¶9 A. The 1987 Written Easement Agreement

¶ 10 The relevant terms of the 1987 Written Easement Agreement are as follows. Paragraph 2(a) defines the easement as a driveway easement, and provides:

“(a) ‘Driveway Easement’ shall mean the non-exclusive right and easement, exercisable in common with all others having like right, including [Grantor’s successor,

USP] *** at all times without fee or charge; to pass and repass, with or without a vehicle of any description, over and along Parcel C [the 20-foot-wide lane running alongside the 166 Symphony building] for driveway purposes and for the purpose of access, ingress and egress to and from Parcel B [the 166 Symphony building] to the public right-of-ways ***;

provided, however, that such easement rights may be exercised only for such purposes as are reasonably associated with or incidental to the lawful use of Parcel B [the 166 Symphony building].” (Emphases added.)

¶ 11 Paragraph 3 provides in part that the Grantor’s successors [USP] have “the right to relocate said Driveway Easement to such other locations on Parcel A [the remainder of USP’s parking lot that is not already part of the easement] as Grantor [or its successor] may determine providing that such relocation does not materially deprive Grantee [HC] of access to the Entry Doors.”

¶ 12 Paragraph 6 further restricts use of the easement as follows:

“6. Restriction on Use of Driveway Easement. *** [N]either Grantee nor Grantee’s Permitted Users shall make use of Parcel C in such a way as to:

(a) Block, impede, or impair the use of Parcel C by Grantor or Grantor’s authorized agents, or use said Parcel C for the storage of any property; or (b) Create any public or private nuisance or violate any laws, ordinances, or regulations of any applicable governmental body, or otherwise injure the reputation of Parcel A or Parcel C.”

¶ 13 Paragraph 7 addresses the Grantor’s rights in the event of a breach:

“7. Breach.

(a) In the event of a breach of any of the provisions hereof by Grantee or its

Permitted Users, which breach is not cured within 7 days following written notice thereof by the Grantor to the Grantee, or immediately upon the giving by the Grantor to the Grantee of the third notice in any consecutive twelve (12) month period of the occurrence of a breach hereof by Grantee, Grantor shall have the right, at its election to:

(i) Terminate the rights of Grantee hereunder by recording a declaration of such termination with the office of the Recorder of Deeds of Kane County, Illinois; or (ii) Procure an order from any court of competent jurisdiction awarding Grantor damages incurred by reason of such breach and/or enjoining Grantee from any further breach of this Agreement.”

¶ 14 Paragraph 8 addresses indemnification and requires that the Grantee name the Grantor as an additional insured:

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166 Symphony Way, LLC v. U.S. Property Investments Group, LLC, 2022 IL App (2d) 210510-U (Ill. Ct. App. 2022).

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