527 S. Clinton v. Westloop Equities

CourtAppellate Court of Illinois
DecidedJuly 20, 2010
Docket1-09-2200 Rel
StatusPublished

This text of 527 S. Clinton v. Westloop Equities (527 S. Clinton v. Westloop Equities) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
527 S. Clinton v. Westloop Equities, (Ill. Ct. App. 2010).

Opinion

SECOND DIVISION FILED: July 20, 2010

No. 1-09-2200

527 S. CLINTON, LLC, an Illinois ) APPEAL FROM THE limited liability company, ) CIRCUIT COURT OF ) COOK COUNTY. Plaintiff-Appellant, ) ) v. ) 07 CH 12339 ) WESTLOOP EQUITIES, LLC, an ) Illinois limited liability ) company, ) THE HONORABLE ) MARTIN S. AGRAN Defendant-Appellee. ) JUDGE PRESIDING

JUSTICE HOFFMAN delivered the opinion of the court:

The plaintiff, 527 S. Clinton, LLC, brought the instant

suit, seeking judicial declarations that its proposed development

of a multi-story commercial and residential building would not

violate an easement held by the defendant, Westloop Equities,

LLC. In two separate orders, the circuit court dismissed two of

the three counts of the plaintiff's complaint, finding them to be

time barred. As to the third count, the circuit court entered a

directed finding in favor of the defendant. The plaintiff now

appeals, arguing that all three rulings were improper. For the

reasons which follow, we reverse and remand for further

proceedings. No. 1-09-2200

The essential facts giving rise to this appeal are not in

dispute. The plaintiff is the owner of a parcel of real estate

commonly known as 519-527 South Clinton Street in Chicago,

Illinois. The plaintiff's property is currently used as an open-

air parking lot. The defendant owns a parcel of real estate

adjacent to the plaintiff's property, commonly known as 506 West

Harrison Street. The defendant operates a hotel upon its

property.

Prior to 1984, both properties were under common ownership.

In October of that year, the hotel, along with the property upon

which it was situated, was sold to the defendant's predecessor-

in-interest. As part of the transaction, the defendant's

predecessor-in-interest was granted an easement for ingress and

egress and for free parking. The easement provided, in relevant

part, as follows:

"1. All persons, by motor vehicle or

otherwise, shall have the rights to ingress

and egress in perpetuity to or from the

property through and/or across the parking

facility property, which rights shall not be

terminable for any reason.

2. Grantee's registered guests of the

hotel and banquet invitees shall have the

-2- No. 1-09-2200

right to park on the parking facility

property at no cost.

3. Patrons of the bar and restaurant

inside the subject hotel property shall have

the right to park at no cost for a maximum of

three (3) hours.

4. The easement for parking in the

above Paragraphs 2 and 3 shall be subject to

the following terms and conditions, a

violation of which shall cause said easement

to terminate immediately upon the violation:

(a) The easement will remain

in force so long as the property is

operated as a hotel. Ceasing to

operate the subject hotel as a

hotel business shall cause this

easement to terminate immediately

and without notice."

Over time, the hotel fell into disuse and closed. In June

of 1998, the defendant purchased the property containing the

hotel. The defendant refurbished the hotel and reopened it in

1999.

-3- No. 1-09-2200

In October of 2006, the plaintiff purchased the adjacent

property containing the open-air parking lot. Shortly

thereafter, the plaintiff sought to develop the property and

build a multi-story commercial and residential building

consisting of 276 residential units, as well as ground floor

retail shops and parking.

On March 6, 2007, representatives of the plaintiff met with

the manager of the hotel to discuss the proposed development. In

a letter dated March 23, 2007, the defendant's attorney expressed

his opinion that the erection of a building on the plaintiff's

property would interfere with the defendant's easement and

threatened immediate litigation. In a subsequent letter dated

March 27, 2007, the defendant's attorney also threatened to sue

the architect hired by the plaintiff to design the development.

On May 8, 2007, the plaintiff filed a three-count complaint

against the defendant. In count I, the plaintiff sought a

judicial declaration that, under the terms of the easement, the

defendant's right to free parking ended in "approximately 1986,"

the year the original hotel ceased operations. Count II sought a

judicial declaration that the plaintiff's proposed development of

its property would not interrupt the hotel's ingress and egress

and that the terms of the easement would not be violated.

Finally, in count III, the plaintiff sought a mandatory

-4- No. 1-09-2200

injunction compelling the removal of a parking ramp allegedly

encroaching on its property by approximately 50 feet. The

complaint alleged that, until the plaintiff purchased the

property in 2006, the ramp was permitted to exist on the

plaintiff's property as an accommodation to the hotel.

On August 3, 2007, the defendant filed a motion to dismiss

all three counts of the plaintiff's complaint pursuant to

sections 2-615 and 2-619 of the Code of Civil Procedure (Code)

(735 ILCS 5/2-615, 2-619 (West 2006)). Attached to the

defendant's motion was an affidavit from Leslie Barnard, a member

of the defendant. In his affidavit, Barnard attested that the

ramp allegedly encroaching on the plaintiff's property was

constructed in the early 1960s and, since then, has been used by

the hotel for ingress and egress.

Initially, the circuit court denied the defendant's motion

to dismiss in its entirety. Following a motion to reconsider,

however, the circuit court dismissed count III of the plaintiff's

complaint with prejudice. In reaching this conclusion, the court

found that, because the ramp in question had been used since the

grant of the easement in 1984, count III was barred by the 20-

year statute of limitations set forth in section 13-101 of the

Code (735 ILCS 5/13-101 (West 2006)).

-5- No. 1-09-2200

On March 12, 2009, the plaintiff filed an amended complaint.

In count I of the amended complaint, the plaintiff again sought a

judicial declaration that the defendant's right to free parking

had ended as no hotel business was conducted on the defendant's

property from "approximately 1986 until the hotel was reopened on

May 30, 1999." As in the original complaint, count II sought a

judicial declaration that the plaintiff's proposed development

would not violate the terms of the easement. The plaintiff also

re-pled count III in order to "preserve [its] rights on appeal."

On April 3, 2009, the plaintiff moved for summary judgment

on count I of the amended complaint, arguing that there was no

dispute that the hotel ceased operations in the late 1980s.

While the plaintiff's motion for summary judgment was still

pending, the defendant filed another motion to dismiss count I of

the amended complaint pursuant to section 2-619 of the Code (735

ILCS 5/2-619 (West 2006)). In relevant part, the defendant

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