64 E. Walton, Inc. v. CHICAGO TITLE & T. CO.

387 N.E.2d 751, 69 Ill. App. 3d 635, 25 Ill. Dec. 875, 1979 Ill. App. LEXIS 2228
CourtAppellate Court of Illinois
DecidedFebruary 9, 1979
Docket77-1091
StatusPublished
Cited by13 cases

This text of 387 N.E.2d 751 (64 E. Walton, Inc. v. CHICAGO TITLE & T. CO.) 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
64 E. Walton, Inc. v. CHICAGO TITLE & T. CO., 387 N.E.2d 751, 69 Ill. App. 3d 635, 25 Ill. Dec. 875, 1979 Ill. App. LEXIS 2228 (Ill. Ct. App. 1979).

Opinion

Mr. PRESIDING JUSTICE SULLIVAN

delivered the opinion of the court:

Defendant-lessor, Frances Wallace, appeals from an order entering judgment in the amount of *99,855.24 in favor of plaintiff-lessee for breach of the covenant of quiet enjoyment and entering a finding against her in a counterclaim for breach of certain lease provisions. The issues presented are (1) whether the damage award is contrary to the law and the evidence; and (2) whether the finding against defendant on her counterclaim is against the manifest weight of the evidence.

From the relevant testimony, it appears that on July 16,1971, plaintiff entered into a written lease of the premises at 64 East Walton Street, in Chicago, with defendant land trustee Chicago Title and Trust Company 1 at the direction of the sole beneficiary, defendant Frances Wallace. The 10-year lease provided for monthly rental payments of *1,500 for the first five years and *1,750 for each of the remaining years. Although the lease term was not to commence until December 1,1971, plaintiff was granted immediate possession of the first and third floors in consideration of a *6,025 premium paid pursuant to the written agreement. The lease also provided that plaintiff was to have possession of the basement and second floor on October 1, 1971, and if they were not available on that date, plaintiff’s rental obligation would be abated by *15 for each day possession thereof was denied.

Concerning other pertinent provisions, paragraph 15 of the lease required plaintiff to keep the interior and exterior of the building in good condition and allowed defendant to make repairs and charge plaintiff therefor in the event plaintiff failed to properly maintain the premises. However, neither paragraph 15 nor any other portion of the lease required plaintiff to occupy the premises. Paragraph 5 permitted plaintiff to use the premises for a restaurant, and paragraph 20 allowed plaintiff to remodel or alter the building, including structural alterations, but prohibited plaintiff from materially changing the front exterior without defendant’s written consent. Paragraph “H” of a rider to the lease required plaintiff to deliver to defendant any plans or specifications for proposed remodeling, but did not require approval of the plans by defendant unless the plans contemplated material alterations to the facade. Finally, paragraph 22 provided that the successful party in any suit to enforce the lease or to recover damages in the event of default may recover costs, expenses and reasonable attorneys’ fees.

By October 1, plaintiff had access to all floors of the building; but, on about October 8, defendant had all of the locks changed, preventing plaintiff from entering the building. Plaintiff’s requests for keys to the new locks went unsatisfied, and on October 20 it filed a complaint for injunctive relief. On October 29, the trial court ordered defendant to provide proper keys, and defendant’s counsel tendered them that same day.

In the meantime, George Makris, president and principal shareholder of the plaintiff corporation, had hired Harlan Pratt, an architect, to develop plans for the proposed remodeling of the building for use as a restaurant. In November of 1971, Pratt completed a set of plans, and at least one contractor submitted a bid thereon. These plans were forwarded to defendant’s attorney, as required by the lease, but it appears that they met with the disfavor of Mrs. Wallace. At any rate, the plans could not be utilized because they contemplated the use of an open center staircase, which violated fire codes. A second set of plans, intended to resolve the staircase problem, was completed in February of 1972 and a third set, aimed at reducing costs, was developed in March. Sometime in the beginning of April, plaintiff commenced exploratory work, which involved boring holes in the walls at strategic locations to determine the structural feasibility of various remodeling designs.

While the record is not entirely clear, it appears that defendant was not pleased with the lease and that problems developed between the parties with the result that on April 18, 1972, plaintiff filed a petition for supplemental injunctive relief, essentially alleging that defendant had engaged in a course of harassing and obstructions conduct, interfering with the remodeling project. Defendant countered on April 25 with a petition for injunction, alleging that plaintiff’s proposed plans for remodeling would materially change the front exterior of the building and that, although defendant did not approve of such plans as required by the lease, plaintiff had commenced work and destroyed a portion of the subject premises. On April 28, an order was entered reciting that plaintiff had agreed to file an indemnity agreement with defendant covering possible damage occurring in the process of the exploratory work and requiring that, upon delivery of such agreement, defendant was to cease interfering with plaintiff’s exploratory work.

Plaintiff then continued with its exploratory work and completed a fourth and final plan for remodeling on June 27,1972. This represented a major change from the previous plans and allegedly was again aimed at cutting costs. According to Makris, it also satisfied defendant’s objections. On July 14, under the final set of plans, plaintiff applied for a building permit which was issued on September 26. 2

On September 28, defendant filed a second petition against plaintiff, alleging that it failed to reimburse her for the prorated amount of property taxes due as required by the lease; that plaintiff left the premises unoccupied and, as a result, the building had deteriorated and attracted vandals; that defendant incurred expenses in order to protect and maintain the building, including expenditures for repairing the heating unit; and that plaintiff, by these actions, had breached the lease agreement. No order was ever entered resolving any of these allegations.

During the summer of 1972, Makris began contemplating the feasibility of opening another restaurant, and in late 1972 construction began on a new restaurant called “Rascals” in the suburb of Naperville. The total cost of this restaurant exceeded *1 million, approximately *100,000 of which was paid in cash by Makris and the rest financed. Rascals opened for business in May 1973.

On June 14,1973, defendant filed yet a third petition against plaintiff, alleging basically that plaintiff had failed to maintain the premises in a clean and orderly condition or adequate state of repair; that defendant would therefore be forced to assume the financial responsibility for maintenance; that plaintiff failed to proceed with renovations as previously represented to defendant; and that plaintiff has, by its acts, breached the lease agreement. Defendant requested an order terminating the lease and compensating her for expenses incurred. Again, no order was entered with respect to this petition, but on June 21, plaintiff’s attorney sent a letter to defendant’s attorney stating its intent to develop revised plans for renovation of the premises and solicit bids within 60 days.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Heller Financial, Inc. v. Johns-Byrne Co.
637 N.E.2d 1085 (Appellate Court of Illinois, 1994)
A.O. Smith Corp. v. Kaufman Grain Co.
596 N.E.2d 1156 (Appellate Court of Illinois, 1992)
Madison Associates v. Bass
511 N.E.2d 690 (Appellate Court of Illinois, 1987)
Bocchini v. Gorn Management Co.
515 A.2d 1179 (Court of Special Appeals of Maryland, 1986)
Drs. Sellke & Conlon, Ltd. v. Twin Oaks Realty, Inc.
491 N.E.2d 912 (Appellate Court of Illinois, 1986)
Orstrom v. Tierney
484 N.E.2d 890 (Appellate Court of Illinois, 1985)
In Re Estate of Healy
484 N.E.2d 890 (Appellate Court of Illinois, 1985)
Losurdo Bros. v. Arkin Distributing Co.
465 N.E.2d 139 (Appellate Court of Illinois, 1984)
Isbill Associates, Inc. v. City & County of Denver
666 P.2d 1117 (Colorado Court of Appeals, 1983)
Blue Cross Ass'n v. 666 North Lake Shore Drive Associates
427 N.E.2d 270 (Appellate Court of Illinois, 1981)
Mt. Vernon Memorial Estates, Inc. v. Wood
410 N.E.2d 995 (Appellate Court of Illinois, 1980)
Farwell Construction Co. v. Ticktin
405 N.E.2d 1051 (Appellate Court of Illinois, 1980)
Interstate Bank of Oak Forest v. Sluis
398 N.E.2d 1015 (Appellate Court of Illinois, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
387 N.E.2d 751, 69 Ill. App. 3d 635, 25 Ill. Dec. 875, 1979 Ill. App. LEXIS 2228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/64-e-walton-inc-v-chicago-title-t-co-illappct-1979.