Bailey v. Hedgeman

513 N.E.2d 993, 160 Ill. App. 3d 402, 112 Ill. Dec. 384, 1987 Ill. App. LEXIS 3120
CourtAppellate Court of Illinois
DecidedSeptember 4, 1987
DocketNo. 3—86—0851
StatusPublished
Cited by1 cases

This text of 513 N.E.2d 993 (Bailey v. Hedgeman) 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
Bailey v. Hedgeman, 513 N.E.2d 993, 160 Ill. App. 3d 402, 112 Ill. Dec. 384, 1987 Ill. App. LEXIS 3120 (Ill. Ct. App. 1987).

Opinion

JUSTICE SCOTT

delivered the opinion of the court:

Plaintiff, Claude Bailey, filed a complaint in forcible entry and detainer to oust defendant, Herbert L. Hedgeman, a contract purchaser. The trial court entered an order on December 2, 1986, awarding plaintiff possession of the real estate, although staying enforcement of the order 30 days from November 26, 1986. Defendant appeals the order for two reasons: (1) that plaintiff’s demand for possession was inadequate at law and (2) that the court improperly denied taking into consideration allegations of plaintiff’s breach of contract as possible defenses. The relevant facts are as follows.

Plaintiff and defendant entered into a contract for the sale of real estate on January 20, 1986. Other items of personal property were included in the contract, along with terms and conditions pursuant to the sale of such personal property.

Plaintiff testified that an initial contract payment was made in February of 1986, but that no other required payments had been received by him from the defendant; moreover, that on May 9, 1986, plaintiff notified defendant of his intention to declare a forfeiture followed by a declaration of forfeiture dated July 21, 1986. Subsequently plaintiff caused a demand for possession to be served upon the defendant by certified mail c/o The Sportsman Inn in Chicago, Illinois. Plaintiff admitted at trial that he did not know who the person was that signed the return receipt of the demand and did not know if that person was authorized to receive notices on behalf of defendant. He indicated, however, that the person who signed the return receipt had been introduced to him at one time as defendant’s bookkeeper.

Plaintiff was questioned regarding his compliance with the purchase contract. He .testified that he had not assigned all leases to defendant, including the lease agreement with Images Restaurant, which was the lessee of the motel that defendant purchased. Plaintiff also testified that an inventory and bill of sale were to be prepared and presented to the defendant under the contract; that the inventory had been delivered to defendant, but it did not include the serial numbers of the equipment sold. Similarly, no bill of sale had been delivered nor had plaintiff provided any tax records or depreciation schedules for the inventory transferred.

Chester O. Hale (Hale) testified on behalf of defendant. Hale was acting manager of the motel purchased by defendant and was familiar with the day-to-day operations of the business. Hale stated that problems had developed with the Images Restaurant lease and plaintiff, upon numerous requests, failed to execute an assignment of the Images lease to defendant. Moreover, Images subsequently vacated the property and took a substantial amount of restaurant equipment belonging to defendant, which could not be recovered because plaintiff’s inventory failed to provide serial numbers and proper descriptions of the personal property transferred. Hale further testified that because defendant was unable to recover the lost inventory for lack of proof of ownership, the restaurant could not be immediately reopened and defendant suffered damages as a result.

Plaintiff objected to the testimony concerning the lease assignment and other contractual problems complained of by defendant. The court, upon reviewing the matter, sustained plaintiff’s objection, holding that the contract did not require an assignment of the lease and also that the other matters raised regarding plaintiff’s performance under the contract did not go to the issue of possession of the real estate and, therefore, were not germane to the forcible entry action then pending. The trial court thus refused to consider any of defendant’s claims.

Two issues are before this court: (1) whether plaintiff’s demand for possession was adequate at law, and (2) whether the trial court properly refused to consider defendant’s allegations of plaintiff’s breach of contract as defenses to the action. We will consider the second issue first, as our decision on that issue will resolve any question regarding the sufficiency of plaintiff’s demand for possession.

Regarding issue 2, plaintiff argues, as the trial court ruled, that the inventory and bill of sale were matters beyond any possessory right to the real estate and, therefore, not a proper subject for a forcible entry and detainer action.

Plaintiff cites the Illinois Supreme Court cases of Clore v. Fredman (1974), 59 Ill. 2d 20, 319 N.E.2d 18, and Rosewood Corp. v. Fisher (1970), 46 Ill. 2d 249, 263 N.E.2d 833, for the proposition that the purpose of the rule excluding nongermane matters is to prevent collateral matters from being litigated in a possessory action. We agree with the proposition; however, we disagree with plaintiff as to whether the defenses alleged here are germane to the action.

Upon review of the case law, we believe that Clore is not dispositive of the issue at hand. In Clore, the court held that “in a forcible entry and detainer action an answer alleging such action was brought in retaliation for complaints by the tenant to governmental authorities is germane to the action and states a defense.” (Clore v. Fredman (1974), 59 Ill. 2d 20, 27, 319 N.E.2d 18, 22.) Clore, however, does cite Rosewood, which is instructive.

In Rosewood, hundreds of contract buyers, upset over beliefs that they had been overcharged for their properties and that unfair advantage and discrimination had been practiced against them, sought modification and renegotiation of their contracts by discontinuing installment payments. “In so doing, they defaulted on their contract obligations and, by the terms of the contracts, exposed themselves to forfeiture of their contract rights and equities and to suits for possession.” (Rosewood Corp. v. Fisher (1970), 46 Ill. 2d 249, 252, 263 N.E.2d 833, 836.) The sellers then proceeded with forcible entry and detainer actions in the circuit court of Cook County, with all of the actions concluding in judgments for possession being entered. Whereupon, some 370 contract buyers filed a declaratory judgment action for a declaration that certain defenses which were being denied to defendants in the actions for possession could be litigated. Included as defenses were “allegations that the contracts were unconscionable and unenforcible [sic]; that they were usurious; that they were extracted and induced by fraud; and that they were in violation of the civil and various constitutional rights of the defendants.” (46 Ill. 2d 249, 255, 236 N.E.2d 833, 837.) The cases were dismissed and subsequently appealed. 46 Ill. 2d 249, 253, 236 N.E.2d 833, 836.

The court, after noting that the purpose of forcible entry and detainer actions is to restore possession to one who is entitled to the right of possession, stated:

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Cite This Page — Counsel Stack

Bluebook (online)
513 N.E.2d 993, 160 Ill. App. 3d 402, 112 Ill. Dec. 384, 1987 Ill. App. LEXIS 3120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-hedgeman-illappct-1987.