Balaban & Katz Corp. v. Channel Amusement Co.

83 N.E.2d 27, 336 Ill. App. 113, 1948 Ill. App. LEXIS 437
Appellate Court of Illinois·Decided December 15, 1948·No. Gen. No. 44,439·Published·Cited by 6 cases

Opinion

Mr. Presiding Justice Burke

delivered the opinion of the court.

Balaban & Katz Corporation filed a forcible detainer action in the municipal court of Chicago against Channel Amusement Co., for possession of the premises occupied by the Broadway Strand Theatre at 1641-53 Roosevelt Road, Chicago, resulting in a judgment for the defendant. Plaintiff appealed.

Marks Bros. Theatres, Inc., lessor, leased the premises to defendant, as lessee, for a 15 year period from August 1,1929 to July 31,1944. In acquiring the lease defendant" purchased from its predecessor tenant all the personal property, furniture, fixtures, machinery and equipment used in connection with the operation of the theater. On the expiration of the lease by lapse of time, the defendant had the right to remove all of its equipment, furniture, machinery and fixtures. On July 1, 1935, Marks Bros. Theatres, Inc., assigned its interest in the theater to Broadway Strand Corporation. On the same day the latter leased the property to plaintiff as lessee. Defendant, as sublessee, attorned to plaintiff. The rent was at the rate of $2,777.77 for each month for the balance of the term. On December 7,1936, an agreement was made between plaintiff and defendant under which the original lease was extended to June 30, 1947. The relationship of landlord and tenant was not the only business between plaintiff and defendant and their affiliated companies. Essaness, the parent company of defendant, operated other theaters in which plaintiff was and is interested, namely, the Lamar and Lake in Oak Park and the North Center in Chicago. Defendant has a 50 per cent interest in the Lamar, a 37% per cent interest in the Lake and a 50 per cent interest in the North Center. In January or February 1947, approximately six months prior to the expiration of the lease, as extended, agents of plaintiff approached Mr. Miles Seeley, one of the attorneys for both Essaness and defendant, and stated that due to the decree in an anti-trust and monopoly case entered in the district court of the United States, for the Southern District of New York, in the case of United States of America v. Paramount Pictures, Inc. et al., the latter and its subsidiaries would have to either sell or buy all theater interests which it owned consisting of more than 5 per cent and less than 95 per cent. See 66 P. Supp. 323 and 70 F. Supp. 53. Hence, plaintiff, a subsidiary of Paramount, would have to buy or sell its theater interests in the Lake, Lamar and North Center theaters. These agents asked Mr. Seeley whether Essaness and defendant would be interested in the following proposition: Plaintiff would sell to Essaness its interest in either the Lake or Lamar theaters and Essaness would sell to plaintiff its interest in the Lake or Lamar, so each group would end up owning one of the two theaters; also that Essaness would then sell its interest to plaintiff in the North Center theatre; that certain lawsuits pending in the circuit or superior court of Cook county, in which plaintiff was the plaintiff and Essaness the defendant would be compromised for $51,138.46; that plaintiff would execute a long term extension of the Broadway Strand theatre lease to defendant, or would sell the fee of that property to either defendant or Essaness; that this arrangement would be predicated upon plaintiff obtaining a reasonable extension on the North Center lease and was further conditioned upon the district court of New York, in United States v. Paramount Pictures, Inc. et al., approving the transaction.

Negotiations continued with Mr. Seeley until the early part of July 1947, when they were resumed with Mr. Edward Blackman, an officer as well as one of the attorneys for Essaness and defendant. These negotiations were carried on from time to time until September 3,1947, at which time at a meeting in the office of Mr. Blackman, where there were present representatives of plaintiff, the proposition submitted to Mr. Seeley was resubmitted to Mr. Blackman, who was acting for Essaness and defendant. He suggested that it might be advisable to wait until the United States Supreme Court disposed of the appeal taken in United States v. Paramount Pictures, Inc. et al.; that the Supreme Court might sustain the position- of the government and order a separation and divorcement of production and distribution from the exhibition end of the theater business. One of the attorneys for plaintiff said he would give that consideration, that the parties on both sides should' give these matters further consideration and that there should be further discussion in connection therewith.

In the meantime, the plaintiff granted to the defendant five separate monthly extensions of its lease. The first monthly extension was for the month of July 1947. This was given to defendant on July 18,1947, although the written instrument contains the language that it was entered into “as of the 30th day of June, 1947.” The extension for the month of August 1947 was given the defendant on August 9,1947, although the written instrument contains the language that it was entered into “ as of the 31st day of July, 1947. ’ ’ The extension for the month of September 1947 was given to the defendant approximately on September 7 or 8, 1947, -although the written instrument contains the language that it was entered into “as of the 31st day of August, 1947.”- The extension for the month of .October 1947 was given to the defendant on October 14,1947, although the written instrument contains the language that it was entered into “as of the 30th day of September, 1947.” The extension for the month of November 1947 was given to the defendant on November 7, 1947, although the written instrument contains the language that it was entered into “as of the 31st day of October, 1947.”

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Balaban & Katz Corp. v. Channel Amusement Co., 83 N.E.2d 27, 336 Ill. App. 113, 1948 Ill. App. LEXIS 437 (Ill. Ct. App. 1948).

83 N.E.2d 27 (Balaban & Katz Corp. v. Channel Amusement Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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