Bennett & Kahnweiler, Inc. v. American National Bank

601 N.E.2d 810, 235 Ill. App. 3d 896, 176 Ill. Dec. 112
CourtAppellate Court of Illinois
DecidedOctober 23, 1992
Docket1-91-3260
StatusPublished
Cited by12 cases

This text of 601 N.E.2d 810 (Bennett & Kahnweiler, Inc. v. American National Bank) 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
Bennett & Kahnweiler, Inc. v. American National Bank, 601 N.E.2d 810, 235 Ill. App. 3d 896, 176 Ill. Dec. 112 (Ill. Ct. App. 1992).

Opinion

PRESIDING JUSTICE EGAN

delivered the opinion of the court:

The plaintiff, Bennett & Kahnweiler, Inc., brought this action against the defendants, seeking a judgment for a commission allegedly earned pursuant to a contract for the lease of commercial property owned by the defendants. Following a bench trial, the judge entered judgment in favor of the defendants based upon his finding that because the lease agreement had not been fully executed, the plaintiff was not entitled to the commission provided for in the contract. The judge also found that the judgment in favor of the defendants was supported by the fact that the plaintiff’s damages were mitigated by the collection of a commission under a subsequent lease transaction on behalf of its client. The plaintiff has appealed, contending that the court erred in entering judgment in favor of the defendants and in making its determination as to the mitigation of the plaintiff’s damages.

In December 1985, the law firm of Schwartz Cooper Kolb & Gaynor, Chartered (Schwartz Cooper), retained the plaintiff, Bennett & Kahnweiler, Inc., as its broker to obtain office space for the law firm in a building in Chicago.

The defendants were trustees of two land trusts which held legal title to an office building located at 33 West Monroe Street in Chicago. The beneficiary of these two land trusts (the property owner) was 33 West Monroe Associates, an Illinois limited partnership. The general partners of 33 West Monroe Associates were Draper & Kramer, Inc. (Draper & Kramer), Douglas Kramer, and Fred Ford. Douglas Kramer was president of Draper & Kramer, and Fred Ford was a senior vice-president. Draper & Kramer had between 8 and 10 corporate divisions and was in the real estate and mortgage banking business. In addition to serving as general partner of the property’s owner, Draper & Kramer served as property manager and leasing agent for the building.

In the fall of 1986, Draper & Kramer and the defendant began negotiating a lease for office space on the 22nd floor of the building at 33 West Monroe. Jerry K. Bloomstrand, a senior vice-president of Draper & Kramer, conducted the lease negotiations on behalf of the property owner. Richard Berger and Barbara Ellis acted on behalf of the plaintiff and as agents for Schwartz Cooper.

In a letter to Ellis dated September 22, 1986, Bloomstrand outlined the essential lease terms that were acceptable to the property owner. These terms included rental amount, lease term, area, rental adjustments, lease assumption, construction costs, rent abatement, expansion options, and assignment and subletting. This letter also stated that “[t]he enclosed counter-proposal has been reviewed and approved by ownership as evidenced by Mr. Collopy’s signature. These terms represent the final offer, which upon acceptance by your client, will be sent to counsel for the preparation of a lease.” The letter bore the signature of Eamonn Collopy and indicated that the document was “approved for ownership” by him. Although this letter included a signature line for Schwartz Cooper, the firm did not sign the document.

By letter dated October 6, 1986, Bloomstrand restated the basic terms which were acceptable to the property owner. In this letter, Bloomstrand agreed to an increase in the lease assumption cap, a change in the split of profits on any sublet, and made reference to a more recent tax bill with regard to rent adjustments. Thereafter, Draper & Kramer employed Patrick Moran, of Sonnenschein Carlin Nath & Rosenthal, as counsel. Moran was assisted by Valerie B. Jarrett, an associate at the Sonnenschein firm. Schwartz Cooper retained Neil T. Neumark of Greenberger Krause & Jacobs to act as counsel on its behalf.

In October 1986, Moran sent a first draft of the lease to Neumark, and several subsequent drafts were exchanged from October 1986 to February 1987. Several meetings and telephone conferences were conducted during the course of the lease negotiations.

On November 20, 1986, Bloomstrand sent a draft commission agreement to the plaintiff. On November 24, 1986, Bloomstrand sent Berger a revised broker’s agreement. This revised broker’s agreement provided that the defendants would pay the plaintiff a brokerage commission “if a mutually satisfactory lease [was] negotiated and fully executed.” This agreement was signed by Berger on December 5, 1986.

Several lease drafts were negotiated and exchanged in the latter part of January 1987. On February 4, 1987, the plaintiff received an unsolicited proposal from another company regarding a lease of space to Schwartz Cooper in another building. The plaintiff performed an economic analysis of this proposal and sent it to Schwartz Cooper on February 9, 1987. Upon review of the economic analysis prepared by the plaintiff, Schwartz Cooper rejected the alternate proposal.

In February 1987, the final draft of the lease was prepared. This draft included a paragraph (Provision 27F) which provided as follows:

“Submission of this Lease for examination shall not bind the Landlord in any manner, and no Lease or obligation of Landlord shall arise until this instrument is signed by both Landlord and Tenant and delivery is made to each.”

On February 23, 1987, counsel for the property owner sent four “execution copies” of the final lease draft to Neumark for execution by Schwartz Cooper. The cover letter which was sent with these documents requested that all four copies of the lease be signed and returned to Bloomstrand. In accordance with this request, Schwartz Cooper signed and returned all four copies of the lease agreement to Bloomstrand.

In late February 1987, an existing tenant in the building expressed interest in expanding into the office space on the 22nd floor. In a letter dated March 2, 1987, Draper & Kramer informed the plaintiff that another firm was competing for this office space. After considering the proposal made by the existing tenant, Douglas Kramer decided to lease the space to that firm rather than to Schwartz Cooper.

In a letter dated March 10, 1987, Moran advised Neumark that the property owner had decided not to rent the subject property to Schwartz Cooper and, accordingly, would not sign the lease that had been negotiated and previously executed by Schwartz Cooper.

On April 9, 1987, the plaintiff sent an invoice to Draper & Kramer in the amount of $184,793.92 for the brokerage commission under the lease agreement that had been negotiated for Schwartz Cooper. The plaintiff filed its complaint against the defendants on June 1, 1987. In November 1987, the plaintiff negotiated a lease for Schwartz Cooper at 20 South Clark Street in Chicago. Pursuant to that transaction, the plaintiff received a commission in the amount of $183,974.19.

On August 5, 1987, the defendants filed a motion to dismiss the complaint under section 2 — 615 of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 615). The trial court granted the defendants’ motion and permitted the plaintiff leave to amend its complaint.

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Cite This Page — Counsel Stack

Bluebook (online)
601 N.E.2d 810, 235 Ill. App. 3d 896, 176 Ill. Dec. 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bennett-kahnweiler-inc-v-american-national-bank-illappct-1992.