Best Buy Co., Inc. v. HARLEM-IRVING COMPANIES

51 F. Supp. 2d 889, 1999 U.S. Dist. LEXIS 9007, 1999 WL 362897
CourtDistrict Court, N.D. Illinois
DecidedJune 3, 1999
Docket98 C 926
StatusPublished
Cited by5 cases

This text of 51 F. Supp. 2d 889 (Best Buy Co., Inc. v. HARLEM-IRVING COMPANIES) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Best Buy Co., Inc. v. HARLEM-IRVING COMPANIES, 51 F. Supp. 2d 889, 1999 U.S. Dist. LEXIS 9007, 1999 WL 362897 (N.D. Ill. 1999).

Opinion

MEMORANDUM OPINION AND ORDER

LEVIN, United States Magistrate Judge.

Pending is Defendant The Harlem-Irving Companies, Inc’s. (“Harlem-Irving”) Motion for Summary Judgment, which requests a finding of partial non-liability under Federal Rule of Civil Procedure 56(d). For the reasons set forth below, the Motion is denied, with the exception of an accord and satisfaction issue discussed herein.

FACTUAL BACKGROUND 1

Defendant Harlem-Irving operates an enclosed shopping mall in the Chicagoland area. Best Buy Company, Inc. (“Best Buy”) is one of the tenants in that shopping mall. Best Buy is a leading retailer of consumer electronics, home appliances, computer software, music and video products. In late 1992, the parties signed a lease, and a rider/addendum. The lease required Harlem-Irving to deliver possession to Best Buy on or before December 15, 1992. However, the term of the lease did not begin until March 1, 1993. The lease term expires on February 29, 2008. 2

Under the lease, Best Buy is required to pay a proportionate share of common area maintenance (“CAM”) charges. CAM charges are the costs associated with maintaining those portions of the mall which are not under the exclusive possession of any particular tenant (i.e. common areas). Examples of common areas include (internal or external) courtyards, parking lots, driveways, walkways, lobbies and landscape. Harlem-Irving assesses a monthly charge for additional rent against Best Buy and other tenants based on estimated CAM expenses, and each month, Best Buy pays one-twelfth of its estimated proportionate share of CAM expenses, subject to reconciliation of overpayments or underpayments after the end of the calendar year. Of a total of 540,596 square feet of gross leasable area, Best Buy leases 30,656 square feet. Best Buy’s proportionate share of CAM charges is therefore about 6%. The lease excludes from Best Buy’s share of CAM charges “office overhead, wages and salaries.” Harlem-Irving attempted to charge Best Buy for all non-office wages and salaries, including management personnel. Best Buy objected and announced its view of the “office overhead, wages and salaries” exclusion clause as excluding from CAM not merely office wages and office salaries, but rather all wages and all salaries. Harlem-Irving’s position is that the exclusion for “office overhead, wages and salaries” is *893 an exclusion only for “office overhead, [office] wages and [office] salaries.”

The lease also requires Best Buy to pay Harlem-Irving an additional administrative fee equal to seven (7%) percent of CAM charges. The lease, however, provides that Harlem-Irving should not assess the 7% fee against “real estate taxes and insurance.” Best Buy reads this clause as an exclusion not merely for real estate insurance, but rather for all insurance. Harlem-Irving’s position is that the exclusion pertains to “real estate taxes and [real estate] insurance.”

Under the lease, repair of the parking lot is a CAM charge beginning in the sixth year after the rent commencement date. Repair of the roof is not a CAM charge, but is the sole responsibility of Harlem-Irving. Part of the surface of the parking deck also serves as part of the roof of the shopping mall. Best Buy has challenged charges for repair of the spalling parking deck. 3

Best Buy is challenging too, Harlem-Irving’s assessment of CAM charges for training expenses, licenses and permits.

On July 26, 1995, Best Buy issued a protest letter disputing a variety of CAM charges. In pertinent part, the letter stated that management salaries should not be included in CAM charges because the lease “specifically excludes ‘... wages and salaries....’” The letter also complained about parking ramp expansion joint replacement, accounting fees, security/maintenance office supplies and overhead, engineering and architectural fees, snow-melting machine, deck repair and reconstruction and audit rights. This letter did not complain about licenses, training expenses, permits or the inclusion of workers’ compensation insurance premiums. By August 7, 1995, the parties reached a compromise agreement on the categories which Best Buy had protested. The agreement was for the amounts due in 1993, and it was entered into without prejudice to Best Buy’s rights under the lease. The parties continue to be at odds over CAM charges assessed by Harlem-Irving for all years after the compromise.

ANALYSIS

I. SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate where “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). See also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the moving party has produced evidence to show that it is entitled to summary judgment, the party seeking to avoid such judgment must affirmatively demonstrate that a genuine issue of material fact remains for trial. LINC Fin. Corp. v. Onwuteaka, 129 F.3d 917, 920 (7th Cir.1997).

In deciding a motion for summary judgment, a court must “review the record in the light most favorable to the nonmoving party and to draw all reasonable inferences in that party’s favor.” Vanasco v. National-Louis Univ., 137 F.3d 962, 1998 WL 81458, at *2 (7th Cir. Feb.27, 1998). See also Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Nevertheless, the nonmovant may not rest upon mere allegations but “must set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). See also LINC, 129 F.3d at 920. A genuine issue of material fact is not shown by the mere existence of “some alleged factual dispute between the parties,” Anderson, 477 U.S. at 247, 106 S.Ct. 2505, or by “some metaphysical doubt as to the material facts,” *894 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, :89 L.Ed.2d 538 (1986). Rather, a genuine issue of material fact exists only if “a fair-minded jury could return a verdict for the [nonmoving party] on the evidence presented.” Anderson, 477 U.S. at 252, 106 S.Ct. 2505.

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Bluebook (online)
51 F. Supp. 2d 889, 1999 U.S. Dist. LEXIS 9007, 1999 WL 362897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/best-buy-co-inc-v-harlem-irving-companies-ilnd-1999.