Bright Horizons Children's Centers, LLC v. Riverway Midwest II, LLC

931 N.E.2d 780, 403 Ill. App. 3d 234, 341 Ill. Dec. 883, 2010 Ill. App. LEXIS 636
CourtAppellate Court of Illinois
DecidedJune 25, 2010
Docket1-09-2719
StatusPublished
Cited by32 cases

This text of 931 N.E.2d 780 (Bright Horizons Children's Centers, LLC v. Riverway Midwest II, LLC) 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
Bright Horizons Children's Centers, LLC v. Riverway Midwest II, LLC, 931 N.E.2d 780, 403 Ill. App. 3d 234, 341 Ill. Dec. 883, 2010 Ill. App. LEXIS 636 (Ill. Ct. App. 2010).

Opinion

JUSTICE ROBERT E. GORDON

delivered the opinion of the court:

Plaintiff-tenant Bright Horizons Children’s Centers, LLC (Bright Horizons), filed a declaratory judgment action in the circuit court of Cook County seeking a determination that its landlord’s, defendant Riverway Midwest II, LLC (Riverway), invocation of the “relocation provision” in the parties’ written lease agreement was ineffective because the alternative premises proposed by Riverway would cause Bright Horizons to violate Illinois law. Bright Horizons moved for summary judgment in its favor, which the trial court granted. River-way appeals, and we affirm.

BACKGROUND

Bright Horizons owns and operates 31 child day care facilities in Illinois. On March 30, 2007, Bright Horizons entered into a 10-year lease agreement with Riverway, with respect to commercial space and an adjacent playground located on the ground floor of the building commonly known as the Riverway Complex located at 6107 North River Road in Rosemont, Illinois (leased premises).

According to the lease agreement the sole “permitted use” for the leased premises is a “Child-care center for children.” Section 5.01 of the lease agreement states in pertinent part:

“Section 5.01. Use. Tenant shall use the Leased Premises for the Permitted Use and for no other purpose without the prior written consent of Landlord, which shall not be unreasonably withheld, conditioned or delayed. Tenant warrants and represents to Landlord that it will operate the Child-Care Center in a ‘high quality’ manner. ‘High quality’ shall mean that the Child-Care Center shall be a high quality and reputable operation (i) licensed by the Illinois Department of Children and Family Services [(DCFS)] to operate a child care center; (ii) providing an atmosphere for children and parents that is caring, consistent, constructive and challenging; and (iii) throughout the term of this Lease, providing a minimum service level equal to or greater than 1) any material DCFS regulations which are in effect during any Term of this Lease; and 2) services that are substantially consistent with the Day Care Industry Standards.”

Section 5.02(a) of the lease agreement states in pertinent part:

“(a) Tenant shall (i) use and maintain the Leased Premises and conduct its business thereon in a safe, careful, reputable and lawful manner, (ii) comply with all covenants that encumber the Building and all laws, rules, regulations, orders, ordinances, directions and requirements of any governmental authority or agency, now in force or which may hereafter be in force, including, without limitations, those which impose upon Landlord or Tenant any duty with respect or triggered by a change in the use or occupation of, or any improvement or alteration to, the Leased Premises.”

1. The Relocation Provision

Article 14 of the lease agreement, entitled “Landlord’s Right to Relocate Tenant” (Article 14), with which we are primarily concerned in this appeal, provides as follows:

“Landlord shall have the right upon at least one hundred eighty (180) days’ prior written notice to Tenant to relocate Tenant and to substitute for the Leased Premises other space in a building in the Riverway Complex or in another building owned by Landlord, or an affiliated entity of Landlord, in the vicinity containing at least as much square footage as the Leased Premises, in a location and on such terms as may be mutually satisfactory to Landlord and Tenant. Landlord shall improve such substituted space, at its expense, with improvements at least equal in quantity and quality to those in the Leased Premises as of the date of the proposed relocation. Landlord shall reimburse Tenant for all reasonable third party expenses incurred in connection with, and caused by, such relocation. In no event shall Landlord be liable to Tenant for any consequential damages as a result of any such relocation, including, but not limited to, loss of business income or opportunity. In the event that Tenant and Landlord cannot mutually agree on the relocation space within thirty (30) days after Landlord provides Tenant with notice of such relocation, then Landlord shall have the right to terminate this Lease effective upon the date that is one hundred eighty (180) days after Landlord’s original notice. In consideration of Landlord’s right to terminate this Lease, Landlord shall pay Tenant within thirty (30) days after Tenant vacates the Leased Premises, One Hundred Twenty-Five Thousand Dollars ($125,000.00).”

2. Default and Remedy Provision

Article 13 of the lease agreement, entitled “Default and Remedy,” contains the following pertinent provisions. Section 13.06 of the lease agreement contains a fee-shifting provision allowing for recovery of attorney fees which provides as follows:

“Section 13.06. Attorney fees. If either party defaults in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Lease and the non-defaulting party obtains a judgment against the defaulting party, then the defaulting party agrees to reimburse the non-defaulting party for reasonable attorney fees incurred in connection therewith ***. Neither party shall be liable to the other for consequential, indirect, special or punitive damages.”

Section 13.03 of the lease agreement provides for Riverway’s default under the lease agreement and Bright Horizons’ remedies in the event of such default. Specifically section 13.03 of the lease agreement provides:

“Section 13.03. Landlord’s Default and Tenant’s Remedies. Landlord shall be in default if it fails to perform any term, condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from Tenant to Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Landlord is such that it cannot reasonably be performed within thirty (30) days, such default shall be deemed to have been cured if Landlord commences such performance within said thirty-day period and thereafter diligently undertakes to complete the same. Upon occurrence of any such default, Tenant may sue for injunctive relief or to recover damages for any loss directly resulting from the breach.”

Section 13.01 of the lease agreement provides for Bright Horizons’ default under the lease agreement and Riverway’s remedies in the event of such default. Section 13.01 of the lease agreement provides in pertinent part:

“Section 13.01. Default. The occurrence of any of the following shall be a ‘Default’:

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Cite This Page — Counsel Stack

Bluebook (online)
931 N.E.2d 780, 403 Ill. App. 3d 234, 341 Ill. Dec. 883, 2010 Ill. App. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bright-horizons-childrens-centers-llc-v-riverway-midwest-ii-llc-illappct-2010.