Burdin v. Jefferson Trust & Savings Bank

269 N.E.2d 340, 133 Ill. App. 2d 703, 1971 Ill. App. LEXIS 1776
CourtAppellate Court of Illinois
DecidedApril 20, 1971
Docket70-64
StatusPublished
Cited by27 cases

This text of 269 N.E.2d 340 (Burdin v. Jefferson Trust & Savings 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
Burdin v. Jefferson Trust & Savings Bank, 269 N.E.2d 340, 133 Ill. App. 2d 703, 1971 Ill. App. LEXIS 1776 (Ill. Ct. App. 1971).

Opinion

Mr. JUSTICE SCOTT

delivered the opinion of the court:

This is an appeal from a judgment of the circuit court of Peoria County which dismissed with prejudice the second amended complaint of the plaintiff. On December 2, 1968, Hallie Burdin, hereinafter referred to as plaintiff, filed a verified complaint against the Jefferson Trust and Savings Bank of Peoria, doing business as Jefferson Hotel and Motor Inn, hereinafter referred to as the defendant. The complaint charged the defendant with a breach of a lease agreement relating to the operation of a lounge known as the Pigalle Cocktail Lounge in the Jefferson Hotel in Peoria. The lease in question had been entered into February 15, 1967, by the plaintiff and one BERS Corporation, which then owned the hotel.

The relevant portions of the lease are as follows:

“(F)irst party (BERS Corporation) will provide second party (plaintiff) with a current liquor license and keep same current and in full force and effect at second party’s expense during the term of this Lease and any extensions thereof: first party shall do nothing on its part to revoke or cause to be revoked said liquor license, and if it should be determined that first party has so acted, first party shall pay to second party Three Hundred ($300.00) Dollars per month for the remainder of the unexpired portion of the Lease. If the liquor license be revoked for any reason other than the fault of the first party, second party shall be released from all of the obligations of this Lease and the parties returned to their status quo; first party shall further provide at first part/s expense all necessary insurance including dram shop insurance in an amount of coverage common to such operation.”

The BERS Corporation became involved in bankruptcy proceedings and on March 22, 1968, the defendant purchased the Jefferson Hotel and Motor Inn. The complaint alleged that as successor in interest to the BERS Corporation the defendant had acquiesced in and conformed to the lease agreement, but had subsequently caused the City of Peoria to revoke the liquor license previously issued to the lounge and had on November 12, 1968, breached its agreement to supply plaintiff with a liquor license.

The defendant filed a motion which alleged that the agreement was illegal, void on its face, and submitted that the complaint should be dismissed for failure to state a cause of action. The motion was supported by authenticated copies of court proceedings and official records. These supporting documents established inter alia that plaintiff by means of a temporary injunction proceedings had attempted to restrain the City of Peoria from interfering with his operation of the Pigalle Cocktail Lounge. On November 1, 1968, the circuit court of Peoria County dismissed plaintiff’ s injunction proceedings for want of equity. The answer filed by the city in the injunction proceedings contained several pertinent allegations, i.e., (1) that the ordinance controlling the license under which the Pigalle Cocktail Lounge was being operated permitted only retail sales in any hotel when such retail sales are made by the same person who operates the hotel, (2) that the operation of the lounge by plaintiff under a license issued to the hotel was a subterfuge and in violation of the ordinances of the City of Peoria, (3) that plaintiff was not a person of good moral character to whom a license would be granted.

On February 7, 1969, the trial court allowed defendant’s motion to dismiss plaintiff’s complaint and granted leave to the plaintiff to file an amended complaint.

On March 7, 1969, plaintiff filed a verified amended complaint. This complaint alleged that upon succeeding to the interest of the BERS Corporation the defendant had accepted plaintiff as a partner and pursuant to an oral agreement undertook to obtain a liquor license for the lounge and did purchase and maintain Dram Shop insurance and other insurance coverage. Abandoning the allegation in his original complaint that the breach occurred on November 12, 1968, the amended complaint alleged that the partnership functioned to the mutual benefit of the plaintiff and defendant until October 23, 1968, but on that date the defendant elected to dissolve the partnership to the damage of the plaintiff.

On motion of the defendant which incorporated the supporting documents attached to the motion to dismiss the original complaint and which again alleged the illegality of the agreement sued upon, the trial court dismissed the first amended complaint. On October 16, 1969, plaintiff filed a verified second amended complaint. In this document it was alleged that the defendant had purchased the hotel on March 22, 1968, and had on that date requested plaintiff to continue to operate the lounge as a partner of the defendant. It was further alleged that pursuant to oral agreement defendant was obligated to obtain city and state liquor licenses and assured plaintiff that it had performed this obligation. This complaint alleged that defendant had continuously breached its duty from March 22, 1968, by failing to acquire a license and that plaintiff had no knowledge that illegal circumstances existed; and that as a result of the defendant’s failure to obtain a proper license plaintiff was not allowed to carry out his part of the partnership agreement.

■ As in the case of the prior complaints, defendant filed a motion to dismiss under both Section 45 and Section 48 of the Civil Practice Act, incorporating therein the documents filed in support of fire motion to dismiss the original complaint.-As grounds for dismissal the motion in substance alleged:

(1) That the complaint on its face was based upon an alleged agreement contemplating that defendant and plaintiff would operate a retail liquor business under a license to be procured by the defendant, which alleged agreement as a matter of law is illegal, void, unenforceable and against public policy and in violation of the ordinances of the city of Peoria.

(2) That the complaint failed to allege that plaintiff was, at any time, legally eligible or entitled to be issued a partnership license.

(3) That the complaint on its face showed that it was based upon an agreement whereby defendant was to procure a license which would inure to the benefit of another, which agreement as a matter of law. is illegal, void and unenforceable as being against public policy and in violation of the ordinances of the city of Peoria.

(4) That plaintiff was bound by his sworn allegations in his first amended complaint that defendant had fully performed its duties under the alleged partnership agreement until October 23, 1968.

(5) That as shown by supporting documents the license agreement between plaintiff and defendant had been judicially determined to be illegal, thus rendering the agreement impossible of performance and estopping plaintiff from denying its illegality and unenforceability.

The trial court dismissed the second amended complaint with prejudice and entered judgment for the defendant. It is from this order that plaintiff appeals.

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Bluebook (online)
269 N.E.2d 340, 133 Ill. App. 2d 703, 1971 Ill. App. LEXIS 1776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burdin-v-jefferson-trust-savings-bank-illappct-1971.