Buzzard v. Bolger

453 N.E.2d 1129, 117 Ill. App. 3d 887, 73 Ill. Dec. 140, 1983 Ill. App. LEXIS 2263
CourtAppellate Court of Illinois
DecidedAugust 26, 1983
Docket82-762
StatusPublished
Cited by24 cases

This text of 453 N.E.2d 1129 (Buzzard v. Bolger) 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
Buzzard v. Bolger, 453 N.E.2d 1129, 117 Ill. App. 3d 887, 73 Ill. Dec. 140, 1983 Ill. App. LEXIS 2263 (Ill. Ct. App. 1983).

Opinion

JUSTICE VAN DEUSEN

delivered the opinion of the court:

Plaintiffs appeal the dismissal of counts III and IV of their fourth amended complaint directed against defendants Thorsen Realtors and Jeanne Stone as well as the dismissal of count IV of their second amended complaint against defendant Alphonse Klecka.

In ruling on these motions to dismiss, this court, as well as the trial court, is required to accept all facts well pleaded as true and to draw all reasonable inferences therefrom in favor of the plaintiff. However, the motion to dismiss does not admit conclusions of fact or of law unsupported by allegations of specific facts upon which such conclusions rest. (Pierce v. Carpentier (1960), 20 Ill. 2d 526, 531; Zaborowski v. Hoffman Rosner Corp. (1976), 43 Ill. App. 3d 21, 25; Zickur v. Irmiger (1973), 15 Ill. App. 3d 805, 807.) While pleadings are to be liberally construed with a view to- do substantial justice between the parties, section 2 — 603 of the Code of Civil Procedure also requires that the pleadings shall contain a plain and concise statement of the pleader’s cause of action and that each separate cause of action upon which a separate recovery may be had shall be stated in a separate count as the case may be (Ill. Rev. Stat. 1981, ch. 110, par. 2— 603).

On appeal, plaintiffs first contend that the allegations of count III of their fourth amended complaint contained sufficient factual allegations upon which to base a cause of action on either one or both of the following theories: (1) the existence of a principal/agent relationship which gives rise to a duty owed by defendants Thorsen and Stone to plaintiffs and a breach of that duty by defendants’ failure to disclose the condition of the premises to plaintiffs and (2) a cause of action for negligent misrepresentation.

Our examination of count III discloses it to be a hodgepodge of allegations in which plaintiffs, contrary to section 2 — 603 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 2 — 603), have attempted to set forth two causes of action.

Plaintiffs have failed to do either. The trial court correctly found that the allegations of count III of the fourth amended complaint were insufficient to support the pleader’s conclusion that a relationship of principal and agent existed between plaintiffs and defendants Thorsen and Stone which gave rise to a duty owed by defendants to plaintiffs.

The specific allegations contained in the complaint upon which plaintiffs rely to support their conclusion that an agency relationship existed between themselves and defendants Thorsen Realtors and Stone were that plaintiffs sought services of defendants in purchasing a residence and that in the course of showing residential property, defendants gave plaintiffs counsel and advice concerning value and the conditions of single-family residences and advice concerning the applicability of the Veteran’s Administration financing that might be available. These allegations are insufficient to support the conclusion that an agency relationship existed between plaintiffs and defendants, particularly when read in the context of the contract in question.

The contract to purchase the property in question is a part of the complaint. According to the -contract, defendant Gladstone Realty was the listing broker and defendant Thorsen Realtors, was the cooperating broker whose fees were to be paid by the seller. The only reasonable inference that can be drawn from the contract is that defendant, Thorsen Realtors, and its employee, defendant Stone, were acting on behalf of the sellers and expected compensation from them. The relationship existing between broker and an owner of property is one of agency and is created by a contract of employment between the parties. (Arthur Rubloff & Co. v. Drovers National Bank (1980), 80 Ill. App. 3d 867, 871.) The contract in question would establish that defendants were agents of the seller and not of plaintiffs.

Plaintiffs’ reliance upon Duhl v. Nash Realty Inc. (1981), 102 Ill. App. 3d 483, is misplaced. In Duhl, the plaintiffs as buyers, contacted defendant Reigel, who was a licensed real estate broker and agent of Nash Realty. Plaintiffs told Reigel that they wanted to engage her services for the purchase of a new home and the sale of their present residence. Reigel agreed to act as their agent. (102 Ill. App. 3d 483, 485.) No such agreement is alleged here. Plaintiffs have failed to state a cause of action for negligence based upon the breach of a duty arising from an agency relationship.

Nor are the allegations of count III of the fourth amended complaint sufficient to state a cause of action on the theory of negligent misrepresentation. We recognize that our supreme court has held that real estate brokers occupy a position of trust with respect to purchasers with whom they are negotiating and owe a duty to exercise good faith in their dealings with such purchasers even absent the existence of an agency relationship. (Sawyer Realty Group, Inc. v. Jarvis Corp. (1982), 89 Ill. 2d 379, 385-86.) Misrepresentations of material facts made intentionally by a broker could well be the basis for a cause of action based upon fraud and deceit, and misrepresentations of material fact made negligently could well be the basis for a cause of action for negligent misrepresentation. From our examination of the pleadings, we cannot ascertain whether plaintiffs sought to bring a cause of action based upon fraud or upon negligent misrepresentation. Nowhere in count III of the fourth amended complaint do plaintiffs allege that the alleged misrepresentations of defendants were made negligently or constituted negligent conduct or that plaintiffs’ damages were proximately caused as a result of any negligent conduct. These are essential allegations to state a cause of action for negligence. Lyons v. Christ Episcopal Church (1979), 71 Ill. App. 3d 257, 259.

In addition, the alleged material facts which were purported to be misrepresented were that plaintiffs need not concern themselves with the condition of the property; that in view of the fact that plaintiffs were applying for V.A. financing, they would not be required to purchase the property unless the Veteran’s Administration appraisal was approved; and that any substantial material defects would be required to be repaired or replaced by the sellers. An additional alleged misrepresentation was to the effect that the services of an attorney were not necessary for plaintiffs’ representation in connection with the purchase of the residence. These representations are not representations of existing facts, rather they constituted a mixture of opinion and promises of future action. Ordinarily, the material facts upon which misrepresentation cases rest must be a past or existing fact rather than an opinion or promise of future action. (See Knightsbridge Realty Partners, Ltd-75 v. Pace (1981), 101 Ill. App. 3d 49, 54.) Nor is there any suggestion in the pleadings that the misrepresentations made were a part of a scheme to defraud which might make false promises of future conduct actionable. (See Ronan v. Rittmueller (1982), 105 Ill. App. 3d 200, 206.) The allegations of count III of the fourth amended complaint as they presently stand are insufficient to state a cause of action for negligent misrepresentation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hahn v. McElroy
2023 IL App (2d) 220403 (Appellate Court of Illinois, 2023)
Aharon v. Babu
N.D. Illinois, 2023
Federal Deposit Insurance v. Masarsky
968 F. Supp. 2d 915 (N.D. Illinois, 2013)
Neurosurgery & Spine Surgery, S.C. v. Goldman
Appellate Court of Illinois, 2003
NEUROSURGERY AND SPINE SURGERY v. Goldman
790 N.E.2d 925 (Appellate Court of Illinois, 2003)
Capiccioni v. Brennan Naperville, Inc.
Appellate Court of Illinois, 2003
Wafra Leasing Corp. 1999-A-1 v. Prime Capital Corp.
192 F. Supp. 2d 852 (N.D. Illinois, 2002)
Gennari v. Weichert Co. Realtors
691 A.2d 350 (Supreme Court of New Jersey, 1997)
Gennari v. Weichert Co. Realtors
672 A.2d 1190 (New Jersey Superior Court App Division, 1996)
Strawn v. Canuso
657 A.2d 420 (Supreme Court of New Jersey, 1995)
Harkala v. Wildwood Realty, Inc.
558 N.E.2d 195 (Appellate Court of Illinois, 1990)
Salkeld v. V.R. Business Brokers
548 N.E.2d 1151 (Appellate Court of Illinois, 1989)
Frazier v. Priest
141 Misc. 2d 775 (Watertown City Court, 1988)
Warren v. LeMay
491 N.E.2d 464 (Appellate Court of Illinois, 1986)
Richmond v. Blair
488 N.E.2d 563 (Appellate Court of Illinois, 1985)
Swaw v. Ortell
484 N.E.2d 780 (Appellate Court of Illinois, 1985)
Munjal v. Baird & Warner, Inc.
485 N.E.2d 855 (Appellate Court of Illinois, 1985)
Petty v. Cadwallader
482 N.E.2d 225 (Appellate Court of Illinois, 1985)
Towne v. Cole
478 N.E.2d 895 (Appellate Court of Illinois, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
453 N.E.2d 1129, 117 Ill. App. 3d 887, 73 Ill. Dec. 140, 1983 Ill. App. LEXIS 2263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buzzard-v-bolger-illappct-1983.