Chicago Title & Trust Co. v. Brooklyn Bagel Boys, Inc.

584 N.E.2d 142, 222 Ill. App. 3d 413, 164 Ill. Dec. 930
CourtAppellate Court of Illinois
DecidedSeptember 16, 1991
Docket1-89-3419
StatusPublished
Cited by27 cases

This text of 584 N.E.2d 142 (Chicago Title & Trust Co. v. Brooklyn Bagel Boys, Inc.) 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
Chicago Title & Trust Co. v. Brooklyn Bagel Boys, Inc., 584 N.E.2d 142, 222 Ill. App. 3d 413, 164 Ill. Dec. 930 (Ill. Ct. App. 1991).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Defendants Highland Park Bagel Corporation (HPBC) and Luis Gorbena appeal a judgment of the circuit court of Cook County entered against them in an action concerning the breach of a commercial lease with plaintiff Chicago Title & Trust Company as trustee for the benefit of plaintiffs Bertha Abel and Arnold Roberts. Gorbena also appeals an order entering sanctions against him. Plaintiffs cross-appeal the judgment of the circuit court and the dismissal of Brooklyn Bagel Boys, Inc. (Bagel Boys), Morris Goldman and Gerald Geffen as defendants.

The record on appeal discloses the following. On December 13, 1980, plaintiffs signed a lease for commercial space located at 1866 First Street, Highland Park, Illinois, for the period from April 1, 1981, to March 31, 1986. The lease was also signed by Gorbena and Goldman for Bagel Boys as the tenant. Under the lease, Bagel Boys was responsible for paying monthly rent, a share of assessed real estate taxes and common area maintenance (CAM) expenses.

In February 1983, Goldman and Gorbena were the president and secretary-treasurer, respectively, of HPBC. On or about May 1, 1985, HPBC was dissolved by the Secretary of State for failure to file its annual report for 1984. After the dissolution, Geffen continued to file tax returns and wrote rent checks to plaintiffs from the account of “Brooklyn Bagel Boys-Highland Park Bagel Corp.”

In a letter dated July 17, 1985, plaintiffs’ agent wrote to Gorbena, Geffen and HPBC at the address identified in the lease. The letter stated that the lease was about to expire and indicated plaintiffs’ terms for renewal. On a line marked “Accepted,” Geffen and Gorbena signed as president and secretary, respectively, of HPBC. The signatures of plaintiffs Abel and Roberts also appear on the letter.

On October 10, 1988, plaintiffs’ agent wrote to Gorbena, Geffen and HPBC, stating that rent for October had not been received and that plaintiffs would resort to their remedies under the lease if payment was not made by October 18,1988.

On December 16, 1988, plaintiffs filed suit against Bagel Boys, HPBC, Gorbena, Geffen and Goldman to recover amounts due under the lease, including, but not limited to: rent, taxes, CAM expenses and interest. Four days later, plaintiffs leased the space at issue to Over the Top, Ltd. On February 15, 1989, HPBC was reinstated by the Secretary of State.

On April 24, 1989, defendants moved to dismiss the claims against them pursuant to section 2 — 615 of the Illinois Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 615), with the exception of HPBC. Following a hearing on the motion held that day, the trial court dismissed Bagel Boys with prejudice. The court also dismissed the complaints against Gorbena, Geffen and Goldman in their capacities as corporate officers. However, the trial court denied the motion to dismiss claims against Gorbena and Goldman in their capacities as corporate directors.

The remaining claims were set for trial on May 17, 1989, but were continued to July 10, 1989. Gorbena was not present in court on July 10; the trial court continued the case to July 26, 1989. The trial court was notified on July 25 that Gorbena could not be in court on July 26. The court entered orders directing Gorbena to pay plaintiffs’ attorney fees and costs incurred in preparing for the July 10 date; directing plaintiffs to submit an affidavit of fees and costs; and continuing plaintiffs’ oral motion for further sanctions against Gorbena.

The trial was held on August 2, 1989. No court reporter was present. The trial court entered judgment in favor of defendants Goldman and Geffen. The court also entered judgment against defendants HPBC and Gorbena as follows:

Unpaid Rent (4V2 @ $l,400/mo.) $6,300.00
Repairs 1,808.19
Property Protection 327.23
Parking lot maintenance (4V2 @ $30/mo.) 135.00
Taxes (41/2 @ $100/mo.) 450.00
Interest per lease agreement 675,73
TOTAL $9,696.15
Less security deposit (3,000.00)
$6,696.15

The court further ordered HPBC and Gorbena to pay $5,000 in attorney fees. In addition, the court levied sanctions against Gorbena in the amount of $864.23.

Plaintiffs and defendants filed post-trial motions, which were denied on November 18, 1989. Defendants and plaintiffs seek review in this court. Plaintiffs have moved to compel defendants to submit a report of proceedings to this court and defendants have moved to dismiss plaintiffs’ cross-appeal; both motions have been taken with the case.

On appeal, defendants contend that: (1) the trial court erred in excluding evidence relating to plaintiffs’ mitigation of damages; (2) the trial court erred in holding Gorbena personally liable on the lease and in assessing sanctions against him; and (3) this court lacks jurisdiction to hear plaintiffs’ cross-appeal. Plaintiffs contend that: (1) the trial court should have awarded rent and CAM expenses for six months, rather than 41/2 months; (2) the trial court’s calculation of taxes was inconsistent with the terms of the lease; (3) plaintiffs are entitled to post-judgment attorney fees and costs; (4) the trial court erred in entering judgment in favor of Goldman and Geffen; and (5) the trial court erred in dismissing Bagel Boys because the court relied on a purported assignment of the lease from Bagel Boys to HPBC which was alleged in defendant’s motion to dismiss, but not in plaintiffs’ complaint.

Initially, it must be noted that neither side properly filed a report of proceedings in this case. No verbatim transcript was taken at trial and neither side filed a report pursuant to Rule 323(c) (134 Ill. 2d R. 323(c)) or an agreed statement of facts pursuant to Rule 323(d) (134 Ill. 2d R. 323(d)). Plaintiffs’ motion to compel defendants to submit a report pursuant to Rule 323 is denied, as the provisions of the rule are not mandatory.

Plaintiffs did attach an “Agreed Report of Proceedings” to their brief. Attachments to briefs not otherwise before the court cannot be used to supplement the record. (Regal Package Liquor, Inc. v. J.R.D., Inc. (1984), 125 Ill. App. 3d 689, 691, 466 N.E.2d 409, 411.) This “report” does not appear in the record; moreover, it is signed only by plaintiffs’ counsel.

The parties, however, stipulated to the “Agreed Report” during oral argument before this court. Supreme Court Rule 329 permits material omissions from and improper authentication of the record on appeal to be remedied by stipulation of the parties after the transmission of the record to this court or by the reviewing court. (134 Ill. 2d R. 329.) Thus, we accept the agreed report of proceedings and turn to the merits of the case.

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Cite This Page — Counsel Stack

Bluebook (online)
584 N.E.2d 142, 222 Ill. App. 3d 413, 164 Ill. Dec. 930, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-title-trust-co-v-brooklyn-bagel-boys-inc-illappct-1991.