Chicago Transit Authority v. Clear Channel Outdoor, Inc.

851 N.E.2d 171, 366 Ill. App. 3d 315
CourtAppellate Court of Illinois
DecidedMay 17, 2006
Docket1-04-2589
StatusPublished
Cited by12 cases

This text of 851 N.E.2d 171 (Chicago Transit Authority v. Clear Channel Outdoor, 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 Transit Authority v. Clear Channel Outdoor, Inc., 851 N.E.2d 171, 366 Ill. App. 3d 315 (Ill. Ct. App. 2006).

Opinion

JUSTICE ERICKSON

delivered the opinion of the court:

This case involves a dispute concerning approximately 50 advertising sign structures or billboards located on property belonging to the Chicago Transit Authority (CTA). The billboards are the subject of five agreements between the CTA and Clear Channel Outdoor, Inc. (CCO), and its various predecessors-in-interest, including Eller Media Company (Eller). The CTA filed a six-count complaint in the circuit court of Cook County against CCO, seeking, inter alia, a declaration that it properly terminated the five agreements and was entitled to possession of the billboards. This appeal arises on the parties’ motions for partial summary judgment as to counts I through III of the CTA’s complaint. The circuit court granted the CTA’s motion and denied CCO’s cross-motion. CCO appeals, challenging both the circuit court’s denial of its cross-motion for partial summary judgment and the grant of that filed by the CTA.

BACKGROUND

As this case arises from the parties’ motions for summary judgment, the factual background is based on the parties’ pleadings, depositions, affidavits, admissions, and exhibits. As best as can be determined from the record provided to this court, the CTA and CCO (or its predecessors-in-interest) entered into five agreements concerning the placement of billboard advertisements on CTA property. In August 2002, the CTA sought to terminate those agreements effective September 30, 2002, in order to solicit bids for a new advertising contract. The CTA solicited bids, and although CCO participated in that bid process, it was not awarded the contract. Although it is the CTA’s position that the five agreements with CCO were properly terminated, CCO has continued to place advertisements on those structures and has formally challenged the CTA’s bid process. The CTA wants CCO off its property.

Agreements 1 and 2

Agreement 1 is dated August 29, 1975, and was entered into between the CTA and Foster & Kleiser, a division of Metromedia, Inc. (F&K), a predecessor-in-interest of CCO. It granted F&K a license to enter specific CTA property located at 5222-34 South Cicero Avenue “for the purpose of maintenance of one painted sign-board facing south.” It also provided that the license was to commence on September 1, 1975, and continue “subject to cancellation by either party upon five (5) days written notice.”

Agreement 2 was similar to Agreement 1 and provided a license to F&K for the purpose of “maintaining a painted signboard” located at the “southeast portion of the Archer-Neva Bus Terminal.” Agreement 2 commenced on November 1, 1975, and, like Agreement 1, was subject to cancellation by either party upon five days’ written notice.

Agreements 3 and 4

Agreement 3, dated December 31, 1983, was entered into by the CTA and F&K. It granted F&K “the right to install and maintain [F&K’s] signboards” on specific portions of CTA property, and was to remain in effect from January 1 through December 31, 1984, unless terminated by the CTA upon 30 days’ written notice. It also provided that F&K “shall remain the owner of all of said advertising signs, structures and improvements *** notwithstanding the fact that the same constitute real estate fixtures.” The agreement was extended twice; once on December 31, 1984, and once on December 31, 1985.

Agreement 4, dated February 28, 1986, was entered into by the CTA and Gateway Outdoor Advertising Company (Gateway), another predecessor-in-interest of CCO, and granted Gateway the right to “install and maintain [Gateway’s] signboards” on specific CTA property, and was to remain in effect from March 1, 1986, through February 28, 1987, unless terminated by the CTA upon 30 days’ written notice. Like Agreement 3, Agreement 4 provided that Gateway “shall remain the owner of all of said advertising signs, structures and improvements *** notwithstanding the fact that the same constitute real estate fixtures.”

Agreement 5

Agreement 5 was a more detailed agreement than the other four. It was entered into on March 1, 1996, by the CTA and Eller, which merged into CCO’s parent company in February 1997, and was to remain in effect for an “initial term of five (5) years” until February 28, 2001. Agreement 5 was an extension or renewal of a previous five-year agreement executed on March 1, 1991, between the CTA and Patrick Media, another of CCO’s predecessors-in-interest.

Relevant provisions of Agreement 5 include section 1.1, which granted Eller “the sole and exclusive rights and privileges[ ] to place and handle advertising by means of displays on outdoor advertising structures (as hereinafter defined) only upon the [CTA’s] elevated structures which are listed on the attached Exhibit A.” Section 1.2(a) indicated “[t]he locations covered by this Agreement shall include only those existing locations listed on the attached Exhibit A, which are already equipped with outdoor advertising structures.” Section 1.2(b) stated “[t]he Chairman of the Board of the [CTA] *** may from time to time designate and consent to the use of a location or locations for advertising purposes as characterized in Article I herein, in addition to those set forth in Exhibit A.”

Article 2 of the agreement, entitled “Installation Maintenance and Operation,” provided in section 2.1 that “[a]ll outdoor advertising structures installed by [Eller] shall be furnished, erected and installed at sole cost to [Eller] without hampering the operations of the [CTA] or discommoding its passengers.” Section 2.1 also provided that Eller bore the cost of modifying “existing [CTA] structures,” and relocating cables and other items, and that “[p]rior to beginning of work by [Eller] at any specific location, complete plans and specifications for the installation shall be submitted to the [CTA] for review and approval.” That section also provided:

“[Eller] reserves the right to erect, furnish or install such outdoor advertising structures using its own materials and employees or may elect to employ third parties or contractors (subject to the [CTA’s] approval, as may be necessary) to erect, furnish and install same. Title to such outdoor advertising structures erected, furnished or installed by or for [Eller] as aforesaid shall be and remain at all times during the term hereof the property of [Eller] and it shall have sole responsibility thereafter.”

Section 9.3 indicated the agreement could be terminated at any time upon the written consent of Eller and the Chicago Transit Board. Section 9.4(b) provided in part:

“At the expiration or other termination of this agreement or any extension or renewal thereof, all outdoor advertising structures erected by [Eller] hereunder shall, at the option of the [CTA] become the property of the [CTA] and the [CTA] may require [Eller], at [its] sole cost and expense, to remove such of the outdoor advertising structures as the [CTA] may elect upon notice.”

Communication Between the Parties

On October 17, 2000, CCO sent a letter to the CTA seeking at least a five-year extension upon the expiration of Agreement 5 and making several other proposals.

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Cite This Page — Counsel Stack

Bluebook (online)
851 N.E.2d 171, 366 Ill. App. 3d 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-transit-authority-v-clear-channel-outdoor-inc-illappct-2006.