City of Chicago Heights v. Old Orchard Bank Trust Co.

422 N.E.2d 69, 96 Ill. App. 3d 789, 52 Ill. Dec. 388, 1981 Ill. App. LEXIS 2701
CourtAppellate Court of Illinois
DecidedMay 21, 1981
DocketNo. 80-596
StatusPublished
Cited by5 cases

This text of 422 N.E.2d 69 (City of Chicago Heights v. Old Orchard Bank Trust Co.) 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
City of Chicago Heights v. Old Orchard Bank Trust Co., 422 N.E.2d 69, 96 Ill. App. 3d 789, 52 Ill. Dec. 388, 1981 Ill. App. LEXIS 2701 (Ill. Ct. App. 1981).

Opinion

Mr. JUSTICE LINN

delivered the opinion of the court:

Plaintiff, City of Chicago Heights, brought this action in the circuit court of Cook County seeking a declaratory judgment and an injunction against the various defendants. The basic controversy was over the interpretation of a zoning ordinance which provided that specific property could be used as a “nursing home” and whether defendants’ use of the property complied with the ordinance. The trial court granted defendants’ motion to dismiss the complaint, holding as a matter of law that defendants were not using the property in violation of the ordinance. Plaintiff appeals.

We affirm.

Background Data

The essential facts alleged in the complaint are as follows.

On June 24, 1974, plaintiff, a home-rule unit, entered into a contract with two companies, Farbeck Corporation and S & L Engineering (neither of these companies is a party to this action). At the time, Farbeck was the owner of land located within plaintiff’s city limits, and S & L had an option to purchase that land. Also, at the time, the land was in an area zoned as a limited business district which did not allow for nursing homes. S & L wanted to purchase the land but would not do so unless it could construct a nursing home on it.

Under the agreement, plaintiff promised to enact an ordinance changing the land’s zoning classification to a general residence district which allowed the construction of nursing homes as a special use. Plaintiff also promised to issue S & La special use permit allowing it to “establish” a nursing home on the land.

In return, Farbeck and S & L promised to establish a nursing home on the land. The nursing home was to be built according to various plans incorporated in the contract.

The final term of the contract read as follows:

“This Agreement and the Ordinance providing for the zoning change and the Special Use Permit shall apply solely to the parties hereto and there shall be no assignments of this Agreement.”

The interpretation and effect of this clause forms one of the issues raised in this case.

On the same day the agreement was signed, plaintiff enacted the zoning ordinance required by the agreement. The ordinance provided for the zoning change and for the issuance of a special use permit to “establish” a nursing home. One clause of the ordinance read as follows:

“[T]he owners of the [land], their successors and assigns, shall at all times provide and maintain a five to seven foot visual buffer consisting of a solid wall, fence or densely planted compact hedge to screen parking areas adjoining [the surrounding property].”

The effect this clause had on the above mentioned clause in the contract is also at issue in this case.

Apparently on the same day or shortly thereafter, Farbeck transferred ownership of the property to defendant Old Orchard Bank & Trust Go.- Old Orchard was simply a land trustee with S & L the beneficiary of the trust. Also, plaintiff issued a special use permit to S & L so S & L could “establish” a nursing home on the land.

S & L constructed the nursing home. Thereafter, in May 1977, Old Orchard Bank, pursuant to S & L’s direction, entered into a lease of the property with defendant LaSalle National Bank. It was a long-term lease with options to renew and an option to purchase. Under the lease, LaSalle National was required to use the property only for a nursing home. LaSalle National was simply a land trustee and defendants Morris Esformes, Yosef Davis, and their partnership called the Chicago Heights Terrace Limited Partnership, were the beneficiaries of the trust. These latter defendants (hereinafter called the partnership) set up operations in the nursing home. The partnership has been operating the nursing home since May 1977. The nursing home, at the time this action was brought in February 1979, had close to 250 patients. Many of these patients were old people. However, at least half of them were younger adults suffering from varying degrees of mental disorders. Most of these mental patients had been permanently discharged from various State and private mental institutions because they no longer required regular treatment. None of them was alleged to pose any specific danger to themselves or to persons in the community.

Plaintiff’s complaint sought several forms of relief. Essentially, plaintiff alleged that the special use permit had been assigned by S & L in violation of the original agreement and was thus no longer in effect, and plaintiff should be deemed to have the right to close the home. Also, in the alternative, plaintiff alleged that the home was being operated in violation of a city ordinance which defined a “nursing home” as follows:

“A home for the care of children or the aged or infirm, or a place of rest for those suffering bodily disorders, but not including facilities for the treatment of sickness or injuries or for surgical care.”

Plaintiff alleged that this ordinance prohibited the partnership from housing mentally ill patients and alleged that the partnership was using the home for the “treatment of sickness” in violation of the ordinance. Plaintiff sought an injunction to prevent the partnership from continuing to violate the ordinance.

The trial court dismissed the complaint pursuant to defendants’ motion to do so.

Opinion

I

Alleged Assignments

Plaintiff first contends that the special use permit was assigned in violation of the original agreement and as a result, the permit is no longer in effect. Plaintiff’s argument is that S & L is the only organization which had any rights under the permit and S & L is the only organization that could operate a nursing home on the land, and if S & L attempted to allow anyone else to operate a nursing home, the original agreement would be breached because such action would constitute an assignment of the special use permit in violation of the agreement and the permit would become void as a result.

We disagree with plaintiff’s contention that there was a breach of the original agreement. To begin with, the original agreement did not specifically prohibit the assignment of the special use permit. The pertinent clause in the contract says:

“This Agreement and the Ordinance providing for the zoning change and the Special Use Permit shall apply solely to the parties hereto and there shall be no assignments of this Agreement.”

Of particular note is that the clause refers to the agreement, the ordinance, and the special use permit as three different things, but prohibits only assignments of the agreement. The agreement simply provided that plaintiff would enact the required ordinance and issue the special use permit. In return, S & L was required to “establish” a nursing home on the property. An assignment is the transfer of some property, claim, or right from the assignor to the assignee. (Buck v. Illinois National Bank & Trust Co. (1967), 79 Ill. App.

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Bluebook (online)
422 N.E.2d 69, 96 Ill. App. 3d 789, 52 Ill. Dec. 388, 1981 Ill. App. LEXIS 2701, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-heights-v-old-orchard-bank-trust-co-illappct-1981.