Coleman v. Madison Two Associates

Procedural entryThis page is a short order in Coleman v. Madison Two Associates. Read the opinion of the Court — 307 Ill. App. 3d 570
Appellate Court of Illinois·Decided September 10, 1999·No. 1-98-1064·Published

Opinion

FIFTH DIVISION

1-98-1064 SEPTEMBER 10, 1999

ROBERT F. COLEMAN, as Principal of ) Appeal from the

ROBERT F. COLEMAN & ASSOCIATES, a Sole ) Circuit Court of

Proprietorship, ) Cook County.

)

Plaintiff-Appellant, )

v. )

MADISON TWO ASSOCIATES, a Texas General )

Partnership; MADISON ASSOCIATES, a )

Texas General Partnership; HINES )

CHICAGO ASSOCIATES LIMITED, a Texas )

Limited Partnership; NCNB NATIONAL BANK )

OF NORTH CAROLINA, N.A., a North )

Carolina Banking Corporation; )

NATIONSBANK OF NORTH CAROLINA, N.A., a )

North Carolina Banking Corporation; and )

NATIONBANC SERVICES, INC., a North )

Carolina Banking Corporation, ) Honorable

) Lester D. Foreman,

Defendants-Appellees. ) Judge Presiding.

JUSTICE HARTMAN delivered the opinion of the court:

Plaintiff Robert F. Coleman sought a declaratory judgment against, and monetary damages from, the following defendants:  Madison Two Associates (Madison Two), the owner of the building in which plaintiff's law firm subleased office space; Hines Chicago Associates (Hines), Madison Two's managing partner; and NCNB National Bank, NationsBank and Nationbanc Services (collectively, NCNB), the prime leaseholder and plaintiff's sublessor.  Plaintiff appeals the dismissal of his amended complaint, as amended, claiming that (1) NCNB breached its sublease with him in failing to give him proper notice of early termination of its "Underlying Lease" with Madison Two, its lessor; (2) the sublease and its consents to sublease required that Madison Two demand attornment as a condition precedent to termination of the sublease; and, alternatively, (3) Madison Two's letter proposing a new lease term was a demand for attornment which plaintiff accepted.

The record reflects that on June 30, 1986, NCNB leased space on the 56th floor of the building known as "Three First National Plaza" (Building) from Madison Associates, then owner of the Building.  On March 19, 1990 and on June 20, 1990, Madison Two, as successor in interest to Madison Associates, and NCNB executed two amendments to the Underlying Lease.  The first amendment added property located on the 20th floor of the Building to the Underlying Lease and then substituted the original property on the 56th and 20th floors with property located on the 53rd floor.  The second amendment stated, "[t]he New Premises [on the 53rd floor] shall be substituted for the Original Premises [on the 56th and 20th floors] and all references in the Lease to the term 'leased premises' shall be deemed to be to the New Premises."  The second amendment further provided:

"Either Landlord or Tenant may elect to terminate the Lease effective as of May 1, 1998 ("Early Termination Date") by giving not less than twelve (12) months' prior written notice to the other, in which case the Lease shall terminate on the Early Termination Date."

On February 15, 1991, NCNB sublet office space on the 53rd floor of the building to plaintiff, that term to commence on March 1, 1991, and end on September 30, 2000, "or on such earlier date upon which said term may expire or be canceled or terminated pursuant to any of the conditions or covenants of this Sublease or the Underlying Lease or pursuant to law."  The sublease also provided that it would "be subject and subordinate to all of the terms, covenants, conditions and provisions of the Underlying Lease.   Copies of the Underlying Lease have been delivered to and examined by Sublessee and made part of this Sublease Agreement ."  (Emphasis in original.)  Pursuant to the terms of the sublease, communications and notices between NCNB and plaintiff were required to "be in writing and by phone facsimile simultaneously and shall be given or made by registered or certified mail."  The sublease further provided that "Sublessor shall, no later than three (3) days after receipt thereof, give to Sublessee a copy of each notice and demand received from the Underlying Landlord concerning the Subleased premises and shall within such time give to the Underlying Landlord a copy, or the substance of, each notice and demand received from Sublessee concerning the Subleased Premises."

Madison Two (through Hines), NCNB and plaintiff then entered into an agreement entitled "Consent to Sublease." (footnote: 1)  On January 3, 1995, NCNB and plaintiff amended the sublease, adding additional space adjacent to the original premises, extending the term of the sublease through February 28, 2001, and also providing that "[e]xcept as hereto amended, the Sublease will continue in full force and effect in accordance with its terms.  This Amendment shall not affect or limit Sublessor's early termination rights under the Underlying Lease."  Plaintiff, NCNB and Madison Two (through Hines) executed a second "Consent to Sublease" which contained virtually the same language as the first "Consent to Sublease."  

On January 15, 1997, NCNB notified Madison Two of its intention to "exercise[] its right to an early termination to be effective May 1, 1998," reminding Madison Two that it was "currently subleasing this space to [plaintiff] and, via a copy of this letter, [were] notifying him of [its] intention to proceed with this early termination."  Notwithstanding the letter's statement that a copy was sent to plaintiff, he alleges that he never received notice of NCNB's intent to terminate early the Underlying Lease with Madison Two.

Several months later, in the Spring of 1997, plaintiff met with representatives of Hines to discuss leasing from Madison Two additional space on the 53rd floor.  Hines agreed to present the additional space, which was leased to another, when, and if, it became available.  At this time, Hines did not inform plaintiff that NCNB had opted for early termination of the Underlying Lease. Rather, Hines suggested that, should the additional space become available, Madison Two might be interested in restructuring plaintiff's sublease as a direct lease covering both the subleased premises and the additional space for a five-year term.

Plaintiff claims that it was not until about September 15, 1997, that he first learned of NCNB's intention to end the Underlying Lease on the early termination date, information which came from Theodore J. Minorini, Hines' representative.  Minorini gave plaintiff a copy of NCNB's January 15, 1997 letter.  On September 16, 1997, in a letter to plaintiff signed by Minorini, Hines submitted a "lease proposal."  The letter continued, "[a]s you have requested I have given you two options with the [first] being subject to an existing tenant's rights."  The "lease proposal," which was attached to the letter, set forth the two "options":  the first option covered leased premises currently occupied by another tenant and was contingent on that tenant "not electing to renew its current lease"; the second option was for the premises already occupied by plaintiff.

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