Crown Series, LLC v. Coffey and Associates, Ltd

2021 IL App (1st) 200838-U
CourtAppellate Court of Illinois
DecidedNovember 12, 2021
Docket1-20-0838
StatusUnpublished

This text of 2021 IL App (1st) 200838-U (Crown Series, LLC v. Coffey and Associates, Ltd) 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
Crown Series, LLC v. Coffey and Associates, Ltd, 2021 IL App (1st) 200838-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 200838-U No. 1-20-0838 Order filed November 12, 2021 Sixth Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ CROWN SERIES, LLC, 168 N. MICHIGAN SERIES, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) No. 2017 L 4629 ) DANIEL P. COFFEY & ASSOCIATES, LTD., ) Honorable ) Thomas R. Mulroy, Defendant-Appellee. ) Judge, presiding.

JUSTICE ODEN JOHNSON delivered the judgment of the court. Presiding Justice Daniel Pierce and Justice Sheldon Harris concurred in the judgment

ORDER

¶1 Held: We affirm where: (1) the trial court did not err in admitting evidence of profits at trial for breach of contract; (2) defense counsel’s statements regarding profits during closing arguments did not constitute error; and (3) the trial court did not err in denying plaintiff’s motion for a new trial.

¶2 Plaintiff Crown Series LLC, 168 N. Michigan Series’ (Crown) sued defendant Daniel P.

Coffey & Associates, Ltd. (Coffey Associates) for breach of contract. Following a jury trial, the

trial court entered judgment in favor of defendant Coffey Associates. On appeal Crown contends No. 1-20-0838

that: (1) the trial court erred when it allowed profits to be introduced into evidence; (2) the trial

court erred when it allowed Coffey Associates to continuously make improper comments

regarding said profits; and (3) the trial court erred when it denied Crown’s motion for a new trial

because the evidence at trial demonstrated that Coffey Associates breached the contract. For the

following reasons, we affirm.

¶3 I. BACKGROUND

¶4 A. Pretrial

¶5 At the time of pretrial, Crown was an Illinois limited liability company that owned a 12-

story office building located at 168 North Michigan Avenue, Chicago, Illinois (subject property).

Musa Tadros, a member of Crown LLC 1, was the primary contact for the subject property. Coffey

Associates, an Illinois corporation, assigned architects Daniel P. Coffey (Coffey) and Fred

Romano to work on the subject property. On April 30, 2013, the parties entered into an American

Institute of Architects (AIA) contract whereby Coffey Associates would provide architectural

services for the design and construction of the subject property for use as a hotel.

¶6 On December 31, 2013, the city of Chicago’s department of buildings (city) denied

Crown’s permit application because the attached design, plans, and drawings (plans) did not

demonstrate that the south-facing rooms would be guaranteed to receive natural light as required

by the Municipal Code of Chicago (Chicago Municipal Code §13-172- 060(a) (added April 29,

1998))2. The plans showed that the subject building was adjacent to the property line of the

adjoining property located at 150 South Michigan Avenue (adjoining property). The city

1 Although LLC’s typically consist of multiple members, plaintiff’s brief does not include who those members are. 2 Chicago Municipal Code §13-172- 060(a)(added April 29, 1998), was repealed on August 1, 2019. -2- No. 1-20-0838

expressed concern that without an easement, the owner of adjoining property could construct a

building that would ultimately obstruct the light in the south facing rooms.

¶7 On November 1, 2017, Crown filed the within complaint against Coffey alleging breach of

contract and indemnification. In support of its breach of contract claim, Crown alleged that it

would not have entered into other contracts for the hotel if Coffey Associates had notified them

about the natural light requirement, and by failing to do so, Crown accrued damages in excess of

$2 million for those respective contracts and agreements. Crown claimed that it decided to sell the

subject property because of the financial drain the project was experiencing. Crown also sought

indemnification pursuant to §8.1.3 of the AIA contract which provided that Coffey Associates was

to indemnify Crown for acts of negligence or omissions that resulted in litigation against Crown.3

¶8 On December 17, 2017, Coffey Associates filed an answer and affirmative defenses

pleading that: (1) Coffey Associates was entitled to a setoff; (2) Crown failed to mediate its

damages; (3) Crown’s damages were consequential, and it was not entitled to those because their

agreement explicitly waived them in §8.1.4; and (4) Crown was prohibited from seeking recovery

from Coffey Associates for breach of the contract pursuant to §5.5 and §5.9 of their contract.

¶9 On January 28, 2019, the trial court granted Crown’s motion to voluntarily dismiss its

indemnity claim.

¶ 10 On March 5, 2019, Crown filed a motion in limine to bar Coffey Associates from

introducing evidence of Crown’s sale price for the subject property. Crown argued that the sales

price was not relevant because it did not prove or disprove the loss caused by Crown’s reliance on

3 As of the time of filing, Crown had been sued by Central Building in December of 2015 under case number 15 CH 18405 for work done on the subject property’s hotel conversion project, and by Holiday Hospitality in May 2016 under Georgia case number 16 A60083-2 to recover liquidated damages as a result of the termination of the contract.

-3- No. 1-20-0838

the contract it had with Coffey Associates. Further, Crown argued that Coffey Associates did not

present opinion testimony that the property’s value increased because of the work that Coffey

Associates put into it.

¶ 11 On March 5, 2019, Coffey Associates responded to Crown’s motion in limine, seeking its

denial and arguing that there was no evidence that the city would not have denied the building

permit if Crown had secured the easement from the adjoining property owner. Coffey Associates

asserted that evidence of the sale price was relevant to its affirmative defense regarding a right to

setoff.

¶ 12 At the hearing on the motion in limine, Crown argued that it spent over $2 million in

reliance damages to convert the subject property from an office building to a hotel. Crown

acknowledged that it purchased the property for $9 million and sold it for $21 million, due to an

upward fluctuation of the housing market. Crown argued that a setoff could not be established

without expert evidence, and it was too prejudicial in nature. Coffey Associates argued that it

intended to prove a setoff at trial and that Crown was unable to demonstrate reliance damages

because the property was not rendered useless, in fact, it was the easement that made the property

more valuable.

¶ 13 The trial court ruled that the evidence of the value of the property was excluded, however,

if one of Crown’s witnesses “opened the door” to the value of the property, then it would have to

let Coffey Associates cross examine on it. The trial court stated that something along the lines of

mentioning how much money Tadros lost or how much the building lost would trigger evidence

of the value of the property coming in. The trial court also determined that if Coffey Associates

raised a claim of setoff it would have to be in a counterclaim and needed to be proven.

¶ 14 B. Trial

-4- No. 1-20-0838

¶ 15 At trial, Coffey was called as an adverse witness in Crown’s case-in-chief. Coffey testified

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2021 IL App (1st) 200838-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-series-llc-v-coffey-and-associates-ltd-illappct-2021.