CSM Insurance Building, Ltd. v. Ans-Var America Insurance

649 N.E.2d 600, 208 Ill. Dec. 544, 272 Ill. App. 3d 319
CourtAppellate Court of Illinois
DecidedApril 24, 1995
Docket1-93-3591
StatusPublished
Cited by11 cases

This text of 649 N.E.2d 600 (CSM Insurance Building, Ltd. v. Ans-Var America Insurance) 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
CSM Insurance Building, Ltd. v. Ans-Var America Insurance, 649 N.E.2d 600, 208 Ill. Dec. 544, 272 Ill. App. 3d 319 (Ill. Ct. App. 1995).

Opinion

JUSTICE WOLFSON

delivered the opinion of the court:

The parties to this appeal have spent three years making motions and cross-motions in the trial court. Now we are asked to decide whether the plaintiff had standing to bring the lawsuit ,in the first place. The trial judge said it did not. We reverse that finding and remand this cause with directions to get on with it.

BACKGROUND

La Salle National Bank (La Salle) was the owner of the legal and equitable title to real estate located at 2775 West Algonquin Road in Rolling Meadows, Illinois. CSM Insurance Building, Ltd. (CSM), an IIlinois general partnership, was the sole beneficiary of the land trust and is the plaintiff in this case.

On June 21, 1979, La Salle, as lessor, entered into a 10-year lease agreement with the Central Security Mutual Insurance Company, Ansvar’s predecessor in interest.

About one month later, on July 22, the Great-West Life Assurance Company (Great-West) loaned CSM’s trust $1,125,000. The loan was evidenced by a note and secured by a mortgage of the premises, an assignment of rents, and an assignment of leases.

At the end of 10 years, on September 1, 1989, the lease expired and Ansvar moved out. In the following month, it became clear that CSM could not meet its mortgage obligation to Great-West. CSM was in default.

On February 23, 1990, Great-West filed a complaint for foreclosure of mortgage, specifying defaults of October 10, November 10, and December 10, 1989. The prayer for relief requested either possession of the property or the appointment of a receiver.

While that foreclosure action was pending, CSM filed its complaint against Ansvar on May 8, 1990. At that point, no judgment of foreclosure had been entered, no sheriff’s sale had been conducted, and no deed had been issued to Great-West. Great-West did not ask for or obtain a deficiency judgment against CSM.

In its first complaint against Ansvar, CSM alleged that Ansvar failed to maintain the property properly, ultimately leaving the premises in such a deteriorated, unmaintained, and damaged condition that the property could not be relet or sold. That behavior, said CSM, violated the lease.

PROCEEDINGS IN TRIAL COURT

To reflect the flavor of proceedings in the trial court, we summarize the events that followed the filing of CSM’s complaint:

07/13/90 Ansvar filed a motion to strike or dismiss the complaint pursuant to section 2 — 615 of the Code of Civil Procedure (111. Rev. Stat. 1989, ch. 110, par. 2 — 615) based upon improperly computed damages.

07/19/90 Judgment of foreclosure entered in the Great-West lawsuit.

09/12/90 Sheriff’s sale of premises to Great-West. The premises were purchased for $530,000 by Great-West, creating a deficiency of $680,106.40. No deficiency judgment was entered or requested.

09/13/90 Sheriff’s report of sale and distribution to Great-West approved and confirmed.

10/29/90 Ansvar’s motion to dismiss complaint in this case was granted.

12/21/90 CSM filed amended complaint alleging, alternatively, breach of lease (count I), negligence (count II) and intentional mistreatment of property (count III).

1/18/91 Ansvar filed a section 2 — 619 motion to dismiss count I of the complaint, arguing: as CSM no longer owned premises, it no longer had a basis for recovery on diminution of value; as CSM was not a party to the written lease agreement and there was no allegation that the lease had been assigned to CSM, no privity of contract existed between CSM and defendant. Ansvar filed a section 2 — 615 motion to dismiss counts II and III arguing: Count II— Only difference between I and II is that rather than allege that defendant breached the lease, plaintiffs state that defendant breach a duty of care and maintenance arising out of the lease. Ansvar argued that pursuant to Moorman Manufacturing Co. v. National Truck Co. (1982), 91 Ill. 2d 69, 435 N.E.2d 443, and Redarowicz v. Ohlendorf (1982), 92 Ill. 2d 171, 441 N.E.2d 324, economic loss is not recoverable in a negligence action. With regard to count III Ansvar argued complaint did not allege facts, merely stated legal conclusions. In addition plaintiffs sought to recover economic loss in a tort action.

07/03/91 Trial court granted a section 2 — 615 motion to dismiss counts II and III. Section 2 — 619 motion to dismiss count I denied. Plaintiffs given leave to file amended counts II and III.

07/29/91 CSM filed motion to reconsider alleging that the trial court misapplied the Moorman doctrine.

08/19/91 Ansvar filed a motion to reconsider denial of motion to dismiss, alleging that although the trial court denied the motion to dismiss with respect to the damage allegation, it did not address the allegation that CSM was not a proper party due to lack of privity.

08/28/91 Ansvar filed its answer to count I and affirmative defenses.

09/04/91 CSM moved to strike answer and affirmative defenses.

03/06/92 Trial court denied motions to reconsider. Plaintiffs motion to strike granted in part and denied in part. Defendant granted 28 days to file an amended answer and affirmative defenses. Count I still alive.

04/06/92 Ansvar filed amended answer and affirmative defenses.

04/27/92 CSM filed a motion to strike the amended affirmative defenses.

10/30/92 Ansvar filed amended affirmative defenses.

11/10/92 CSM filed a motion to strike the affirmative defenses.

11/13/92 CSM ordered to pay discovery sanctions.

01/06/93 Ansvar brought a motion to dismiss pursuant to section 2 — 619(2) (735 ILCS 5/2 — 619(2) (West 1992)). Ansvar argued that the proper party plaintiff was Great-West and that the pending case is legally deficient because plaintiffs are not a party in interest, having made a full and complete assignment of all their rights under the lease with the defendant.

04/28/93 Trial court granted CSM’s motion to strike defendant’s “Second Amended Third Affirmative Defense.”

05/13/93 Trial court granted defendant’s section 2 — 619 motion to dismiss. Trial court denied CSM’s motion to reconsider and vacated the order of November 13, 1992 (imposition of sanctions).

06/09/93 CSM filed motion to reconsider and vacate the order of dismissal entered May 13, 1993.

09/27/93 Plaintiffs’ motion to reconsider denied.

Plaintiff appeals from the trial court’s dismissal of its lawsuit on standing grounds. It also appeals the trial court’s imposition of sanctions for discovery violations.

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Cite This Page — Counsel Stack

Bluebook (online)
649 N.E.2d 600, 208 Ill. Dec. 544, 272 Ill. App. 3d 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csm-insurance-building-ltd-v-ans-var-america-insurance-illappct-1995.