Cuneo v. City of Chicago

11 N.E.2d 16, 292 Ill. App. 235, 1937 Ill. App. LEXIS 408
CourtAppellate Court of Illinois
DecidedNovember 8, 1937
DocketGen. No. 39,412
StatusPublished
Cited by1 cases

This text of 11 N.E.2d 16 (Cuneo v. City of Chicago) 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
Cuneo v. City of Chicago, 11 N.E.2d 16, 292 Ill. App. 235, 1937 Ill. App. LEXIS 408 (Ill. Ct. App. 1937).

Opinion

Mr. Justice McSurely

delivered the opinion of the court.

Plaintiff brought suit to recover damages to his property at the southwest corner of Clark' and South Water streets in Chicago caused by defendant changing the grades of these streets adjoining plaintiff’s property, in connection with the construction of the Wacker drive improvement. Plaintiff presented evidence tending to show that the market value of his property had been depreciated by reason of these changes, and defendant introduced evidence tending to show the contrary. The jury returned a verdict for defendant and plaintiff appeals from the judgment thereon.

In March, 1913, the Northern Trust Company, as trustee, leased the premises to plaintiff for a term of 99 years; the property has a frontage on South Water street of 22 feet and 90 feet on Clark; the lease provided that the lessee should pay ground rent of $6,300 a year and all taxes and assessments levied or assessed against the property.

In 1916 and 1917 plaintiff erected an eight-story modern office and store building covering the entire frontage at a cost of approximately $180,000; the first floor was designed for use as retail stores, the upper floors for office space. Before the building was erected South Water and Clark streets were on a level plane with sidewalks and roadways. The building was* so constructed that all entrances to the building were level with the sidewalks.

In June, 1922, defendant by its city council passed an ordinance providing for the construction of a two-level street in South Water street and for raising the grades of the intersecting streets from Lake street (the next street south) to South Water street, so as to make the intersecting streets meet the elevation of the upper level of what is now called Wacker drive.

This work was commenced in October, 1925, and finished in October, 1926. Upon completion of the work the sidewalk on the upper level of Wacker drive adjoining plaintiff’s property was about 5 feet 7% inches above the level of the first floor of plaintiff’s building, and the sidewalk on Clark street next to Wacker drive was also about the same distance above the floor level of the first floor. The sidewalk sloped down from Wacker drive along Clark to Lake street, so that at the south end of plaintiff’s building the new sidewalk on Clark street was 4 feet 8 inches above the level of the first floor of the building.

After the completion of Wacker drive plaintiff remodeled his building, putting in a new first floor at an elevation conforming with the elevation of the upper level of Wacker drive and the new grade in Clark street and raised the floor of the basement so as to make it. conform to the sidewalk in the lower level. All the witnesses agreed that such reconstruction was necessary. This work was commenced in October, 1926, and completed in May, 1927. As a result the ceiling height of the first or store floor and of the lobby was reduced from 15 feet 17/8 inches to 9 feet 8 inches. The cost to plaintiff of this reconstruction was $34,674.96. There is no dispute as to this and it is stipulated that no part of this expenditure has been collected by plaintiff from defendant or anyone else.

It was also agreed that October 1,1925, was the date for determining the fair cash market value of plaintiff’s property before the Wacker drive improvement, and October 1, 1926, the date for determining this value after the improvement.

It is conceded that under sec. 13, art. 2, of the Constitution of 1870 the right to recover compensation for damages caused by change of street grades is established. Rigney v. City of Chicago, 102 Ill. 64; Chapman v. City of Staunton, 246 Ill. 394.

Bach of the parties called two qualified witnesses who gave their opinions on the effect on plaintiff’s property of this improvement, and plaintiff argues that the verdict for the defendant is against the manifest weight of the evidence. Plaintiff’s witnesses gave their opinion that the fair cash market value of plaintiff’s property, prior to the construction of Wacker drive, was $193,952, and after construction of the street improvement the value was approximately $85,000. (The witnesses differed slightly in their estimates.) Both testified that there had been a loss to plaintiff of approximately $109,000. These opinions took into consideration the rents actually derived from the property. It was shown that the average net income during 1921 to 1924 inclusive before the improvement was a little over $17,000 a year, while after the improvement and the reconstruction of plaintiff’s property the net income during 1928 and 1930 inclusive was something over $10,000 a year. Plaintiff’s witnesses based their opinions as to depreciation in value of the property upon this substantial reduction in the rental income.

South Water street is the first street south of the Chicago river and in making Wacker drive all of the property on the north side of South Water street abutting the river was taken. The change wiped out South Water street and made, a double level street running along the south bank of the river. One witness described the upper level as a “modern boulevard,” attracting shops, stores and all kinds of high grade business ; that after the improvement there was a sweep to the north across the drive to the river, giving “approximately 300 feet of uninterrupted light.” Another witness said the construction of the drive made five blocks of property on the south side of the drive, running from Franklin street to State street, available for improvements.

As opposed to plaintiff’s witnesses Mr. Prussing testified for defendant that in his opinion the value of the premises before the improvement of Wacker drive was something over $162,000, and after it, with the building reconstructed, was over $195,000. Defendant’s witness Snelling testified that in his opinion, before Wacker drive was built the market value of the premises was over $203,000, and that immediately after this, with the building reconstructed, it was worth over $240,000.

We shall not attempt to follow the close and able analysis made by counsel for plaintiff of the testimony of defendant’s witnesses. Such testimony is largely a matter of opinion and is open to attack from various points.

Rental receipts should be considered in determining the market value of property and are an important factor, but other circumstances should also be considered in determining market value. City of Chicago v. Witt, 289 Ill. 520, 524; City of Chicago v. Jackson, 333 Ill. 345, 350.

Evidence was introduced showing that to a large extent the decline in rentals received by plaintiff was due to the removal of the market business from South Water street. Mr. Trainer, testifying for plaintiff, described South Water street prior to the construction of Waeker drive. The buildings on that street were non-fireproof, of the store and loft type, used for produce business and storage. Mr. Lyons described the business on South Water street as “the great central produce market of the middle west.” The street was congested from “hub to hub” and it was a distributing center for restaurant and hotel men and dealers in fruit products from all over Chicago and also from all over the middle west.

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Related

Rau v. State
10 Ill. Ct. Cl. 603 (Court of Claims of Illinois, 1939)

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Bluebook (online)
11 N.E.2d 16, 292 Ill. App. 235, 1937 Ill. App. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuneo-v-city-of-chicago-illappct-1937.