Darien Park District v. Schmidt

388 N.E.2d 1343, 71 Ill. App. 3d 151, 27 Ill. Dec. 294, 1979 Ill. App. LEXIS 2338
CourtAppellate Court of Illinois
DecidedApril 25, 1979
DocketNo. 77-146
StatusPublished
Cited by3 cases

This text of 388 N.E.2d 1343 (Darien Park District v. Schmidt) 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
Darien Park District v. Schmidt, 388 N.E.2d 1343, 71 Ill. App. 3d 151, 27 Ill. Dec. 294, 1979 Ill. App. LEXIS 2338 (Ill. Ct. App. 1979).

Opinion

Mr. JUSTICE NASH

delivered the opinion of the court:

This action was commenced on March 4, 1975, by plaintiff, Darien Park District, which filed a petition for the condemnation of 19 acres of real estate owned by defendants Charles C. Schmidt and Amelia Schmidt, his wife (hereinafter referred to as the Schmidts). Also named as defendants were Louis J. Osadjan and Paula Osadjan, his wife, who, together with Lamplighter Realty Company and Yale Development Company, which claim an interest through the Osadjans, will be hereinafter collectively referred to as Osadjan. The trial court determined that Osadjan had no compensable interest in the condemned property and granted the Schmidts’ motion to dismiss those defendants from the case. Osadjan appeals.

Osadjan asserts he has an compensable interest in the property and is entitled to share in the condemnation award by virtue of two agreements entered into between Osadjan and the Schmidts. The first agreement was executed by those parties on April 21, 1970, and entiled “Lease to Company.” It described the conditions and circumstances under which Osadjan might purchase the south nine acres of the subject property from the Schmidts. On October 18, 1972, these parties executed a second document entitled “Real Estate Sales Contract” which similarly described the conditions and the circumstances upon which Osadjan could acquire the 10 acres of the Schmidts’ property lying to the north and contiguous to the first parcel. These combined 19 acres made up the majority of the land which was the subject of plaintiff’s petition for condemnation. The Schmidts were also the owners of other contiguous property to that which is directly involved in this case.

As resolution of this appeal is dependent upon any interest which may have been held in the subject property by Osadjan on March 4,1975, when the condemnation proceedings were commenced by the park district (e.g., Department of Public Works & Buildings v. Schmauss (1972), 6 Ill. App. 3d 470, 473, 285 N.E.2d 628, 630-31), we must review the two agreements in some detail. We note that the titles appended to them when entered into by the parties give little indication of their content or legal effect.

The agreement of April 21,1970, together with its rider and addendum of May 17, 1970, included an express condition which required that Osadjan, described as the purchaser-lessee, secure rezoning of the nine-acre tract from its residential use classification to permit its use for business and commercial purposes and to secure building permits directed towards that use. The agreement provided that if the rezoning was not obtained within 18 months of its date the agreement would then be null and void and the Schmidts, described as the seller-lessor, could retain the *3,000 earnest money paid to them by Osadjan as liquidated damages. The agreement also provided that its term would be extended to a time 30 days after the final disposition of any legal action brought by Osadjan in attempting to secure the commercial use of the property as required of him by the agreement.1

This agreement also provided that “the time of closing shall be on or before two months after the purchaser has secured necessary zoning and permits * # and that if the desired zoning was obtained that Osadjan could then within 30 days elect to purchase from Schmidt the east half, west half or all of the 9-acre tract for *30,000 per acre. If Osadjan failed to elect to purchase some or all of the property then the agreement was to be considered a lease between the parties for a five-year period, at the conclusion of which Osadjan would be required to purchase all of the property at the agreed price.

The second agreement entered into between these parties on October 17,1972, had similar terms. It was entitled “Real Estate Sales Contract” and by it Osadjan, described as the purchaser, was given until May 31,1975, to secure rezoning of the property described therein from its single-family residential classification to one permitting a multifamily use. Osadjan further agreed by this document that the property it described (the 10-acre north parcel) would not be rezoned unless the property described in the earlier “Lease to Company” document (the 9-acre south parcel) was rezoned simultaneously. This agreement provided, as did the earlier agreement, that should Osadjan be unsuccessful in obtaining the zoning described within the time required the agreement would become null and void and all earnest money paid to the Schmidts by Osadjan would be retained by them as liquidated damages. Osadjan never filed an application with the local zoning authorities for multifamily use of the north parcel nor did he commence court action towards that end.

In summary, it would appear that on March 4,1975, when plaintiff’s petition for condemnation was filed, Osadjan had not secured rezoning of either portion of the subject property. By its terms the “Lease to Company” agreement became null and void on November 1,1975, that being 30 days after final disposition of his legal action brought to secure commercial use of the property. The “Real Estate Sales Contract” became null and void by its terms on May 31, 1975. The record also discloses that the requisite rezoning had not been given to either tract by the expiration dates of the agreements.

Osadjan contends first that the agreements described as the ’’lease to Company” and “Real Estate Sales Contract” are valid executory contracts for the sale of real estate and as the purchaser under them he is entitled to share in the condemnation award. He relies upon Stevenson v. Loehr (1871), 57 Ill. 509, and City of Chicago v. Robertson (1964), 48 Ill. App. 2d 241, 198 N.E.2d 192, as authority for the argument he is a contract purchaser entitled to the compensation awarded for the taking of the subject property. In the same vein Osadjan contends that the doctrine of equitable conversion applied upon the execution of the agreements with the Schmidts and vested the equitable estate in the property in the vendees leaving only naked legal title in the vendors which they hold in trust solely as security for the balance of the purchase price. Shay v. Penrose (1962), 25 Ill. 2d 447, 185 N.E.2d 218.

We think Osadjan’s reliance upon the principles discussed in Loehr, Robertson and Shay is misplaced. In each of those cases the vendor and vendee had entered into effective contracts for deed under which the vendee was entitled to receive the legal tide upon payment of the balance of the instaffments of the purchase price to the vendor. The contracts in those cases contained no conditions precedent to be met before becoming effective (35 Ill. L. & Prac. Vendor & Purchaser §45 (1958)) and the vendor’s remaining interest in the real estate was solely as security for the payment of the purchase money. In such circumstances, upon the taking of the property, the condemnation award takes the place of the property and both vendor and vendee may seek recovery of their respective interests from the award. (See Robertson, 48 Ill. App. 2d 241, 244, 198 N.E.2d 192

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388 N.E.2d 1343, 71 Ill. App. 3d 151, 27 Ill. Dec. 294, 1979 Ill. App. LEXIS 2338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darien-park-district-v-schmidt-illappct-1979.