Douglas Theater Corp. v. Chicago Title & Trust Co.

569 N.E.2d 88, 210 Ill. App. 3d 301, 155 Ill. Dec. 88, 1991 Ill. App. LEXIS 255
CourtAppellate Court of Illinois
DecidedFebruary 22, 1991
Docket1-88-1859,1-89-1365 cons.
StatusPublished
Cited by9 cases

This text of 569 N.E.2d 88 (Douglas Theater Corp. v. Chicago Title & Trust Co.) 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
Douglas Theater Corp. v. Chicago Title & Trust Co., 569 N.E.2d 88, 210 Ill. App. 3d 301, 155 Ill. Dec. 88, 1991 Ill. App. LEXIS 255 (Ill. Ct. App. 1991).

Opinion

JUSTICE MURRAY

delivered the opinion of the court:

This opinion addresses two appeals and a cross-appeal from orders entered in a suit for specific performance involving certain real property located in Chicago, Illinois. A third appeal involving the same parties and concerning certain adjoining property has already been decided by another division of this court. See Douglas Theater Corp. v. Gold Standard Enterprises, Inc. (1989), 188 Ill. App. 3d 573, 544 N.E.2d 1053.

The facts of the present case are as follows.

Pursuant to trust agreement No. 32967, dated May 1, 1974, American National Bank and Trust Company of Chicago (American National), as trustee, was titleholder to certain property located at the intersection of Wellington and Clark Streets in Chicago. A portion of this property once housed the old Ivanhoe Theater and Restaurant, a one-time favorite haunt of Chicago’s young college students who would traverse the catacombs underneath the establishment and reminisce of the days when knighthood was in its flower. This property, however, was later extensively damaged by fire. Another portion of the property included unimproved land used for a parking lot (which was the subject of the related appeal at 188 Ill. App. 3d 573).

On May 22, 1978, American National entered into a contract with Gold Standard Enterprises, Inc. (Gold Standard), an Illinois corporation owned by Harold Binstein, to lease a portion of the above-described property. The 24-page lease provided that American National was demising to Gold Standard the premises, commonly known as 3000 N. Clark Street, but legally described as follows:

“Lots 1, 2, 3, and the East 15 feet of Lot 4 in Dam and Warner’s Subdivision of Block 3 in Knoke and Gardner’s Subdivision of the 20 acres North and adjoining the South 30 acres of the West 1!z of the Northwest V4 of Section 28, Township 40 North, Range 14 East of the Third Principal Meridian, in Cook County, Hlinois.” The reference for this legal description was apparently a plat of survey dated May 28, 1974, which depicted the property as it existed when the old Ivanhoe Theater and Restaurant occupied the premises. The demise to Gold Standard actually involved a portion of what was labeled parcel 1 on this survey. See diagram 1.

The demise included improvements “presently or hereafter constructed” on the parcel, as well as easements, rights and appurtenances to the parcel, but made no reference to basement areas or the elevations to which the lease was restricted. The lease contained language indicating that Gold Standard was accepting possession of the premises “as is,” with the understanding that “the fire-damaged building upon the premises” was to be restored and converted into a commercial retail space, housing an establishment for the sale of “liquor, food, tobacco products and related and sundry merchandise.” The architectural plans and specifications for these renovations were not yet provided, but were to meet with the approval of both parties. The lease was to be in effect until September 30, 2003.

Pursuant to this lease agreement, renovations to the property were made, and a liquor store, owned and operated by Gold Standard Liquors, Inc., an Illinois corporation controlled by Harold Binstein, occupied the premises. Chalet Internationale, Inc., another Illinois corporation controlled by Harold Binstein or Gold Standard, directly or indirectly, may also be in possession of the leased premises, in whole or in part.

On March 15, 1982, American National entered into a contract with Douglas Theater Corporation (Douglas), to lease the parcel of land adjoining the property leased to Gold Standard. The 85-page lease agreement recited that American National was demising to Douglas the premises commonly known as 750 W. Wellington in Chicago, but described in exhibit A as:

“Lots 4 (except the East 15 feet thereof) 5, 6, and 7 in Dam and Warner’s Subdivision of Block 3 in Knoke and Gardner’s Subdivision of the 20 acres North and adjoining the South 30 acres of the West Vz of the Northwest xk of Section 28, Township 40 North, Range 14 East of the Third Principal Meridian, in Cook County, Illinois. (The parties recognize that the easterly line of the Premises may be somewhat irregular and may vary slightly at the basement, first floor and roof levels, but the interior of the Premises are to be as presently divided by existing walls.) Also included is all of Lessor’s existing and future right, title and interest in and to that portion of the public alley shown in Appendix ‘A’ attached hereto as outlined in red and shaded in orange. Said public alley extends approximately 218 feet in an east-west direction between Clark Street and Halsted Street approximately 142 feet (center line) north of Wellington Street in Chicago, Illinois.”

The lease further provided, in section l(a)(i), that the above legal description was “subject to and to be replaced by a precise legal description of said parcel of land (and portion of public alley) as set forth in a plat of survey to be prepared in accordance with Illinois Land Survey Standards by a duly registered Illinois land surveyor at Lessor’s expense and delivered to Lessee within forty-five (45) days from and after the date of delivery of possession of the Premises to Lessee.”

The lease also demised “all structures and improvements presently or hereafter constructed on such parcel and all of Lessor’s [American National’s] right, title, and interest, if any, in and to all structures and improvements lying on and over the portion of the public alley referred to in said Exhibit A,” (emphasis added) as weH as all easements, rights and appurtenances relating to such parcel. This provision was included since the existing fire-damaged building encroached upon the entire 14-foot alley to the north of lots 6 and 7. Certain fixtures and furnishings, collectively referred to as “equipment,” were also demised, but are not involved in the appeal.

In a separate paragraph, entitled “Bar Area Basement,” the following provision was included:

“Notwithstanding anything to the contrary contained in this Lease, the space now leased to Gold Standard Enterprises, Inc. and situated beneath the portion of the Premises formerly used for the sale and dispensing of alcoholic beverages (which space is herein called ‘the Bar Area Basement’) is not included in the demise granted in this lease, such that during the Term, Lessee shall have no obligation or liability with respect to the Bar Area Basement, but the Bar Area Basement shall be included in the Property subject to the option to purchase the Property as set forth in Section 10 (captioned ‘Purchase Option’) of this Lease. The Bar Area Basement shall be more particularly described on a plat of survey to be prepared at Lessor’s expense by a duly licensed land surveyor and delivered to Lessee or its agent within forty-five (45) days of delivery of possession hereunder to Lessee.”

Additionally, the lease indicated that the property was being transferred “as is” and that renovations and alterations were to be made in accordance with architectural plans already submitted and approved, so that the property could be used for the operation of a theater.

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Bluebook (online)
569 N.E.2d 88, 210 Ill. App. 3d 301, 155 Ill. Dec. 88, 1991 Ill. App. LEXIS 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/douglas-theater-corp-v-chicago-title-trust-co-illappct-1991.