Dunn v. Centerpoint Properties Trust

2020 IL App (3d) 190007-U
Appellate Court of Illinois·Decided February 25, 2020·No. 3-19-0007·Unpublished

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

2020 IL App (3d) 190007-U

Order filed February 25, 2020

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2020

THOMAS A. DUNN, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellant, ) Will County, Illinois.

)

v. )

) Appeal No. 3-19-0007 CENTERPOINT PROPERTIES TRUST, ) Circuit No. 14-L-726 d/b/a CENTERPOINT PROPERTIES, and ) MICHAEL M. MULLEN, individually, )

) The Honorable

Defendants-Appellees. ) Michael J. Powers and Raymond E. Rossi, ) Judges, presiding.

JUSTICE CARTER delivered the judgment of the court.

Presiding Justice Lytton and Justice Schmidt concurred in the judgment.

ORDER

¶1 Held: In an appeal in a civil lawsuit for damages and restitution relating to a consulting contract and the development of an intermodal facility, the appellate court found that the trial court properly granted defendants’ motions for summary judgment on plaintiff’s claims of quantum meruit, breach of contract, wage payment violation, and promissory estoppel. The appellate court, therefore, affirmed the trial court’s ruling.

¶2 Plaintiff, Thomas A. Dunn, filed a civil lawsuit against defendants, Centerpoint Properties Trust, d/b/a Centerpoint Properties (Centerpoint), and Michael M. Mullen

(collectively referred to with Centerpoint as defendants), alleging breach of contract and certain other claims relating to plaintiff’s work for Centerpoint as a consultant on the development of an intermodal facility in Joliet, Illinois. Defendants filed motions for summary judgment and to dismiss the claims. The trial court granted defendants’ motions. Plaintiff appeals but only challenges the grant of summary judgment. We affirm the trial court’s ruling.

¶3 I. FACTS

¶4 Centerpoint was in the logistics real estate industry and built intermodal facilities for rail and trucking. Prior to February 2008, Centerpoint sought to develop a train and truck intermodal distribution center on 3500 acres of land in Joliet, Will County, Illinois. For assistance in obtaining the necessary governmental approvals and governmental funding to begin the project, Centerpoint contacted plaintiff. Plaintiff had been an attorney, a state senator, and a judge in the area. Plaintiff met with a number of Centerpoint’s executives, including its Chief Executive Officer, co-defendant Michael Mullen. Centerpoint decided to hire plaintiff as a consultant for the project. A few days after the meeting, Mullen sent plaintiff an email setting forth the terms by which Centerpoint would retain plaintiff. That email and plaintiff’s response agreeing to the terms are the only documents memorializing the parties’ contract.

¶5 Under the terms of the contract, as set forth in Mullen’s email, Centerpoint agreed to retain plaintiff as a consultant for a 12-month period (from February 2008 to February 2009), to pay plaintiff a consulting fee of $10,000 per month, and to reimburse plaintiff for reasonable and customary expenses. In exchange, plaintiff was to provide Centerpoint with “political advice to assist [Centerpoint] in [its] desire to annex and zone, for industrial and intermodal related uses, approximately 3500 acres of property into the City of Joliet.” Centerpoint also agreed that if plaintiff was “successful in getting the annexation, zoning, and a reasonable TIF [(tax increment

financing 1)],” Centerpoint would pay plaintiff a “success fee,” which would be negotiated between plaintiff and Mullen. Centerpoint wanted to obtain a TIF to help offset approximately $150 million that Centerpoint was going to spend on infrastructure improvements in Will County as part of the project. Plaintiff understood that without a TIF, the intermodal project might not be economically viable. Centerpoint knew that plaintiff could not guarantee results but asked plaintiff to use his best efforts.

¶6 In about April 2008, in light of local resistance, Centerpoint abandoned its pursuit of a TIF to subsidize the intermodal project. Plaintiff began to look for alternative ways to achieve the same goal. To that end, plaintiff came up with an idea, referred to as the 3% proposal, to help offset the financing for the intermodal project. Plaintiff’s plan was to: (1) craft Illinois state legislation that would authorize the creation of a government fund to offset Centerpoint’s infrastructure improvement costs; and (2) fund the legislation with a portion of the Illinois State income taxes that would be generated from the new Illinois jobs created by the Joliet intermodal facility. The 3% proposal was similar to what the parties referred to as an EDGE tax (see 35 ILCS 10/5-1 et seq. (West 2008)), except that it called for the state income tax refund payments to be made mandatorily, rather than discretionarily. Mullen told plaintiff that the proposal was “a genius idea.” Plaintiff worked with Kelly Tyrrell, Centerpoint’s lobbyist at the time, and the Illinois State entity that drafted legislation for the Illinois state legislature to put plaintiff’s 3% proposal into the form of a passable bill. Once the legislation was drafted, plaintiff allegedly used his expertise to help guide Tyrrell into getting the legislation passed.

1

Plaintiff testified in his deposition that a TIF was a provision in a law that allowed taxes to be set aside to be used in a particular district rather than going to a general fund of some entity.

¶7 In June 2008, both houses of the Illinois state legislature unanimously agreed to pass the 3% proposal bill. After the legislative success, plaintiff sent an email to defendants praising their presentation to the Illinois legislature and the benefits that the legislation would bring to Will County. On behalf of defendants, Mullen replied, “Agreed on all counts. The idea started with you Tom [(plaintiff)]. Many thanks.” The following year, the governor signed the 3% proposal bill into law as the Intermodal Facilities Promotion Act (Intermodal Act) (see 30 ILCS 743/1 et seq. (West 2010)). The Intermodal Act became effective in August 2009 and authorized Illinois state income taxes attributable to jobs created at the Joliet Intermodal Center to be placed in an Intermodal Facilities Promotion Fund, administered by the Illinois Department of Commerce and Economic Opportunity (Illinois DCEO). See 30 ILCS 743/10, 15, 20 (West 2010). The Intermodal Act also authorized the Illinois DCEO to award Centerpoint an annual grant of up to $3 million from 2010 to 2016 (for a possible total of $21 million) to reimburse Centerpoint for the costs it incurred in making Will County infrastructure improvements related to the intermodal project. See 30 ILCS 743/10, 20, 25 (West 2010).

¶8 The contract between Centerpoint and plaintiff expired in February 2009 and was not renewed. There is no dispute between the parties that plaintiff was paid the full $120,000 called for under the contract for his consulting work. Plaintiff did not receive, however, any type of bonus or “success fee.” In September 2009, plaintiff talked to Mullen personally about the success fee, and Mullen told plaintiff that he would not recommend that a success fee be paid to plaintiff. In November 2009, plaintiff formally demanded in writing that a success fee be negotiated and paid, but defendants refused.

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Dunn v. Centerpoint Properties Trust, 2020 IL App (3d) 190007-U (Ill. Ct. App. 2020).

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