Farley v. Knight Light & Soda Fountain Co.

223 Ill. App. 317, 1921 Ill. App. LEXIS 255
CourtAppellate Court of Illinois
DecidedDecember 30, 1921
DocketGen. No. 26,779
StatusPublished
Cited by3 cases

This text of 223 Ill. App. 317 (Farley v. Knight Light & Soda Fountain 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
Farley v. Knight Light & Soda Fountain Co., 223 Ill. App. 317, 1921 Ill. App. LEXIS 255 (Ill. Ct. App. 1921).

Opinions

Mr. Justice Morrill

delivered the opinion of the court.

This appeal seeks the reversal of a judgment in assumpsit for $4,987.50 entered by the circuit court of Cook county on October 9, 1920, against appellant, who was defendant in the court below, and in favor of plaintiff, who is appellee here. The pleadings indicate that the action was brought to recover liquidated damages at the rate of $25 a day for the period during which defendant is alleged to have retained possession of certain demised premises after the expiration of the lease thereof to it and to recover certain sums alleged to have been expended by plaintiff in enforcing the covenants of the lease.

Defendant alleges by way of defense that on September 15, 1914, which was prior to the expiration of the original lease, the parties entered into an oral agreement providing for the continued occupancy of the premises by the defendant for a period of six months after the expiration of the original lease at the same rental as previously paid by it; and that the cash expenditures which plaintiff sought to recover were not incurred under the provisions of the lease. There was a .trial before the court and jury, resulting in a verdict finding the issues for plaintiff and assessing his damages at the sum of $5,300. Plaintiff remitted $312.50 and judgment was entered for $4,987.50.

The evidence shows that on December 9,1909, plaintiff demised to defendant by written lease a portion of the building known as No. 712-720 North Franklin street in Chicago to bé occupied as a place for conducting the business of manufacturing gasoline and gas machines and fixtures and supplies pertaining thereto. The term of the lease began on February 1, 1910, and ended on January 31, 1915. The rental reserved was $300 a month. The following provisions of the lease are material to the present controversy and are covenants on the part of the lessee:

“Eight: At the termination of this lease, by lapse of time or otherwise, to yield up immediate possession to said party of the first part, and failing so to do, to pay as liquidated damages, for the whole time such possession is withheld, the sum of $25 per day. * * *

“The party of the second part further covenants and agrees to pay and discharge all reasonable costs, attorneys’ fees and expenses that shall be made and incurred by the party of the first part in enforcing the covenants and agreements of this lease; and all the parties to this lease agree that the covenants and agreements herein contained shall be binding upon, apply and inure to their respective successors and assigns.”

February 8,1915, defendant being still in possession of the premises, plaintiff served upon it a written demand for possession, which called attention specifically to the above-quoted provisions of the lease. March 2, 1915, defendant filed its bill in chancery in the superior court of Cook county, alleging in substance an oral extension of the lease in question from February 1, 1915, to August 1, 1915, and praying an injunction restraining plaintiff from attempting to dispossess defendant and from interfering with its occupancy of the premises. March 11,1915, an amended bill was filed praying for the same relief and an injunction was granted in conformity therewith. Plaintiff appealed from the order granting the injunction and on May 25, 1915, this order was reversed by this court. Knight Light Co. v. Farley, 192 Ill. App. 611. Thereafter the superior court vacated its previous order granting the injunction and sustained general and special demurrers to the amended bill, which was dismissed for want of equity.

Defendant vacated the demised premises on June 9, 1915. . Thereafter plaintiff commenced the suit involved in this appeal to recover $3,200, which is the amount specified in the lease as liquidated damages for holding over after the expiration of the lease for 128 days at the rate of $25 a day and to recover $1,250 expenses alleged to have been incurred by plaintiff in connection with the injunction suit above mentioned. There was a plea of set-off by defendant claiming damages against plaintiff, but no evidence was offered in support of it. There was also a plea that the liquidated damages which plaintiff sought to recover were not in fact liquidated damages, but that they constituted a penalty and did not reasonably represent the damages, if any, sustained by plaintiff. A demurrer was sustained to this plea and no error has been assigned as to this ruling of the trial court.

In addition to what has already been said as to the general nature of the defense in this case,'it should be noted that the record contains no pleadings or evidence to the effect that either on December 9, 1909, , the "date of the execution of the lease, or on January 31,1915, the date of its expiration, or on June 9, 1915, the date when defendant vacated the premises, the amount specified as liquidated damages for wrongfully withholding possession of the demised premises was out of proportion to the amount of possible damages on the former date or of actual damages on either of the later dates to plaintiff by reason of such wrongful withholding. There was no issue of fact raised by the pleadings under which either court or jury could determine these questions. It therefore becomes necessary for the court to decide by a consideration and construction of the terms of the original lease whether the provision for the payment of $25 a day for each day that the possession of the premises was withheld after the expiration of the term was a provision for liquidated damages or for a penalty.

The fifth, as well as certain additional pleas, avers the making of the alleged oral agreement of September 15, 1914, hereinabove mentioned, whereby it is asserted that the term of the original lease was extended to August. 1, 1915, at the same rental. These allegations were met by a replication setting forth the proceedings and final decree in the injunction suit heretofore mentioned. The record in that case shows that the bill set forth the alleged oral agreement of September 15, 1914, which is relied upon by defendant as constituting an extension of the original lease to August 1, 1915, and that the bill was dismissed for want of equity in conformity with the decision in Knight Light Co. v. Farley, supra. This was a final adjudication that there was no such oral extension of the lease. Marie M. E. Church v. Trinity M. E. Church, 253 Ill. 21; Jackson v. Industrial Board, 280 Ill. 526; People v. Harrison, 253 Ill. 625. Therefore the ruling of the trial court in excluding evidence upon that subject was correct. Sundry offers were made by defendant to show that the rental value of the demised premises between February 1, 1915, and August 1, 1915, was $300 a month, the amount of the rental specified in the original lease.

From this review of the pleadings and evidence it is apparent that the questions involved" in this appeal are, whether the provision in the lease for the payment of $25 a day for each day that defendant wrongfully withheld possession of the premises after the expiration of the lease was a provision for liquidated damages or for a penalty; and further, whether or not the sum allowed plaintiff for expenses in connection with the injunction suit could properly be construed as damages under the provision of the lease whereby defendant agreed to pay all costs, attorneys ’ fees and expenses incurred by plaintiff in enforcing the covenants of the lease.

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Bluebook (online)
223 Ill. App. 317, 1921 Ill. App. LEXIS 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farley-v-knight-light-soda-fountain-co-illappct-1921.