FORTECH, LLC v. RW Dunteman Co., Inc.

852 N.E.2d 451, 366 Ill. App. 3d 804, 304 Ill. Dec. 201, 2006 Ill. App. LEXIS 565
CourtAppellate Court of Illinois
DecidedJune 30, 2006
Docket1-05-1526
StatusPublished
Cited by27 cases

This text of 852 N.E.2d 451 (FORTECH, LLC v. RW Dunteman Co., Inc.) 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
FORTECH, LLC v. RW Dunteman Co., Inc., 852 N.E.2d 451, 366 Ill. App. 3d 804, 304 Ill. Dec. 201, 2006 Ill. App. LEXIS 565 (Ill. Ct. App. 2006).

Opinion

JUSTICE McBRIDE

delivered the opinion of the court:

Third-party plaintiff Du-Kane Asphalt Company (Du-Kane) appeals from the circuit court’s order resolving cross-motions for summary judgment in favor of third-party defendant K-Five Construction Corporation, incorrectly sued as K-Five Construction Company (K-Five), as to Du-Kane’s claims of conversion and unjust enrichment. K-Five was operating as an agent of Du-Kane’s landlord in 1997 when it allegedly converted and was unjustly enriched by improving the rented real property with road construction material that Du-Kane had stockpiled at the site. Du-Kane argues the circuit court determined an agent cannot be held liable for tortious conduct undertaken at its principal’s direction and that this determination was erroneous because conversion and unjust enrichment are strict-liability claims. Du-Kane also argues the circuit court further erred by disregarding clear evidence of K-Five’s conversion and unjust enrichment. K-Five responds that Du-Kane has misconstrued the court’s ruling and that the argument about an agent’s liability in tort is misdirected because the cross-motions for summary judgment established Du-Kane would be unable to meet the elements of its two tort claims. K-Five argues the most conspicuous defects in Du-Kane’s suit are that it no longer had a right to possess the real property and that the material at issue was essentially worthless debris which Du-Kane had abandoned.

The following pertinent facts are disclosed by the record. The road construction materials at issue were stored on real property owned by the Metropolitan Water District of Greater Chicago (District). The site consists of almost 21 acres in Lemont Township situated southwest of Lemont Road between the Des Plaines River and the Chicago Sanitary and Ship Canal. In 1954, the District entered into a 50-year lease for 100 acres in that area, including the 21 acres at issue, with Reclamation Construction Corporation (Reclamation). A subsequent series of subleases and assignments put appellant Du-Kane and Du-Kane’s sister corporation, R.W. Dunteman & Company (R.W. Dunteman), in possession of the 21 acres as of 1986. By 1989, there was a dispute amongst some of the subleasees as to which one of them was responsible for the Cook County real estate taxes. In 1994, Reclamation issued a notice to quit and demand for possession and filed an eviction action against several of the subleasees in the circuit court of Cook County. In 1996, while its eviction action was pending, Reclamation sublet the property to Fortech L.L.C. (Fortech), and assigned all its rights to the real property, including its rights in the pending litigation, to Fortech. For reasons that are not made apparent by the record on appeal, Fortech initiated an entirely new eviction action against R.W Dunteman and Du-Kane in 1996, No. 96 — Ml—739824, but continued to pursue the original case, No. 94 — Ml—704556.

In the 1996 action, Fortech obtained an order for possession of the premises. The order was entered on May 22, 1997, and although it specified, “3. Enforcement of this judgment is stayed until June 21, 1997,” it is undisputed that as early as May 23, 1997, Fortech’s contractor, appellee K-Five, entered the property to begin readying it for Fortech’s use. Fortech intended to make “GFRC” or glass fiber reinforced cement products such as architectural cladding, and its operation required a manufacturing facility, a curing shed, and unenclosed curing space. Our own records indicate R.W. Dunteman and Du-Kane filed a notice of appeal in the 1996 action and requested an extension of the stay of execution of the order for possession, but that on June 8, 1997, this court denied the motion to stay and the appeal was later dismissed without further briefing by the parties. The record on appeal includes a related order entered in the circuit court on July 8, 1997:

“This cause coming on to be heard upon [plaintiff Fortech’s] emergency motion to compel defendants [R.W. Dunteman et al.] to remove piles of debris, due notice having been served and the Court being advised: IT IS ORDERED that plaintiffs motion is granted and defendants shall have 10 days or until July 18, 1997 to remove the remaining debris [illegible]. Plaintiff agrees to waive any contempt proceeding [illegible].”

In the 1994 action, Fortech filed a sixth-amended complaint which is still pending in the circuit court. The action was transferred from the circuit court’s forcible entry and detainer division to its law division, since Fortech is seeking roughly $300,000 in damages and attorney fees, rather than possession of the property, from R.W. Dunteman, Du-Kane, and corporate officers Paul Dunteman and his brother Allan Dunteman. Fortech’s claimed damages include 33 months’ back rent accruing between 1994 and 1996, lost profits resulting from Fortech’s inability to set up full operations while the defendants’ materials remained on the site, the costs of restoring the real property to “good clean and orderly condition” by removing debris and addressing environmental contamination, and punitive damages for wilfully trespassing.

Du-Kane responded with a counterclaim against Fortech and a third-party complaint against Fortech’s contractor, K-Five, which is the third-party action at issue in this appeal. Du-Kane brought claims of conversion and unjust enrichment against both defendants and sought approximately $300,000 in compensation. Du-Kane indicated that R.W. Dunteman is in the business of land excavation and road and highway construction and that Du-Kane operated an asphalt manufacturing and recycling facility on the Lemont property and also maintained stockpiles of its raw materials. Further, however, as Fortech’s agent, K-Five entered the land, graded the site, created a road, a parking lot, and an extensive berm, and tortiously incorporated Du-Kane’s stockpiles of sand and crushed concrete products into the improvements.

As indicated above, cross-motions for summary judgment were filed. Summary judgment is to be granted “without delay if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” 735 ILCS 5/2 — 1005(c) (West 2002); Turner Investors v. Pirkl, 338 Ill. App. 3d 676, 681, 789 N.E.2d 323, 327 (2003). Summary judgment is considered a drastic measure but is an appropriate means of expeditiously disposing of a lawsuit in which the right of the moving party is clear and free from doubt. Turner Investors, 338 Ill. App. 3d at 681, 789 N.E.2d at 327. Where reasonable persons could draw divergent inferences from undisputed facts, summary judgment must be denied. Turner Investors, 338 Ill. App. 3d at 681, 789 N.E.2d at 327. On November 3, 2003, the circuit court found “there are no facts to establish there was complete abandonment of the [stockpiled] property [by Du-Kane], which then allowed [Fortech] to do what they wanted to do [and use the materials in the improvements it made to the site].” Accordingly, the court granted Du-Kane’s motion for summary judgment against Fortech on the unjust enrichment count, found that the value of materials “moved around” the site was $280,800, and entered judgment against Fortech for that amount.

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Cite This Page — Counsel Stack

Bluebook (online)
852 N.E.2d 451, 366 Ill. App. 3d 804, 304 Ill. Dec. 201, 2006 Ill. App. LEXIS 565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fortech-llc-v-rw-dunteman-co-inc-illappct-2006.