Frank's Service Center, Inc. v. Amoco Oil Co. (In re Wolff)

41 B.R. 472, 1984 Bankr. LEXIS 6176
CourtUnited States Bankruptcy Court, N.D. Illinois
DecidedMarch 1, 1984
DocketBankruptcy Nos. 80 B 12339, 80 B 12340; Adv. No. 81 A 0735
StatusPublished
Cited by1 cases

This text of 41 B.R. 472 (Frank's Service Center, Inc. v. Amoco Oil Co. (In re Wolff)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank's Service Center, Inc. v. Amoco Oil Co. (In re Wolff), 41 B.R. 472, 1984 Bankr. LEXIS 6176 (Ill. 1984).

Opinion

MEMORANDUM AND ORDER

ROBERT L. EISEN, Bankruptcy Judge.

This matter came before the court on the defendant’s (Amoco) motion for summary judgment on the plaintiffs (Wolff) complaint for declaratory judgment regarding an easement or license for access to certain real estate. This court, having carefully considered the pleadings, memoranda, depositions and affidavits submitted by the parties along with applicable case law, renders the following findings of fact and conclusions of law.

FINDINGS OF FACT

Frank Wolff is a former Amoco dealer who leased and operated an Amoco service station. Wolff owns property adjacent to that station upon which he has constructed an auto repair garage and a car wash. Wolff seeks a declaration of his rights of access to this garage and car wash because confirmation of his Plan of Reorganization under Chapter 11 of the Bankruptcy Code depends upon status of that access.

Wolff, apparently as lessee, first operated the Amoco service station located at the corner of Lake Street and Illinois Avenue in Aurora, Illinois in 1960. Subsequent leases and renewals date from at least since 1973. Those leases were substantially similar except for the rent structure and the duration. The leases provided that so long as the premises were used in a lawful manner, that the direction and control of the premises was to remain with the lessee.1 The leases also contained provisions prohibiting the lessee from encumbering the leasehold interest2 and stated that the leases set forth the entire agreement between the parties.3 The leases for the service station property continued in effect until Amoco terminated them in 1981.

[474]*474In 1972, Wolff purchased an adjacent parcel of property (Lot 12) immediately north of the service station, tore down an existing house from the front portion of the property and constructed an auto repair garage at the rear of the parcel. Access to the repair garage was via the northernmost portion of the lot. Amoco provided Wolff with equipment for use in the garage, and made other improvements for Wolff. In 1979, Wolff sold to Amoco the eastern portion of that property which fronts on Lake Street and which provides access from Lake Street to the repair garage. Wolff reserved in that deed an eight foot easement over the front portion of the property.

In 1974 Wolff purchased property (Lot 8) on the other side of the corner immediately west of the gas station and constructed a car wash. Wolff consulted with the Amoco representative during construction of the car wash but reserved no rights of access thereto. Initially access was no problem since Wolff leased the service station from Amoco.

Wolff expended considerable sums of money on both business ventures. Amoco provided Wolff with certain improvements for both the garage and the car wash and apparently received the benefit of increased gasoline and related product sales resulting from the operation of the garage and the car wash. It is undisputed that Wolff would have to expend substantial sums of money to modify the access to his garage and car wash if his claims of access over the gas station property are denied.

Wolff claims in his affidavit that he was told that he would have access to both parcels and that he has been given a license which this court should determine Amoco is estopped from revoking because to do so would perpetrate a fraud upon Wolff. Amoco asserts that access was pursuant to the lease during its duration, that the lease specifically precluded the grant of any license and even if the court determined that a license had existed, that Amoco could revoke it at will.

ISSUES

Pursuant to Rule 56(c) of the Federal Rules of Civil Procedure, this court may grant the defendant’s motion for summary judgment if “the pleadings, depositions, answers to interrogatories 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 summary judgment as a matter of law.” Fed. R.Civ.P. 56(c). In the present case, the parties’ depositions and exhibits do not differ materially. Although the plaintiff submitted an affidavit which directly contradicts his deposition testimony, that affidavit is clearly insufficient to create any genuine issue of material fact. Therefore, summary judgment for Amoco is proper if the following questions of law are resolved in its favor:

1. Whether an irrevocable license has been created for the entire eastern portion of Lot 12 for expanded access to Wolff’s repair garage.

2. Whether an irrevocable license for access across the service station property was created for access to the car wash located on Lot 8.

DISCUSSION

A license is permission or authority to do particular acts upon the lands of another, with no estate or interest in the land created. Morse v. Lorenz, 262 Ill. 115, 118, 104 N.E. 237 (1914); Illinois Law & Practice, Licenses With Respect to Real Property, § 131 at 148. Generally, a license is revocable by the licensor at will. See, e.g., Woodward v. Seely, 11 Ill. 156 (1849); Morse v. Lorenz, 262 Ill. 115, 120, 104 N.E. 237 (1914) (stating that the reason for that rule was that oral agreements are easily misunderstood).

Illinois courts have tempered those rules by fashioning a “fraud exception” to the rule that licenses are revocable at will. See, e.g., Russell v. Hubbard, 59 Ill. 335 (1871). In order to prevent the exception from swallowing the rule, the Illinois Supreme Court determined that it would be [475]*475applied only where revocation would cause great wrong and oppression. Forbes v. Balenseifer, 74 Ill. 188, 186 (1874). The notion was that an estoppel operated to prevent the licensor from revoking the license, Keck v. Scharf, 80 Ill.App.3d 832, 836, 36 Ill.Dec. 83, 400 N.E.2d 503 (1980). The court in that case further delineated the requirements of the fraud exception to the revocability of licenses. Those requirements are:

1. that the licensee has spent substantial sums of money which were induced by the affirmative efforts of the licensor;

2. that the improvements which the licensee made were at least partly for the benefit of the licensor; and

3. that the revocation would result in an injury which would amount to great wrong and oppression. Id. at 836-37, 36 Ill.Dec. 83, 400 N.E.2d 503.

Upon applying those rules of law to the facts regarding the garage access, it is apparent that no license was ever created. Therefore, there was none to revoke, and the estoppel doctrine simply cannot apply. Although there is evidence that Amoco received some benefit from Wolffs improvements, and evidence that Wolff will be required to alter his premises should the access he seeks be denied, Wolffs claim of irrevocable license to the garage access fails for several reasons. First, there is no credible evidence of an oral permission in the first place.

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Bluebook (online)
41 B.R. 472, 1984 Bankr. LEXIS 6176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franks-service-center-inc-v-amoco-oil-co-in-re-wolff-ilnb-1984.