Furla Studios, Inc. v. Gillen

273 N.E.2d 220, 133 Ill. App. 2d 620, 1971 Ill. App. LEXIS 1762
CourtAppellate Court of Illinois
DecidedJune 18, 1971
Docket54182
StatusPublished
Cited by3 cases

This text of 273 N.E.2d 220 (Furla Studios, Inc. v. Gillen) 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
Furla Studios, Inc. v. Gillen, 273 N.E.2d 220, 133 Ill. App. 2d 620, 1971 Ill. App. LEXIS 1762 (Ill. Ct. App. 1971).

Opinion

Mr. JUSTICE DRUCKER

delivered the opinion of the court:

Plaintiff appeals from a judgment dismissing its complaint with prejudice and from a denial of its motion to vacate that judgment. On appeal plaintiff contends that the trial court erred in dismissing its cause of action and in failing to permit the filing of an amended complaint.

On August 2, 1968, plaintiff filed a complaint for specific performance alleging in part: (1) that on April 14, 1965, Kathryn Gillen, by her agent Alfred M. Clary, (hereinafter “defendant”) as lessor, entered into a lease with plaintiff; (2) that paragraph twenty-five of the lease stated that defendant agreed not to sell the leased premises during the term of the lease to a third party without first offering to sell the premises to plaintiff under the same terms and conditions as defendant would sell to a third party or nominee of the third party; (3) that on June 28,1968, defendant notified plaintiff that she had received an offer to purchase the leased premises from Walter Preibisch and Eugene M. Haegele for $71,000, including a broker’s commission to EMH Realty Incorporated; (4) that the terms under which defendant agreed to sell to a third party were, inter alia, a net price to defendant of $66,740; (5) that plaintiff had made previous offers to purchase the leased premises which defendant refused; (6) that since July 3, 1968, when plaintiff exercised its option to purchase, it has been ready, willing and able to complete the transaction under the same terms and conditions as defendant agreed to sell to said third party; and (7) that defendant’s refusal to accept a net sales price of $66,750 constitutes a breach of contract whereby specific performance should be granted.

On September 5, 1968, defendant filed a motion to strike plaintiff’s complaint and dismiss its cause of action. Thereafter Walter Preibisch and Eugene M. Haegele (hereinafter “Intervenors”) filed a motion to intervene seeking to protect their rights as contract purchasers of the leased property. Plaintiff filed objections to these motions.

On January 21, 1969, intervenors’ motion was granted and they were also granted leave to file instanter a motion to dismiss plaintiff’s complaint.

On February 13, 1969, defendant filed an amended motion to dismiss plaintiffs complaint which aHeged in part: (1) that on June 5, 1968, defendant notified plaintiff that:

“* * * Kathryn GiHen, owner of the premises at 2272-74 West ■ Leland Avenue and 4701-15 North Lincoln Avenue, Chicago, Illinois, has entered into an agreement with Walter Preibisch and Eugene M. Haegele for the sale of said premises. The store which you occupy as Lessee at 4703 North Lincoln Avenue, Chicago, Illinois, is a part of said premises. Paragraph Twenty-fifth of the lease for said store, dated April 14,1965, provides as foHows:
As a condition for Lessee entering into this agreement, Lessor agrees not to sell the building located at 4703 N. Lincoln Avenue, of which the demised premises are a part, during the terms of this lease or any subsequent renewals, to a Third Party .or nominee of a Third Party, without first offering to sell building to Lessee under same terms and conditions as Lessor would sell to Third Party or nominee of Third Party.
I enclose here with a photographic copy of the contract between Kathryn Gillen, Owner, and the purchasers, which provides that the sale price is $71,000.00, with a cash payment of $20,000.00 and that the purchasers will execute their mortgage for the balance of $51,000.00. Said contract further provides for the regular Chicago Real Estate Board commission to be paid to the named broker who arranged for said sale.
In accordance with the terms of the option given to you by your present lease, I hereby offer to sell said premises to you under the same terms and conditions which are set forth in said contract of sale. Please advise me as soon as possible if you decide to exercise your option. This offer to you will expire and terminate at 12:00 Noon on July 10, 1968. If you do not advise me in writing that you are accepting this offer on or before said date and time I shall assume that you do not desire to exercise the aforesaid option.”

(2) that plaintiffs letter which allegedly exercised its option to purchase stated in part:

“Pursuant to the provisions of a certain lease dated October 14, 1965, (paragraph 25) we acknowledge said letter as a bona-fide offer to Mr. Furia based on a bona fide offer received from Preibis ch and Haegele. My client, Mr. Furia accepts the offer on the same terms and conditions.
This is to further confirm our understanding that the net amount due the sellers will be the same pursuant to our offer since Mr. Furla’s offer does not involve the necessity of paying a real estate broker’s commission to any broker. Therefore, please accept this communication as an acceptance of the seller’s offer under the same terms and conditions contained in the third party offer.”

(3) that plaintiffs letter did not constitute a proper acceptance of defendant’s offer and was not accepted by defendant; (4) that plaintiffs purported acceptance contained new terms and conditions and in effect was a counter-offer; and (5) that defendant had not entered into an agreement to sell the leased premises to plaintiff and therefore plaintiff was not entitled to specific performance.

Subsequently, on March 21, 1969, the trial court ordered plaintiffs complaint stricken and dismissed its cause of action with prejudice. On April 21, 1969, plaintiffs motion to vacate the March 21st dismissal order and for leave to file an amended complaint was denied. Plaintiff appeals from these orders.

Opinion

Plaintiff contends that the trial court erred in striking its complaint and dismissing its cause of action with prejudice. Defendant, however, argues that plaintiff’s acceptance of her offer to sell the leased premises given under the option agreement was not accepted under the same terms and conditions as the offer was made and therefore no contract to sell exists between the parties. Intervenors join in this argument.

Williston on Contracts, 3rd Edition, § 61D, Exercise of Options, states:

“When the optionee decides to exercise his option he must act unconditionally and precisely according to the terms of the option # a #
The general attitude of the courts is to construe the attempt to accept the terms offered under the option strictly.”

In Dept. of Public Works & Bldgs, v. Halls, 35 Ill.2d 283, the single question presented by the appeal was whether the lessee of a parcel of land properly exercised an option to purchase the leased premises. The court found that the purported acceptance by the lessee constituted a counter-offer and held that the option was not exercised. In so holding the court, at page 285, stated:

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Bluebook (online)
273 N.E.2d 220, 133 Ill. App. 2d 620, 1971 Ill. App. LEXIS 1762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/furla-studios-inc-v-gillen-illappct-1971.