Glad-Nan Corp. v. Henry's Drive-In, Inc.

173 N.E.2d 521, 29 Ill. App. 2d 363, 1961 Ill. App. LEXIS 374
CourtAppellate Court of Illinois
DecidedMarch 6, 1961
DocketGen. 48,097
StatusPublished
Cited by13 cases

This text of 173 N.E.2d 521 (Glad-Nan Corp. v. Henry's Drive-In, 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
Glad-Nan Corp. v. Henry's Drive-In, Inc., 173 N.E.2d 521, 29 Ill. App. 2d 363, 1961 Ill. App. LEXIS 374 (Ill. Ct. App. 1961).

Opinion

MR. JUSTICE BURMAN

delivered the opinion of the court.

Glad-Nan Corporation, lessee, brought suit against Henry’s Drive-In, its lessor, for a judgment declaring that a notice by lessor to terminate the lease was ineffective. Lessor thereafter instituted a separate forcible detainer action. Tbe two suits were consolidated and lessee appeals from the order declaring the lease terminated and awarding possession of the premises to lessor.

On November 29,1957, the parties executed two separate documents consisting of a franchise and a lease. Lessee was granted a franchise to operate a drive-in restaurant for a term of fifteen years at 5236-40 North Milwaukee Avenue, Chicago, under the name “Henry’s Drive-In” or “Henrys”. Lessee agreed to use lessor’s labels, designs, and advertising matter, and to use and display the name “Henry’s Drive-In” upon the premises; and to sell, use, distribute and purchase such products as designated by lessor. Among other things, the lease provided that:

“Article III, Sec. 2) Lessee covenants and agrees that the lessee will use the demised premises for the operation of a “Henry’s Drive-In” restaurant and sale of food and for no other purpose.
(Article XIII) Lessor and lessee agree that if for any reason the franchise of lessee to operate a Henry’s Drive-In on the demised premises shall be terminated by the licensor, then this lease may also be terminated at the option of lessor as of the date of the termination of the franchise and any security deposited hereunder and not previously applied to any indebtedness due from lessee to lessor shall be refunded to lessee upon demand.”

Lessee took possession on March 1, 1958, under the terms of the lease. On July 21, 1959, lessor, by letter, terminated the franchise. On September 18, 1959, lessee, by letter, assented to the cancellation of the franchise. Subsequently, on September 22,1959, lessor served lessee with, an election to terminate the lease and a demand for possession.

Pending trial of the consolidated declaratory judgment and forcible detainer suits, the court entered an order directing lessee to pay to the clerk of the court $1500.00 monthly rental since the lessee claimed that the lease was still in effect, and in order to avoid default under the lease for failure to pay rental. The order allowed lessor to withdraw any such payments prior to a final determination; such withdrawals were to be deemed an acceptance by the lessor of rental payments under the lease, but the order was not to “constitute a determination by the court, or an admission by the defendant, that the said lease remains in force or effect; such determination to be effected upon the final hearing of this cause.” Pursuant to this order, lessee deposited and lessor withdrew rental payments for the months of October and November, 1959. The trial court, after hearing evidence, entered judgment in favor of lessor for possession of the premises and denied lessee’s request for a declaratory judgment.

Lessee contends that the termination of the lease could be effected by lessor only as of the date of termination of the franchise; that lessor by accepting payment of rental for August and September, 1959, waived any right to terminate the lease due to the termination of the franchise on July 21, 1959; that lessor’s subsequent withdrawal of lessee’s deposit of rents for October and November from the clerk of the court, under provisions of the court’s order, constituted an acceptance of rental and waiver by lessor of its right to terminate the lease.

At the outset, lessor contends that this court has no jurisdiction to hear the present appeal. Lessor contends that the notice of appeal and bond were not filed within five days from the rendition of the judgment as provided under Section 18 of the Forcible Entry and Detainer Act, Ill. Rev. Stat. 1959, Ch. 57, § 19, and that this requirement is jurisdictional. Lessor argues that the courts have interpreted such provisions to mean that the time for taking an appeal shall be computed by excluding the day on which the judgment is entered, and that since Glad-Nan Corporation filed its notice of appeal and bond on the day of the judgment, Glad-Nan has not come within the statutory requirements. This contention is without merit. The numerous cases cited in its support all deal with the contention that a litigant waited too long to take an appeal. We have found no cases in which such a provision has been held to determine when a judgment first becomes appealable, nor do we think such was its purpose. This provision is meant to limit the length of time which a litigant may wait before filing a notice of appeal and bond. We therefore hold that we have jurisdiction of the present appeal.

Lessee contends that the acceptance of rental after a breach or condition entitling lessor to terminate a lease is a waiver of the right to terminate for the breach or condition, citing Webster v. Nichols, 104 Ill. 160; Wohl v. Yelen, 22 Ill. App.2d 455, 161 N.E.2d 339; and Waukegan Times Theatre Corp. v. Conrad, 324 Ill. App. 622, 59 N.E.2d 308. These cases, as distinguished from our case, involve a covenant in a lease providing against' assignment by the lessee without the written consent of the lessor. This clause was held to be waived by the subsequent inconsistent conduct of the lessor, particularly in knowingly accepting rents from the assignee. Waiver is a question of intent, and the acceptance of rent, even after a notice to quit has been given, is not itself a waiver, but merely evidence to be considered in connection with all the circumstances. Potter v. Henry Field Seed Co., 32 N.W.2d 385 (Iowa); Brown v. Brown, 64 A.2d 506 (Pa. Super.).

Whether lessor could terminate the lease under Article XIII, almost two months subsequent to its sending a notice of cancellation of the franchise, and whether its intervening acceptance of rental payments for August and September, 1959, waived any such right, are questions of the intention of the parties as shown by their dealings from July to September of that year. The lessor could waive its right to terminate the lease because of a franchise termination pursuant to Article XIII, but the lessee likewise could waive its right to insist that the lease be terminated as of the date of the franchise termination. Although the lease is, and must be, in writing, a waiver can be shown by the acts and conduct of the parties and need not be in writing. Welsh v. Jakstas, 401 Ill. 288, 82 N.E.2d 53. Thus, our courts have held that a party to a lease may orally waive a provision requiring a sixty day written notice of termination, Wolf v. Ladd, 220 Ill. App. 312, or a provision that an option to renew must be exercised by registered letter before a certain date. Fuchs v. Peterson, 232 Ill. App. 287, aff’d. 315 Ill. 370, 146 N. E. 556.

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Bluebook (online)
173 N.E.2d 521, 29 Ill. App. 2d 363, 1961 Ill. App. LEXIS 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glad-nan-corp-v-henrys-drive-in-inc-illappct-1961.