Gordon v. Bauer

532 N.E.2d 855, 177 Ill. App. 3d 1073, 127 Ill. Dec. 26, 1988 Ill. App. LEXIS 1632
CourtAppellate Court of Illinois
DecidedNovember 23, 1988
Docket5-86-0619
StatusPublished
Cited by33 cases

This text of 532 N.E.2d 855 (Gordon v. Bauer) 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
Gordon v. Bauer, 532 N.E.2d 855, 177 Ill. App. 3d 1073, 127 Ill. Dec. 26, 1988 Ill. App. LEXIS 1632 (Ill. Ct. App. 1988).

Opinion

JUSTICE CALVO

delivered the opinion of the court:

Defendants, Donald W. Bauer and Lauretta Bauer, farmers, entered into a real estate listing agreement with third-party defendant C. W. Schafer, a licensed real estate broker doing business as Schafer Real Estate (Schafer), to sell two pieces of farmland owned by the Bauers. Plaintiffs, Dale L. Gordon and Ethel I. Gordon, also farmers, subsequently entered into two contracts with the Bauers to buy both tracts of land. The parties scheduled closing for April 30, 1983, but they never consummated the transaction. The Gordons initiated suit against the Bauers for specific performance and damages after the Bauers informed the Gordons that they did not intend to close. The Bauers filed a third-party complaint seeking damages against Schafer alleging, among other things, breach of fiduciary duty. Schafer counterclaimed against the Bauers for his brokerage commission. After nine days of a 19-day bench trial, the Gordons moved to dismiss that part of their complaint seeking specific performance and elected to pursue only their damage claims. The trial court allowed the motion, subsequently found in favor of the Gordons and awarded them damages in the amount of $19,972.23. The trial court also found in favor of Schafer and awarded him $10,500. The Bauers appeal pro se and present 13 issues for review. For efficiency, we will address these issues in a somewhat different order than raised by the Bauers in their brief.

The first five issues revolve around the trial court’s decision to allow the Gordons to continue the trial in equity on the damage claims after they voluntarily dismissed the specific performance claims. The Gordons initially filed a three-count complaint? They later amended their complaint to include a fourth count. Counts I and II prayed for specific performance of the two contracts to sell the two pieces of real estate. In counts III and IV, the Gordons restated their allegations set forth in counts I and II and prayed in equity for various damages they incurred as a result of the Bauers’ failure to perform. In the middle of trial, the Gordons moved to dismiss counts I and II of their complaint. The trial court granted the dismissal, and further allowed the Gordons to proceed with the trial in equity on counts III and IV, the damage claims.

The Gordons alleged in count III that they incurred substantial penalties for the Bauers’ failure to comply with the payment-in-kind (PIK) program administered through the Shelby County Agriculture Stabilization and Conservation Service (ASCS) by the United States Department of Agriculture. They also alleged that the Bauers’ refusal to close the transactions caused a delay in the farming of the two pieces of real estate. The Gordons then prayed for $25,000 in damages which included attorney fees.

The Gordons alleged in count IV that in order to purchase the real estate in question, they secured a commitment for a loan from the John Hancock Mutual Life Insurance Company (John Hancock). As part of that commitment, the Gordons paid a nonrefundable $2,250 to John Hancock which they lost as a result of the Bauers’ failure to close the transaction. Thus, the Gordons prayed for $2,250 in damages.

In their motion to dismiss counts I and II, the Gordons alleged that due to the dramatic decline in the value of farm real estate during the two years between the execution of the contracts and the trial, the market value of the real estate at the time of trial was substantially lower than the contract price of the property; thus, specific performance was no longer a viable remedy for them. The Gordons attached to their motion the affidavit of plaintiff, Dale Gordon, a farmer for approximately 15 years, who attested to the dramatic decline in farm real estate in general and to the decline in value of the two pieces of real estate which were the subjects of the contracts.

At the close of trial, the Gordons, with the trial court’s approval, amended counts III and IV of their complaint to conform to the proofs. The Gordons alleged in their amendments that the Bauers had agreed to sell them the wheat crop growing on the real estate at the time of the sale and that the Bauers retained, harvested and sold the wheat crop. The Gordons alleged that their damages included not only the loss of the wheat crop, but also attorney fees in the amount of $15,000, the loss of benefits under the PIK program and the loss of a diversion payment under the basic program (a farm program, similar to the PIK program, also administered by the ASCS).

In awarding judgment for the Gordons, the trial court found that the contracts were enforceable, that the Gordons were ready, willing and able to close the transactions on April 30, 1983, and that the Bauers breached the contracts. The court then awarded the Gordons the following damages: $2,250 for the deposit to John Hancock, $712.50 for the title insurance commitment fee, $1,453.69 for the penalty assessed by the ASCS for violation of the PIK program, $1,596.75 in lost diversion payments under the basic program, $8,921.50 in lost PIK benefits, $3,606.45 in net interest incurred on the sum borrowed to finance the purchases after the Gordons mitigated the damages by earning interest on said sum while holding it a reasonable time in an effort to effectuate a closing, and $1,431.34 representing the difference between the contract price and the actual sale price obtained for the wheat harvest.

The Bauers initially allege that after the trial court allowed the Gordons to dismiss the specific performance counts of the complaint, the court was then without subject matter jurisdiction to hear the remaining damage claims. The Bauers point out that the Gordons’ complaint alleged an action in equity because the specific performance counts were equitable remedies. They also rightly contend that the Gordons pled the damage counts as actions in equity, as incidental relief to the specific performance remedies. The Gordons did not plead the damage claims as actions at law for breach of contract, as alternative relief to the specific performance remedies.

The Bauers point to case law which holds that

“[wjhere the [complaint] seeks equitable relief and the evidence establishes the right to that relief, the court will retain jurisdiction for all purposes connected with the subject matter of the suit and establish purely legal rights and grant legal remedies which would otherwise be beyond the scope of its authority [citation] but where the [complaint] is dismissed as to the portion founded on the right to equitable relief and only legal rights remain to be ascertained and passed upon, the jurisdiction of the court must fail unless some equitable ground appears for retaining jurisdiction. [Citations.]” (Patterson v. Patterson (1911), 251 Ill. 153, 182-83, 95 N.E. 1051, 1063.)

(See Alter v. Moellenkamp (1961), 23 Ill. 2d 506, 511, 179 N.E.2d 4, 6-7; Turek v. Mahoney (1950), 407 Ill. 476, 483, 95 N.E.2d 330, 334; Yonan v. Oak Park Federal Savings & Loan Association (1975), 27 Ill. App. 3d 967, 976, 326 N.E.2d 773, 780; Illinois Minerals Co. v. Miller (1946), 327 Ill. App.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bayeg v. The Admiral at the Lake
2024 IL App (1st) 231141 (Appellate Court of Illinois, 2024)
Horn v. Bayzaee
2021 IL App (1st) 191575-U (Appellate Court of Illinois, 2021)
Parkway Bank and Trust Company v. Bahramis
2020 IL App (1st) 190930-U (Appellate Court of Illinois, 2020)
Carter v. SSC Odin Operating Co., LLC
955 N.E.2d 1233 (Appellate Court of Illinois, 2011)
Carter v. SSC Odin Operating Co.
2011 IL App (5th) 070392-B (Appellate Court of Illinois, 2011)
Bires v. WALTOM, LLC
662 F. Supp. 2d 1019 (N.D. Illinois, 2009)
Meyers v. Woods
871 N.E.2d 160 (Appellate Court of Illinois, 2007)
Seymour v. Hug
413 F. Supp. 2d 910 (N.D. Illinois, 2005)
Herricane Graphics, Inc. v. Blinderman Construction Co.
820 N.E.2d 619 (Appellate Court of Illinois, 2004)
Twardowski v. Holiday Hospitality Franchising, Inc.
321 Ill. App. 3d 509 (Appellate Court of Illinois, 2001)
City of Chicago Heights v. Crotty
679 N.E.2d 412 (Appellate Court of Illinois, 1997)
Butler v. Kent
655 N.E.2d 1120 (Appellate Court of Illinois, 1995)
Zoeller v. Augustine
648 N.E.2d 939 (Appellate Court of Illinois, 1995)
Douglas Theater Corp. v. Chicago Title & Trust Co.
641 N.E.2d 584 (Appellate Court of Illinois, 1994)
Industrial Steel Construction Inc. v. Mooncotch
637 N.E.2d 663 (Appellate Court of Illinois, 1994)
Prather v. McGrady
634 N.E.2d 299 (Appellate Court of Illinois, 1994)
Bergheger v. Boyle
629 N.E.2d 1168 (Appellate Court of Illinois, 1994)
Fisher v. Parks
618 N.E.2d 1202 (Appellate Court of Illinois, 1993)
Martin v. Heinold Commodities, Inc.
608 N.E.2d 449 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
532 N.E.2d 855, 177 Ill. App. 3d 1073, 127 Ill. Dec. 26, 1988 Ill. App. LEXIS 1632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-bauer-illappct-1988.