Harvey v. Rolands of Bloomington, Inc.

237 N.E.2d 540, 94 Ill. App. 2d 444, 1968 Ill. App. LEXIS 1079
CourtAppellate Court of Illinois
DecidedMay 28, 1968
DocketGen. 10,922
StatusPublished
Cited by4 cases

This text of 237 N.E.2d 540 (Harvey v. Rolands of Bloomington, 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
Harvey v. Rolands of Bloomington, Inc., 237 N.E.2d 540, 94 Ill. App. 2d 444, 1968 Ill. App. LEXIS 1079 (Ill. Ct. App. 1968).

Opinion

SMITH, P. J.

We are asked to construe the following:

“2. Tenant agrees in consideration of said extensions from Landlord, to pay an annual rental for said premises as follows:
“(a) Beginning September 1, 1960, to September 1, 1961, a minimum rental of $6,000.00 plus the cost of insurance and taxes.
“(b) Beginning September 1,1961, . . . a gross rental of % of 1% of tenant’s owned departmental sales . . . less the cost of insurance and taxes paid, OR $6,000.00 a year, plus the cost of insurance and taxes, whichever computation produces the greater amount . . . .”

Plaintiffs, the landlord, sued the tenant for arrearages covering four rental years. They lost and now appeal. We are only concerned with subparagraph (b), but (a)’s inclusion is apropos. For the (a) rental year tenant paid landlord the minimum rental of $6,000, and into the bargain the taxes and cost of insurance. The minimum rental was not $6,000 + the cost of insurance and taxes, rather it was $6,000 and also the tenant paid the taxes and insurance. As we shall see, it makes a difference whether “plus” is synonymous with “+” or with some such phrase as “and also,” “over and above,” “into the bargain,” “besides,” etc.

The dispute involves the interpretation to be given the phrase, “OR $6,000.00 a year, plus the cost of insurance and taxes, whichever computation produces the greater amount . . . .” The landlord reads this to mean that the first alternative (% of sales, less cost, etc.) is to be placed alongside $6,000 and the “greater amount” represents annual rent. They do not read it to mean that the first alternative should be compared with $6,000 + the cost of insurance and taxes. In reply, the tenant says that the “greater amount” is the larger of either % of sales less cost, etc., or $6,000 + cost, etc., and that when so determined, further computations are necessary as “the greater amount” does not equal annual rent. We have reduced their respective positions to the following formulae:

THE LANDLORD’S
% of sales less taxes and insurance paid by tenant = X
OR
$6,000
If X is greater than $6,000, X = annual rental
If X is less than $6,000, annual rental is $6,000, in addition, tenant pays taxes and cost of insurance
THE TENANT’S
% of sales less cost of insurance and taxes paid = X
OR
$6,000 + cost of insurance and taxes = Y
If X is greater than Y, subtract cost of insurance and taxes from X, remainder equals annual rental
If Y is greater than X, annual rent is $6,000, in addition tenant pays taxes and cost of insurance
For the first year in question (1961-1962) it worked like this:
Tenant’s Computation
% of sales $9,826.22
Less cost of insurance and taxes paid —2,126.29
Total (X) 7,699.93
OR
Annual Rental 6,000.00
Add cost of insurance and taxes +2,126.29
Total (Y) 8,126.29
Y being greater than X, annual rental is $6,000, in addition tenant pays cost of insurance and taxes.
Accordingly, tenant paid landlord $6,000 and also paid the cost of insurance and taxes. Landlord says rent was underpaid by $1,699.93 as follows:
Landlord’s Computation
% of sales $9,826.22
Less taxes and insurance paid by tenant —2,126.29
Total (X) 7,699.93
OR
$6,000
Since X is greater than $6,000, annual rent is $7,699.93.
Balance due is $1,699.93 ($7,699.93 — $6,000).

Likewise, for the next two years (1962-1964) tenant’s Y figure ($6,000 + etc.) was greater than their X figure (% of sales — etc.) and they paid landlord $6,000 and over and above that paid the insurance costs and taxes.

For the landlord, however, X (always the same for both parties) was greater than $6,000, leaving unpaid as rent the difference between $6,000 and X for these two years.

For the last year (1964-1965) X was “the greater amount” for both of them, i. e., X was more than Y (tenant’s) and X was more than $6,000 (landlord’s). Even so, they differ substantially as to the rental amount:

Tenant’s Computation
% of sales $10,647.28
Less cost of insurance and taxes paid —2,058.46
Total (X) 8,588.82
OR
Annual Rental 6,000
Add cost of insurance and taxes +2,058.46
Total (Y) 8,058.46
Since X is greater than Y, subtract $2,058.46 (taxes and insurance) from X and annual rent is $6,530.36, as follows:
$8,588.82
—2,058.46
Annual Rent 6,530.36
Landlord’s Computation
% of sales $10,647.28
Less cost of insurance and taxes
paid by tenant —2,058.46
Total (X) 8,588.82
OR
$6,000.00
Since X is greater than $6,000, annual rent is $8,588.82.

The differential is quite something. Tenant has paid $6,530.36 and contends it has done everything required. On the other hand, the landlord wants $2,058.46 more:

X Figure $8,588.82
Amount Paid —6,530.36

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Related

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503 N.E.2d 576 (Appellate Court of Illinois, 1987)
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Cite This Page — Counsel Stack

Bluebook (online)
237 N.E.2d 540, 94 Ill. App. 2d 444, 1968 Ill. App. LEXIS 1079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harvey-v-rolands-of-bloomington-inc-illappct-1968.