Illona v. Curtis Center

Superior Court of Pennsylvania·Decided July 25, 2017·No. Illona v. Curtis Center No. 3236 EDA 2016·Unpublished

Opinion

J-A14044-17

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

ILLONA, LLC D/B/A ATRIUM AT THE IN THE SUPERIOR COURT OF CURTIS CENTER, PENNSYLVANIA

Appellant

v.

CURTIS CENTER, TIC I, LLC, CURTIS CENTER TIC II, LLC, HY’S CURTIS LLC, KPG-MCG CURTIS TENANT, LLC, KEYSTONE PROPERTY GROUP, L.P., MACK CALI REALTY CORPORATION,

Appellees No. 3236 EDA 2016

Appeal from the Order Entered September 27, 2016 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): February Term, 2016 No. 000949

BEFORE: BENDER, P.J.E., BOWES and SHOGAN, JJ.

MEMORANDUM BY SHOGAN, J.: FILED JULY 25, 2017

Illona, LLC d/b/a Atrium at the Curtis Center (“Illona”) appeals from

the September 27, 2016 order sustaining the preliminary objections (“POs”)

of Curtis Center TIC I, LLC, Curtis Center TIC II, LLC, HY’S Curtis LLC, KPG-

MCG Curtis Tenant, LLC, Keystone Property Group, L.P., Mack Cali Realty

Corporation (collectively, “Curtis Center”), and dismissing Illona’s fourth

amended complaint (the “Complaint”). We affirm.

Pursuant to a ten-year agreement (the “Lease”) executed on April 1,

2008, with Curtis Center’s predecessor in interest, Curtis Partners, LP, Illona

leased space in the historic Curtis Center building on Washington Square in J-A14044-17

Center City, Philadelphia. Pursuant to the Lease, Illona operated under an

exclusive license (the “License”) to use the Atrium and Dream Garden areas

of the building for weddings and banquets (“License Area”). Additionally,

Illona leased two ancillary suites, L45 and L89, exclusively as support for its

use of the License Area.

After years of Illona’s uninterrupted use of the License Area, Curtis

Center became successors to Curtis Partners, LP, in June of 2014 and

announced plans in January of 2015 to renovate the building, including the

License Area. As of that announcement, Illona had ninety-two weddings

booked for 2015. Curtis Center informed Illona that its plans would affect

Illona’s use of the License Area due to the erection of scaffolding, major

construction, and the removal of key architectural features in the License

Area. Curtis Center assured Ilona that it intended to compensate Illona for

interference with Illona’s exclusive use of the License Area.

Although Illona agreed not to book any weddings or events during the

proposed construction period, December 5, 2015, through March 5, 2016,

Curtis Center did not follow through on its assurances to Illona. Moreover,

in June of 2015—part of the most popular wedding season—Curtis Center

began removing key architectural features from the License Area. Due to

construction delays, Curtis Center advised Illona that the renovation would

not begin until February of 2016 and would continue through early 2017,

during which period Illona had booked approximately 120 weddings.

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Concerned that it would not be able to fulfill its upcoming contracts,

Illona filed suit on February 5, 2016. Following a volley of complaints and

POs, the Complaint set forth six counts. Curtis Center again filed POs, which

the trial court sustained on September 27, 2016. This appeal followed.

Illona and the trial court complied with Pa.R.A.P. 1925.

On appeal, Illona presents the following questions for our

consideration:

1. Whether the Trial Court failed to properly recognize the distinct property interest and rights of the irrevocable license Illona received for the Atrium area that it used for its actual event space – as opposed to the leasehold for the corollary preparation and storage suites – when:

A. The fundamental purpose of the License and Lease Agreement was to secure the License/Event Area to hold weddings and other events;

B. Illona invested significant sums in reliance upon the grant of the [L]icense for the event space;

C. The plain language of the License and Lease Agreement does not provide that significant construction and renovation to the Atrium and Dream Garden area are permissible irrespective of their impact on Illona’s license rights and contrary to its exclusive right of enjoyment of that irrevocable license;

D. Illona had enjoyed an eight year course of dealing with the previous landlord recognizing its exclusive right of enjoyment for its License/Event Area;

E. The identification of the License/Event Area is more specific than the generic definition of

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Common Area in the License and Lease Agreement; and,

F. The carve-out of rights in the License of limited rights of ingress and egress demonstrates that the License/Event Area was not a Common Area and the Trial Court’s interpretation rendered this language surplusage?

2. Whether, alternatively, under the License and Lease Agreement Illona licensed the “License/Event Area,” providing it with a right of quiet enjoyment that was infringed by the construction work[?]

3. Whether the Trial Court improperly ruled that Illona failed to plead a sustainable claim for tortious interference with contractual relations, as Illona maintained a separate claim against [Curtis Center] outside of their breach of contract claims?

4. Whether the Trial Court improperly dismissed Illona’s claims for gross negligence against [Curtis Center], as the actions of [Curtis Center] and their construction workers caused damage to the Tiffany Mosiac [sic] that was a critical component of the Licensed Event Area?

5. Whether the Trial Court improperly dismissed Illona’s claims for unjust enrichment at this early stage in [the] proceeding without any discovery on remaining factual issues?

Appellant’s Brief at 3–5.

Our standard of review of an order of the trial court . . . [sustaining] preliminary objections is to determine whether the trial court committed an error of law. When considering the appropriateness of a ruling on preliminary objections, the appellate court must apply the same standard as the trial court.

Preliminary objections in the nature of a demurrer test the legal sufficiency of the complaint. When considering preliminary objections, all material facts set forth in the challenged pleadings are admitted as true, as well as all inferences reasonably

-4- J-A14044-17

deducible therefrom. Preliminary objections which seek the dismissal of a cause of action should be sustained only in cases in which it is clear and free from doubt that the pleader will be unable to prove facts legally sufficient to establish the right to relief. If any doubt exists as to whether a demurrer should be sustained, it should be resolved in favor of overruling the preliminary objections.

Khawaja v. RE/MAX Cent., 151 A.3d 626, 630 (Pa. Super. 2016) (quoting

Perelman v. Perelman, 125 A.3d 1259, 1263 (Pa. Super. 2015), appeal

denied, 141 A.3d 435 (Pa. 2016) (internal citations and quotation marks

omitted)).

In its first issue, Illona complains that the trial court failed to recognize

the difference between an irrevocable license and a leasehold. According to

Illona, it “had an irrevocable License to use the License/Event Area based on

its significant, detrimental reliance on the ability to use that Area during the

term of the Agreement and as evidenced by its financial expenditures in

reliance upon that License.” Illona’s Brief at 30–32. Curtis Center counters

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