In Re Bloomingdale Partners

160 B.R. 101, 1993 Bankr. LEXIS 1617, 1993 WL 464548
United States Bankruptcy Court, N.D. Illinois·Decided November 5, 1993·No. 19-01002·Published·Cited by 6 cases

Opinion

MEMORANDUM OPINION

RONALD BARLIANT, Bankruptcy Judge.

I. INTRODUCTION

The following two matters are before the Court for ruling: 1) the Debtor’s objection to the claim filed by John and Jean Zarlenga; and 2) the Zarlengas’ motion for an order allowing and assigning a value to their unliq-uidated claim for the purpose of voting on the Debtor’s Third Plan of Reorganization. See § 502(c)(1); 1 Fed.R.Bankr.P. 3018(a). For the reasons discussed below, the Court overrules the Debtor’s objection to the Zar-lengas’ claim and allows the joint claim of John and Jean Zarlenga in the amount of $40,000.

II. BACKGROUND 2

The matters currently before the Court involve a pre-petition cause of action for Illinois state common law private nuisance held by the Zarlengas. The facts concerning this cause of action were the basis of a “formal noise complaint” filed by the Zarlengas before the Illinois Pollution Control Board (the “Board”) on October 23, 1989, over 17 months before the Debtor filed its chapter 11 petition. Although the Zarlengas’ petition before the Board relied upon statutory grounds for its requested relief, not upon a common law private nuisance theory, the facts supporting the two theories are identical.

The Board issued an “Interim Opinion and Order of the Board,” Zarlenga v. Partner *104 ship Concepts, PCB 89-169 (May 9, 1991), 3 in which it found that Bloomingdale Partners and its three general partners violated certain Illinois noise pollution statutes and regulations. Accordingly, the Board ordered those respondents to submit “a report on the methods of reducing or eliminating the noise pollution at One Bloomingdale Place.... ” Id. at 18.

There is some dispute between the parties concerning the Debtor’s compliance with this order and its subsequent abatement of the noise pollution. Ordinarily a court faced with deciding a common law private nuisance claim based upon noise pollution would be quite interested in the purported tortfeasor’s conduct after an administrative tribunal found that the tortfeasor was in violation of state noise pollution statutes and regulations. However, the Debtor’s degree of compliance with the Board’s order and its subsequent actions have limited relevance for the purposes of the instant proceeding because the Debtor filed its chapter 11 petition 21 days after the Board released this opinion, and the Court must determine the validity and amount of the Zarlengas’ claim as of the date of filing. 4 See § 502(b).

III. FACTS

The Zarlengas included the Board’s opinion as a part of their proof of claim, and the opinion was admitted into evidence at the hearing before this Court. All of the evidence offered at the hearing is consistent with the evidence and facts recited in the opinion, and the opinion accurately describes the facts and contentions underlying this controversy as follows:

On October 28, 1989, John Zarlenga and Jean Zarlenga (“Zarlenga”) filed a formal noise complaint with the Board....
In their complaint, the Zarlengas allege that the air conditioning units, generators, fans, and swimming pool dehumidifier located at the respondents’ apartment complex emit excessive noise beyond the boundaries of the complex in violation of Section 24 of the Environmental Protection Act (Ill.Rev.Stat.1989, ch. 1111/2 par. 1024) (“Act”) [now codified as 415 ILCS 5/24 (1993) ].
BACKGROUND
On March 4, 1987, the Zarlengas closed on the purchase of a new townhome at 23 Country Club Drive, which is on the southwest corner of the intersection of Country Club Drive and Royal Avenue in Bloomingdale, Illinois. The townhome was constructed pursuant to a real estate contract that was executed by the Zarlengas some time between March and August of 1986.
Subsequent to the time that the Zarlen-gas purchased their townhome, the respondents constructed One Bloomingdale Place, an eight-story apartment complex. The complex is located at Schick Road and Country Club Drive and is north of the Zarlengas’ townhome, across Royal Avenue. The complex contains 168 apartments which house approximately 300 residents. ... The building was first occupied in April, 1988, and was fully occupied by February 1989. The building is owned by Bloomingdale Partners, a limited partnership in which Mr. Howard Edison, Mr. *105 Gary Lakin, and Mr. Bruce McClaren are the general partners.
All of the apartments in the complex have balconies, and permanently affixed heating/air-conditioning units which weigh 900 pounds each. Between 60 and 65 units face Royal Avenue and the Zarlengas’ property. The building has an indoor pool and a clubhouse on its first floor. The pool area and clubhouse are cooled by a dehumidifier, known as the Zephyr unit, and another heating/air conditioning unit. Although the Zephyr unit is located inside the complex and does not exhaust to the outside, the heating/air-conditioning unit which has one condenser fan and a heat exchanger, a condensing unit which consists of two fans and a coil, and two four-inch exhaust flues for the pool and spa boilers are located outside and along the south side of the building facing Royal Avenue and the Zarlengas’ property. (Footnote 3: There is a great deal of conflicting testimony regarding which equipment is on the outside of the complex, which equipment exhausts to the outside of the complex, and which equipment is responsible for the noise emissions.) A three foot fence and shrubs surround the heating/air conditioning unit.
On or about March 22,1989, Mr. Zarlen-ga approached Mr. Thomas O’Brien, one of the architects of the building to express his concern about the noise levels from the building. After several conversations with Mr. O’Brien, Mr. Zarlenga was told to contact Mr. Edison, one of the owners of the property. Mr. Zarlenga talked with Mr. Edison on several occasions, and contacted the Village of Bloomingdale in an attempt to resolve the problem before filing the formal complaint with the Board on September 5, 1989.
* $ ‡ ‡ ‡
TESTIMONY REGARDING NUISANCE
At hearing, several witnesses testified on behalf of the Zarlengas. First, Mr. Zar-lenga characterized the noise as a “loud rumbling sound” that occurs 24 hours a day, and stated that it had the following effect:
You can’t sleep because of the noise. You can’t live (sic) inside the house because of the noise. You can’t have anybody sitting on the patio because of the noise.
Mrs.

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In Re Bloomingdale Partners, 160 B.R. 101, 1993 Bankr. LEXIS 1617, 1993 WL 464548 (Ill. 1993).

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