J&B Signs, Inc. v. Commonwealth Edison Co.

2021 IL App (1st) 201005-U
CourtAppellate Court of Illinois
DecidedMay 21, 2021
Docket1-20-1005
StatusUnpublished

This text of 2021 IL App (1st) 201005-U (J&B Signs, Inc. v. Commonwealth Edison Co.) 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
J&B Signs, Inc. v. Commonwealth Edison Co., 2021 IL App (1st) 201005-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 201005-U Order filed: May 21, 2021

FIRST DISTRICT FIFTH DIVISION

No. 1-20-1005

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

J & B SIGNS, INC., and CHICAGO ) Appeal from the TITLE LAND TRUST COMPANY, as ) Circuit Court of Trustee Under Trust Number 301023-05, ) Cook County ) Plaintiffs-Appellants, ) No. 11 CH 36912 v. ) ) COMMONWEALTH EDISON COMPANY, ) Honorable ) Sophia H. Hall, Defendant-Appellee. ) Judge, presiding. ______________________________________________________________________________

JUSTICE ROCHFORD delivered the judgment of the court. Justices Hoffman and Cunningham concurred in the judgment.

ORDER

¶1 Held: Following a bench trial, the court ruled in favor of defendant on plaintiffs’ claim in their fourth amended complaint for ejectment. We affirmed, holding that the court’s judgment was not against the manifest weight of the evidence and that the court did not abuse its discretion in denying plaintiffs leave to file a fifth amended complaint. Plaintiffs waived review of their appeal of the dismissal of the trespass count.

¶2 Plaintiffs, J&B Signs, Inc. (J&B) and Chicago Title Land Trust Company, as trustee under

trust number 301023-05 (CTLTC), filed a fourth amended complaint against defendant,

Commonwealth Edison Company (ComEd) under the Ejectment Act (735 ILCS 5/6-101 (West No. 1-20-1005

2014)). The litigation involved a strip of land (the Property) belonging to plaintiffs upon which

ComEd had installed utility poles with attached electric transmission lines (the facilities). Plaintiffs

sought the removal of the facilities as they allegedly were interfering with the Property’s best use,

specifically, with the placement of billboards that plaintiffs could rent to advertisers for millions

of dollars. A bench trial was held and the trial court ruled in favor of ComEd, finding that plaintiffs

had waived their ejectment claim. On appeal, plaintiffs argue that the court erred by: (1) finding

that they waived their ejectment claim and ruling in favor of ComEd at the conclusion of the bench

trial; (2) dismissing their trespass claim which they had pleaded in their earlier, second amended

complaint; and (3) denying them leave to file a fifth amended complaint. We affirm.

¶3 We set forth the procedural history of this case in some detail, including relevant

communications between the parties and the multiple pleadings filed, as they are relevant to the

waiver issue.

¶4 J&B is an outdoor advertising company that owns or leases real estate upon which it

maintains billboards. J&B rents space on the billboards to advertisers. At all relevant times, J&B

acted through its president and sole shareholder, Robert Hoelterhoff.

¶5 The Property consists of three parcels, designated parcels 1, 2, and 3, located north of North

Avenue, south of Grand Avenue, east of County Line Road, and west of I-294. Parcel 1 is not

contiguous to parcels 2 and 3. Parcel 1 is the northernmost parcel and parcel 3 is the southernmost

parcel.

¶6 In 1980, the Chicago and North Western Railroad (CNW) owned the Property and in that

year, it granted ComEd a license (License) to maintain and use an electric transmission line over

the Property for the sole purpose of conveying electric current not to exceed 34.5 kilovolts (KV)

-2- No. 1-20-1005

for power and lighting. Pursuant to the License, ComEd maintains the facilities on the Property to

convey the electricity.

¶7 In pertinent part, paragraph 3(e) of the License states that

“[i]f at any time it shall be necessary in the judgment of [CNW] to change the location,

elevation or method of construction or installation of said facility, such change will be

made by the Licensee [ComEd], at its sole expense, and in the manner requested by [CNW],

within thirty (30) days after receipt of written notice thereof from [CNW].”

¶8 Paragraph 5 of the License states that CNW

“shall have the right to use, occupy and enjoy its tracks and property *** as [CNW] shall

desire ***. If any such railroad use shall necessitate any change in the location or

construction of said facility, or any part thereof, such change shall be made by [ComEd],

at its own cost and expense, upon demand of [CNW].”

¶9 Paragraph 10 of the License states that

“[t]his license is personal to the Licensee, and is not assignable or transferable without the

written consent of [CNW] first obtained.”

Paragraph 10 was consistent with the rule in common law that a license is personal and

lasts only as long as the land belongs to the grantor and therefore it is automatically revoked by

the sale or conveyance of the land unless the grantor reserves an easement protecting the license it

granted the licensee (“a protective easement”). Champaign National Bank v. Illinois Power Co.,

125 Ill. App. 3d 424, 429 (1984); Perbix v. Verizon North, Inc., 396 Ill. App. 3d 652, 661 (2009).

¶ 10 On October 1, 1995, CNW merged with Union Pacific Railroad (UPRR). On March 25,

1998, UPRR conveyed title to the Property to J&B via a quitclaim deed without reserving a

-3- No. 1-20-1005

protective easement. Legal title to the Property was subsequently conveyed in trust to CTLTC on

behalf of J&B, its sole beneficiary.

¶ 11 At various times, J&B received permits from the Illinois Department of Transportation

(IDOT) to construct multiple double-faced billboards on the property so as to rent them to

advertisers. J&B alleges that it has been unable to construct the billboards because: (1) ComEd’s

facilities make it unsafe and impossible to do so; and (2) ComEd’s facilities would impede or block

the view of the billboards from I-294, making it difficult or impossible for the traveling public to

read the billboard messages with the result that the billboards are of little to no value for outdoor

advertising.

¶ 12 On January 28, 2003, Larry Duffin, J&B’s lease manager, contacted George Welter, an

external affairs manager for ComEd and requested that ComEd relocate its facilities by burying

the transmission wires so that J&B could construct the billboards on the Property. Duffin faxed

Welter a copy of the License, stating that “J&B Signs feels [that the License] covers the property

in question” and that paragraphs 3(e) and 5 of the License required ComEd to relocate the facilities

at its expense pursuant to J&B’s request.

¶ 13 ComEd’s assistant general counsel, Edward Malstrom, sent Duffin a letter dated February

25, 2003, noting Duffin’s assertion that J&B is the “owner of the property covered by the License”

and succeeded to the rights of CNW. Malstrom rejected J&B’s request for ComEd to relocate its

facilities at its expense, stating that the License did not require ComEd to bear the cost of burying

the transmission wires.

¶ 14 On March 19, 2003, Duffin sent Malstrom a letter acknowledging ComEd’s refusal to

“bury, relocate or remove its facilities from our property” and stated that J&B will now “consider

-4- No. 1-20-1005

other options that will allow us to develop our property at this location.” J&B would be in contact

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2021 IL App (1st) 201005-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jb-signs-inc-v-commonwealth-edison-co-illappct-2021.