Kitsos v. Terry's Chrysler-Plymouth, Inc.

388 N.E.2d 1054, 70 Ill. App. 3d 728, 27 Ill. Dec. 91, 1979 Ill. App. LEXIS 2426
CourtAppellate Court of Illinois
DecidedApril 6, 1979
Docket78-522
StatusPublished
Cited by21 cases

This text of 388 N.E.2d 1054 (Kitsos v. Terry's Chrysler-Plymouth, 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
Kitsos v. Terry's Chrysler-Plymouth, Inc., 388 N.E.2d 1054, 70 Ill. App. 3d 728, 27 Ill. Dec. 91, 1979 Ill. App. LEXIS 2426 (Ill. Ct. App. 1979).

Opinion

Mr. PRESIDING JUSTICE SULLIVAN

delivered the opinion of the court:

The issues presented by plaintiffs in this appeal are whether the trial court properly granted defendants’ motion for summary judgment and denied that of plaintiffs in this contract action.

On July 12,1976, plaintiffs entered into a written contract to purchase from defendants the assets of Terry’s Chrysler-Plymouth, Inc. Paragraph 2 of the agreement provided for a closing date of August 1, 1976, or at such other time to which the parties would subsequently agree in writing. Paragraph 6 stated that plaintiffs would pay defendants *5,000 upon the execution of the agreement, with the balance to be paid upon closing— except for those amounts representing payments for the automobile parts stock, which were to be paid upon receipt of an inventory to be taken by Bud King and Associates within 15 days after closing. Paragraph 10 required that defendants furnish plaintiffs with a verified list of the business’s existing creditors at least 10 days prior to closing. Paragraph 14 recited that the entire agreement was contingent upon plaintiffs securing a Chrysler-Plymouth franchise from Chrysler Motors Corporation; that if such franchise were not secured, the agreement would be void; and that defendants would cooperate fully with plaintiffs in their application for a franchise. Paragraph 15 stated that if plaintiffs did not receive a franchise commitment from Chrysler by the closing date, or if the lesser of the premises upon which the business was situated refused to accept defendants’ assignment of their lease to plaintiffs, then the agreement could be cancelled at plaintiffs’ option — whereupon defendants would return the *5,000 down payment.

It appears from the record that plaintiffs applied to Chrysler for a franchise that same month and that they also contacted Norman Patterson, the lessor of the premises, concerning a lease. On July 20,1976, Patterson executed a lease to plaintiffs, which was to become effective on September 1,1976. On August 1, the stated closing date, plaintiffs had not yet received a franchise commitment from Chrysler, and the closing was not held. While it is undisputed that the parties did not agree in writing to another closing date, as provided in the contract, defendants nonetheless (on August 3) tendered to plaintiffs the verified list of creditors required by paragraph 10 to be furnished at least 10 days prior to the closing date. On August 13, defendants notified plaintiffs by letter that they were declaring the contract to be null and void for failure to close on August 1 or at any other date agreed to in writing and returned plaintiffs’ *5,000 payment. Defendants sent a copy of this letter to Chrysler which, in reliance thereon, ceased processing plaintiffs’ franchise application.

On September 9,1976, plaintiffs filed the instant action for breach of contract, seeking specific performance as well as special and punitive damages, and soon thereafter moved for summary judgment. In response to the motion, however, defendant Terry Kunes stated in an affidavit that time was of the essence of the contract; that no closing date after August 1 had been agreed upon in writing or orally; and that therefore the contract was properly rescinded for failure to close on August 1. Daniel Glecier, attorney for defendants, also stated by affidavit that he spoke with plaintiffs’ counsel by telephone after defendants rescinded the contract and was informed that plaintiffs desired to close in escrow, commencing operations by September 1, 1976; that defendants would be returned to status quo if the franchise were not ultimately secured; that he (Glecier) responded that such an arrangement would not be acceptable; and that he had never been advised by plaintiffs or counsel that they were willing to close unconditionally pursuant to the contract as written. Defendants in turn moved for summary judgment on the basis of the above affidavits, and in response thereto plaintiff Gus Kitsos filed an affidavit wherein he alleged that defendants were aware that plaintiffs had entered into a lease with Patterson effective September 1 and that plaintiffs’ franchise application was pending; and that until August 24,1976, defendants were preparing to close on the weekend closest to September 1, when Bud King and Associates would be able to take the inventory required in paragraph 6. Also submitted was the affidavit of A. W. Wagner, a Chrysler employee, which acknowledged that plaintiffs’ franchise application was received in July of 1976; that on August 23 he received a copy of the letter defendants sent to plaintiffs on August 13, advising them that the contract was terminated; and that thereupon the processing of the franchise application was ceased.

On February 18,1977, after considering the arguments of the parties, the trial court entered an order finding that plaintiffs failed to secure a franchise commitment from Chrysler by the August 1 closing date, as required by the contract; that the parties did not agree in writing to a later closing date; and that time was of the essence of the contract. The trial court accordingly granted defendants and denied plaintiffs summary judgment. Plaintiffs subsequently moved to vacate the order and, in support of this motion, filed an additional affidavit of Kitsos stating that after August 1, 1976, he was in constant contact with an agent of defendants concerning the scheduling of the inventory to be taken by Bud King and Associates as close to September 1 as possible. Plaintiffs’ attorney also submitted an affidavit stating that he received the verified list of creditors from defendant on August 3,1976; that on August 6,1976, plaintiffs sent notice to these creditors; and that all parties worked for a closing after August 1, 1976. Plaintiffs’ motion to vacate was denied and this appeal followed.

Opinion

Plaintiffs contend that the trial court erred in denying them and granting plaintiffs summary judgment. They ask that we reverse the order, enter interlocutory summary judgment in their favor on the question of liability, and remand for consideration of damages.

While summary judgment is to be encouraged, it is a remedy to be awarded with caution in view of its drastic nature. (Rivan Die Mold Corp. v. Stewart Warner Corp. (1975), 26 Ill. App. 3d 637, 640-41, 325 N.E.2d 357, 360.) Its purpose is to determine whether there is a genuine issue as to a material fact between the parties (Cronin v. Delta Air Lines, Inc. (1974), 19 Ill. App. 3d 1073, 1076, 313 N.E.2d 245, 246); however, it should be granted only when the right to it is clear and free from doubt (McHenry Sand & Gravel, Inc. v. Rueck (1975), 28 Ill. App. 3d 460, 461, 328 N.E.2d 679, 680). It has been held that “even where there is no dispute in the evidence, if different conclusions may reasonably be drawn from the evidence, it is the province of the jury to draw the conclusion which to them seems most reasonable.” Stambaugh v. Central Illinois Light Co. (1976), 42 Ill. App. 3d 582, 584-85, 356 N.E.2d 148, 150.

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Bluebook (online)
388 N.E.2d 1054, 70 Ill. App. 3d 728, 27 Ill. Dec. 91, 1979 Ill. App. LEXIS 2426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kitsos-v-terrys-chrysler-plymouth-inc-illappct-1979.