La Salle National Bank v. 850 De Witt Condominium Ass'n

570 N.E.2d 606, 211 Ill. App. 3d 712, 156 Ill. Dec. 130, 1991 Ill. App. LEXIS 438
CourtAppellate Court of Illinois
DecidedMarch 22, 1991
Docket1-90-0363
StatusPublished
Cited by11 cases

This text of 570 N.E.2d 606 (La Salle National Bank v. 850 De Witt Condominium Ass'n) 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
La Salle National Bank v. 850 De Witt Condominium Ass'n, 570 N.E.2d 606, 211 Ill. App. 3d 712, 156 Ill. Dec. 130, 1991 Ill. App. LEXIS 438 (Ill. Ct. App. 1991).

Opinion

PRESIDING JUSTICE RAKOWSKI

delivered the opinion of the court:

Owners of a garage which adjoined a condominium building filed suit against the condominium association seeking injunctive and declaratory relief as well as damages resulting from the association’s possession and use of certain portions of the garage property. The association counterclaimed, requesting that its declaration of condominium be reformed to include the disputed property. On cross-motions for summary judgment, the trial court ordered reformation of the declaration of condominium and the 1984 deed which conveyed the garage property by adding the disputed property to the declaration of condominium and deleting it from the 1984 deed.

Prior to September 1978, the property located at 850 De Witt Place in Chicago was a 22-story rental building with an attached three-story garage. Title to the property was held in trust by La Salle National Bank pursuant to a trust agreement dated October 3, 1953. In September 1978, 850 De Witt Associates, the beneficial owner of the property, decided to divide the residential and garage property and sell the residential property as condominium units. The declaration of condominium ownership (Declaration) was recorded at that time. Incorporated in the Declaration was a plat of survey prepared by Nicholas Raimondi of the National Survey Service. Paul Reynolds, the president of Mid-Continental Realty, which was the general partner of 850 De Witt Associates, had arranged for the survey to provide separate legal descriptions for the residential tower and garage property. In his deposition testimony, Raimondi stated that he was instructed to divide the existing property into two separate entities according to “the existing walls defining the two different structures.” The three areas which are at issue in this appeal were included in the legal description of the garage and excluded from the legal description of the residential tower. These areas are physically under the roof of the garage and are being used by the condominium owners as a storage locker room, bicycle storage room and to house a sump pump, fire pump and emergency fuel tank. The areas have never been used for any purpose related to the operation of the garage.

In December 1979, the beneficial interest in the garage property was conveyed to Robert Matanky, a partner of the 850 De Witt Venture. Matanky subsequently leased the property to Ganser-Oguss Parking, Inc. (Ganser-Oguss), to operate the garage from January 1980 until June 1984. At that time, Matanky assigned its beneficial interest in the garage property to Ganser-Oguss, which then assigned its interest to Gerald Oguss.

When Oguss became the beneficial owner of the garage property, he toured the area with Austin Stoll, the building manager. Oguss stated in his deposition that it was during this tour that he first became aware of the condominium association’s (Association’s) “unauthorized use” of the three disputed areas. Oguss then informed the Association and its attorneys that the areas being used by the Association were within the property lines of the garage and were being used without his permission. In June 1984, plaintiffs submitted a request to the Association and its attorneys for payment for or abandonment of the disputed areas. Plaintiffs’ request was denied, and they subsequently filed a complaint requesting the declaration of the court that the title to the garage property be found clear of any claim by the Association, that the Association be declared a trespasser and ordered to relinquish possession of the three areas and for the recovery of damages for the Association’s unauthorized use of the property plus any costs incurred by the plaintiffs for the removal of the Association’s fixtures.

The Association filed a countercomplaint admitting that the land trust was the owner of the three areas but alleging that the original land survey which divided the residential tower from the garage property was incorrect, and that these areas should have been included as common elements of the Association. Thus, the Association sought reformation of the condominium declaration to include these areas in the legal description of the condominium property. In its answer to plaintiff’s amended complaint, the Association asserted the affirmative defenses of easement by implication, necessity and prescription.

The parties filed cross-motions for summary judgment. The trial court denied plaintiffs’ motion and granted the Association’s motion on its first amended countercomplaint for reformation. The court then entered an order that the deed conveying the garage property to the land trust in 1984 be reformed by deleting the three disputed areas from the legal description of the property and also ordered the reformation of the condominium declaration to include the three areas which had been deleted. Thereafter, plaintiffs filed a motion for reconsideration which was denied. Plaintiffs appeal from the trial court’s order and from the denial of their motion for reconsideration.

Plaintiffs’ position on appeal is that on these facts reformation is an improper remedy as a matter of law and, even if proper, material fact questions existed which precluded summary judgment. While we agree, for reasons set forth later in this opinion, that this case should not have been disposed of on summary judgment, we do not agree that reformation should have been denied as a matter of law.

In order for a written instrument to be reformed, the party seeking reformation must prove that there has been a meeting of the minds which resulted in an actual agreement between the parties, and that when the agreement was reduced to writing and executed, an agreed-upon provision was omitted or one not agreed upon was inserted as a result of the mutual mistake of the parties. (La Salle National Bank v. Kissane (1987), 163 Ill. App. 3d 534, 541, 516 N.E.2d 790; Texas Eastern Transmission Corp. v. McCrate (1979), 76 Ill. App. 3d 828, 831, 395 N.E.2d 624.) The party seeking reformation must prove these elements by clear and convincing evidence. Briarcliffe Lakeside Townhouse Owners Association v. City of Wheaton (1988), 170 Ill. App. 3d 244, 251, 524 N.E.2d 230.

In support of their position, plaintiffs’ first focus on the 1978 declaration and survey. They argue that reformation was not proper because the survey was a unilateral document and because there was no agreement between the parties which was at variance with the declaration. With respect to the 1984 deed, plaintiffs claim that because Matanky sold all he had and Ganser-Oguss purchased all that Matanky had to sell, no mutual mistake existed and, therefore, reformation was improper. Without inquiry as to the merits of these arguments, they must fail because they miss the issue. This is so because neither the 1978 declaration nor the 1984 deed was the reason for the reformation order. Rather, they are natural results which flow from the reformation of the 1979 contract of sale from the Reynolds group to the Matanky group.

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Bluebook (online)
570 N.E.2d 606, 211 Ill. App. 3d 712, 156 Ill. Dec. 130, 1991 Ill. App. LEXIS 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-salle-national-bank-v-850-de-witt-condominium-assn-illappct-1991.