Leonard v. Koval

543 N.E.2d 911, 187 Ill. App. 3d 924, 135 Ill. Dec. 343, 1989 Ill. App. LEXIS 1282
CourtAppellate Court of Illinois
DecidedAugust 25, 1989
Docket1-88-1213
StatusPublished
Cited by2 cases

This text of 543 N.E.2d 911 (Leonard v. Koval) 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
Leonard v. Koval, 543 N.E.2d 911, 187 Ill. App. 3d 924, 135 Ill. Dec. 343, 1989 Ill. App. LEXIS 1282 (Ill. Ct. App. 1989).

Opinion

JUSTICE McNAMARA

delivered the opinion of the court:

Plaintiff Robert L. Leonard, the seller of a warehouse in North-brook, Illinois, filed a two-count complaint against defendants Leonard W. Koval, the buyer, Chicago Title and Trust Company, which held the escrow account, and Florrie Gottainer, a realtor, for specified performance and other relief. After plaintiff rested his case in this bench trial, the trial court directed a verdict in favor of defendants as to count II. Leonard appeals from the directed verdict as to count II for specific performance and declaratory relief concerning the $55,000 escrow. At the close of defendant’s case, the trial court directed a verdict in favor of Leonard as to count I, and defendants have not appealed that order. Only the appellee Koval has filed an appearance and answering brief in this court.

On January 21, 1985, Leonard entered into a real estate contract with Koval for the purchase of a 60-year-old airplane hangar which had been converted into a commercial structure, for the purchase price of $865,000. On August 7, 1985, the parties also entered into an escrow agreement, which provided that Koval would, for nine months, use his best efforts to seek a revision to Article V of the Northbrook Zoning Ordinance in order to permit him to add 29,000 square feet or less to the building. Leonard would then have an additional nine months to seek such a zoning revision in the event that Koval failed to succeed.

During the 18-month period, $55,000 was to be held in escrow by Chicago Title and Trust. If the zoning revisions were obtained, $44,000 was to be paid to Leonard and $11,000 was to be paid to a real estate broker. If the zoning change was not accomplished after Koval’s best efforts, the money was to be given to Koval. The agreement read:

“VI. The parties have agreed to retain $55,000 as escrow funds for the next eighteen months during the time the revising of Article V of the Northbrook Zoning Ordinance as aforestated will be pursued; that for the first nine months of said period, the purchaser [defendant] and his attorney shall use their best efforts and at their expense to secure the contemplated revision of Article V of the Northbrook Zoning Ordinance as heretofore stated and permission to add twenty-nine thousand square feet of building or such lesser square footage as Koval [defendant-buyer] accepts; that after said nine month period, the seller [plaintiff], upon notice by purchaser [defendant] that the revision has not yet been accomplished, shall use his [plaintiff-seller’s] best efforts so as to accomplish the revision of Article V of the Northbrook Zoning Ordinance as before stated.”

Koval filed for a 32,774-square-foot variance with the Northbrook Zoning Board of Appeals (ZBA). He subsequently reduced the request to 31,000 square feet. Koval’s application for variance was filed on September 27,1985.

The October 28, 1985, minutes of the ZBA show that Grant Erickson, Koval’s attorney, appeared with Joseph Alexander, an architect, who presented site plans. After some discussion, with various recommendations and suggestions made to Koval, the matter was continued until November 25,1985.

On November 19, 1985, Leonard notified Koval that he was in the wrong forum, since the ZBA had no authority to revise Article V of the Northbrook Zoning Ordinance. The letter included a demand to proceed “up and until April 15, 1986, so as to obtain this variation by ordinance,” at which time Leonard would “use the following 9 month period of time to accomplish said variation.” The parties then contacted Northbrook’s attorney, Steven Elrod, to determine the proper forum. Based on the information received from Elrod, the parties included the disputed language in section V of the escrow agreement.

On November 25, 1985, Koval appeared before the Northbrook ZBA. He requested a continuance due to his “inability to complete the items addressed at the November meeting.” The chairman announced that if Koval could not proceed on January 27, 1986, the petition would be dismissed and he could refile for a hearing at a later date.

In January 1986, Koval made an application to the Northbrook plan commission for an ordinance amendment.

On January 27, 1986, the ZBA minutes reflect that Koval was still not ready to make a presentation in response to the suggestions and requests made at the November meeting, and he asked for a continuance until April. The chairman stated emphatically that he did not want Koval to work one board, such as the plan commission or village board, against the ZBA. Koval’s attorney assured the ZBA that he did “not intend to approach the boards in opposite directions.” He further stated that the project is an expensive and complicated development which required further detailed study. The matter was continued until February 24,1986.

In January 1986, Leonard told Koval that he could add 29,000 square feet to the second floor without obtaining a zoning change, but Koval replied that he wanted the addition to be a one-store facility.

On February 14, 1986, Koval entered into an exclusive real estate agency agreement with Gottainer to sell the property.

On February 24, 1986, no one appeared at the ZBA on behalf of Koval and the matter was again continued.

On March 18, 1986, Koval’s attorney appeared before the plan commission and explained that Koval had “struggled as to which direction to pursue,” the commission or the ZBA. She stated Koval did not agree with specific engineering changes suggested by the village, and therefore he went to the ZBA; that she was aware of the lack of cooperation on the part of her client; and that she was not in favor of changing the zoning ordinance since the building was purchased knowing of the non-conforming bulk. When asked why Koval believed the plan commission was a better forum, his attorney replied that it was easier. Elrod stated that he was not sure the ZBA had been presented with sufficient evidence to merit a variation. The plan commission recommended that the village board deny the application “due to insufficient evidence that the amendment would promote public health, safety and welfare.”

According to the March 24, 1986, minutes of the ZBA, Koval’s attorney stated that Koval had presented to the plan commission an amendment to the zoning code, and that the petition was heard and rejected by the plan commission on March 18. The plan commission had recommended the adoption of a zoning code amendment which would prohibit the ZBA from granting variations to increase the floor area of nonconforming commercial property, which proposed amendment was before the village board of trustees. A request for a continuance until April 28 was granted.

On March 28, 1986, a potential purchaser of the property signed a letter of intent to offer Koval $850,000 for the property, subject to title inspection and procurement of authority to conduct its business there.

On April 2, 1986, Koval notified Leonard in writing that he would not proceed with an appeal to the board.

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Bluebook (online)
543 N.E.2d 911, 187 Ill. App. 3d 924, 135 Ill. Dec. 343, 1989 Ill. App. LEXIS 1282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-koval-illappct-1989.