LK Commercial Investments, LLC v. Albi Express, LLC

2025 IL App (5th) 240892-U
Appellate Court of Illinois·Decided December 11, 2025·No. 5-24-0892·Unpublished

Opinion

NOTICE

2025 IL App (5th) 240892-U NOTICE

Decision filed 12/11/25. The This order was filed under text of this decision may be NO. 5-24-0892 Supreme Court Rule 23 and is changed or corrected prior to the filing of a Petition for not precedent except in the

Rehearing or the disposition of IN THE limited circumstances allowed the same. under Rule 23(e)(1).

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT

LK COMMERCIAL INVESTMENTS, LLC, ) Appeal from the ) Circuit Court of

Plaintiff-Appellant, ) Madison County.

)

v. ) No. 23-EV-450 )

ALBI EXPRESS, LLC, and ) UNKNOWN OCCUPANTS, ) Honorable ) Ronald S. Motil,

Defendants-Appellees. ) Judge, presiding.

JUSTICE SHOLAR delivered the judgment of the court.

Presiding Justice Cates and Justice Boie concurred in the judgment.

ORDER

¶1 Held: The trial court’s judgment in favor of defendant on plaintiff’s claim for eviction and possession was not against the manifest weight of the evidence, and the court did not abuse its discretion by applying equitable defenses against plaintiff’s claim.

Further, the trial court did not err by denying plaintiff’s motion to reconsider.

¶2 The plaintiff, LK Commercial Investments, LLC, (LK) appeals the March 13, 2024, and July 8, 2024, orders of the circuit court of Madison County in favor of defendants, Albi Express, LLC (Albi), for LK’s claim for eviction and possession of the subject premises. LK raises three issues on appeal. First, LK argues that the trial court’s finding in favor of Albi as to LK’s claim for eviction and possession of the subject premises was against the manifest weight of the evidence. Second, LK argues that the trial court abused its discretion by applying the equitable defenses of laches, estoppel, and waiver. Finally, LK contends that the trial court erred by denying LK’s

motion to reconsider the March 13, 2024, order. For the reasons that follow, we affirm.

¶3 I. BACKGROUND

¶4 On October 10, 2019, LK and Albi entered into a triple net lease agreement for three parcels of property commonly known as 3 Caine Drive, Madison, Illinois (subject premises). LK leased the subject premises to Albi for the operation of a trucking company. Pursuant to the lease agreement, Albi was to pay monthly rent on the first of each month during its tenancy. Rent included monthly “Base Rent” of $5,790, triple net expenses, and “Bonus Rent” of 50 cents per square foot received by defendant from any subtenant (not to exceed $2,232.00). Section 2.6 of the lease agreement authorized LK to charge a late fee equal to 5% of any delinquent rent payment. The lease agreement defined any late fees incurred as “Additional Rent” and included “Additional Rent” in its definition of “Rent.” The lease agreement contained a purchase option which granted Albi the exclusive option to purchase the subject premises.

¶5 On June 5, 2023, LK filed a complaint for forcible entry and detainer, alleging Albi breached the terms of the lease agreement in that Albi failed to pay timely rent. LK alleged that it provided Albi with two notices of default pursuant to the terms of the lease and that Albi failed to cure its default. LK also alleged that Albi was in default under the terms of the lease by failing to furnish proof of commercial general liability insurance, failing to properly maintain and repair the building, and failing to request approval for improvements made to the building. LK further alleged that it was entitled to possession of the subject premises, and at the time of filing the complaint, Albi owed a total of $3,931.71 in late fees. LK attached to its complaint: the triple net lease agreement; first amendment to the lease agreement; the notice of past due rent dated April 13, 2023; the notice of default dated April 27, 2023; and, the 10 day notice dated May 15, 2023.

¶6 Albi filed an answer on July 5, 2023. Albi denied that it was in material breach of the terms of the lease, denied that late fees continued to accrue under the lease, and asserted that it was current on its rent payments. Albi denied that it failed to cure its default. Additionally, Albi denied that it was also in default for failure to furnish proof of insurance, failure to properly maintain and repair the building, and failure to request approval for improvements made. Albi denied that LK was entitled to possession, and lastly, denied it owed $3,931.17 in accrued late fees.

¶7 In support of its position, Albi asserted that it paid any accrued late fees by electronic transfer on or about June 11, 2023. In addition to its answer, Albi asserted the affirmative defense of laches, and stated: “Plaintiff complains of alleged conduct by Defendant that goes back to the beginning of the lease in 2019. Defendant has remedied any alleged defaults under the terms of the lease.” Further, Albi asserted the affirmative defense of anticipatory repudiation/breach of contract, and asserted LK sought to terminate the lease so that it could “sell the subject real estate to another party for a substantially greater amount than it would be obligated to do so with respect to Defendant.” On November 14, 2023, Albi added the affirmative defense of “set off”, and alleged Albi was entitled to reimbursement because Albi paid $1,140 per month for LK’s insurance coverage, but LK was only incurring $4,809 in annual insurance expenses.

¶8 The matter proceeded to a bench trial on November 16, 2023. LK called Alex Klemme as its first witness. Klemme testified that he is the managing member of LK Commercial Investments, LLC. He testified that as managing member, his duties are to operate the daily course of business, including managing the business’ properties and tenancies, and keeping track of rent payments. Klemme testified that he is familiar with the tenancy between LK and Albi.

¶9 Klemme testified that the lease agreement between LK and Albi commenced in late 2019. He stated that Albi’s monthly rent under the lease agreement was approximately $10,000, which

included base rent, additional rent, and bonus rent. Klemme testified that pursuant to the lease agreement, monthly rent was due on the first day of each month. Klemme stated that pursuant to the terms of the lease, LK assessed a 5% late fee on delinquent rent. Klemme also testified that the lease agreement required all amendments to be made via written agreement between the parties.

¶ 10 Klemme testified that LK sent a past due notice and a demand for rent and late fees dated April 13, 2023, along with an attached ledger of payment history from April 2022 to April 2023. Klemme stated that the ledger demonstrated “that payments were commonly past due and at that time that this notice was provided that they are behind rent. There’s a past due amount of $26,000.” Klemme stated his affidavit of notice demanded $26,159.84 of past due rent along with a 5% fee on delinquent payments in the amount of $3,412.14. Klemme further testified that LK sent a five- day notice for demand to pay rent or vacate the property, dated April 27, 2023. He stated as of the date of that notice, $14,785.99 of rent remained outstanding. Klemme stated that the April 27, 2023, notice also included a late fee on delinquent payments in the amount of $3,412.14. Klemme testified that Albi did not pay the outstanding amount within five days.

¶ 11 Klemme testified that LK sent another notice of default, dated May 3, 2023, that informed Albi they were past due on rent and demanded payment. Klemme stated the amount demanded in the May 3, 2023, notice was $14,785.99, which was the same amount demanded in the April 27, 2023, notice. Klemme testified that this amount included $3,412.14 of late fees.

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