LK Commercial Investments, LLC v. Albi Express, LLC

2025 IL App (5th) 240892-U
CourtAppellate Court of Illinois
DecidedDecember 11, 2025
Docket5-24-0892
StatusUnpublished

This text of 2025 IL App (5th) 240892-U (LK Commercial Investments, LLC v. Albi Express, LLC) 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
LK Commercial Investments, LLC v. Albi Express, LLC, 2025 IL App (5th) 240892-U (Ill. Ct. App. 2025).

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

1 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.

2 ¶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

3 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.

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2025 IL App (5th) 240892-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lk-commercial-investments-llc-v-albi-express-llc-illappct-2025.