Loyola University of Chicago v. Onward MSO, LLC

2024 IL App (1st) 230708-U
CourtAppellate Court of Illinois
DecidedOctober 30, 2024
Docket1-23-0708
StatusUnpublished
Cited by2 cases

This text of 2024 IL App (1st) 230708-U (Loyola University of Chicago v. Onward MSO, 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
Loyola University of Chicago v. Onward MSO, LLC, 2024 IL App (1st) 230708-U (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 230708-U No. 1-23-0708 Third Division October 30, 2024

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________

) LOYOLA UNIVERSITY OF CHICAGO, ) ) Plaintiff-Appellee, ) Appeal from the Circuit Court ) of Cook County. v. ) ) No. 2021 M1 701604 ONWARD MSO, LLC, and ANY AND ALL ) UNKNOWN OCCUPANTS, ) The Honorable ) Robert F. Harris, Defendants ) Judge Presiding. ) (Onward MSO, LLC, ) Defendant-Appellant). ) ) ______________________________________________________________________________

JUSTICE REYES delivered the judgment of the court. Presiding Justice Lampkin and Justice Martin concurred in the judgment.

ORDER

¶1 Held: The trial court’s judgment is reversed, where the trial court abused its discretion in denying a continuance based on the illness of defendant’s trial counsel immediately prior to trial. As the issue of possession has been rendered moot by the subsequent execution of the eviction order, the matter is remanded for a new trial to determine whether defendant is liable for past-due rent.

¶2 The instant appeal arises from a forcible entry and detainer lawsuit filed by plaintiff Loyola

University of Chicago against defendant Onward MSO, LLC, a company which operated a No. 1-23-0708

restaurant on the premises owned by plaintiff. Defendant’s counsel had health issues during

the proceedings, resulting in two continuances; after the second one, the trial court indicated

that it would grant no further continuances and suggested that defendant retain additional or

alternate counsel. Shortly before trial, defendant’s counsel had a health emergency which was

unrelated to his prior condition, which resulted in his hospitalization. The trial court, however,

denied defendant’s requests for a continuance and the matter proceeded to a jury trial. At trial,

defendant was unable to present its case, as it was not represented by an attorney, and the trial

court ultimately entered a directed verdict at the end of plaintiff’s case. On appeal, defendant

primarily contends that the trial court erred in (1) denying its requests for a continuance,

(2) permitting the trial to go forward without defendant being allowed to present its case, and

(3) denying his petition for rule to show cause, which was based on plaintiff’s unilateral

altering of the address on the premises in question. For the reasons that follow, we reverse and

remand the matter for a new trial.

¶3 BACKGROUND

¶4 Lease

¶5 On March 22, 2017, plaintiff, as landlord, and defendant, as tenant, entered into a lease

agreement for defendant’s use of certain property owned by plaintiff; the lease was signed on

behalf of defendant by Michael Olszewski, defendant’s owner and sole member. According

to the lease, plaintiff and Albion Hotel, LLC (Albion), had developed a six-story multiuse

building “commonly known as 6566-90 N. Sheridan Road/1209 W. Albion Avenue,

Chicago, Illinois.” The building was vertically subdivided into four parcels, two owned by

plaintiff and two owned by Albion. The lease provided that “[t]he premises to be leased to

2 No. 1-23-0708

Tenant consists of that portion of the Loyola Retail Improvements designated as ‘Retail

Space #A’ and ‘Retail Space #B’ on the site plan attached hereto.”

¶6 The term of the lease was to begin on the “Rent Commencement Date,” which was

defined as the earlier of (1) the date that defendant opened for business to the public or (2)

November 26, 2017, and was to extend for a period of 10 years. The lease provided for one

year of rent abatement, with monthly rent payments of $10,000 commencing during the

second year of the lease.

¶7 Under the lease, defendant was to use the property solely for the operation of a sit-down

restaurant, and was responsible for all work and improvements on the premises at its sole

expense, which was estimated to be in excess of $1 million. Upon expiration of the lease,

“[a]ll personal property, furnishings, machinery and trade fixtures, equipment and

improvements that [defendant] install[ed] in the Premises [would] remain the property of

[defendant],” and defendant would be responsible for removing such items from the property.

¶8 Upon the commencement of defendant’s rent payment obligation, defendant was required

to pay rent on the first day of each calendar month. Past-due rent would incur interest

charges, as well as a $200 late charge. The lease provided that a failure to pay rent which

continued for five days after defendant’s receipt of written notice from plaintiff would

constitute a default under the lease. Under the lease, “[e]xcept for the payment of Rent,” if

either party was delayed or prevented from the performance of any of its obligations under

the lease by, inter alia, an act of God, the period for its performance would be extended for a

time equivalent to the period of such delay.

¶9 On May 1, 2018, the parties amended the lease to confirm that the rent commencement

date of the lease would be November 26, 2017, and that the lease term would extend to

3 No. 1-23-0708

November 25, 2027. The amendment further provided defendant with an additional month of

rent abatement, through December 25, 2018 (i.e., the first month of the second year of the

lease term). Accordingly, defendant would first be required to pay rent in January 2019.

¶ 10 Performance Under Lease

¶ 11 The record reflects that defendant’s restaurant opened on December 20, 2018. Defendant

did not make a rent payment in January 2019, which was the first payment owed under the

lease. Between February 2019 and January 2020, defendant made only 10 rent payments,

totaling $100,000.

¶ 12 The restaurant was forced to close in March 2020 due to the COVID-19 pandemic and

never reopened. Defendant did not make any rental payments after the restaurant’s closure in

March 2020.

¶ 13 On April 13, 2021, plaintiff sent defendant a notice of default, claiming that defendant’s

rent payment was in arrears in the amount of $169,889.84, and provided that defendant had

until April 30, 2021, to cure the default before the lease would be terminated. Defendant did

not make such a payment.

¶ 14 Complaint

¶ 15 On May 4, 2021, plaintiff filed a forcible entry and detainer action against defendant,

alleging that plaintiff was entitled to possession of “6850 North Sheridan Road” in Chicago,

as well as $258,014 in unpaid rent for the period from September 1, 2019, through May 31,

2021; the complaint was later amended to change the subject address to “6580 N. Sheridan

Road.” Plaintiff also filed a motion for use and occupancy payments during the course of the

litigation, which was granted in part; defendant, however, did not make any use and occupancy

payments during the course of the proceedings.

4 No. 1-23-0708

¶ 16 On October 6, 2021, defendant filed an answer and affirmative defenses to the amended

complaint, as well as several counterclaims. Defendant raised a total of 14 affirmative

defenses, including (1) waiver, (2) novation, (3) estoppel, (4) fraud, (5) unclean hands, (6)

setoff, (7) frustration of purpose, (8) impossibility of performance, (9) equitable rescission due

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Bluebook (online)
2024 IL App (1st) 230708-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loyola-university-of-chicago-v-onward-mso-llc-illappct-2024.