Marcy v. Markiewicz

599 N.E.2d 1051, 233 Ill. App. 3d 801, 175 Ill. Dec. 37, 1992 Ill. App. LEXIS 1198
CourtAppellate Court of Illinois
DecidedJuly 27, 1992
Docket1-91-0256
StatusPublished
Cited by17 cases

This text of 599 N.E.2d 1051 (Marcy v. Markiewicz) 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
Marcy v. Markiewicz, 599 N.E.2d 1051, 233 Ill. App. 3d 801, 175 Ill. Dec. 37, 1992 Ill. App. LEXIS 1198 (Ill. Ct. App. 1992).

Opinion

PRESIDING JUSTICE BUCKLEY

delivered the opinion of the court:

This appeal arises from an action brought by plaintiffs Merl and Gerald Marcy (Marcys) against Merlin L. Markiewicz, Sr., and Doris Markiewicz and their four children (collectively Markiewiczes) and Inland Real Estate Corporation (Inland) for breach of an alleged right of first refusal to purchase the Evergreen Court Apartments in Arlington Heights. Inland cross-claimed against the Markiewiczes for breach of warranties.

The circuit court granted the Markiewiczes’ motions for summary judgment against the Marcys and Inland on all claims. The circuit court held that the alleged right of first refusal was void because it violated the rule against perpetuities.

On September 17, 1964, the Marcys and the Markiewiczes entered into a partnership agreement for the purpose of developing and constructing buildings on two parcels of realty. The developments are now known as Shalamar (Parcel A) and Evergreen Court (Parcel B). On December 17, 1965, during the completion of Shalamar, but before developing Evergreen Court, the Marcys and the Markiewiczes signed a partnership dissolution agreement (Dissolution Agreement), which provided that the Marcys and their parents would take title of Shalamar and the Markiewiczes would take title to the adjacent Evergreen Court. The Agreement contained the following paragraphs:

“(15) If at any time hereafter, MARKIEWICZ receives from a ready, willing and able purchaser an acceptable bona fide offer to sell to such purchaser, Parcel B or any part thereof, or any property which includes all or part of Parcel B, MARKIEWICZ shall give to MARCY and SONS notice, specifying the name and address of the purchaser and the price and terms of the offer accompanied by MARKIEWICZ’S affidavit that the proposed sale is in good faith. MARCY and SONS shall thereupon have the prior option to purchase Parcel B or the part thereof or the entire property covered by such offer at the price and on the terms of the offer, which option MARCY and SONS may exercise by giving MARKIEWICZ notice within 15 days after their receipt of MARKIEWICZ’S notice of the offer ♦ ♦ ♦
* * *
(19) This Agreement shall be binding upon and inure to the benefit of the respective heirs, devisees, legatees, personal representatives, executors, administrators and assigns of the parties hereto.”

Donald Staehlin, the attorney who represented Merlin Markiewicz, Sr., during the dissolution, testified at his deposition that he had advised Merlin Sr. against signing any document which contained a right of first refusal. Ignoring such advice, Merlin Sr. signed the Dissolution Agreement. Thereafter, Merlin Markiewicz, Sr., gifted a portion of the beneficial interest in the Evergreen Court land trust to his four children, Merlin Jr., Phillip, Susan Snyder and Sandra Staehlin. The Dissolution Agreement was not recorded until December 5, 1974.

On September 23, 1985, 19 years and 9 months after execution of the agreement, the Markiewiczes entered into a contract for the sale of Evergreen Court to Inland (Evergreen Contract). The Evergreen Contract contained the following provisions:

“The property is free of violations, and the interior and exterior structures are in a good state of repair, free of leaks and structural problems. The property is in full compliance with City and County ordinances, and no one has a lease that exceeds the normal one-year term at current market rents, nor has an option to purchase or extend.
* * *
The closing shall occur no later than December 31, 1985, at which time title to the above property shall be merchantable; and, as the case may be, the beneficial interest of the titleholding trust shall be free and clear ***.”

On about December 15, 1985, Inland’s attorneys reviewed the commitment for title insurance on the Evergreen Court property. Inland’s attorneys noticed the following exception on page 3, item 14 of the commitment:

“TERMS, PROVISIONS AND CONDITIONS CONTAINED IN AGREEMENT RECORDED FEBRUARY 5, 1974 AS DOCUMENT NO. 22619924.”

Inland’s attorney contacted the Markiewiczes’ attorney and requested copies of the referenced agreement. After reviewing the Dissolution Agreement, Inland’s attorney noted that paragraph 15 disclosed a possible right of first refusal in favor of the Marcys. Inland’s attorney contacted the Markiewiczes’ attorney regarding the right of first refusal. The Markiewiczes’ attorney indicated that he did not know anything about the alleged right.

The sale of Evergreen Court to Inland was closed on December 20, 1985. Inland’s vice-president, Joseph Cosenza, and two attorneys representing Inland were present. Susan Snyder attended the closing on behalf of the Markiewiczes. One of Inland’s attorneys questioned Snyder about the agreement and the alleged right. Inland’s attorney testified that he recalled Snyder’s response as follows:

“She [Snyder] indicated to me that this paragraph arose in the context that the Marcys owned property next to the Evergreen Apartments, that they were family members, they were related, and that this whole document [Dissolution Agreement] was created for easements and so on between the two parcels, and that the Marcys no longer had any right to purchase the property, were not interested in purchasing the property and words to the effect, you know, basically there was nothing to worry about at this time.”

Snyder testified at her deposition that she knew of no right of first refusal. Further, Snyder testified that she did not read the Dissolution Agreement because it was taken away from her too quickly at the closing. Moreover, Snyder did not request her attorney review the Dissolution Agreement. Snyder did, however, sign an affidavit dated December 20,1985, which provides:

“The undersigned as a beneficiary under American National Bank and Trust Company of Chicago, Trust No. 56992 dated November 1, 1985, being first duly sworn on oath, deposes, states and warrants that there are no existing, pending or threatened liens, citations, assignments, claims or encumbrances effecting [sic] the beneficial interest or power of direction of, under or over the aforementioned Trust, and there are no past-due Trust fees outstanding with respect thereto.”

After obtaining the above affidavit, Inland closed the purchase of Evergreen Court.

About one month after the closing, the Marcys contacted Inland and the Markiewiczes asserting that their right of first refusal had been violated. Inland offered Evergreen Court to the Marcys on the same terms under which it had purchased the property, but the Marcys refused.

The Marcys filed their original complaint on April 11, 1986, seeking specific performance to have the sale of Parcel B to Inland declared void and to obtain title to that parcel.

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Cite This Page — Counsel Stack

Bluebook (online)
599 N.E.2d 1051, 233 Ill. App. 3d 801, 175 Ill. Dec. 37, 1992 Ill. App. LEXIS 1198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marcy-v-markiewicz-illappct-1992.