McDonald's Corp. v. Blotnik

328 N.E.2d 897, 28 Ill. App. 3d 732, 1975 Ill. App. LEXIS 2323
CourtAppellate Court of Illinois
DecidedMay 29, 1975
Docket74-263
StatusPublished
Cited by7 cases

This text of 328 N.E.2d 897 (McDonald's Corp. v. Blotnik) 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
McDonald's Corp. v. Blotnik, 328 N.E.2d 897, 28 Ill. App. 3d 732, 1975 Ill. App. LEXIS 2323 (Ill. Ct. App. 1975).

Opinion

Mr. JUSTICE BARRY

delivered the opinion of the court:

Defendants, Peter, Virginia and Frank J. Blotnik (hereinafter sometimes called “Blotniks”), as lessors, on July 25, 1956, executed a 20-year lease with Franchise Realty Corporation, as lessee, to premises on West Jefferson Street in Joliet. The lease term was to commence upon completion of construction. Lessee paid lessor at the time this lease was delivered a security deposit of $9000 refundable at the expiration of 10 years under a covenant of the lease reading as follows:

“6. Lessee has concurrently herewith deposited with the Lessor the amount of $9000, the receipt of which is hereby acknowledged. Said deposit is made to guarantee the faithful performance of the obligations of tire Lessee hereunder and shall be surrendered to the Lessee at the end of the 10th year of this lease provided that the Lessee shall not then be in default hereunder.”

Thereafter, according to the amended complaint, lessee assigned all of its right, title and interest in the lease to plaintiff, McDonald’s Corporation, with whom it merged. Later, on July 16, 1963, Blotniks, pursuant to a trade agreement dated July 1, 1963, conveyed the leased premises by warranty deed to defendants, Robert A. and James P. Hennessy, and assigned to them also, by separate instrument, all their “right, title and interest” in the foregoing lease. This right of assignment was permitted by paragraph 26 of the lease which provided:

“26. It is further expressly agreed and understood that all the covenants and agreements herein made, shall extend to and be binding upon the heirs, devisees, executors, administrators, successors in interest, and assigns of the Lessor, and of the Lessee # # (Emphasis added.)

The Blotniks retained the security deposit. Plaintiff thereafter made rent payments to the Hennessys and did not default. In 1966, Hennessys executed an amendatory agreement with plaintiff extending the lease term for 7 additional days to January 1, 1977, and as “hereby amended,” ratified and confirmed the original lease. Although this agreement was ■made on July 20, 1966, no specific mention was made in it of the security deposit. After, the expiration of 10 years from the commencement of the lease, plaintiff made demand for return of its security deposit against all defendants and all refused, whereupon plaintiff filed suit in alternative counts. The first count of the amended complaint is against the Blotniks and pleads their receipt of plaintiff’s security deposit under paragraph 6 of the lease and the obligation thereof to return the same; the second count is against fire Hennessys, and alleges their obligation under paragraph 26 of the lease as assignees of lessor. The defendants answered, each pleading affirmatively, matters tending to show that the other defendants in. interest were solely liable. Defendants, Blotniks and Hennessys, then counterclaimed against each other for indemnification, costs and attorney fees. Thereafter, all parties filed a motion for summary judgment on each claim to which he was a party, except that counter-claimants did not file on the counterclaim of their adversaries. Each motion alleged the absence of any material issue of fact, and the briefs of the parties submitted in support of their respective motions concede the foregoing material facts, except the unimportant matter of whether plaintiff merged with its assignor. On November 15, 1973, the death of defendant, James P. Hennessy, was suggested to the court, whereupon Edward Hennessy, as administrator of decedent’s estate, was substituted in his stead. On May 22, 1974, the circuit court, adopting the statement of facts set forth in the briefs, entered summary judgment in the amount of $12,341.33 ($9000 plus statutory interest of $33.41.33 from November 28, 1967) in favor of plaintiff and against Blotniks, and entered final orders dismissing plaintiffs complaint against Hennessys and both counterclaims, all with prejudice. It did so upon the grounds that the covenants of the lease imposing the duty to make a refund of the security deposit was a personal one and not a covenant running with the land which transferred to or was assumed by Hennessys, as assignees. The Blotniks appeal from all parts of the order except the dismissal of the Hennessy counterclaim; plaintiff cross-appeals, praying that the order dismissing its complaint against the Hennessys be reversed, or in the alternative, that the judgment order in their favor against Blotniks be affirmed.

We consider, first, the Blotnik appeal. Since the Blotniks are not parties in interest to the cause of action between plaintiff and the Hennessys under Count II of the amended complaint, and have no direct, immediate or substantial interest therein, they have no standing to appeal from those provisions of the judgment order dismissing Count II. (Flanagan v. Hulman, 121 Ill.App.2d 382, 257 N.E.2d 599, 601 (1st Dist. 1970); Schachtrup v. Hensel, 295 Ill.App. 303, 14 N.E.2d 897, 900 (2nd Dist. 1938).) A nonparty to a cause of action is prejudiced or aggrieved in the legal sense that permits him to appeal from a final order therein when a legal right is invaded by the order complained of, or his pecuniary interest is shown to be directly and not merely indirectly affected. City of Alton v. County Court, 16 Ill.2d 23, 156 N.E.2d 531 (1959); see In Re Estate of Harmston, 10 Ill.App.3d 882, 295 N.E.2d 66, 68 (3d Dist. 1973).

In respect to the judgment order in favor of plaintiff and against Blotniks on Count I, it is argued by Blotniks that the circuit court erred in granting plaintiff’s motion since the record shows a genuine dispute as to a material fact. They assert that notwithstanding that both parties to Count I filed a motion representing that there was no genuine triable issue in respect to that claim, the record shows from affidavits filed by them and by Hennessys, in support of counterclaims, that there does exist a dispute as to whether, at the time of the trade agreement between Hennessys and Blotniks on July 1, 1983, “the $9000 security deposit was fuUy discussed.” That fact, if disputed, was not material to the issues made under Count I, and in our judgment, the parties also so agreed in their representations to tire circuit court that no genuine issue as to any material fact existed. In Allen v. Meyer, 14 Ill.2d 284, 292, 152 N.E.2d 576, 580 (1958), the supreme court stated that:

“Summary judgment procedure is an important tool in the administration of justice. Its use in a proper case, wherein is presented no genuine issue as to any material fact, is to be encouraged. The benefits of summary judgment in a proper case inure not only to the litigants, in the saving in time and expenses, but to the community in avoiding congestion of trial calendars and the expenses of unnecessary trials.
In the instant case both parties moved for summary judgment and thereby the court was invited to decide the issues by reference to its file.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re C.H.
2018 IL App (3d) 180089 (Appellate Court of Illinois, 2019)
People v. Stephanie H. (In Re C.H.)
2018 IL App (3d) 180089 (Appellate Court of Illinois, 2018)
People v. M.B.
137 Ill. App. 3d 992 (Appellate Court of Illinois, 1985)
In Re MB
484 N.E.2d 1154 (Appellate Court of Illinois, 1985)
Mullendore Theatres, Inc. v. Growth Realty Investors Co.
691 P.2d 970 (Court of Appeals of Washington, 1984)
Shannon v. Stookey
375 N.E.2d 881 (Appellate Court of Illinois, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
328 N.E.2d 897, 28 Ill. App. 3d 732, 1975 Ill. App. LEXIS 2323, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonalds-corp-v-blotnik-illappct-1975.