Midland Management Co. v. Helgason

608 N.E.2d 643, 241 Ill. App. 3d 899, 181 Ill. Dec. 570, 1993 Ill. App. LEXIS 138
CourtAppellate Court of Illinois
DecidedFebruary 8, 1993
Docket2-92-0331
StatusPublished
Cited by5 cases

This text of 608 N.E.2d 643 (Midland Management Co. v. Helgason) 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
Midland Management Co. v. Helgason, 608 N.E.2d 643, 241 Ill. App. 3d 899, 181 Ill. Dec. 570, 1993 Ill. App. LEXIS 138 (Ill. Ct. App. 1993).

Opinion

JUSTICE BOWMAN

delivered the opinion of the court:

Plaintiff, Midland Management Company, appeals from an order in a forcible entry and detainer action which determined that defendant, Ronald Helgason, was prejudiced and his due process violated by plaintiff’s trial testimony. Plaintiff also appeals the ruling that plaintiff waived its right to forfeiture of the lease by its acceptance of housing assistance payments by HUD. We affirm.

On November 14, 1986, plaintiff as lessor and defendant as lessee entered into a written lease for a residential unit at Harbor Village Apartments in Aurora. Defendant’s tenancy was subsidized by the United States Department of Housing and Urban Development (HUD) under the United States Housing Act of 1937, section 8, as amended (42 U.S.C.A. §1437f (West Supp. 1992)) (the Act). According to the record, the purpose of the section 8 program is to provide safe, decent and sanitary housing for eligible low-income families. Under the program, the government fixes the contract rent to which the landlord is entitled for the subsidized unit. Of this amount, the tenants each pay a fixed percentage of their adjusted income as their portion of the monthly rent, and the remainder of the contract rent for each unit is paid by HUD directly to the landlord. The landlord enters into a lease with the tenant and also a housing assistance payment contract with HUD. Based on his low income, Mr. Helgason’s portion of the rent was $6 per month.

On April 3, 1991, Carol Meeks, plaintiff’s manager at Harbor Village, served defendant with a demand for reimbursement of damages. The demand said that as a result of water damage caused to defendant’s bathroom floor plaintiff incurred repair charges of $238, for which plaintiff demanded reimbursement from defendant within 30 days, under the lease. Defendant did not pay any sum pursuant to the plaintiff’s demand. On May 8, 1991, defendant tendered and plaintiff received his rental payment for May 1991 in the form of a money order for $6. On May 15, 1991, plaintiff served defendant the notice of termination of tenancy for failure to reimburse plaintiff for the damages set forth in the prior demand. Plaintiff returned defendant’s May 8, 1991, money order with the notice of termination. Plaintiff continued to accept HUD housing assistance payments through August 1991 for the apartment. When defendant failed to vacate the premises pursuant to the notice, plaintiff filed this forcible entry and detainer suit for possession of the premises on July 12, 1991.

The case proceeded to trial on August 23, 1991. Carol Meeks testified that she had been in defendant’s apartment twice and witnessed a large puddle of water on the bathroom floor on both occasions. She testified that the water appeared to be present because of the inadequacy of the defendant’s shower curtain, which had holes in it. She further stated that she had also seen a mop and water-soaked rags in defendant’s bathroom on both occasions when she observed the water puddles. Lisa Howard, plaintiff’s vice-president of property management, testified that the floor and subfloor in defendant’s bathroom had been replaced in 1989 and that the average life of this type of floor and subfloor is 15 years under normal conditions. She, too, stated that she had seen standing water on defendant’s bathroom floor on two occasions and that she had told defendant that he should replace his shower curtain. She also testified she believed that the water on defendant’s floor could only have been caused by water coming out of the tub through holes in the shower curtain. She testified she ordered defendant’s bathroom floor and subfloor to be replaced in March 1991, a job which cost plaintiff $238.

Defendant testified that he never caused his bathroom floor to have standing water on it. He stated he washed the floor approximately once per week with a mop he kept in the bathroom. He denied that there ever was standing water on the bathroom floor when he conducted conversations with Ms. Meeks or Ms. Howard. He testified that he was always cautious about water on the floor since the floor had been replaced in the past. He stated that his tub never overflowed, that there were three small holes in his shower curtain, and that the two holes above the tub rim were no larger than the width of a pencil.

After considering the evidence presented, the trial court found that the defendant was less credible than the witnesses for plaintiff and awarded possession, $18 in damages, and $83 in costs to plaintiff. Enforcement of the judgment for possession was stayed until September 13,1991. '

On September 20, 1991, defendant filed a motion to vacate judgment on several grounds. On October 24, 1991, the court took the motion under advisement. On February 20, 1992, the court entered an order granting defendant’s motion to vacate the judgment for plaintiff and entered judgment in favor of defendant, ruling that defendant was prejudiced by plaintiff’s trial testimony as to defendant’s damaged shower curtain. It also ruled that the HUD housing assistance payments constitute rent and that plaintiff’s acceptance of those constituted a waiver of defendant’s breach of the lease as a matter of law. Plaintiff timely filed its notice of appeal from the judgment.

The material facts and documentary evidence pertinent to the issues of due process and whether HUD payments constitute rent are not disputed in this case; thus, the manifest weight of the evidence standard is inappropriate to apply here. While a court of review ordinarily will not reverse a trial court’s judgment unless it finds that its decision was against the manifest weight of the evidence, where the material facts are not in dispute, that standard is inapplicable. (Merchants National Bank v. The Old Second National Bank (1987), 164 Ill. App. 3d 11, 13.) The questions of sufficiency of plaintiff’s termination notice and whether HUD housing payments constitute “rent” are questions of law and not subject to the manifest weight standard.

WAIVER OF RIGHT TO FORFEITURE

Plaintiff contends that the trial court correctly decided that plaintiff did not waive its right to forfeiture by its temporary retention of defendant’s money order and that the trial court erred in finding that plaintiff waived its right to forfeiture by its acceptance of housing assistance payments from HUD.

This court has found that forfeiture of leases is not favored, and the courts will readily adopt any circumstances that indicate waiver of forfeiture. (Steven W. Barrick & Associates v. Witz (1986), 147 Ill. App. 3d 615.) Any act which affirms the existence of a tenancy after a landlord had knowledge of a breach results in the landlord’s waiver of the right to forfeiture. (Okey, Inc. v. American National Bank & Trust Co. (1981), 96 Ill. App. 3d 987, 993.) The lessor’s acceptance of rent, with knowledge of the breach, is a well-established waiver of the right to forfeiture based on that breach. (Barrick, 147 Ill. App. 3d at 620; Waukegan Times Theatre Corp. v. Conrad (1945), 324 Ill. App. 622; Okey, 96 Ill. App. 3d at 993.) In the present case, plaintiff knew of the breach by defendant on May 4, 1991, when the 30-day period for reimbursement expired. Therefore, any acceptance of rent by plaintiff with respect to defendant’s apartment, after plaintiff knew of the breach of the lease, would constitute a waiver of the right to forfeiture.

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Related

Savett v. Davis
29 Cal. App. Supp. 2d 13 (Appellate Division of the Superior Court of California, 1994)
Midland Management Co. v. Helgason
630 N.E.2d 836 (Illinois Supreme Court, 1994)
Northern Illinois Home Builders Ass'n v. County of Du Page
621 N.E.2d 1012 (Appellate Court of Illinois, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
608 N.E.2d 643, 241 Ill. App. 3d 899, 181 Ill. Dec. 570, 1993 Ill. App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-management-co-v-helgason-illappct-1993.