MKM Oil, Inc. v. Welk

2025 IL App (4th) 240284-U
Appellate Court of Illinois·Decided October 9, 2025·No. 4-24-0284·Unpublished

Opinion

2025 IL App (4th) 240284-U

NOTICE NO. 4-24-0284 FILED This Order was filed under October 9, 2025 Supreme Court Rule 23 and is IN THE APPELLATE COURT Carla Bender not precedent except in the 4th District Appellate limited circumstances allowed OF ILLINOIS Court, IL under Rule 23(e)(1).

FOURTH DISTRICT

MKM OIL, INC. and FAST BREAK FOODS, LLC, as ) Appeal from the Successor in Interest to Fast Break Food Mart, Inc., ) Circuit Court of Plaintiffs-Appellees, ) Tazewell County v. ) No. 16L34 WILLIAM G. WELK and TRAVIS WELK, )

Defendants ) Honorable (William G. Welk, Defendant-Appellant). ) Paul E. Bauer, ) Judge Presiding

JUSTICE KNECHT delivered the judgment of the court.

Justices Doherty and Cavanagh concurred in the judgment.

Justice Doherty also specially concurred.

ORDER

¶1 Held: The appellate court affirmed the trial court’s judgment in favor of plaintiffs based on their claims of breach of contract and tortious interference with business expectancy, finding defendant forfeited multiple issues and holding the court properly denied defendant’s motion for judgment notwithstanding the verdict or for a new trial and properly awarded plaintiff Fast Break Foods, LLC, prejudgment interest. The court reversed the trial court’s award of prejudgment interest to plaintiff MKM Oil, Inc. The court remanded with directions for the trial court to determine the reasonable amount of attorney fees to be awarded to plaintiffs for their defense of the appeal.

¶2 In March 2016, plaintiff Fast Break Foods, LLC (hereinafter Fast Break or Fast Break Foods, LLC), as successor in interest to Fast Break Food Mart, Inc., the lessee and sublessor of a gas station and convenience store, and plaintiff MKM Oil, Inc. (MKM), Fast Break’s sublessee, filed a complaint against defendants, William G. Welk and Travis Welk, seeking damages based on the failure of Welk, as the lessor and owner of the premises, to

consent to an assignment of the sublease to TA Operating LLC, also known as Travel Centers of America (TA). Travis was listed on the lease as part of an estate plan and was not actually involved with the lease or the trial. Travis has not filed a brief on appeal. In the complaint, plaintiffs alleged causes of action based on breach of contract and tortious interference with business expectancy.

¶3 In October 2022, the trial court denied Welk’s motion for summary judgment. In June 2023, a jury found in favor of plaintiffs and awarded both actual and punitive damages. The court denied Welk’s motion for judgment notwithstanding the verdict or, in the alternative, for a new trial.

¶4 On appeal, Welk raises numerous issues, which we consolidate as arguments the trial court erred by (1) failing to grant Welk’s motion for summary judgment; (2) failing to grant his motion for judgment notwithstanding the verdict based on insufficient evidence to support the verdicts and amount of damages; (3) failing to grant his motion for a new trial based on (a) errors in giving the jury an instruction on waiver and giving nonpattern instructions and (b) allowing testimony from an accountant based on hearsay and references to documents withheld during discovery; and (4) awarding prejudgment interest to both plaintiffs and awarding attorney fees to Fast Break. Plaintiffs filed motions on appeal, seeking a remand for an award of attorney fees for the costs of defending the appeal.

¶5 We reverse the award of prejudgment interest to MKM and affirm in all other respects. We remand with directions for the trial court to determine the reasonable amount of attorney fees to be awarded to plaintiffs for their defense of the appeal.

¶6 I. BACKGROUND

¶7 A. General Background and Lease Provisions

¶8 On March 31, 2016, MKM and Fast Break filed a complaint alleging multiple counts of breach of contract and intentional and unjustified tortious interference with business expectancy in connection with Welk’s refusal to consent to a transfer of the sublease of the premises from MKM to TA. Welk filed counterclaims for breach of contract, alleging Fast Break failed to (1) enter a new lease or obtain a valid assignment of the lease when it reorganized as Fast Break Foods, LLC, (2) maintain the premises as required by the lease, and (3) make all required rent payments. In October 2022, the trial court denied a motion by Welk for summary judgment. In June 2023 a jury trial was held.

¶9 Evidence at trial showed Welk was a real estate developer who purchased the property in 1996 and developed a gas station with a convenience store and restaurant there. As part of the development, the Village of Morton issued a building permit based on a site plan that depicted the gas station having a rear setback (rear parking area), which was used to satisfy the village’s parking requirements.

¶ 10 In October 1999, Fast Break Food Mart, Inc., leased the property from Welk for 20 years, with a 10-year renewal option and, in November 2005, assigned its rights and interests to Fast Break Foods, LLC, which was a successor in interest with common owners. Fast Break was owned and operated by Charles Feeney and his family, and Feeney personally guaranteed Fast Break’s performance under the lease. Under the lease, Fast Break owed $10,500 in monthly rent, plus 0.5 cents per gallon of gasoline sold at the station. Fast Break also paid real estate taxes and paid for insurance. In 2005, MKM subleased the property and operated the gas station and convenience store, which were rebranded as a British Petroleum (BP) station under an agreement with BP Products North America, Inc.

¶ 11 In 2015, MKM entered into a purchase agreement with TA under which TA

would acquire MKM’s interest in various properties, including its sublease of the gas station and convenience store. Fast Break verbally consented to the transfer of the sublease. Fast Break also alleged it contacted Welk based on the following provision of its lease with Welk:

“Lessee may not assign this lease or sublease the premises, or any right or privilege connected therewith, without the express written consent of the Lessor, which shall not be unreasonably withheld. It is specifically acknowledged that Lessee intends and Lessor is agreeable to Lessee subletting at least a portion of the premises, pending Lessor’s consent to any specific sublessee. In the event of any such assignment or sublease it shall not alter Lessee’s responsibility to Lessor under this Lease. Lessor agrees to accept rent from Lessee, its assignee, or sublessee. Irrespective of whether this lease is assigned or the premises sublet, Lessor shall remain responsible for the full performance of all terms and conditions of this Lease.”

¶ 12 The lease also had the following waiver provision:

“No waiver by either of the parties hereto of any provision or breach thereof, shall be deemed a waiver of any other provision or of any subsequent breach by Lessor or Lessee of the same or any other provision. Lessor’s or Lessee’s consent to or approval of any act shall not be deemed to render unnecessary the obtaining of Lessor’s or Lessee’s consent to or approval of any subsequent act.”

¶ 13 The lease provided, “The Lessor shall have the option to extend this Lease for ten years by giving Lessor sixty (60) days written notice prior to the expiration of the Lease that Lessee chooses to extend.” That statement, providing the “Lessor” to give the “Lessor” notice, led to a dispute between the parties at trial as to who had the right to extend the lease. The lease

also required the lessor to give notice before the expiration of the lease and provided the lease would automatically renew if notice was not given, unless the lessee gave notice it did not intend to renew the lease. That option to extend was conditioned on the lessee not being in default at the time the option was exercised.

¶ 14 The lease contained the following section concerning repairs and maintenance:

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MKM Oil, Inc. v. Welk, 2025 IL App (4th) 240284-U (Ill. Ct. App. 2025).

2025 IL App (4th) 240284-U (MKM Oil, Inc. v. Welk) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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