Munroe v. Brower Realty & Management Co.

565 N.E.2d 32, 206 Ill. App. 3d 699, 151 Ill. Dec. 761, 1990 Ill. App. LEXIS 1770
CourtAppellate Court of Illinois
DecidedNovember 26, 1990
Docket1-88-3450
StatusPublished
Cited by16 cases

This text of 565 N.E.2d 32 (Munroe v. Brower Realty & Management Co.) 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
Munroe v. Brower Realty & Management Co., 565 N.E.2d 32, 206 Ill. App. 3d 699, 151 Ill. Dec. 761, 1990 Ill. App. LEXIS 1770 (Ill. Ct. App. 1990).

Opinions

PRESIDING JUSTICE LaPORTA

delivered the opinion of the court:

Plaintiff, Scott Munroe, brought an action against defendant, Brower Realty & Management Company, to recover his security deposit pursuant to the terms of a lease entered into between the two parties. On appeal, defendant contends that the trial court erred in awarding plaintiff his security deposit, plus earned interest, and by imposing a penalty for defendant’s willful retention of the security deposit and interest.

Although no appellee’s brief has been filed, we will address the merits of this case. First Capitol Mortgage Corp. v. Talandis Construction Corp. (1976), 63 Ill. 2d 128, 345 N.E.2d 493.

On March 1, 1987, plaintiff and defendant executed a lease whereby plaintiff agreed to rent an apartment from defendant at 2306 West Nichols Road in Arlington Heights, Illinois, for a term beginning March 1, 1987, and ending on August 31, 1987. Pursuant to the lease agreement, plaintiff paid a security deposit to defendant in the amount of $610 (a $585 damage deposit plus a $25 key deposit). On August 31, 1987, plaintiff and defendant executed a second lease agreement whereby plaintiff agreed to rent an apartment unit located at 2208 West Nichols in Arlington Heights for a period beginning September 1, 1987, and ending August 31,1988.

At trial, plaintiff testified that in September 1987 he received a check from defendant in the amount of $517.60 representing the return of his security deposit paid under the first lease, less $92.40, the cost incurred by defendant for cleaning the carpeting in the unit. However, when plaintiff attempted to negotiate the check, he learned that payment on the check had been stopped.

Plaintiff also testified that he and defendant had a verbal agreement that the security deposit he had paid under the first lease would be automatically transferred and applied as the security deposit due under the second lease. Plaintiff then testified that in January 1988 defendant successfully brought a forcible entry and detainer proceeding against him after which plaintiff vacated the premises and paid no rent for the remaining months covered by the lease.

Thomas Frawley, vice-president of defendant, testified that the corporation was retained by various owners to manage their respective properties. Frawley stated further that the corporation acted as agent on behalf of the owners. In that capacity, defendant earned commissions for leasing units for the owners, was paid for handling daily collections, made mortgage payments, remitted assessment payments, paid utility bills, prepared monthly reports to the owners reflecting cash flow and profits from the properties, and remitted to the owners the profits earned.

According to Frawley, the complex in which plaintiff rented the two units consisted of 72 Six-flat buildings. Defendant managed 13 of those buildings, totaling 78 separate units. The investment group which owned the building in which plaintiff rented his first apartment was a partnership of 8 to 10 individuals. An entirely different limited partnership owned the building in which plaintiff rented the second apartment. Each of these partnerships owned two six-flat buildings, or 12 separate rental units, within the complex. Frawley did not believe that any of the individual investors belonged to both partnerships.

Frawley stated that after several unsuccessful attempts to obtain the security deposit for the second apartment from plaintiff, he authorized the stop payment order on the check previously issued to plaintiff and then applied that amount toward the security deposit due under the terms of the second lease.

In rendering judgment for plaintiff, the trial court made the following findings: (1) that the five-day notice given in defendant’s forcible entry and detainer action provided that the lease would be terminated if rental payments were not made; (2) that plaintiff did not make payment and was subsequently evicted (although the record shows' that plaintiff voluntarily vacated the premises), resulting in termination of the lease; (3) that although a lessee may remain liable for all future rents due under the terms of the lease, notwithstanding the lessor’s reentry, where a lease expressly so provides, the lease in the instant case did not contain such a provision; (4) that defendant made an election of remedies to terminate the lease and could not justify its refusal to return plaintiff’s security deposit on the ground that rent remained owing under the lease at the time of plaintiff’s eviction; (5) that plaintiff paid the judgment on defendant’s forcible entry and detainer action, and such judgment was not satisfied by applying the security deposit; (6) that the statute requiring a lessor to pay interest on a security deposit applied in the instant case because defendant was the lessor of the property even though it was not the owner of the property (Ill. Rev. Stat. 1987, ch. 80, par. 121); and (7) that the statute requiring the lessor to pay the lessee’s attorney fees as a penalty for refusing to pay such interest applied in the present case because defendant willfully failed to pay such interest and to return plaintiff’s security deposit (Ill. Rev. Stat. 1987, ch. 80, par. 122).

Defendant first argues that plaintiff was not entitled to the return of his security deposit because he failed to pay rent from February through August 1988. Defendant reasons that it can proceed under the terms of the lease despite the forcible entry and detainer proceeding because the lease so provided. We note that the record does not contain a copy of the lease that is the subject of this action. However, in rendering judgment, the trial court made the following findings concerning the lease:

“However, the Court can find no such specific provision in the lease dated August 22, 1987. Paragraph 13 of the lease provides if there is a default, lessor may, and at his election, declare the lease ended, re-enter without prejudice to any remedies which otherwise might be used for arrears of rent. Note the term is arrears of rent, there is no language talking about future rent, only arrears.
The Court interprets that to mean the arrears of the present time up until the time that the defendant vacates — that the tenant vacates.
Paragraph 14 of the same lease says that the covenant to pay rent is independent of all other covenants.
Paragraph 15 of this lease allows the lessor to collect rents after service of any notice. Again the Court reiterates that the Court can find no such language as set forth in the [Lake Shore] Management case and in the Wysocki case.”

The burden rests on defendant, as appellant, to provide a sufficient record to support the claim of error, and in the absence of such a record, the reviewing court will presume that the trial court’s order was in conformity with established legal principles and had a sufficient factual basis. (Frisch Contracting Service Co. v. Personnel Protection, Inc. (1987), 158 Ill. App. 3d 218, 511 N.E.2d 831.) Any doubts arising from the completeness of the record are resolved against the appellant.

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Munroe v. Brower Realty & Management Co.
565 N.E.2d 32 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
565 N.E.2d 32, 206 Ill. App. 3d 699, 151 Ill. Dec. 761, 1990 Ill. App. LEXIS 1770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munroe-v-brower-realty-management-co-illappct-1990.