Northwest Commerce Bank v. Continental Data Forms, Inc.

598 N.E.2d 446, 233 Ill. App. 3d 124, 174 Ill. Dec. 249, 1992 Ill. App. LEXIS 1306
CourtAppellate Court of Illinois
DecidedAugust 18, 1992
Docket2-91-1211
StatusPublished
Cited by6 cases

This text of 598 N.E.2d 446 (Northwest Commerce Bank v. Continental Data Forms, Inc.) 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
Northwest Commerce Bank v. Continental Data Forms, Inc., 598 N.E.2d 446, 233 Ill. App. 3d 124, 174 Ill. Dec. 249, 1992 Ill. App. LEXIS 1306 (Ill. Ct. App. 1992).

Opinion

JUSTICE GEIGER

delivered the opinion of the court;

The plaintiffs, Northwest Commerce Bank and C J S Commercial Property Associates, Inc. (the landlords), filed two claims against the defendant, Continental Data Forms, Inc. (the tenant). They sought rent, real estate taxes, insurance, common area maintenance expenses, and damages on two leases breached by the tenant. After the claims were consolidated and tried, the court awarded the landlords $170,272.45, and the tenant appealed. The landlords brought a cross-appeal, arguing they were entitled to relief if this court ordered a new trial. We affirm the court’s award, as modified.

This case arose after the tenant vacated commercial and industrial premises it had leased from the landlords. Although its leases ran through July 14, 1989, the tenant vacated the premises in October 1988.

In January 1991, the court granted the landlords partial summary judgment for base rent and real estate taxes of $44,411.25. Following a bench trial on the remaining issues, the court entered judgment for the landlords: $170,272.45; that amount was a total, including the summary judgment amount. The court denied the tenant’s claim for rent setoff. The parties brought this appeal and cross-appeal.

The parties agree that the court’s award comprised the following elements:

Base rent and taxes $ 44,411.25
Insurance 5,413.97
Common area maintenance 3,968.58
Repairs 108,897.03
Interest 7,581.62

The parties also agree that the court disallowed $89,195.65 of the landlords’ claims. Those amounts were for brokerage and advertising costs to relet; the rent concession and construction allowance to the new tenant, Material Corporation; a repair allowance to Gold’s Gym; and certain other repair amounts.

On appeal, the tenant first argues that although the landlords were entitled to have the property restored to them in a decent condition, the trial court erred in awarding damages for demolition and removal of interior walls and ceilings, and for the related replacement of sprinkler lines and electrical equipment. According to the tenant, these expenses were for capital improvements, and, thus, their award to the landlords was against the manifest weight of the evidence.

The landlords argue that these expenses were not capital improvements but were necessary repair because of the widespread interior damage left by the tenants. According to the landlords, these charges reflected the cheapest repair of the premises.

A vacating tenant has no duty to pay for capital improvements which add value to the property. (Pioneer Trust & Savings Bank v. Zonta (1981), 96 Ill. App. 3d 339, 346.) However, as the tenant acknowledges, if the condition of the premises is not the same at the end of a tenancy as at the beginning, the landlord may hold the tenant liable for the costs to return the premises to a condition acceptable for rental. (Pyramid, Enterprises, Inc. v. Amadeo (1973), 10 Ill. App. 3d 575, 579.) Also, the owner of damaged property has the discretion to decide how to fix it. United States v. Peavey Barge Line (C.D. Ill. 1984), 590 F. Supp. 319, 323.

On appeal, the trier of fact’s determination of damages should not be disturbed unless it is contrary to the manifest weight of the evidence. (Pioneer, 96 Ill. App. 3d at 345.) Even when the appellate court would have been better satisfied with different findings as to damages, it will not interfere with the trial court’s award, where the evidence is conflicting or where there is evidence in support of the verdict and there is no indication that the award was the result of passion, prejudice, or corruption. 96 Ill. App. 3d at 345.

We find no basis to disturb the court’s award of damages for the demolition and removal of interior walls or the replacement of sprinkler lines and electrical equipment. The trial court considered evidence, including testimony of the landlords’ president, Carl Swanson, that the landlords had chosen demolition and cleanup as being easier and less expensive than repairing the various types of damage left by the tenant.

Furthermore, we do not find, as the tenant argues, that Swanson’s testimony in that regard was unsupported by the other evidence. The tenant contrasts the court’s approximate $39,000 demolition award with the landlords’ $19,920 estimate for repair of the wall and ceiling damage caused by the tenant. However, in response to questioning about any anticipated additional repair expenses, Swanson referred to an additional $1,200 for painting and staining new doors and frames. Swanson further opined, based on his experience with the contractor who had offered the $19,920 estimate, that the actual repair bill probably would have been $25,000 higher.

Considering all the record evidence, we do not find any reason to disturb the court’s apparent conclusion that the landlords’ demolition and rebuilding was the least expensive means for the landlords to return their property to a condition acceptable for rental. (See Pyramid, 10 Ill. App. 3d at 579.) There is no basis for us to conclude that it was against the manifest weight of the evidence or that it was the result of passion, prejudice, or corruption. Pioneer, 96 Ill. App. 3d at 345-46.

The tenant’s second argument challenges whether another portion of the court’s damage award was against the manifest weight of the evidence. In that argument, the tenant charges that the court erred in awarding damages for “wear and tear” repairs. The tenant correctly notes that the leases at issue exempted it from a duty to repair damage caused by ordinary wear and tear. It argues that $19,621.56 of the court’s damage award improperly covered ordinary wear and tear. That amount was for removal and replacement of seven service doors, frames, and hardware; for repair and replacement of overhead garage doors; and for heating and air conditioning repairs. We will address each of those subarguments in turn.

Regarding the landlords’ claim of service door and related replacements, president Swanson testified that the doors were delaminated and “coming apart.” The landlords’ contractor, Rick Korporwicz, also testified that the doors had hinges missing and that they were bent and delaminated. According to Korporwicz, the doors were made of metal, and after the tenant vacated the premises, their condition caused them not to close properly. Based on this evidence, we find no abuse of discretion in the trial court’s apparent conclusion that this damage was not the result of ordinary wear and tear. Pioneer, 96 Ill. App. 3d at 345-46.

Regarding the award of the cost to replace damaged garage doors, Korporwicz testified that the landlords had replaced only doors that could not be repaired; reparable doors were, instead, repaired. Korporwicz also testified that the doors that he replaced had had holes punched in them. President Swanson testified that the holes in the doors at issue were variously sized and punched from the inside to the outside; he opined that forklift trucks had punched them.

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598 N.E.2d 446, 233 Ill. App. 3d 124, 174 Ill. Dec. 249, 1992 Ill. App. LEXIS 1306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwest-commerce-bank-v-continental-data-forms-inc-illappct-1992.