Owen Wagener & Co. v. U.S. Bank

697 N.E.2d 902, 297 Ill. App. 3d 1045, 232 Ill. Dec. 160
CourtAppellate Court of Illinois
DecidedJune 30, 1998
Docket1-97-3988
StatusPublished
Cited by24 cases

This text of 697 N.E.2d 902 (Owen Wagener & Co. v. U.S. Bank) 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
Owen Wagener & Co. v. U.S. Bank, 697 N.E.2d 902, 297 Ill. App. 3d 1045, 232 Ill. Dec. 160 (Ill. Ct. App. 1998).

Opinion

JUSTICE WOLFSON

delivered the opinion of the court:

Real estate brokers earn commissions by bringing together a willing buyer and a willing seller. But there is more to it than that, as this case demonstrates.

Owen Wagener & Co. (Wagener) appeals the trial court’s dismissal of its third amended complaint against U.S. Bank (the Bank) with prejudice under section 2 — 615 of the Civil Practice Law. 735 ILCS 5/2 — 615 (West 1992). Wagener contends it sufficiently pleaded claims for breach of express contract, breach of implied contract, and quantum meruit. We affirm the trial court.

FACTS

Lewis Kaplan (Kaplan) owned commercial property in the Village of Crestwood. Kaplan fell behind on his mortgage with U.S. Bank, and the Bank initiated foreclosure proceedings. Kaplan decided to sell his property and signed a listing agreement with Wagener, a brokerage firm, on June 29, 1994. Under this listing agreement, Kaplan agreed to pay Wagener 6% of the sales price if Wagener found a buyer for the property. (The record does not contain a copy of the listing agreement.)

Wagener found Roderick and Judith Johnson (the Johnsons), who expressed interest in buying the property. The Johnsons began negotiations with Kaplan. On December 9, 1994, they entered into a contract to buy Kaplan’s property.

This contract provided: “Seller [Kaplan] agrees to pay a broker’s commission to [Wagener] in the amount set forth in the broker’s listing contract or as follows: per separate agreement.”

The contract included a rider, which provided:

“Purchaser [the Johnsons] acknowledges that this Agreement is expressly subject to the approval of U.S. Bank. If U.S. Bank does not approve this transaction on or before April 14, 1995, this Agreement shall automatically become null and void and the Earnest Money together with all interest thereon shall be returned to Purchaser.”

Kaplan signed this contract on March 28, 1995.

On March 17, 1995, Edward Freud, an attorney for U.S. Bank, wrote a letter to Kaplan’s attorney. After mentioning he received a copy of the contract, Freud wrote:

“ [Assuming the buyer and seller agree upon a sales price, which they apparently have not yet done, U.S. Bank will agree to allow the property to be sold and its [mortgage] lien released only if Mr. Kaplan and his partners have a cashiers check at the closing sufficient to pay the remaining amounts due and owing the Bank after application of the net proceeds of sale.”

Freud also expressed some concern over other lease provisions and noted the Bank would “hold off on the foreclosure” for only 45 days after execution of the contract.

Kaplan attempted to renegotiate Wagener’s commission, hoping to increase the sale proceeds, in that way decreasing the amount he would owe after closing. These negotiations failed, and on May 17, 1995, Freud wrote another letter to Kaplan’s attorney:

“It *** is transparent [sic] to me at this juncture that the funds required to satisfy the shortfall at closing will not be available, and it has therefore been determined to proceed with the foreclosure action.
* * *
You may also want to advise the buyer that the Bank will shortly be the owner of the property, and in all likelihood it can be purchased from the Bank.”

In August 1995, U.S. Bank obtained title to the property. On January 18, 1996, the Johnsons bought the property directly from the Bank, depriving Wagener of its commission. Wagener filed a complaint against the Bank.

After several initial pleading attempts, Wagener filed its third amended complaint. This complaint included a prefatory “STATEMENT OF FACTS,” which summarized the parties’ dispute. Wagener alleged it had a commission agreement with Kaplan; this agreement was incorporated into the December 9, 1994, contract between Kaplan and the Johnsons. Wagener acknowledged the contract between Kaplan and the Johnsons was specifically contingent on U.S. Bank’s approval, but alleged the Bank “ratified and approved” the contract, including Wagener’s commission, in Freud’s March 17, 1995, letter.

Wagener also alleged the Bank knew “Wagener procured the Johnson’s [sic] and expected to be paid a commission” because the Bank had reviewed the December 9, 1994, contract. After stating the Bank, “knowing that Wagener had a listing agreement with Kaplan,” had requested information about the Johnsons, Wagener conceded, “At or about that same time the Johnson’s [sic] contacted [Wagener] and requested to be put in contact with U.S. Bank.”

Count I, entitled “BREACH OF CONTRACT,” alleged in part:

“The actions of U.S. BANK in approving the contract for sale of the Premises and approving [Wagener’s] commission constitute a ratification and express contract agreeing to pay Wagener a commission of 6% of the sales price.
Hi * *
U.S. BANK breached its agreement to pay [Wagener] its commission when it sold the Premises to the Johnson’s [sic] on January 18, 1996, but failed to pay [Wagener] its commission ***.”

Count II, entitled “CONTRACT IMPLIED IN FACT,” alleged in part:

“[Wagener], through its professional efforts, procured a ready, willing and able purchaser of the premises in the form of the Johnson’s [sic] and participated in negotiations and performed services in order to bring the sale to fruition.
*** By its conduct of contacting Wagener to locate the Johnson’s [sic] and selling the premises to the Johnson’s [sic], knowing that they were procured by Wagener and that Wagener expected to be paid, the U.S. Bank impliedly contracted to pay [Wagener] a commission ***.
*** U.S. BANK received the benefit of [Wagener’s] services with full knowledge of [Wagener’s] involvement in the transaction.
*** U.S. BANK breached its implied contract with [Wagener] to pay a commission *** upon the closing of the sale to the Johnson’s [sic].”

Count III, entitled “QUANTUM MERUIT,” alleged in part:

“U.S. Bank, by selling the premises to the Johnson’s [sic], received the benefits of Wagener’s efforts in procuring the Johnson’s [sic].
*** U.S. Bank would be unjustly enriched by receiving the benefits of Wagener’s efforts without paying a reasonable and customary commission ***.”

On September 26, 1997, the trial court dismissed Wagener’s third amended complaint with prejudice for failure to state a cause of action under section 2 — 615(a). See 735 ILCS 5/2

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Cite This Page — Counsel Stack

Bluebook (online)
697 N.E.2d 902, 297 Ill. App. 3d 1045, 232 Ill. Dec. 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-wagener-co-v-us-bank-illappct-1998.