Palwaukee Hospitality, LLC v. Prospect Heights Investors, LLC

2025 IL App (1st) 241342
CourtAppellate Court of Illinois
DecidedMarch 14, 2025
Docket1-24-1342
StatusPublished

This text of 2025 IL App (1st) 241342 (Palwaukee Hospitality, LLC v. Prospect Heights Investors, LLC) 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
Palwaukee Hospitality, LLC v. Prospect Heights Investors, LLC, 2025 IL App (1st) 241342 (Ill. Ct. App. 2025).

Opinion

2025 IL App (1st) 241342 No. 1-24-1342 Order filed March 14, 2025

Fifth Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

PALWAUKEE HOSPITALITY, LLC an Illinois ) Appeal from the limited liability company, ) Circuit Court of ) Cook County. Plaintiff-Appellant, ) ) v. ) No. 2020 CH 7366 ) PROSPECT HEIGHTS INVESTORS, LLC, an ) Honorable Alison C. Conlon, Illinois limited liability company, FRY THE ) Judge, Presiding. COOP PROSPECT HEIGHTS, LLC, an Illinois ) limited liability company, ) ) Defendants-Appellees. )

JUSTICE NAVARRO delivered the judgment of the court. Presiding Justice Mikva and Justice Oden Johnson concurred in the judgment.

ORDER

¶1 Held: The circuit court erred in granting summary judgment in favor of defendants where there are genuine issues of material fact regarding the reciprocal easement agreement; reversed and remanded.

¶2 Plaintiff, Palwaukee Hospitality, LLC, appeals from the circuit court’s order granting

summary judgment in favor of defendants, Prospect Heights Investors, LLC and Fry the Coop

Prospect Heights. Plaintiff’s complaint challenged an easement on its property and contained

claims to quiet title, slander of title, and injunction for misuse of an easement. On appeal, plaintiff No. 1-24-1342

argues that the circuit court erred when it granted summary judgment in favor of defendants

because plaintiff did not have constructive notice of the unrecorded reciprocal easement

agreement, the person who signed the agreement on behalf of the restaurant property did not have

authority to permanently bind the restaurant property to the reciprocal easement between the two

properties, and any reciprocal easement agreement terminated before plaintiff purchased its

property. Plaintiff also asserts that the recorded easement has serious defects. We reverse the

circuit court’s grant of summary judgment in favor of defendants, and remand for further

proceedings.

¶3 I. BACKGROUND

¶4 Plaintiff is the owner and operator of a hotel located in Prospect Heights (hotel), and

defendant Prospect Heights Investors, LLC is the owner of an adjacent property being operated as

a restaurant (restaurant) by defendant Fry the Coop Prospect Heights (collectively defendants).

Plaintiff purchased the hotel property in December 2018, and defendants purchased the restaurant

property in January 2020. Thereafter, in July 2020, a “Reciprocal Easement Agreement” dated

February 28, 2014, relating to a reciprocal easement for access between the properties was

recorded in the Cook County Recorder’s Office. Plaintiff then filed a complaint against defendants

challenging the reciprocal easement agreement.

¶5 Complaint

¶6 Plaintiff’s first amended complaint contained claims for declaratory action to quiet title,

slander of title, and injunction for misuse of easement. Plaintiff alleged as follows. Plaintiff

acquired “clear and marketable” title to the hotel property in December 2018 “without any

easements of record that rendered the property servient in any way to any adjoining properties.”

After plaintiff acquired title to the hotel property, various parties with a potential interest in the

-2- No. 1-24-1342

restaurant property expressed an interest in establishing “an easement to run across the hotel

property for ingress and egress to the restaurant property,” but plaintiff never agreed to the

proposed easement, which would render the hotel’s parking lot unsafe, as vehicles would drive

through the lot to get to the restaurant.

¶7 Plaintiff further alleged that defendants acquired the restaurant property in January

2020, and then in July 2020, defendants caused a “reciprocal easement” dated February 28, 2014,

to be recorded in the Cook County Recorder’s Office. The recorded document was a copy of a

reciprocal easement allegedly signed by parties who did not own the properties in July 2020 when

the reciprocal easement was recorded, and the party who signed the document in February 2014

on behalf of the restaurant property was not the owner of that property at the time it was signed.

In plaintiff’s claim for declaratory action to quiet title, it sought a declaration that defendants and

any subsequent parties did not have any right to utilize any portion of the hotel property for ingress

and egress on to its property.

¶8 In plaintiff’s slander of title claim, it alleged that in June 2019, it attended a meeting

with the prior owners of the restaurant property as well as representatives of the city of Prospect

Heights, at which the prior owners of the restaurant property expressed that they wanted to

“establish an easement to accommodate their desire to provide additional access to their property

to the general public.” Plaintiff did not agree to the easement based on its concerns for the safety

of its hotel guests. Plaintiff further alleged that even though defendants were aware that it did not

agree to an easement with the prior owners of the restaurant property, defendants recorded a copy

of the alleged easement for the purpose of effecting title to plaintiff’s property. Plaintiff alleged

that defendants’ actions demonstrated a malicious intent and reckless disregard for the value of the

title to plaintiff’s property.

-3- No. 1-24-1342

¶9 In plaintiff’s claim for injunction for misuse of easement, it alleged that to the extent

the easement exists, it facilitates the general public to use its property as a thoroughfare in violation

of the Illinois Motor Vehicle Code (625 ILCS 5/11-305(b) (West 2024)) as well as the reciprocal

easement agreement, which states that the provisions “are not intended to and do not constitute a

dedication for public use of the Driveways.” Plaintiff alleged that it “has frequently observed

motorists traveling *** who have entered the Plaintiff’s property to traverse its parking lot to the

access point of the Defendants’ property in order to avoid the traffic signal at the intersection and

to then cross the Defendants’ property ***.”

¶ 10 Plaintiff attached a copy of the recorded reciprocal easement agreement to its

complaint, which shows it was signed on February 28, 2014, by RK Hospitality, LLC (RK

Hospitality), the party who sold the hotel property to plaintiff, and Frontier Star, LLC (Frontier),

and was recorded on July 30, 2020. According to the agreement, Frontier owned the restaurant

property, and RK Hospitality and Frontier “wish to create a reciprocal easement for access to, from

and between” the properties.

¶ 11 Defendants’ Affirmative Defense

¶ 12 In defendants’ affirmative defense, they asserted that in 2016 there was no means of

egress between the hotel property and the restaurant property, as the properties were separated by

concrete curbs located at or about the property line separating the two properties. In May 2016,

RK Hospitality, plaintiff’s predecessor in title, applied for a permit to make a curb cut and perform

related work in the area between the properties. Defendants stated that the purpose of the proposed

curb cut was “to allow vehicular access between the two properties, as reflected in an easement

agreement executed by RK Hospitality LLC and Frontier Star, LLC, agent for the owner” of the

restaurant property in 2014.

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Cite This Page — Counsel Stack

Bluebook (online)
2025 IL App (1st) 241342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palwaukee-hospitality-llc-v-prospect-heights-investors-llc-illappct-2025.