Parkway Bank and Trust Co. v. Gleich

572 N.E.2d 1055, 213 Ill. App. 3d 444, 157 Ill. Dec. 591, 1991 Ill. App. LEXIS 680
CourtAppellate Court of Illinois
DecidedApril 30, 1991
Docket1-88-1747
StatusPublished
Cited by14 cases

This text of 572 N.E.2d 1055 (Parkway Bank and Trust Co. v. Gleich) 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
Parkway Bank and Trust Co. v. Gleich, 572 N.E.2d 1055, 213 Ill. App. 3d 444, 157 Ill. Dec. 591, 1991 Ill. App. LEXIS 680 (Ill. Ct. App. 1991).

Opinion

PRESIDING JUSTICE SCARIANO

delivered the opinion of the court:

Plaintiffs brought this action seeking damages from defendant for breach of a contract to purchase certain property held in a land trust. They appeal from an order of the circuit court granting summary judgment to defendant.

Plaintiff Charles P. Burtell was the sole general partner of Algonquin 33 Investment, an Illinois limited partnership, which was the beneficiary of two Illinois land trusts, Nos. 4297 and 4298, of which plaintiff Parkway Bank and Trust Company (Parkway) was the trustee. The trusts contained 72 parcels of vacant land, which were the subject of the contract in dispute in this case; trust No. 4298 contained only a small portion of three of those lots. Pursuant to the provisions of the trust agreement, “Charles P. Burtell, General Partner” had the sole power to direct the trustee to sell or otherwise deal with the property.

During May or June of 1980, defendant Elmer F. Gleich, through Carl Kristensen, a real estate broker, began negotiating for the purchase of the property with Eugene Purcell, Burtell’s agent and employee. The parties agreed on the essential terms of the transaction and on July 12, 1980, reduced them to writing in a commonly used real estate contract form produced by Kristensen. That same day Gleich signed the contract, executed a check for $20,000 made payable to Kristensen as earnest money, and gave both the contract and the check to Kristensen. Parkway, as trustee, was designated as the seller in the contract.

On July 13, 1980, Kristensen prepared a rider to the contract at Gleich’s request, permitting Gleich to use certain black dirt located on the property. Kristensen signed the rider on behalf of and at the request of Gleich and forwarded both the original signed contract and rider to Purcell.

On or about July 17, 1980, Burtell signed the contract and rider. Next to the printed word “Seller” in that portion of the instrument provided for signatures there is typewritten: “Parkway Bank and Trust Company Trust No. 4297” and, on the next line, “Beneficiary:” followed by Burtell’s signature. Two days later, the signed contract and rider were delivered to Gleich, who according to plaintiffs’ complaint, authorized Kristensen to open the escrow required by the contract to hold his earnest money deposit. Defendant disputes that he authorized the deposit, relying on Kristensen’s affidavit, in which Kristensen states that he deposited the $20,000 in his trust account “without the direction of any party including Elmer Gleich.” Nevertheless, Gleich does not appear to have objected to the deposit.

The closing of the first stage of the transaction was scheduled to occur on August 15, 1980. Burtell, exercising his power of direction, caused all of the necessary documents to be prepared and executed by Parkway, including its trustee’s deed to 16 lots which Gleich had designated as the first “take-out” group. Burtell also ordered and caused to be delivered to Gleich a commitment for title insurance dated July 31, 1980, covering the 16 lots. Plaintiffs allege that after receiving the title commitment, Gleich told Kristensen to change the name of the proposed insured from himself to Gleich Construction Company, which Burtell’s attorney did.

According to Kristensen, shortly before the closing, Gleich suffered a mild heart attack, after which he called Kristensen and told him: “I cannot go ahead with the property. You can keep the $20,000.” The record is not clear as to whether this information was communicated to Burtell. At any rate, on August 15, 1980, Burtell and his attorney attended the closing, but neither Gleich nor his representative appeared. Soon thereafter, Gleich sent Parkway a letter, “Attention: Charles Burtell,” dated August 13, 1980, stating that he “wish[ed] to terminate this contract.” Later, Burtell received a second letter from Gleich, prepared by his attorney, declaring that there had never been a contract in the first place “because of failure by Parkway Bank and Trust Company to properly execute and deliver a duplicate original of the Real Estate Sale Contract to me.”

On August 28, 1980, plaintiff filed a complaint against Gleich seeking specific performance and damages for material breach and anticipatory repudiation of the contract. In the long course of this litigation, plaintiffs filed an original and three amended complaints, eventually abandoning their allegation of anticipatory breach and prayer for specific performance and adding an alternative theory of “ratification.” Count I of the third amended complaint, filed June 2, 1988, was based on material breach of contract. Count II alleged that even if Burtell as beneficiary could not accept Gleich’s offer to purchase the property from the trustee, once it was signed by Burtell and delivered to Gleich, Gleich “ratified” the contract by his actions and deeds which were consistent with the existence of a binding contract.

Each of the parties ultimately filed cross-motions for summary judgment. After hearing lengthy argument and considering a vast amount of documentary evidence, Judge Lester Foreman denied both parties their motions; and after hearing further argument and reviewing the record, Judge Thomas Hoffman also denied plaintiffs’ amended motion for summary judgment. The judges’ main concern in both proceedings was held to be the existence of an outstanding issue of fact: whether by their conduct the parties- intended to enter into a binding contract.

On June 3, 1988, after the case was set for trial, Gleich filed a motion for summary judgment based on plaintiffs’ third amended complaint which had been filed only the previous day. The court heard the parties’ extensive arguments on the same day. Gleich contended that no contract came into existence for the reason that (1) Burtell as beneficiary had no power to accept Gleich’s offer to buy the property because the legal titleholder and designated seller in the offer was the trustee, Parkway; (2) even if the beneficiary could sell the property, Burtell could not, because the beneficiary of the trust was a limited partnership, and Burtell signed the offer in his individual capacity rather than in his capacity as general partner; (3) as to the issue of ratification, Gleich argued that the contract was void and thus incapable of being ratified; (4) furthermore, to the extent that Burtell’s signature constituted a counteroffer, Gleich did not sign or initial it; therefore, the purported transaction did not comply with the Statute of Frauds.

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Bluebook (online)
572 N.E.2d 1055, 213 Ill. App. 3d 444, 157 Ill. Dec. 591, 1991 Ill. App. LEXIS 680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parkway-bank-and-trust-co-v-gleich-illappct-1991.