Peter J. Hartmann Co. v. CAPITOL BANK

817 N.E.2d 913, 288 Ill. Dec. 263
CourtAppellate Court of Illinois
DecidedNovember 10, 2004
Docket1-03-3296
StatusPublished
Cited by6 cases

This text of 817 N.E.2d 913 (Peter J. Hartmann Co. v. CAPITOL 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
Peter J. Hartmann Co. v. CAPITOL BANK, 817 N.E.2d 913, 288 Ill. Dec. 263 (Ill. Ct. App. 2004).

Opinion

817 N.E.2d 913 (2004)
288 Ill.Dec. 263

PETER J. HARTMANN COMPANY, an Illinois Corporation, Plaintiff-Appellant/Cross-Appellee,
v.
CAPITOL BANK & TRUST COMPANY, as Trustee under Trust Agreement No. 1975; Capitol Bank & Trust Company; North Bank; Oklahoma Oil Company; Aldo Bottalla; Daniel Pontarelli; R. Neil Beaulieu; Anthony Minscalco; Parkview Plaza Associates, Inc.; Carolyn Mosley Braun, Registrar of Titles; and Unknown Others, Defendants-Appellees,
and
Emil Ross, Inc., Defendant-Appellee/Cross-Appellant.

No. 1-03-3296.

Appellate Court of Illinois, First District, Fourth Division.

July 22, 2004.
As Modified Upon Denial of Rehearing November 10, 2004.

*915 Kesslser, Krantz & Christensen, Chicago (Kevin R. Krantz, Thomas A. Christensen, of counsel), for Appellant.

Wolfe & Polovin, Chicago (Richard Wolfe, Amy Leigh Kile, Rory Cassidy, of counsel), for Appellees.

Justice HARTMAN delivered the modified opinion of the court upon denial of rehearing:

Plaintiff, Peter J. Hartmann Company (Hartmann), sought compensation for its removal and disposal of contaminated soil from property located at 2800 West Irving Park Road (the property) from defendants, Capitol Bank & Trust Company, as Trustee under Trust Agreement No. 1975, Capitol Bank & Trust Company, North Bank, Oklahoma Oil Company, Aldo Bottalla, Stephen D. Korshak, James S. Bottalla, Daniel Pontarelli, R. Neil Beaulieu, Anthony Minscalco, Parkview Plaza Associates, Inc. (Parkview), Emil Ross, Inc. (Ross), Carolyn Mosley Braun, Registrar of Titles, and unknown others, under several theories, including foreclosure of mechanics lien and breach of contract. Hartmann appeals the circuit court's finding that the recording and registering of multiple notices and claims for lien constituted constructive fraud and rendered Hartmann's mechanics lien unenforceable. In its cross-appeal, Ross appeals from the jury verdict in favor of Hartmann on its breach of contract claim.

Hartmann was engaged in the business of providing, installing, testing, repairing, removing, and disposing of underground storage tanks (tanks) and cleaning up environmental contaminants. On November 24, 1989, Hartmann entered into a written contract with Ross to perform work at the property. The contract provided that Hartmann would perform certain work enumerated in seven numbered paragraphs in exchange for a fixed price of $9,700. Following a line showing the $9,700 fixed price, the contract contained a soil removal clause. Hartmann removed the tanks and the contaminated soil. Hartmann was paid $2,500.

Hartmann recorded and served a notice and claim for lien under number 90451577 dated August 29, 1990, and signed by William P. Hartmann, president of Hartmann (August 29 notice). The August 29 notice identified Hartmann as the lien claimant, "EMIL ROSS INC. — DAN PONTARELLI" as the contractor and Capital Bank, Trust # 1975 and Parkway Plaza Associates as the owners. It described the property's address as 2800 West Irving Park, Chicago, Illinois. The August 29 notice stated that on December 7, 1989, the contractor made a subcontract with Hartmann to provide tank removal and EPA required clean-up on the site. It further stated that by August 20, 1990, Hartmann had "completed thereunder all that was required to be done by said contract." The August 29 notice claimed $250,000 as due and owing for the work performed.

Hartmann recorded and served a notice and claim for lien under number 90521730 dated October 18, 1990, and signed by John C. Corkhill, vice president of Hartmann (October 18 notice). The October 18 notice identified Hartmann as the claimant and Ross as the contractor. It identified the following as owners of the property: Capitol Bank, Trust # 1975; Parkview Plaza Associates Inc.; Daniel Pontarelli; Anthony Minscalco; Capitol Bank; North Bank; Stephen D. Korshak; Neil Beaulieu; and Oklahoma Oil Company. The October 18 notice gave the same property *916 address as the August 29 notice and, like the August 29 notice, it described a December 7, 1989 subcontract for Hartmann to provide tank removal and EPA required clean-up on the site. The October 18 notice further stated that "on August 20, 1990 the claimant substantially completed thereunder all that was required to be done by said contract." It then claimed an amount due and owing to claimant of $279,824.35.

Hartmann also registered two notice and claim for lien documents with the Cook County Registrar of Titles, both dated October 18, 1990. Registered notice number 3922337 was signed by Corkhill. Registered notice number 3927531 was signed by William Hartmann, as agent of Hartmann. Both documents were identical to the October 18 notice except they both stated they were "AMENDING FILED DOCUMENT, DOCUMENT NUMBER 90451577," the August 29 notice.

On October 17, 1990, Hartmann filed a two count complaint to foreclose mechanics lien (count I) and for breach of contract against Ross (count II). Hartmann alleged that it had entered into the contract on or about November 24, 1989; by August 20, 1990, it had removed and disposed of all the tanks and the contaminated soil; and it demanded payment of $279,824.35 as a result of this work, but had not been paid. Hartmann filed a lis pendens notice of its lawsuit on October 25, 1990. On December 5, 1990, Korshak, Beaulieu, Pontarelli, Minscalco, Parkview, and Ross filed a counterclaim alleging that Hartmann had committed fraud in advising defendants with respect to the amount of contaminated soil that would need to be removed and the cost thereof. The counterclaim was the subject of a previous appeal to this court (Peter J. Hartmann Co. v. Capital Bank and Trust Co., 296 Ill.App.3d 593, 230 Ill.Dec. 830, 694 N.E.2d 1108 (1998) (Hartmann I)).[1]

On May 7, 1999, defendants filed a "motion for declaratory judgment," arguing that the soil removal clause of the contract did not create any contractual obligation for them to pay for the removal of contaminated soil. On June 22, 1999, the circuit court declared as a matter of law that the written contract "did not contain any obligation by the parties regarding the removal of contaminated soil and payment therefore on a cost plus basis or otherwise." The court found that the contract was limited to Hartmann's promise to perform the items enumerated in paragraphs one through seven of the contract in exchange for $9,700.

On July 23, 1999, Hartmann filed a seven count verified fourth amended complaint. In count I (mechanics lien foreclosure as a subcontractor), Hartmann alleged that the written contract included the removal of contaminated soil. Hartmann also alleged that during the removal of the tanks, Ross requested that Hartmann remove the contaminated soil as an addition to the contract and that it agreed to do so at the rate of cost plus 20%. In count II (mechanics lien foreclosure as an original contractor), Hartmann alleged the written contract, but also that on March 23, 1990, the owners requested that Hartmann remove the contaminated soil and that it agreed to do so at a rate of cost plus 20%. Counts I and II were directed against all defendants. Count III alleged breach of contract against Ross based on the same facts alleged in *917 count I. Count IV alleged breach of contract against Korshak, Pontarelli, Beaulieu, Minscalco and Parkview based on the same facts alleged in count II.

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Bluebook (online)
817 N.E.2d 913, 288 Ill. Dec. 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-j-hartmann-co-v-capitol-bank-illappct-2004.