Plambeck v. Greystone Management & Columbia National Trust Co.

666 N.E.2d 670, 281 Ill. App. 3d 260, 217 Ill. Dec. 1
CourtAppellate Court of Illinois
DecidedJune 19, 1996
Docket1-94-2880
StatusPublished
Cited by36 cases

This text of 666 N.E.2d 670 (Plambeck v. Greystone Management & Columbia National Trust Co.) 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
Plambeck v. Greystone Management & Columbia National Trust Co., 666 N.E.2d 670, 281 Ill. App. 3d 260, 217 Ill. Dec. 1 (Ill. Ct. App. 1996).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

This case involves the question whether a tenant’s motive, even if "improper” or unrelated to the tenancy, is relevant in seeking to terminate a lease agreement under provisions of the Chicago Residential Landlord Tenant Ordinance (Ordinance). Chicago Municipal Code § 193.1 et seq. (amended September 8, 1986). 1

On September 15, 1988, Cynthia Plambeck (plaintiff or tenant) entered into a written lease agreement with Greystone Management & Columbia National Trust Company (defendant or landlord) for lease of an apartment in a seven-unit building in Chicago in which the owners did not reside. Tenant gave landlord a security deposit of $480 when she rented the apartment.

The parties renewed the lease in October 1989, and landlord increased tenant’s security deposit to $500, requiring tenant to remit an additional $20 payment to landlord. Landlord deposited tenant’s $20 check into the same bank account in which it also deposited rent proceeds and other assets. The lease was renewed again in October 1990, and increased tenant’s security deposit to $525, requiring tenant to remit an additional $25 payment which the landlord again deposited into its own account. Landlord claims these deposits were made in error or oversight.

On April 28, 1991, tenant cosigned a note and mortgage with her mother and boyfriend for purchase of a home nearby in Chicago. On May 1, 1991, tenant notified landlord in writing of her intention to vacate the apartment on May 31, 1991. This notice, however, was rescinded by the tenant in writing on May 14, 1991.

Also on May 14, 1991, tenant served landlord with writteh objections to her lease agreement based on the landlord’s alleged violation of various provisions of the Ordinance. The May 14 correspondences notified landlord of tenant’s intent to terminate her tenancy 30 days after landlord’s receipt of the letters, unless landlord:

1. Corrected 26 alleged violations of the Chicago Building Code (the Code) in the premises and common areas as provided in section 193.1 — 7 of the Ordinance;
2. Tendered tenant a new lease, within 15 days, deleting certain provisions in the parties’ existing lease allegedly prohibited by section 193.1 — 14 of the Ordinance, such as the requirement that tenant waive certain remedies against landlord (section 193.1— 14(a)), lack of mutuality in the assessment of attorney fees (section 193.1 — 14(f)), limitation of landlord’s liability (section 193.1— 14(c)), waiver of notice of termination of tenancy (section 193.1— 14(d)), the right to shorten the demised term (section 193.1 — 14(g)) and 14 other claims of conflict between the Ordinance and the lease;
3. Disclosed the name, address and telephone number of the person authorized to accept service of process for the landlord as required by section 193.1 — 9 of the Ordinance; and
4. Disclosed to tenant the violations of the Code which had been cited by the City of Chicago within the preceding 12 months as mandated by section 193.1 — 10 of the Ordinance.

Eighteen days later, on June 1, 1991, tenant "terminated” her lease by written notice, effective June 2, 1991 (19 days after notifying landlord of her intention), by reason of landlord’s failure to tender a new lease in compliance with the Ordinance. Tenant paid full rent for the month of May and vacated on May 31, 1991, leaving the premises in "good condition.” Tenant subsequently moved into her new home.

On June 21, 1991, tenant requested in writing that landlord return her security deposit. Landlord made no claim of damages, but withheld tenant’s security deposit as a setoff for back rent claimed for the months the apartment remained vacant, June and July of 1991. Landlord believed that tenant had not legally terminated her lease and thus remained liable for June and July’s rent. Additionally, landlord did not pay or credit the tenant with interest on her security deposit from 1989 to date.

Tenant filed a 14-count complaint against landlord in the circuit court of Cook County, seeking damages available under the Ordinance for landlord’s: (1) failure to pay interest on tenant’s security deposit; (2) failure to return her security deposit; (3) commingling of the security deposit; (4) refusal to tender tenant a new lease; (5) failure to disclose name of agent; (6) failure to disclose building code violations; and (7) landlord’s breach of implied and statutory warranties of habitability.

After a bench trial, the trial court found in favor of tenant on those counts relating to landlord’s failure to pay interest on the security deposit in 1989 and 1990, respectively, as violations of section 193.1 — 8 of the Ordinance.

The trial court found, quite accurately, that tenant’s actions in seeking to terminate her tenancy were motivated by a desire to "get out of her lease,” and not due to a sudden abhorrence of building code violations or a bout of tenant activism. The trial court found for landlord on the remaining counts and applied tenant’s security deposit to offset unpaid rent.

The trial court found additionally, and as the basis for its rulings, that tenant had not legally terminated her lease, entitling landlord to a setoff of $503.12 in back rent against amounts due tenant for failure to return and pay interest on the security deposit. The setoff was accomplished by landlord’s oral motion absent any pleading to allege a setoff with the trial court. Tenant disputes that a trial court can award an unpleaded setoff, while landlord maintains that it merely conformed the pleadings to the proof.

Tenant’s appeal to this court focuses on whether (1) she legally terminated her lease and thus should have prevailed at trial, and (2) whether the trial court’s decision that she did not properly effect such termination was based on its perception that her motives for termination had nothing to do with her lease or occupancy.

As an initial matter, we acknowledge that tenant’s motives were impure in the sense that she was eager to terminate her lease in order to avoid either paying rent while living in her new home or the trouble of subletting for the remaining two months of the lease. The question is whether and to what extent her motivation should have affected the trial court’s analysis of the dispute.

Landlord contends that "[t]he decisive factor in this case is that the very day before she notified the Defendants of her intention to vacate the premises, the Plaintiff purchased a new home for herself and her family. All subsequent notices (of landlord’s Ordinance violatians) sent by Plaintiff were clearly pretextual and in furtherance of her scheme to devise some justification for her ultimate goal of getting out of her obligations.”

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Cite This Page — Counsel Stack

Bluebook (online)
666 N.E.2d 670, 281 Ill. App. 3d 260, 217 Ill. Dec. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plambeck-v-greystone-management-columbia-national-trust-co-illappct-1996.