Regas v. Associated Radiologists, Ltd.

595 N.E.2d 1223, 230 Ill. App. 3d 959, 172 Ill. Dec. 553, 1992 Ill. App. LEXIS 965
CourtAppellate Court of Illinois
DecidedJune 17, 1992
Docket1-90-1973
StatusPublished
Cited by35 cases

This text of 595 N.E.2d 1223 (Regas v. Associated Radiologists, Ltd.) 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
Regas v. Associated Radiologists, Ltd., 595 N.E.2d 1223, 230 Ill. App. 3d 959, 172 Ill. Dec. 553, 1992 Ill. App. LEXIS 965 (Ill. Ct. App. 1992).

Opinion

PRESIDING JUSTICE GREIMAN

delivered the opinion of the court:

Plaintiff, William T. Regas, an attorney, filed a complaint for money damages due to defects discovered in the subroof of a building he had purchased from defendant, Associated Radiologists, Ltd., an incorporated group of doctors. Plaintiff now appeals the circuit court’s orders which (1) granted defendant’s motion for summary judgment; (2) denied plaintiff’s motion for reconsideration or rehearing to vacate summary judgment; and (3) denied plaintiff’s motion to file a third amended complaint.

For the reasons which follow, we affirm the orders of the circuit court.

On August 9, 1982, plaintiff purchased a commercial office building from defendant. When plaintiff began to remodel the building, he removed portions of the ceiling and found the subroof in rotting condition. Plaintiff alleges that the defects could not be discovered from a visual inspection of the building because the subroof was above the ceiling as viewed from the inside and under the exterior roof as viewed from the outside of the building.

Defendant refused to pay for or reimburse plaintiff for the cost of the roof repairs caused by water leakage and plaintiff brought this cause. Thereafter, he filed a three-count second amended complaint seeking an injunction (count I), specific performance (count II), and money damages (count III). Counts I and II have been dismissed by an agreed order. Only count III for money damages is at issue.

Count III of plaintiff’s second amended complaint contains allegations that plaintiff discovered the “rotten and broken condition” of the subroof during the course of remodeling, that this was a latent defect that could not have been discovered by reasonable inspection, and that defendant knew or should have known of the condition and made disclosure to plaintiff.

The property at issue is improved with a commercial office building which was purchased by defendant in 1979. Around April 1981 defendant ceased its business operation on the subject premises but a tenant, Dr. Bora, continued his dental practice in a portion of the building.

In January 1982 plaintiff first visited the building as a prospective buyer. Thereafter, defendant solicited sealed bids from plaintiff and Dr. Bora, both having expressed an interest in purchasing the premises. In February 1982 defendant accepted plaintiff’s sealed bid to purchase the building and gave a set of keys to plaintiff. On March 11, 1982, plaintiff and defendant executed a real estate contract and on June 21, 1982, the parties entered into an installment agreement for warranty deed. The transaction closed August 9, 1982.

In his deposition, plaintiff testified that he went to the building on the average of two times a week from the time defendant accepted his purchase bid in February. Also in February, Dr. Sam Mulopulos, the president and a shareholder of defendant, called plaintiff to notify him that Dr. Bora had made a serious complaint about a leaking roof and that repairs were going to be made. Dr. Mulopulos suggested that plaintiff meet with the roofer who would be doing the repairs. Plaintiff and Dr. Mulopulos had been friends over 30 years.

The roofing contractor told plaintiff that the entire roof was “in serious shape” but he was only authorized to replace the roof over Dr. Bora’s portion of the building. In turn, plaintiff told one of the principals of defendant that the balance of the roof should also be replaced and asked if defendant would pay for the repairs as part of the sales price. Defendant refused and plaintiff then contacted a structural engineer who inspected the exterior portion of the roof and determined it was fine. Plaintiff never sought to withdraw his purchase offer based on the condition of the building or rescind the agreement.

From February until August, plaintiff was at the building between two dozen and three dozen times. At various times, plaintiff was accompanied by the roofing contractor who replaced the roof over Dr. Bora’s portion of the building, an electrician, a structural engineer, an architect, numerous general contractors and subcontractors, including another roofer who thought the general condition of the roof was reasonable. Defendant agreed to give plaintiff the warranty on the roof repairs done on Dr. Bora’s portion of the building.

The day before closing, plaintiff discovered a leak which plaintiff assumed to originate from a crack at the point where the roof meets the wall. Plaintiff mentioned this discovery at the closing but never suggested that he wanted to delay the closing to investigate the leak and did not request any holdback from the purchase price to be available to pay for roof replacement or repairs.

Subsequently the defective subroof was exposed when the ceiling was removed during plaintiff’s remodeling.

During his numerous visits to the building prior to closing, plaintiff acknowledged that he paid no attention to any discoloration of the ceiling or walls because he had always planned to remodel. In addition, due to his experience in owning other buildings, he was aware of problems associated with flat roofs.

In his deposition, Dr. Mulopulos testified that at the time the roof over Dr. Bora’s portion of the building was being repaired, Dr. Mulopulos told plaintiff that the entire roof did not need to be repaired. Dr. Mulopulos asserted that he never had any problems with the roof and there was still a guarantee on the roof which had been replaced by a contractor prior to defendant’s purchase of the building in 1979.

The record includes documents which show that a new roof was put on the northeast corner of the building approximately one month before defendant purchased the premises in 1979. This roofing contract includes a six-year guarantee. Also, a roofing contract for the work performed in February 1982 on Dr. Bora’s portion of the building states that the roof over the north section of the building would be replaced and the work would be guaranteed for five years.

In its motion, defendant asserted that it was entitled to summary judgment because plaintiff caused the roof to be inspected prior to closing and had actual knowledge of the condition prior to closing, and defendant made no statement, upon which plaintiff could rely, concerning the roof’s condition.

In granting defendant’s motion for summary judgment, the circuit court found that “there was notice on behalf of the Plaintiff of the condition that there was a leakage; that he had hired an expert, and the expert came back without any problems or without a report that showed where or when the problems were; that the fact there was a leakage was not held back by the Defendants in any way and that the Defendants did not make any fraudulent or misleading statements that could be relied upon by the Plaintiff.”

Thereafter, plaintiff filed a motion for reconsideration and to file a third amended complaint. Plaintiff’s proposed third amended complaint contained four counts: (1) negligence; (2) negligent misrepresentation; (3) an undisclosed dangerous condition; and (4) breach of implied warranty of habitability.

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Cite This Page — Counsel Stack

Bluebook (online)
595 N.E.2d 1223, 230 Ill. App. 3d 959, 172 Ill. Dec. 553, 1992 Ill. App. LEXIS 965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regas-v-associated-radiologists-ltd-illappct-1992.