S & D Service, Inc. v. 915-925 W. Schubert Condominium Ass'n

478 N.E.2d 478, 132 Ill. App. 3d 1019, 88 Ill. Dec. 163, 1985 Ill. App. LEXIS 1908
CourtAppellate Court of Illinois
DecidedApril 23, 1985
Docket84-1035
StatusPublished
Cited by35 cases

This text of 478 N.E.2d 478 (S & D Service, Inc. v. 915-925 W. Schubert Condominium Ass'n) 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
S & D Service, Inc. v. 915-925 W. Schubert Condominium Ass'n, 478 N.E.2d 478, 132 Ill. App. 3d 1019, 88 Ill. Dec. 163, 1985 Ill. App. LEXIS 1908 (Ill. Ct. App. 1985).

Opinion

PRESIDING JUSTICE STAMOS

delivered the opinion of the court:

This is a forcible entry and detainer action involving a dispute over possession of a laundry room located in the 915-925 W. Schubert Condominium building. Plaintiff-lessee filed the forcible action against defendant-lessor after defendant had cancelled a lease agreement with plaintiff pursuant to the Illinois Condominium Property Act (Ill. Rev. Stat. 1979, ch. 30, par. 318.2).

On May 13, 1981, prior to the election of the Condominium Association’s first board of directors, plaintiff entered into a laundry room lease agreement with the West Goethe Development Company, defendant’s predecessor, to operate the laundry room at 915-925 West Schubert, Chicago. The lease term extended from June 15, 1981, through June 14, 1986. On September 9, 1981, the condominium declaration was duly recorded.

On August 1, 1983, Janice Wegner, the vice-president of the Condominium Association, sent a notice to all Condominium Association members informing them of a “special association meeting” to decide whether to cancel plaintiff’s laundry room lease pursuant to section 18.2 of the Condominium Property Act (Condominium Act). On September 18, 1983, the Condominium Association held the meeting to vote on the cancellation of the lease. The minutes of the meeting recite that 21 association members voted to terminate the lease. The condominium property report indicates that there are 29 units in the condominium complex. According to defendant, the 21 votes represented roughly 65.7 percent of the total unit votes.

On October 11, 1983, the Condominium Association sent plaintiff a letter, by certified mail, return receipt requested, notifying it of the cancellation of its lease effective December 1, 1983. The letter requested plaintiff to remove its laundry equipment by November 31, 1983. The Condominium Association subsequently disconnected and removed plaintiff’s equipment and installed its own.

On January 27, 1984, plaintiff filed a forcible action claiming its entitlement to possession of the laundry room premises. The Condominium Association filed its answer denying that it wrongfully withheld possession from plaintiff, and raised as an affirmative defense its cancellation of plaintiff’s lease pursuant to section 18.2 of the Condominium Act. After a bench trial held on April 3, 1984, the court found for plaintiff, ordering that plaintiff was entitled to possession, apparently because defendant failed to follow the Forcible Entry and Detainer Act when it cancelled plaintiff’s lease, and ordered defendant to remove its machines. Defendant had argued that plaintiff had no right to possession of the premises due to the cancellation of the lease pursuant to the statute. On April 4, 1984, defendant filed a post-trial motion for reconsideration and for leave to amend its answer by adding a counterclaim for possession. Defendant argued it wanted to conform its pleadings to the proof. The trial court denied the motion. Defendant appeals both the judgment granting possession to plaintiff and the denial of its post-trial motion.

The standard of review in an action brought under the Forcible Entry and Detainer Act (Ill. Rev. Stat. 1983, ch. 110, par. 9 — 101 et seq.) to recover possession is, generally, whether the verdict was against the manifest weight of the evidence. (See Geleto v. Giglietti (1976), 40 Ill. App. 3d 226, 228, 352 N.E.2d 1.) For the following reasons, we find that the trial court’s decision awarding possession to plaintiff was against the manifest weight of the evidence.

The only matter to be resolved in a proceeding brought under the Forcible Entry and Detainer Act is the right to possession. (Hale v. Ault (1980), 83 Ill. App. 3d 78, 83, 403 N.E.2d 635.) The question of title is not properly litigated in such an action (Kurek v. State Oil Co. (1981), 98 Ill. App. 3d 6, 9, 424 N.E.2d 56), and, as between the plaintiff and defendant, the inquiry only focuses on who has the superior right to possession. (Hale v. Ault (1980), 83 Ill. App. 3d 78, 83, 403 N.E.2d 635.) The defendant to the suit may, by way of general denial, offer evidence in defense of the action. (Ill. Rev. Stat. 1983, ch. 110, par. 9 — 106.) Thus, the defendant can challenge the plaintiff’s claimed right of possession by way of an affirmative defense. Daehler v. Oggoian (1979), 72 Ill. App. 3d 360, 364, 390 N.E.2d 417.

In the present action, the defendant raised as an affirmative defense the termination of plaintiff’s lease by virtue of section 18.2 of the Condominium Act (Ill. Rev. Stat. 1979, ch. 30, par. 318.2). At the time the lease was executed, section 18.2 provided in pertinent part:

“Any contract, lease, or other agreement made prior to the election of a majority of the board of managers other than the developer by or on behalf of unit owners, individually or collectively, the unit owners’ association or the board of managers, which extends for a period of more than 2 years from the recording of the declaration, shall be subject to cancellation by more than V2 of the votes of the unit owners other than the developer cast at a special meeting of members called for that purpose during a period of 90 days following expiration of the 2 year period. During the 90 day period the other party to the contract, lease, or other agreement shall also have the right of cancellation.” (Ill. Rev. Stat. 1979, ch. 30, par. 318.2.)

That portion of section 18.2 has since been amended, effective July 1, 1984, requiring notice to the unit owners, at least 60 days prior to expiration of the two-year period, by the board of managers or by the developer if he still controls, of the unit owners’ right to terminate long-term contracts under this section at a membership meeting. That amendment, however, is not applicable to this action. (See Ill. Ann. Stat., ch. 30, par. 318.2(e) (Smith-Hurd 1984-85 Supp.).) Though no Illinois cases have interpreted what is now subdivision (e) of section 18.2, it is readily apparent that such a provision is designed to protect condominium owners from so-called “sweetheart deals” or self-dealing contracts between developers and their associates. (See Krebs, Legislative Response to “Sweetheart” Management Contracts: Protecting the Condominium Purchaser, 55 Chi. Kent L. Rev. 319 (1979); 15 U.S.C. secs. 3607, 3608 (1982) (Condominium and Cooperative Abuse Relief Act of 1980).) Often, condominium developers enter into long-term contracts with either associates or entities controlled by the developer to provide management services or leasing arrangements for recreational or other facilities. These contracts are usually noncancellable when assigned to the condominium management association and, later, they prove to be especially advantageous to the developer and economically harsh to the condominium owners. The Illinois statute and the Federal counterpart are designed to provide relief from such arrangements to the condominium owners.

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478 N.E.2d 478, 132 Ill. App. 3d 1019, 88 Ill. Dec. 163, 1985 Ill. App. LEXIS 1908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-d-service-inc-v-915-925-w-schubert-condominium-assn-illappct-1985.