Schott v. Glover

440 N.E.2d 376, 109 Ill. App. 3d 230, 64 Ill. Dec. 824, 1982 Ill. App. LEXIS 2277
CourtAppellate Court of Illinois
DecidedSeptember 15, 1982
Docket80-3160, 82-142 cons.
StatusPublished
Cited by59 cases

This text of 440 N.E.2d 376 (Schott v. Glover) 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
Schott v. Glover, 440 N.E.2d 376, 109 Ill. App. 3d 230, 64 Ill. Dec. 824, 1982 Ill. App. LEXIS 2277 (Ill. Ct. App. 1982).

Opinion

JUSTICE McNAMARA

delivered the opinion of the court:

Plaintiffs, Mildred D. Schott, First Women’s Realty Corp., and Cedilla Co., brought this action seeking damages from defendants Standard Chartered Bank, Reynaldo P. Glover, and the law firm of Isham, Lincoln & Beale. Plaintiffs alleged in count I of their amended complaint that the bank had breached an exclusive agency agreement with plaintiffs and in count II that attorney Glover, individually and as agent for Isham, had tortiously interfered with that agreement. Count III contained alternative allegations that Glover had tortiously interfered with plaintiffs’ business relationship and expectancy. The trial court dismissed counts II and III for failure to state a cause of action. The trial court also struck count I but granted plaintiffs leave to amend that count. Plaintiffs’ second amended complaint against the bank was subsequently dismissed for failure to state a cause of action. Plaintiffs’ appeals have been consolidated.

We first address plaintiffs’ contention that their amended complaint stated a cause of action for breach of contract against the bank. The complaint averred that the bank had entered into three written exclusive agency agreements with plaintiffs each of which provided that plaintiffs were to act as the bank’s “sole and exclusive real estate broker” for the purpose of securing office space for the bank in the Chicago area. The bank was to pay no fee for plaintiffs’ services, but commissions were to be paid by the owner of the building in which the bank leased or purchased space. The initial agreement was between the bank and plaintiff First Women’s Realty Corp. of which plaintiff Schott was president and stockholder. It was for a term of six months, commencing January 1, 1977. The second agreement was between the bank and plaintiff Cedilla Company, of which Schott was president and stockholder. That agreement lasted for three months. The third agreement, also between Cedilla Co. and the bank, was for a term of six months, expiring June 30, 1978.

Plaintiffs alleged that after the expiration of the third written agreement the “Exclusive Agency was continued at the oral request of BANK’S Vice President and Manager, Timothy P. Nunan *** via various telephone and face-to-face conversations, and evidenced by certain correspondence,” copies of which were attached to the pleadings. They asserted that “plaintiffs and defendant’s agent understood that said extension of plaintiffs’ exclusive agency was to be for an additional six-month period,” although this term was “not specifically mentioned in said conversations and correspondence.”

Plaintiffs alleged further that, pursuant to this understanding between the parties, they “continued to exert time and effort and rendered valuable services to locate suitable office space for the bank.” The bank, allegedly aware that plaintiffs were continuing to perform such services, independently entered into a lease for space in a building in downtown Chicago and notified plaintiffs by letter dated December 12, 1978, that their services were no longer required. Plaintiffs charged that the bank’s execution of the lease during the existence of their exclusive agency agreement, as extended, was a breach of that agreement and that it deprived plaintiffs of their brokerage commission. Alternatively, plaintiffs alleged that the December 12 letter in itself constituted a premature termination and breach of agreement.

Plaintiffs asserted that as early as January 1978, they presented the bank with data regarding space at the building in question and discussed that structure with the bank. All parties agree, however, that in order to state a cause of action for breach of contract in the present case, it was necessary for plaintiffs to allege that their exclusive agency agreement with the bank was extended past the June 30, 1978, expiration date and that such extension was for a specific term. Absent exclusivity, plaintiffs would not be entitled to commissions for their unsuccessful efforts. (Lord v. Melton (1980), 80 Ill. App. 3d 1057, 400 N.E.2d 547.) Without a specific term, the alleged agency contract would have been terminable at the will of either party thus negating any cause of action for premature termination. Kraftco Corp. v. Kolbus (1971), 1 Ill. App. 3d 635, 274 N.E.2d 153.

Any allegations in the body of plaintiffs’ second amended complaint which might indicate an extension by the parties of their exclusive agency agreement were clearly contradicted by the exhibits attached to that complaint. In a letter dated August 2, 1978, Nunan thanked Schott for her efforts on the bank’s behalf “whilst you were acting as our exclusive agent.” Schott, in a letter to Nunan dated October 24, 1978, expressed her own confusion as to how the bank was presently handling its search of a location. She then referred to their working relationship “since January 1977 and up until a few months ago under an exclusive agreement.”

Contrary to plaintiffs’ allegations, these exhibits clearly indicate that both sides were aware that their exclusive agency agreement had not been extended beyond the termination date of June 30, 1978. Facts set forth in exhibits attached to a complaint control over contrary allegations in the complaint itself. (W.H. Lyman Construction Co. v. Village of Gurnee (1980), 84 Ill. App. 3d 28, 403 N.E.2d 1325.) Plaintiffs’ allegations of an extension by the parties of the exclusive agreement must therefore be disregarded. Since plaintiffs failed to allege sufficiently an extension of their exclusive agency agreement, the trial court properly dismissed the second amended complaint for failure to state a cause of action as to the bank.

We next address plaintiffs’ contention that count II of their amended complaint stated a cause of action against Glover, individually as attorney for the bank and as agent for Isham for tortious interference with a contractual relationship. Plaintiffs alleged that Glover, with knowledge that the bank had agreed to extend its exclusive agency agreement with plaintiffs and that plaintiffs were performing services pursuant to that extension, induced the bank to breach and terminate prematurely that exclusive agency. Specifically, plaintiffs charged that Glover minimized the value of plaintiffs’ services; erroneously informed the bank that its contractual obligations to plaintiffs had ceased on June 30, 1978, and advised it not to continue the agency relationship; and misled the bank by informing it that a continuation would result in office rentals inflated by the amount of plaintiffs’ commission. Plaintiffs alleged further that Glover negotiated directly with a realty firm on behalf of the bank with regard to the property in question and advised the realty firm that it was unnecessary to negotiate with plaintiffs.

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Bluebook (online)
440 N.E.2d 376, 109 Ill. App. 3d 230, 64 Ill. Dec. 824, 1982 Ill. App. LEXIS 2277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schott-v-glover-illappct-1982.