Skarin Custom Homes, Inc. v. Ross

906 N.E.2d 1, 388 Ill. App. 3d 739, 329 Ill. Dec. 156, 2009 Ill. App. LEXIS 86
Appellate Court of Illinois·Decided February 26, 2009·No. 2-08-0061·Published·Cited by 13 cases

Opinion

JUSTICE SCHOSTOK

delivered the opinion of the court:

The plaintiff, Skarin Custom Homes, brought this action against the defendants, Joseph and Stephanie Ross, asserting claims for breach of contract and breach of the Illinois Residential Real Property Disclosure Act (the Disclosure Act) (765 ILCS 77/1 et seq. (West 2006)). On December 20, 2007, the trial court granted the defendants’ motion to dismiss the plaintiff’s verified amended complaint under section 2 — 619 of the Code of Civil Procedure (the Code) (735 ILCS 5/2 — 619 (West 2006)). The plaintiff appeals from that order. On April 24, 2008, the trial court denied the defendants’ motion for attorney fees and costs. The defendants cross-appeal from that order. We reverse and remand for additional proceedings.

On March 10, 2006, the parties entered into a residential real estate contract for the sale of property located at 2S500 Arrowhead in Wheaton from the defendants to the plaintiff. Prior to the plaintiffs purchase of the property, the defendants completed a residential real property disclosure report as required by section 35 of the Disclosure Act (765 ILCS 77/35 (West 2006)). In their disclosure report, the defendants stated that they were aware of flooding or recurring leakage problems in the basement of the property. The defendants explained that there was “some seepage in basement during heavy-rains.” On March 31, 2006, the parties closed on the contract and the plaintiff took possession of the property. Following the closing, the plaintiff allegedly discovered that there was a history of severe flooding in the basement of the property and elsewhere on the lot of the property.

The plaintiff’s original complaint, filed March 29, 2007, sought recovery for breach of contract, breach of the Disclosure Act, and common-law fraud. The claims were premised on allegations that the defendants failed to disclose that there was a history of flooding in the basement of the property and elsewhere on the lot of the property. The defendants moved to strike the plaintiff’s original complaint pursuant to section 2 — 615 of the Code (735 ILCS 5/2 — 615 (West 2006)), arguing that the complaint failed to state causes of action for breach of contract, breach of the Disclosure Act, and common-law fraud. On June 27, 2007, the trial court dismissed with prejudice the plaintiffs claims for breach of the Disclosure Act and common-law fraud. The trial court dismissed the plaintiff’s claim for breach of contract without prejudice and granted the plaintiff leave to file an amended breach-of-contract claim. Following a motion to reconsider, the trial court reversed its ruling as to the claim for breach of the Disclosure Act and granted the plaintiff leave to replead its claims for breach of contract and of the Disclosure Act.

On October 15, 2007, the plaintiff filed an amended two-count complaint. Count I, for breach of contract, alleged that the defendants breached the real estate contract by failing to disclose in their residential real property disclosure report the severe flooding problems in the basement of the home and on the lot. Count II, for breach of the Disclosure Act, alleged that the defendants breached the Disclosure Act by disclosing only “some seepage in the basement during heavy rains” when they had actual knowledge of severe flooding of several feet of water in the basement.

On November 2, 2007, the defendants filed a section 2 — 619 motion to dismiss. In that motion, the defendants argued that the plaintiffs claims were barred by other affirmative matter (735 ILCS 5/2 — 619(a)(9) (West 2006)). Specifically, the defendants pointed out that in its amended complaint the plaintiff acknowledged that its original intent in purchasing the property had been to tear down the house, build a new house, and sell the property for profit. The defendants argued that, if both parties to a real estate contract know that the buyer intends to raze the only structure located thereon and redevelop the property, the Disclosure Act serves no purpose and is inapplicable to the transaction. Accordingly, the defendants argued that, because the Disclosure Act was inapplicable and because both claims were based on a failure to disclose under the Disclosure Act, both claims must be dismissed with prejudice.

On December 20, 2007, following a hearing, the trial court granted the defendants’ motion to dismiss. The trial court found that the plaintiff’s intent to raze the home on the property removed the transaction from the realm of the Disclosure Act. The trial court further determined that, because both claims were based on the defendants’ alleged failure to disclose, both counts should be dismissed with prejudice. Thereafter, the plaintiff filed a timely notice of appeal.

On January 22, 2008, the defendants filed a motion for attorney fees and costs based on paragraph 18 of the subject real estate contract. Pursuant to paragraph 18, “[t]he prevailing party in litigation shall be entitled to collect reasonable attorney fees and costs from the losing party as ordered by a court of competent jurisdiction.” The defendants argued that, because the plaintiffs claims were dismissed with prejudice, the defendants were the prevailing party and thus were entitled to have their reasonable attorney fees and costs assessed against the plaintiff. On April 24, 2008, following a hearing, the trial court denied the defendants’ motion for attorney fees and costs. The trial court found that paragraph 18 of the contract applied only if there had been a default of the contract by either party. The trial court determined that, because there had been no default by either party, the defendants were not entitled to attorney fees and costs. Thereafter, the defendants filed a timely notice of cross-appeal.

At the outset, we note that the plaintiff filed a motion to strike certain portions of the defendants’ reply brief in their cross-appeal. We ordered that motion taken with the case. In that motion, the plaintiff argues that the defendants included improper argument in their reply brief. Specifically, in addition to making arguments in reply to the plaintiff’s answer to their cross-appeal, the defendants made arguments directed against the plaintiffs reply to the defendants’ response to the plaintiffs appeal. The plaintiff argues that the latter constitutes impermissible surreply. We agree. Pursuant to Supreme Court Rule 343(b)(1) (210 Ill. 2d R. 343(b)(1)), a cross-appellant’s reply brief should be confined strictly to replying to the appellant’s answer to the arguments on cross-appeal. Accordingly, we grant the plaintiffs motion to strike and will consider only the arguments in the defendants’ reply brief that respond to the plaintiffs answer to their cross-appeal.

On appeal, the plaintiff argues that the trial court erred in dismissing (1) its claims for breach of the Disclosure Act and breach of contract contained in its amended complaint; and (2) its claim for common-law fraud contained in its original complaint.

Free access — add to your briefcase to read the full text and ask questions with AI

Skarin Custom Homes, Inc. v. Ross, 906 N.E.2d 1, 388 Ill. App. 3d 739, 329 Ill. Dec. 156, 2009 Ill. App. LEXIS 86 (Ill. Ct. App. 2009).

906 N.E.2d 1 (Skarin Custom Homes, Inc. v. Ross) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In re Estate of Matteis
2022 IL App (1st) 210800-U (Appellate Court of Illinois, 2022)
Pepper Construction Co. v. Palmolive Tower Condominiums, LLC
2021 IL App (1st) 200753 (Appellate Court of Illinois, 2021)
State v. Joyner
2017 Ohio 8652 (Ohio Court of Appeals, 2017)
Dobias v. Oak Park
2016 IL App (1st) 152205 (Appellate Court of Illinois, 2016)
Banco Popular North America v. Gizynski
2015 IL App (1st) 142871 (Appellate Court of Illinois, 2015)
In Re Marriage of Stephenson
955 N.E.2d 618 (Appellate Court of Illinois, 2011)
MacKnin v. MacKnin
937 N.E.2d 270 (Appellate Court of Illinois, 2010)
Terraces of Sunset Park v. Chamberlin
Appellate Court of Illinois, 2010
TERRACES OF SUNSET PARK, LLC v. Chamberlin
929 N.E.2d 1161 (Appellate Court of Illinois, 2010)
Madigan Ex Rel. Department of Healthcare & Family Services v. Yballe
920 N.E.2d 1112 (Appellate Court of Illinois, 2009)