The Takiff Properties Group Ltd. 2 v. GTI Life, Inc.

2018 IL App (1st) 171477
CourtAppellate Court of Illinois
DecidedDecember 26, 2018
Docket1-17-1477
StatusUnpublished

This text of 2018 IL App (1st) 171477 (The Takiff Properties Group Ltd. 2 v. GTI Life, Inc.) 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
The Takiff Properties Group Ltd. 2 v. GTI Life, Inc., 2018 IL App (1st) 171477 (Ill. Ct. App. 2018).

Opinion

2018 IL App (1st) 171477

No. 1-17-1477

Opinion filed on December 26, 2018.

Second Division

IN THE

APPELLATE COURT OF ILLINOIS

FIRST DISTRICT

THE TAKIFF PROPERTIES GROUP LTD. #2, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County. ) v. ) No. 2015 M1 114035 ) GTI LIFE, INC., and GUY IANTONI, ) The Honorable ) Patricia S. Spratt, Defendants-Appellants. ) Judge Presiding.

JUSTICE LAVIN delivered the judgment of the court, with opinion. Presiding Justice Mason concurred in the judgment and opinion. Justice Hyman specially concurred, with opinion.

OPINION

¶1 The Takiff Properties Group Ltd. #2, the plaintiff-landlord in this dispute, entered into a

commercial lease with GTI Life, Inc., the defendant-tenant. Defendant Guy Iantoni served as

tenant’s guarantor. 1 Following a bench trial, the court entered judgment in landlord’s favor with

respect to its claim that tenant, which had abandoned the property, owed overdue rent. The court

1 For purposes of this opinion, “tenant” will refer to both GTI Life, Inc. and Iantoni. No. 1-17-1477

also found that the lease contractually waived landlord’s obligation to mitigate damages under

section 9-213.1 of the Illinois Code of Civil Procedure. 725 ILCS 5/9-213.1 (West 2014). On

appeal, tenant asserts that the trial court should have entered judgment in its favor because

parties cannot contractually negate section 9-213.1 and, even if they can, landlord waived its

right to assert any contractual waiver. Tenant also contends landlord failed to present evidence

that it attempted to mitigate its damages. For the following reasons, we affirm the trial court’s

judgment.

¶2 I. Background

¶3 In 2008, landlord leased to tenant the property located at 633 Skokie Boulevard, Suite

250, Northbrook, Illinois. Although the lease was initially for one year, it was extended through

October 31, 2014, with an eventual increase in rent to $2,167 per month. The lease contained

several cumulative remedies benefitting landlord, including the following:

“If the Lessee abandons the premises or otherwise entitles the Lessor so to elect,

and the Lessor elects to terminate the Lessee’s right to possession only, without

terminating the lease, the Lessor may, at the Lessor’s option enter into the premises,***

and take and hold possession thereof. *** Upon and after entry into possession without

termination of the lease, the Lessor may, but need not, relet the premises or any part

thereof for the account of the Lessee to any person, firm or corporation other than the

Lessee for such rent, for such time and upon such terms as the Lessor in the Lessor’s sole

discretion shall determine, and the Lessor shall not be required to accept any Lessee

offered by the Lessee or to observe any instructions given by the Lessee about such

reletting.” 2 (Emphases added.)

2 We note there is no suggestion that landlord terminated the lease upon tenant’s abandonment.

2 No. 1-17-1477

¶4 On June 25, 2015, landlord filed a complaint alleging that tenant owed $18,309.97 in

unpaid rent as well as attorney fees and costs. Ultimately, tenant filed an answer admitting that

“a certain amount of money” had not been paid but denying that the amount due was $18,

309.97. As an affirmative defense, tenant alleged that landlord failed to exercise reasonable

diligence to mitigate its damages. Specifically, landlord knew or should have known that tenant

no longer possessed the premises after March 2014. Yet, landlord made no effort to relet the

premises until approximately the summer of 2014. Tenant alleged that because landlord failed to

mitigate damages, it was not entitled to any unpaid rent. Landlord did not file a response to the

defense raised.

¶5 The matter proceeded to trial on February 15, 2017. No court reporter was present but the

parties submitted bystander reports for the trial court’s approval. According to landlord’s

proposed bystander’s report, Steve Freeman testified on landlord’s behalf that it relet the

premises on August 1, 2014, prior to the lease expiration, and did not charge tenant rent for the

remaining period. On cross-examination, “Freeman testified that he had no personal knowledge

of the specific steps that [landlord] took to relet the Premises but that he believed the Premises

were listed.” Landlord’s bystander report further stated that Iantoni testified, on tenant’s behalf,

that certain personal property left on the premises was not returned.

¶6 The bystander’s report submitted by landlord concluded that after hearing argument and

considering the testimony as well as the documents admitted into evidence, the court entered

judgment in landlord’s favor for $21,616.30. In addition, “[t]he court found that [tenant] had

contractually waived [landlord’s] duty to mitigate” and the court rejected the suggestion that

such duty could not be contractually waived. The trial court subsequently certified landlord’s

bystander’s report, to the exclusion of the report submitted by tenant, and added that tenant

3 No. 1-17-1477

“provided no legal authority for [its] position that the waiver of mitigation in the lease is

unenforceable.”

¶7 Tenant moved for the court to reconsider, arguing that Freeman admitted he had no

knowledge of any actions taken to mitigate landlord’s damages and that parties could not

contract away landlord’s “statutory duty to mitigate damages.” 725 ILCS 5/9-213.1 (West 2014).

They argued that landlord attempted to contract itself out of its statutory duty through the lease’s

language stating that the landlord could, but was not required to, relet the premises. Tenant did

not, however, identify any case stating that a statutory duty, let alone, this statutory duty, could

not be contractually waived. According to the proposed bystander’s report certified by the court,

the trial court denied the motion reconsider, finding that tenant had not pled that landlord had a

statutory duty to mitigate, as opposed to a common law duty.

¶8 II. Analysis

¶9 On appeal, tenant asserts that (1) landlord failed to present evidence of mitigation; (2)

landlord waived its right to assert the contractual provision excusing it from reletting the

premises; and (3) the parties could not have contracted away landlord’s statutory duty to mitigate

damages. We first examine the nature of section 9-213.1.

¶ 10 A. Section 9-213.1: Duty or Defense

¶ 11 “After January 1, 1984, a landlord or his or her agent shall take reasonable measures to

mitigate the damages recoverable against a defaulting lessee.” 735 ILCS 5/9-213.1 (West 2014).

The doctrine of mitigation is often characterized as imposing a “duty” on an injured party, but

this characterization is inaccurate. St. George Chicago, Inc. v. George J. Murges & Associates,

296 Ill. App. 3d 285, 293 (1998); Commercial Landlord-Tenant Practice (IICLE®, 2015) § 8.23,

at 8-19 (stating that “the duty to mitigate is not correctly spoken of as a duty”). The injured party

4 No. 1-17-1477

incurs no liability for failing to act; rather, his recovery is reduced by the amount of loss he could

have avoided incurring. St. George Chicago, Inc., 296 Ill. App. 3d at 293 (citing Restatement

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

Related

Pal Win Retail Investors, LLC v. Swinford
Appellate Court of Illinois, 2026

Cite This Page — Counsel Stack

Bluebook (online)
2018 IL App (1st) 171477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-takiff-properties-group-ltd-2-v-gti-life-inc-illappct-2018.