TMQ Properties, LLC v. Family Dollar, Inc.

2025 IL App (4th) 240863-U
CourtAppellate Court of Illinois
DecidedApril 21, 2025
Docket4-24-0863
StatusUnpublished

This text of 2025 IL App (4th) 240863-U (TMQ Properties, LLC v. Family Dollar, 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
TMQ Properties, LLC v. Family Dollar, Inc., 2025 IL App (4th) 240863-U (Ill. Ct. App. 2025).

Opinion

NOTICE 2025 IL App (4th) 240863-U This Order was filed under FILED Supreme Court Rule 23 and is April 21, 2025 not precedent except in the NO. 4-24-0863 Carla Bender limited circumstances allowed 4th District Appellate under Rule 23(e)(1). IN THE APPELLATE COURT Court, IL

OF ILLINOIS

FOURTH DISTRICT

TMQ PROPERTIES, LLC, an Illinois Limited ) Appeal from the Liability Company, ) Circuit Court of Plaintiff-Appellee, ) Peoria County v. ) No. 23LM260 FAMILY DOLLAR, INC., a North Carolina Corporation, ) Defendant-Appellant. ) Honorable ) Stewart James Umholtz, ) Judge Presiding.

JUSTICE LANNERD delivered the judgment of the court. Justices Zenoff and Grischow concurred in the judgment.

ORDER

¶1 Held: The appellate court reversed the trial court’s grant of summary judgment in favor of plaintiff in an action alleging defendant’s breach of a lease agreement, concluding (1) defendant was not required to reimburse plaintiff for a stormwater utility charge because defendant was only obligated to reimburse real estate taxes and (2) the parties did not waive or modify plaintiff’s obligation to submit reimbursement requests to defendant within certain 180-day periods, which was a condition precedent to defendant’s obligation to pay the expenses identified.

¶2 Defendant, Family Dollar, Inc., a North Carolina corporation (Family Dollar),

leases property from plaintiff, TMQ Properties, LLC, an Illinois limited liability company (TMQ).

After Family Dollar refused to reimburse TMQ for payments TMQ made on the property for

insurance premiums, real estate taxes, and a stormwater utility charge imposed by the City of

Peoria, TMQ filed a single-count complaint, alleging Family Dollar breached the terms of their

lease agreement (Lease). The parties filed cross-motions for summary judgment. Family Dollar

argued (1) it was not required to reimburse TMQ because TMQ failed to timely submit invoices for the charges to Family Dollar, as required by the Lease, and (2) the Lease required Family Dollar

to reimburse only real estate taxes. TMQ argued (1) the parties modified the Lease where Family

Dollar previously reimbursed TMQ for charges contained in untimely invoices and (2) Family

Dollar’s obligation to reimburse TMQ for real estate taxes encompassed the stormwater utility

charge. The trial court denied Family Dollar’s motion and granted summary judgment in favor of

TMQ. The court concluded (1) the parties modified the Lease through their conduct, such that

Family Dollar was required to reimburse TMQ for charges, even where TMQ submitted untimely

invoices, and (2) Family Dollar was required to reimburse TMQ for the stormwater utility charge.

Family Dollar appeals, arguing that the court erred in granting summary judgment to TMQ, as no

modification of the Lease terms occurred, and the Lease did not require Family Dollar to reimburse

TMQ for the stormwater utility charge. We reverse and remand.

¶3 I. BACKGROUND

¶4 The following facts are taken from the record. TMQ owned a shopping center

located in Peoria. On March 18, 2015, TMQ and Family Dollar entered into the Lease, which

provided in the introductory paragraph that Family Dollar would lease “that space [in the shopping

center] including the roof and exterior walls that contains approximately 9,100 (70’ x 130’) interior

square feet (the ‘Demised Premises’).” The Lease also contained the following provisions relevant

to this appeal. Paragraph 11 required (1) TMQ to maintain a commercial property insurance policy

over the Demised Premises and (2) Family Dollar to reimburse TMQ for Family Dollar’s

“proportionate share of the insurance premium for the insurance [TMQ] is required to carry.” Each

year, TMQ was required to provide Family Dollar with a statement indicating the amount owed.

However, Family Dollar would not be obligated to reimburse the premium if TMQ failed to

provide the statement within a specified period. Specifically, Paragraph 11 states:

-2- “In no event will [Family Dollar] be responsible for reimbursing [TMQ] for any

insurance premium unless [Family Dollar] has received the required statement and

documentation from [TMQ] within 180 days after the earlier of the date [TMQ]

paid the premium or the date the premium was due and payable.”

¶5 In Paragraph 13, the Lease imposed similar obligations upon the parties regarding

certain taxes:

“13. TAXES. [TMQ] will timely pay all taxes, assessments and other

charges that may be levied, assessed or charged against the Shopping Center,

including the Demised Premises, and [TMQ] will make all payments required to be

made under the terms of any mortgage or deed of trust that is now or later becomes

a lien on the Shopping Center or the Demised Premises.

*** Beginning on the Rent Commencement Date, [Family Dollar] will

reimburse [TMQ] for [Family Dollar]’s proportionate share of the real estate taxes

on the Shopping Center. ***

[TMQ] will provide [Family Dollar] with a copy of the tax bill with

evidence of [TMQ]’s payment for each year beginning with the year in which the

lease term commences and an up-to-date schedule or plan of all spaces in the

Shopping Center whether occupied or unoccupied and any other information

[Family Dollar] may reasonably require. In no event will [Family Dollar] be

responsible for reimbursing [TMQ] for any real estate taxes unless [Family Dollar]

has received written request for reimbursement from [TMQ] along with the

required documentation within 180 days after the last day the taxes were due

without penalty or interest.”

-3- ¶6 Other relevant paragraphs in the Lease pertained to the interpretation and

construction of the agreement. Specifically, Paragraph 19 states, in part:

“The term ‘lease year’ is a 52 week period ending on June 30. ‘Gross sales’

means all sales made by [Family Dollar] from the Demised Premises excluding

sales tax, excise tax, refunds, void sales, and sales and revenues from vending

machines and other mechanical devices including ATMs.”

Paragraph 29 reads:

“29. PARAGRAPH HEADINGS; ETC. The numbered sections of this

Lease are referred to as Paragraphs, and the phrase ‘this Paragraph’ means the entire

numbered Paragraph and not just a grammatical paragraph contained within a

numbered Paragraph. The Paragraph headings throughout this Lease are for

convenience and reference only, and will in no way be held to explain, modify,

amplify, or aid in the interpretation, construction or meaning of the provisions of

this Lease.”

Paragraph 32 states:

“32. NON-WAIVER. No waiver of any agreement, condition or covenant

will be valid unless it is set forth in writing signed by the party to be bound by the

waiver. No waiver of a breach of any agreement, condition or covenant will be

claimed or pleaded to excuse a subsequent breach of the same agreement, condition

or covenant or any other agreement, condition or covenant.”

Finally, Paragraph 40 provides:

“40. ENTIRE AGREEMENT; BINDING ON SUCCESSORS. This Lease

constitutes the entire agreement between [TMQ] and [Family Dollar] and all

-4- understandings and agreements between [TMQ] and [Family Dollar] are merged

into this Lease. This Lease may not be modified, amended or supplemented except

by an agreement in writing signed by [TMQ] and [Family Dollar].”

¶7 Beginning on June 24, 2016, and continuing each following year on June 30, 2017;

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Bluebook (online)
2025 IL App (4th) 240863-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tmq-properties-llc-v-family-dollar-inc-illappct-2025.