Village of Grandview v. City of Springfield

461 N.E.2d 1031, 122 Ill. App. 3d 794, 78 Ill. Dec. 197, 1984 Ill. App. LEXIS 1614
CourtAppellate Court of Illinois
DecidedMarch 26, 1984
Docket4—83—0620, 4—83—0621 cons.
StatusPublished
Cited by24 cases

This text of 461 N.E.2d 1031 (Village of Grandview v. City of Springfield) 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
Village of Grandview v. City of Springfield, 461 N.E.2d 1031, 122 Ill. App. 3d 794, 78 Ill. Dec. 197, 1984 Ill. App. LEXIS 1614 (Ill. Ct. App. 1984).

Opinion

JUSTICE TRAPP

delivered the opinion of the court:

In these consolidated cases, plaintiffs, the villages of Jerome and Grandview, each brought an identical accounting action against defendant, the city of Springfield. The villages asked the city to account for rates it charged the villages under long-term, bulk-water-supply contracts. The city appeals from an order of the circuit court of Sangamon County granting the villages’ motions for summary judgment. At issue is the proper construction of the water-supply contracts.

In July 1971, the village of Jerome entered into a contract with the city under which the city was to supply water to Jerome for the next 40 years. Under section 2 of the contract, the city could increase or decrease the annual rate to reflect an increase or decrease in the average operation cost and the debt service for long-term funded debt. On October 8, 1974, the village of Grandview entered into a similar contract with the city. Grandview’s contract ran until September 1, 1979, but it was to remain in effect on a year-to-year basis until one party gave notice of termination.

On December 23, 1969, the city passed an ordinance authorizing the issuance of water revenue bonds. The bonds were issued in 1970, and the city set aside $2.25 million of the proceeds for a future water-supply reservoir, called the Lake II project. On December 17, 1974, the city passed a similar ordinance, and $9 million of the proceeds from the second bond issue were set aside for the Lake II project. The water rate the city charged the villages increased every year between 1972 and 1977. Part of this increase was due to the debt service on the bonds issued for the Lake II project.

The city started purchasing land for the Lake II project in 1970. On December 13, 1976, however, the circuit court of Sangamon County dismissed a petition the city had filed to condemn land for use in constructing Lake II. The court held that, because the city council had not yet authorized the construction of Lake II, there was no showing of necessity to take the land by eminent domain. On January 18, 1978, the city council adopted a report that concluded the Lake II project could not be justified on a cost-effective basis for many years in the future. The report recommended that construction of the project be postponed, but land already acquired be retained on the assumption that Lake II would someday be built. The city also appealed the dismissal of the condemnation suit. Based upon the city council’s adoption of the report, the appellate court in City of Springfield v. Miller (1978), 55 Ill. App. 3d 1121 (Rule 23 order), held that the issue was moot and affirmed the trial court.

The city earned rental and crop-sharing income from land it purchased for the Lake II project. The city credited this income to its “Waterworks Bond Construction Fund Account.” In addition, the city invested unexpended funds received from the two bond issues, and this income was also placed into the construction-fund account. The city did not include any of this income in calculating the villages’ water rates under the contracts.

On May 8, 1978, Jerome filed a two-count complaint against the city. Jerome maintained that the rental, crop-sharing, and interest income received from the bond proceeds should have been credited to paying off the interest on the bond issues; therefore, the complaint alleged the city had overcharged Jerome and prayed for an accounting. Grandview filed an identical complaint on June 8,1979.

Both villages then filed motions for summary judgment. The city filed objections and its own motion for summary judgment in each case. The trial court found that there was no genuine issue as to any material fact and granted the villages’ motions for summary judgment. The court found that, under the proper construction of section 2, the villages were entitled to credit in the computation of rate increases for all income the city received from the bond proceeds. The court, therefore, ordered the city to account and to give credit to the villages by way of a refund or credit on future charges.

A preliminary issue involves appellate jurisdiction. The trial court ordered the city to account to the villages; therefore, the court must have retained jurisdiction to approve the accounting. Previously, a judgment that disposed of the rights of the parties was final and appealable, although it reserved an incidental accounting for future consideration. (Barnhart v. Barnhart (1953), 415 Ill. 303, 308, 114 N.E.2d 378, 381; Altschuler v. Altschuler (1948), 399 Ill. 559, 569, 78 N.E.2d 225, 230.) This rule, however, was abrogated. (Burtell v. First Charter Service Corp. (1979), 76 Ill. 2d 427, 432, 394 N.E.2d 380, 382.) Supreme Court Rule 304(a) states that a final judgment that disposes of less than all the claims involved in the action may be appealed only if the trial court makes an express, written finding that there is no just reason for delaying enforcement or appeal. (87 Ill. 2d R. 304(a).) The trial court made the proper written finding in this case. Because an accounting action has always been considered a separate matter properly resolved in a separate proceeding, the judgment orders are appealable. 2416 Corp. v. First National Bank (1980) , 91 Ill. App. 3d 961, 969, 415 N.E.2d 420, 427; Pinelli v. Alpine Development Corp. (1979), 70 Ill. App. 3d 980, 1008, 388 N.E.2d 943, 963.

The resolution of this case depends upon the construction given to section 2 of the water-supply contracts, which allows the city to increase or decrease the rate charged “to reflect an increase or decrease in the average operation cost, and the debt service for long term funded debt.” The issue is whether the interest, rental, and crop-sharing income should be included in calculating the “average operation cost, and the debt service for long term funded debt.”

A contract must be enforced according to its terms or not at all, and a court has no authority to compel the party to do something other than that which he has agreed to do in his contract. (Sweeting v. Campbell (1956), 8 Ill. 2d 54, 58, 132 N.E.2d 523, 525.) When construing a contract, the court’s primary objective is to ascertain the intent of the parties as evidenced by the language used. If the terms of a contract are unambiguous, then the intent of the parties must be ascertained solely from the words used; a contract is not rendered ambiguous simply because the parties failed to agree upon its meaning. (Schoeneweis v. Herrin (1982), 110 Ill. App. 3d 800, 806, 443 N.E.2d 36, 41; Joseph v. Lake Michigan Mortgage Co. (1982), 106 Ill. App. 3d 988, 991-92, 436 N.E.2d 663

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

Related

In re Desert Village Ltd. Partnership
332 B.R. 160 (N.D. Ohio, 2005)
Stichter v. Zuidema
646 N.E.2d 296 (Appellate Court of Illinois, 1995)
Yamnitz v. William J. Diestelhorst Co.
621 N.E.2d 1046 (Appellate Court of Illinois, 1993)
Agribank, F C B v. Whitlock
621 N.E.2d 967 (Appellate Court of Illinois, 1993)
Fitzwilliam v. 1220 Iroquois Venture
598 N.E.2d 1003 (Appellate Court of Illinois, 1992)
Bornstein v. First United
597 N.E.2d 870 (Appellate Court of Illinois, 1992)
Quality Lighting, Inc. v. Benjamin
592 N.E.2d 377 (Appellate Court of Illinois, 1992)
Bankier v. First Federal Savings & Loan Association of Champaign
588 N.E.2d 391 (Appellate Court of Illinois, 1992)
Continental Mobile Telephone Co. v. Chicago S M S a Ltd. Partnership
587 N.E.2d 1169 (Appellate Court of Illinois, 1992)
Central Illinois Public Service Co. v. Illinois Commerce Commission
579 N.E.2d 1200 (Appellate Court of Illinois, 1991)
Riney v. Weiss & Neuman Shoe Co.
577 N.E.2d 505 (Appellate Court of Illinois, 1991)
Prairie Land Construction, Inc. v. Village of Modesto
571 N.E.2d 1210 (Appellate Court of Illinois, 1991)
Home Savings Ass'n v. State Bank of Woodstock
763 F. Supp. 292 (N.D. Illinois, 1991)
Gladstone v. McHenry Medical Group
553 N.E.2d 1174 (Appellate Court of Illinois, 1990)
Urbaitis v. Commonwealth Edison
540 N.E.2d 352 (Appellate Court of Illinois, 1989)
First National Bank v. Country Mutual Insurance
530 N.E.2d 521 (Appellate Court of Illinois, 1988)
Petrowsky v. Family Service of Decatur, Inc.
518 N.E.2d 664 (Appellate Court of Illinois, 1987)
Gardner v. Padro
517 N.E.2d 1131 (Appellate Court of Illinois, 1987)
Chicago Food Management, Inc. v. City of Chicago
516 N.E.2d 880 (Appellate Court of Illinois, 1987)
Prudential Insurance Co. v. Van Matre
511 N.E.2d 740 (Appellate Court of Illinois, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
461 N.E.2d 1031, 122 Ill. App. 3d 794, 78 Ill. Dec. 197, 1984 Ill. App. LEXIS 1614, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-grandview-v-city-of-springfield-illappct-1984.