Wright v. Chicago Title Insurance Co.

554 N.E.2d 511, 196 Ill. App. 3d 920, 143 Ill. Dec. 576, 1990 Ill. App. LEXIS 504
CourtAppellate Court of Illinois
DecidedApril 11, 1990
Docket1-88-3040, 1-89-0473 cons.
StatusPublished
Cited by39 cases

This text of 554 N.E.2d 511 (Wright v. Chicago Title Insurance Co.) 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
Wright v. Chicago Title Insurance Co., 554 N.E.2d 511, 196 Ill. App. 3d 920, 143 Ill. Dec. 576, 1990 Ill. App. LEXIS 504 (Ill. Ct. App. 1990).

Opinion

JUSTICE WHITE

delivered the opinion of the court:

Plaintiffs Mark and Rochelle Wright and defendants Daniel and Gail Shunk appeal from judgments entered by the circuit court. In case No. 1 — 88—3040, plaintiffs appeal orders granting defendants’ motion to dismiss two counts of plaintiffs’ complaint and entering summary judgment for Chicago Title Insurance Company on another count of the complaint. In No. 1 — 89—0473, plaintiffs and defendants have filed cross-appeals from the trial court’s order denying their section 2 — 611 petitions for sanctions. Ill. Rev. Stat. 1987, ch. 110, par. 2-611.

While the appeals were pending, plaintiffs entered into a settlement agreement with Chicago Title Insurance Company and plaintiffs’ appeal from the summary judgment was dismissed. The appeal from the order dismissing the action against defendants and the cross-appeals remain.

In March 1987, plaintiffs filed suit against defendants alleging breach of contract and fraud in connection with defendants’ sale of their home to plaintiffs.

The contract to purchase the house, located at 708 Gregford Road in Burr Ridge, Illinois, was entered into in August 1985. Paragraph 5 of the contract provided:

“Seller shall convey or cause to be conveyed to Buyer (in joint tenancy) or his nominee by a recordable stamped general warranty deed with release of homestead rights, good title to the premises subject only to the following ‘permitted exceptions’ if any *** (b) Special Assessments confirmed after this contract date ***.”

Paragraph 7 of the contract provided:

“Seller represents (a) that he has received no notice of any ordinance or building code violation or pending special assessment from any governmental body in connection with the premises ***.”

In their complaint, plaintiffs alleged that in 1984, one year prior to the sale, the Village of Burr Ridge designated the area in which defendants’ house was located a special service area and imposed a special service area tax on all property located in the area. Collection of the tax was to begin in 1985 and would continue for the following nine years. Plaintiffs alleged that at the time they entered into the contract to sell their house, defendants were aware of the special service area tax and, therefore, defendants’ representations that no special assessments existed were false and fraudulent.

Defendants filed a motion to dismiss plaintiffs’ fraud and breach of contract claims. Defendants pointed out that, by signing the contract, they represented only that they were unaware of any pending special assessments. Defendants argued that because a special service area tax is legally distinct from a special assessment, there was no basis for plaintiffs’ claim that defendants breached the contract and committed fraud when they represented that there were no special assessments pending in connection with the property.

The trial court granted defendants’ motion to dismiss. The court found as a matter of law that a special service area tax was not a special assessment and that, therefore, defendants did not breach their contract with plaintiffs.

Subsequently, defendants filed a petition, pursuant to section 2— 611 of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2—611), seeking sanctions against plaintiffs. In their petition, defendants alleged that the allegations in plaintiffs’ complaint had no basis in the law and that plaintiffs’ purpose in filing the complaint was to harass, delay, and increase the costs of the litigation to defendants. In response, plaintiffs filed their own petition for sanctions against defendants, alleging that defendants’ petition for sanctions was frivolous and was filed solely to induce plaintiffs to abandon their appeal of the trial court’s order granting defendants’ motion to dismiss. Both plaintiffs’ and defendants’ petitions were denied without a hearing.

Plaintiffs and defendants appeal the trial court’s order denying their petitions for sanctions. Plaintiffs also appeal the dismissal of their fraud and breach of contract claims.

I

Plaintiffs contend that the fraud and breach of contract counts of their complaint were legally sufficient and that the trial court erred in granting defendants’ motion to dismiss those claims.

The grant or denial of a section 2 — 611 motion to dismiss is within the discretion of the trial court. (Spicer v. Coleman (1979), 72 Ill. App. 3d 631, 391 N.E.2d 46.) In ruling on a motion to dismiss in a breach of contract action, a trial court may determine whether the facts alleged constitute a breach of contract as a matter of law. (Kos v. Catholic Bishop (1942), 317 Ill. App. 248, 45 N.E.2d 1006.) Where the facts alleged demonstrate on their face that a plaintiff would not be entitled to recover, the complaint is properly dismissed. Winnett v. Winnett (1974), 57 Ill. 2d 7, 310 N.E.2d 1.

In the present case, the contract between plaintiffs and defendants indicates clearly and unambiguously that defendants represented only that no special assessments had been confirmed as of the date of the contract and that defendants had received no notice of any pending special assessments.

Where the language of a contract is unambiguous, the express provisions govern and there is no need for construction or inquiry as to the intention of the parties. (P.A. Bergner & Co. v. Lloyds Jewelers, Inc. (1986), 112 Ill. 2d 196, 492 N.E.2d 1288.) When contract terms are clear, they "will be given their clear and natural meaning. (McDonald’s Corp. v. Mazur (1984), 127 Ill. App. 3d 608, 469 N.E.2d 430.) We find that the clear and natural meaning of the contract terms used in the present case clearly supports the trial court's holding that defendants’ failure to disclose the existence of a special service area tax did not constitute a breach of contract as a matter of law.

Plaintiffs acknowledge that the language of the contract refers only to special assessments. However, plaintiffs argue that because the difference between special assessments (Ill. Rev. Stat. 1987, ch. 24, par. 9 — 2—43 et seq.) and special service area taxes (Ill. Rev. Stat. 1987, ch. 120, par. 1301 et seq.) is one of form, not substance, and because there are substantial similarities between the two, the use of the term “special assessment” in the contract should be construed as encompassing special service area taxes. We disagree.

The rights of parties to a contract are limited by the terms expressed in the contract; a court will not rewrite a contract to suit one of the parties, but will enforce the terms as written. (A.A. Conte, Inc. v. Campbell-Lowrie-Lautermilch Corp. (1985), 132 Ill. App.

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Cite This Page — Counsel Stack

Bluebook (online)
554 N.E.2d 511, 196 Ill. App. 3d 920, 143 Ill. Dec. 576, 1990 Ill. App. LEXIS 504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wright-v-chicago-title-insurance-co-illappct-1990.