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03/13/87 Keystone Service Company, v. 5040-60 North Marine Drive

March 13, 1987

OPERATED LAUNDRY EQUIPMENT, PLAINTIFF-APPELLANT

v.

5040-60 NORTH MARINE DRIVE CONDOMINIUM ASSOCIATION ET AL., DEFENDANTS-APPELLEES



APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, FIFTH DIVISION

KEYSTONE SERVICE COMPANY, a Division of C.O.L.E. Coin

505 N.E.2d 1269, 153 Ill. App. 3d 220, 106 Ill. Dec. 478 1987.IL.303

Appeal from the Circuit Court of Cook County; the Hon. Anthony J. Scotillo, Judge, presiding.

APPELLATE Judges:

Justice Pincham delivered the opinion of the court. Lorenz, J., concurs. Justice Murray* , specially Concurring.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE PINCHAM

Plaintiff, Keystone Service Company (Keystone), filed a complaint for injunctive and other relief which sought to enjoin defendants, 5040-60 North Marine Drive Condominium Association (condominium) and Eugene Matanky & Associates Management Corporation (management) from terminating the lease on a laundry room Keystone operated at the condominium. Defendants first answered the complaint, then filed a motion for partial summary judgment which alleged that section 18.2 of the Condominium Property Act (Ill. Rev. Stat. 1979, ch. 30, par. 318.2) permitted defendants to terminate the lease. The trial court considered the stipulated facts of the parties and entered an order granting defendants' motion for partial summary judgment but awarded Keystone $5,400 in damages. In this appeal from that order, we must determine whether a condominium association may cancel a lease which was in existence prior to the time the Condominium Property Act was amended by section 18.2

The stipulated evidence established that on March 3, 1977, Keystone entered into a eight-year lease with the owners of the apartment building located at 5040-60 North Marine Drive. Subsequently, the building was converted into the 5040-60 North Marine Drive Condominium Association. On December 28, 1977, the declaration and bylaws for the condominium were recorded at the county recorder's office. Keystone continued to occupy the leased premises and paid rent to the condominium until February 6, 1979. On that date, condominium and management, without cause or provocation, denied Keystone access to the premises which resulted in a breach of the lease. At a special meeting of the condominium association, more than half of the unit owners, excluding the developer, voted to cancel the existing lease agreement with Keystone pursuant to section 18.2 of the Condominium Property Act (Ill. Rev. Stat. 1979, ch. 30, par. 318.2). The trial court found:

"(a) That the Defendants' action in breaching the Lease, which is the subject matter of this litigation, was valid from the date of termination forward, notwithstanding such action was an impairment of an obligation which was lawful when made and does not constitute an impairment of contract as would be prohibited under the Illinois Constitution, Article I, Sec. 16;

(b) That the Plaintiff's damages herein is the loss to the Plaintiff of monthly net income at the rate of $450.00 per month from February 1979, the date of the breach, to the date of the termination by the Condominium Association, February 12, 1980, which sum amounts to $5,400.00. That judgment be and is entered in favor of the Plaintiff, KEYSTONE SERVICE COMPANY, a Division of C.O.L.E. Coin Operated Laundry Equipment and against the Defendants in the amount of $5,400.00, plus costs of this action; and that the Plaintiff may proceed with supplementary proceedings to enforce payment and may receive payment without waiving or releasing any rights to an appeal;

(c) That the motion of the Defendants, 5040-60 NORTH MARINE DRIVE CONDOMINIUM ASSOCIATION and EUGENE MATANKY & ASSOCIATES MANAGEMENT CORPORATION for Summary Judgment be and hereby is granted in accordance with the findings set forth herein.

(d) That the Court finds no just reason to delay the appeal or enforcement of the Order."

We shall now consider the issue presented for review, whether it was proper for the trial court to apply section 18.2 of the Condominium Property Act (Ill. Rev. Stat. 1979, ch. 30, par. 318.2) to a lease agreement that had been entered into prior to the enactment of ...


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