1472 N. Milwaukee, LTD. v. Feinerman
996 N.E.2d 652
Ill. App. Ct.2013Background
- Ginople is sole shareholder of 1472 N. Milwaukee, Ltd., owner of a Chicago commercial building.
- Ginople listed the property on July 27, 2006, with Langman at $995,000, including a lease-back option for the first-floor space.
- Feinerman signed a contract to buy for $1.2 million on Sept. 27, 2006, with a closing date set for Nov. 17, 2006 and a rent-back arrangement.
- Feinerman failed to close on the agreed dates, with further failures delaying closing into December 2006.
- The property was eventually sold July 30, 2007 to 1472 Partners, Ltd. for $911,500; Plaintiffs sued for breach of contract on March 17, 2009; trial awarded damages later reduced to $194,125.44, affirmed on appeal.
- The court upheld general damages based on the later sale price and awarded consequential damages for mortgage interest and real estate taxes incurred during the carry period.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether general damages based on the breach difference were proper | Feinerman argues the FMV should reflect date-of-breach value. | Feinerman contends resale price is not comparable and should not set FMV. | Not against the manifest weight; later sale price is probative of FMV. |
| Whether mortgage-interest carry costs were recoverable | Ginople sought $51,430; evidence supported ongoing payments. | Trial lacked precise monthly figures; plea for disallowance. | Award of $10,000 not against the manifest weight; credible testimony supported award. |
| Whether real estate taxes during carry period were proven and recoverable | Taxes incurred during carry period were established by HUD-1 and testimony. | Tax evidence lacked certified documents and exact paid amounts. | Award of $4,618 upheld; evidence supported by HUD-1 and testimony; posttrial submissions not relied on. |
Key Cases Cited
- Dady v. Condit, 188 Ill. 234 (1900) (measure of damages for breach of land sale contract; FMV at breach date)
- Kemp v. Gannett, 50 Ill. App. 3d 429 (1977) (resale price within reasonable time as evidence of FMV)
- Oberlaender (Department of Public Works & Buildings v. Oberlaender), 42 Ill. 2d 410 (1969) (FMV definition: price for sale under ordinary circumstances)
- Sheppard v. Fagan, 94 Ill. App. 3d 290 (1981) (consequential damages recoverable if contemplated by parties)
- Aetna Insurance Co. v. Amelio Brothers Meat Co., 182 Ill. App. 3d 863 (1989) (standard for reviewing damages; credibility of witnesses)
- Martinez v. River Park Place, LLC, 2012 IL App (1st) 111478 (2012) (FMV evidence; pending sales not competent to prove FMV)
- Gonet v. Chicago & North Western Transportation Co., 195 Ill. App. 3d 766 (1990) (trial court’s inferential findings given deference under manifest weight)
- Forest Preserve District v. Hahn, 341 Ill. 599 (1930) (FMV principles for property damages)
- Doornbos Heating & Air Conditioning, Inc. v. James D. Schlenker, M.D., S.C., 403 Ill. App. 3d 468 (2010) (no mathematical exactitude required; fair degree of probability for damages)