Campana Redevelopment, LLC v. Ashland Group, LLC
993 N.E.2d 1095
Ill. App. Ct.2013Background
- Campana Redevelopment, LLC (landlord) leased industrial premises to Ashland Group, LLC (tenant) beginning April 1, 2009, with a 3‑year term and four 3‑year options extending to 2024.
- Lease provided a $153,700 tenant improvement allowance amortized into rent over 10 years; lease also specified a non‑renewal/termination fee equal to the unamortized improvement cost at lease end or upon early termination for default.
- Landlord served statutory rent demand notices in November–December 2011 for unpaid rent; landlord terminated the lease for nonpayment and filed a forcible entry and detainer (FED) action on December 28, 2011 seeking possession and past‑due rent.
- At trial the court awarded possession and entered judgment of $267,600.21, which included: past‑due rent through the trial date, estimated holdover rent, and $119,495.74 as the unamortized balance of improvement costs.
- Defendant moved for reconsideration arguing the FED Act permits recovery only of past‑due rent and the unamortized improvement costs were not past due nor germane to possession; the trial court denied the motion.
- On appeal the court affirmed the possession and past‑due rent award but vacated the $119,495.74 award for unamortized improvement costs as beyond the scope of the FED Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unamortized improvement costs are “rent” recoverable in an FED action | The lease amortized improvement costs into rent over 10 years; default accelerates those costs and they are therefore recoverable as rent | The FED Act permits recovery only of rent that is past due; the unamortized portion was not yet due when possession was awarded | Court: The FED Act does not allow award of rent not yet due; vacated $119,495.74 award |
| Whether claim for unamortized costs is germane to possession under the FED Act | Improvement costs are closely related to occupancy (tenant needed improvements to occupy) and thus germane | The FED action’s purpose is limited to possession and past‑due rent; unamortized costs are unrelated to the landlord’s right to possession at the time | Court: Unamortized costs not germane to possession; cannot be recovered in FED action |
Key Cases Cited
- Alvarez v. Pappas, 229 Ill. 2d 217 (statutory and lease interpretation reviewed de novo)
- American Management Consultant, LLC v. Carter, 392 Ill. App. 3d 39 (landlord may recover certain contractual charges characterized as rent in FED action)
- Rosewood Corp. v. Fisher, 46 Ill. 2d 249 (definition of “germane” cited for scope of permissible issues)
- Avenaim v. Lubecke, 347 Ill. App. 3d 855 (categories of claims considered germane to possession)
