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Campana Redevelopment, LLC v. Ashland Group, LLC
993 N.E.2d 1095
Ill. App. Ct.
2013
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Background

  • 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)
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Case Details

Case Name: Campana Redevelopment, LLC v. Ashland Group, LLC
Court Name: Appellate Court of Illinois
Date Published: Jul 30, 2013
Citation: 993 N.E.2d 1095
Docket Number: 2-12-0988
Court Abbreviation: Ill. App. Ct.