Illinois is certainly no stranger to the Condo Craze, a
quick Google search for blogs on the topic in Illinois should put to rest any
notions to the contrary. There are
plenty of interesting and responsible resources on the topic... and the law
regarding the issues involved in condominium matters continues to grow.
A case touching on those matters and construction and
development as well as architecture is the feature today. Kirkpatrick v. Strosberg, Doc. Nos. 2-06-0724
and 02-06-0731 consolidated (April 16, 2008, 2nd Dist.)
The plaintiffs were individuals who contracted to purchase
luxury condominium units in Glen Ellyn.
The developer built the units and the plaintiff's moved in.
Some of the measurements of the completed luxury units did
not turn out to comport exactly with the finished condos. For example, depending upon the method in
which one measures the square footage of the units, the units did not meet the
advertised square footage, additionally, because alterations were necessary
towards the end of the project, the ceilings on the top floor units measured
eight feet, six inches and not nine feet as advertised in the original
brochures. One of the unit owners spent
extra money having his bathroom reconfigured after the initial plans failed to
put the pipes in the right places, and another owner measured his cabinetry
installation in accordance with the nine foot specs and not the eight feet, six
inch specifications.
The owners sued the developer for violations of the Illinois
Consumer Fraud and Deceptive Business Practices Act, common-law fraud, and
breach of contract.
There was a bench-trial on the matter and the trial court made
findings in favor of the plaintiffs for the breach of contract claims, the
common-law fraud and the consumer fraud claims involving the ceiling heights,
but not the square footage issues. The
court also found that due to the nature of the contracts and the evidence
presented by the plaintiffs there was damage, but the plaintiffs' evidence was
insufficient and thus awarded only nominal damages of $100 each. For the plaintiff with the bathroom plans,
the court found fault at 50% with the plaintiff's architect, who was the
plaintiff's agent, and at 50% with the developer, and thus reduced the damage
award of $31,730 by half. The court
found the cabinet plaintiff's claims were barred by language in a rider to the
contract by which the seller eschewed liability for improvements made by the
buyer:
- "Seller
shall not be required to review Buyer's architectural plans for the Buyer's improvements,
and Seller shall not oversee Buyer's work on the premises. Seller makes no warranty
whatsoever to Buyer that the premises and its components are complete or compatible
with the Buyer's improvements. Buyers understand that all dimensions on the Seller's
plans and specifications are approximate and subject to modification for actual
field conditions. Field measurement is required to conform dimensions prior to
ordering materials."
The
trial court also awarded $83,000 to the plaintiffs in attorneys fees and
$300,000 in punitive damages.
The
appellate court upheld the trial court's determination that the square footage
of the units, when measured properly, was not contradicted by any of the plaintiffs'
evidence. The court also upheld the $100
damage award finding that the plaintiffs' expert appraiser had taken cost
approximations regarding damages from housing prices as they existed seven
years after the actual date of sale for the units.
The court's statement of the black-letter law regarding the
proper calculation of damages in a dispute over the breach of contract for the
sale of real estate is familiar:
- "Damages, in a breach of contract for the sale
of real estate, are calculated by the difference between the fair market value
of the real estate on the day of the breach and the sale price contracted for
by the purchasers."
The
appellate then upheld the nominal damages award, finding again that there was
no credible evidence on the matter given the appraiser's failure to estimate
from the time of the sale and not the market value at the time of the case. The court struck the $300,000 in punitive damages,
citing a 1st District opinion holding that nominal damages cannot
provide a basis for awarding punitive damages.
The court also upheld the trial court's determination that the plaintiff
and the defendants were 50% mutually responsible for the cost of the repair to
the bathroom; affirmed the cabinetry decision; and awarded the attorneys fees.
Of additional note to appellate practitioners is the court's
enforcement of Rule 341(e)(7) granting the defendants' motion to strike
portions of the plaintiffs' reply brief, where the brief raised arguments in
the reply that were not raised in their initial brief.
For designers: the court stood by the Architect's method of
measuring the square footage of the condominiums as the distance from the
outside wall to half of the demising wall rather than the plaintiffs' appraiser's
"paint-to-paint" method of measuring from the inside wall to the inside wall.
The actual relief in this case would likely have been
substantial had the appraiser computed comparable sales in accordance with the
proper measure for damages.