Bentley v. Palmer House Company, 14512.
Citation | 332 F.2d 107 |
Decision Date | 11 May 1964 |
Docket Number | No. 14512.,14512. |
Parties | Joseph C. BENTLEY, Plaintiff, v. The PALMER HOUSE COMPANY, a Corporation, and Hilton Hotels Corporation, a Corporation, Defendants. The PALMER HOUSE COMPANY, a Corporation, and Hilton Hotels Corporation, a Corporation, Third-Party Plaintiffs-Appellants, v. BASIC FOOD MATERIALS, INC., a Corporation, Third-Party Defendant-Appellee. |
Court | U.S. Court of Appeals — Seventh Circuit |
Thomas C. Kearns, John M. Moelmann, Richard G. French, Chicago, Ill., for the Palmer House Co., a corporation and Hilton Hotels Corp., a corporation.
Richard J. Walsh, Alan S. Ganz, Robert O. Case, Chicago, Ill., for Basic Food Materials, Inc., a corporation.
Before HASTINGS, Chief Judge, and SCHNACKENBERG and CASTLE, Circuit Judges.
This appeal arose out of a diversity action by Joseph C. Bentley, a citizen of Florida, against third party plaintiffs, The Palmer House Company, an Illinois corporation, and Hilton Hotels Corporation, a Delaware corporation (appellants). Appellants filed a third party complaint against third party defendant Basic Food Materials, Inc. (appellee). The district court entered judgment in favor of appellee and against appellants on the pleadings. Appellants appealed.
Appellee entered into an agreement with appellants whereby appellee obtained a display booth, for purposes of participation in the Basic Food Materials Convention, in the Exhibition Hall of the Palmer House, 15 E. Monroe Street, Chicago, Illinois.
The agreement contained inter alia, the following clause:
"Liability: The exhibitor appellee agrees to indemnify and hold harmless both the Palmer House and Hilton Hotels Corporation appellants from and against any and all liability and expenses for personal injury and property damage or loss arising from or out of the use by the exhibitor of its exhibit space or its activity in connection herewith."
Bentley, an employee of appellee, was allegedly injured, while acting within the scope of his employment, by the collapse of a display table in the booth of appellee.
Appellant Hilton Hotels Corporation admitted that it owned the display table and that it operated and maintained the premises where the alleged injury occurred.
Appellants filed a third party complaint against appellee, based solely upon the above-quoted indemnity clause.
In the third party action, each party moved for judgment on the pleadings. It was agreed that no facts were in controversy and that the only contested issue was whether the indemnification clause obligated appellee to indemnify appellants with respect to Bentley's alleged cause of action.
The district court, in entering judgment for appellee, held the agreement between appellants and appellee to be a "lease of real property" and that the indemnification clause contained therein was unenforceable under Illinois law. The district court relied upon Ill.Rev. Stat. ch. 80, § 15a (1959) which provides as follows:
(Emphasis added.)
The district court held, in the alternative, assuming the indemnity clause to be valid and enforceable, that it was not broad enough to indemnify appellants against their own negligence.
We do not agree with these holdings of the district court.
Appellants argue that the contract did not create a lease, as required by the Illinois statute, supra, rather it resulted in a license for appellee to use exhibition space. Although appellants did not raise this issue in the district court by their pleadings, appellee conceded in oral argument, and we hold, that the holding of the district court, supra, puts this issue before us on appeal.
The leading Illinois case on the distinction between a lease and license is said1 to be Holladay v. Chicago Arc Light & Power Co., 55 Ill.App. 463, 466-467 (1894). South Center Dept. Store v. South Pky. Bldg. Corp., 19 Ill.App.2d 61, 66, 153 N.E.2d 241, 243 (1958) quotes from Holladay in part as follows:
In the instant case, appellee obtained the use of booth number 180 in the Exhibition Hall of the Palmer House for the purpose of displaying exhibits during the American Meat Institute Convention from September 16 through September 20, 1960.
Appellee did not obtain exclusive possession of a designated space which it could assign. Rather, appellee merely had the right to use the booth space for display purposes only. Appellants retained possession and control of the premises. We hold that the contract gave appellee merely a license to use the booth for the intended purpose and the indemnity clause of the contract was not unenforceable under Illinois law.
A "lease of real property," as set out in the statute, supra, is but another form of a conveyance of real estate. The privilege granted appellee under the language of the agreement in question does not have the characteristics of a conveyance of real estate. At best, it must be said to be a license to use a small amount of floor space designated as "Booth No. 180" on the fourth floor of the Palmer House hotel for a period of...
To continue reading
Request your trial-
Webb v. Richardson
...order is based are those upon which it must be judged." Oser v. Wilcox, 338 F.2d 886, 893 (9th Cir. 1964). Cf. Bentley v. Palmer House Company, 332 F.2d 107, 109 (7th Cir. 1964). Moreover, the question whether the District Court properly considered work performed before the Secretary by the......
-
City of Chicago v. Airline Canteen Service, Inc.
...Center Department Store, Inc. v. South Parkway Bldg. Corp. (1st Dist. 1958), 19 Ill.App.2d 61, 153 N.E.2d 241, and Bentley v. Palmer House Co. (7th Cir. 1964), 332 F.2d 107. The distinction raised by these cases is that a "license" does not convey an interest in land. The City maintains tha......
-
Matter of Daben Corp., Civ. No. 78-2531.
...of a lease contract in the common law are as follows: (1) a conveyance of a right of exclusive possession, Bentley v. Palmer House Co., 332 F.2d 107 (7 Cir., 1964); Bodden v. Carbonell, 354 So.2d 927 (Fla.App., 1978); Gage v. City of Topeka, 205 Kan. 143, 468 P.2d 232 (1970); Wash-o-Matic L......
-
Leiser v. Group
...clauses in contracts are enforceable in Illinois and are governed by principles of contract interpretation. Bentley v. Palmer House Co., 332 F.2d 107, 110 (7th Cir.1964). In this case, the Indemnification Clause is clear: the Swagat Defendants are obligated to indemnify Choice Hotels for al......