Johnstowne Centre Partnership v. Chin, 57908

• Decision Date: 01 December 1983
• Docket Number: No. 57908,57908
• Citation: 99 Ill.2d 284,76 Ill.Dec. 80,458 N.E.2d 480
• Parties: , 76 Ill.Dec. 80 JOHNSTOWNE CENTRE PARTNERSHIP, Appellee, v. George CHIN, Jr., et al., Appellants.
• Court: Illinois Supreme Court

Page 480

458 N.E.2d 480 99 Ill.2d 284, 76 Ill.Dec. 80 JOHNSTOWNE CENTRE PARTNERSHIP, Appellee,
v.
George CHIN, Jr., et al., Appellants. No. 57908. Supreme Court of Illinois. Dec. 1, 1983.
Rehearing Denied Jan. 27, 1984.

[99 Ill.2d 285] Meyer, Capel, Hirschfeld, Muncy, Jahn & Aldeen, Champaign, for appellants.

Pelini, Crewell & Sheffler, Urbana, for appellee.

CLARK, Justice:

Plaintiff, Johnstowne Centre Partnership, developed a shopping center in Champaign and leased part of the complex to defendants, George Chin, Jr., and Eddie Moy Chin. The Chins had planned to operate a restaurant in the shopping center, but they repudiated their lease before[99 Ill.2d 286] taking possession of the premises. The partnership filed suit in the circuit court of Champaign County, and the trial court awarded damages for defendants' breach of the rental agreement. The partnership sought additional damages on appeal, and the Chins filed a cross-appeal that maintained

Page 481

[76 Ill.Dec. 81] the partnership's breach excused the Chins' performance of the lease. The appellate court awarded the partnership additional damages and denied the Chins' cross-appeal. (110 Ill.App.3d 595, 66 Ill.Dec. 254, 442 N.E.2d 680.) We granted the defendants' petition for leave to appeal (87 Ill.2d R. 315(a)).

On February 25, 1976, the parties signed a 10-year lease beginning November 25, 1977, for a site in Johnstowne Centre, a new shopping complex near the University of Illinois campus. The Chins planned to operate a "pasta house" restaurant with a full menu, table service by waiters and waitresses, alcoholic beverages, and bar service. The Chins were concerned about possible competition, and the lease agreement contained a restrictive covenant which provides in pertinent part:

"Lessor agrees that it will not permit any other tenant within JOHNSTOWNE CENTRE to operate restaurant facilities, except that Lessor may rent for purposes of a coffee shop or other snack shop operation premises not to exceed 1,500 square feet of interior space, plus outside seating area immediately adjacent to such premises. Said coffee shop or snack shop will have a limited menu and will not sell complete meals. Lessor will not permit any other tenant of JOHNSTOWNE CENTRE to obtain a liquor license for consumption of beverages on the premises within JOHNSTOWNE CENTRE. Notwithstanding the foregoing, any tenant within JOHNSTOWNE CENTRE shall be permitted to sell, as incidental to its operation, ice cream, candy, soft drinks, milk, packaged liquors, cheeses, grocery items and "carry-out" snacks. This restriction also applies to the sixty-four feet of property immediately East of JOHNSTOWNE CENTRE."

[99 Ill.2d 287] In March 1976, the partnership signed a lease with a tenant named Lox, Stock & Bagel for space in the Johnstowne Centre Mall. Lox, Stock & Bagel began operating in December 1977, serving a variety of sandwiches, soups...