Maywood-Proviso State Bank v. Village of Lisle

• Decision Date: 01 September 1992
• Docket Number: MAYWOOD-PROVISO,No. 2-91-1005,2-91-1005
• Citation: 234 Ill.App.3d 206,599 N.E.2d 481
• Parties: , 174 Ill.Dec. 697 STATE BANK, et al., Plaintiffs-Appellants, v. The VILLAGE OF LISLE, et al., Defendants-Appellees.
• Court: United States Appellate Court of Illinois

Page 481

599 N.E.2d 481

234 Ill.App.3d 206, 174 Ill.Dec. 697

MAYWOOD-PROVISO STATE BANK, et al., Plaintiffs-Appellants, v. The VILLAGE OF LISLE, et al., Defendants-Appellees.

No. 2-91-1005.

Appellate Court of Illinois Second District.

Sept. 1, 1992.

Rehearing Denied Oct. 7, 1992.

Andrew B. Spiegel, argued, Wheaton, for Maywood Proviso State Bank, Ed Cunningham and Horst Adler.

Maloney & Craven, E. William Maloney, argued, Des Plaines, Borla, North & Associates, Robert V. Borla, Downers Grove, for Village of Lisle, Lee J. Herrera and Jeannette S. Devane.

Justice DOYLE delivered the opinion of the court:

Plaintiffs Maywood-Proviso State Bank, as trustee under trust No. 7938, Ed Cunningham, and Horst Adler filed a two-count amended complaint in the circuit court of Du Page County naming as defendants the Village of Lisle, Lee J. Herrera and Jeannette S. Devane. Count I sought a declaration that a valid easement existed over property owned by Herrera and Devane, a permanent injunction barring Herrera and Devane from interfering with or obstructing plaintiffs' installation of water and sewer lines over the easement and an injunction against the Village of Lisle directing it to reinstate certain permits related to the development of property which the easement allegedly benefitted. Count II sought an injunction requiring Herrera and Devane to abate certain zoning violations and asked for reasonable attorney fees and costs. Count II was subsequently amended to request compensatory and punitive damages against Herrera and Devane for their refusal to allow plaintiffs to use the easement. At a bench trial, the trial court granted defendants' motion for judgment at the close of plaintiffs' case, and plaintiffs filed this appeal.

Plaintiffs raise the following issues on appeal: (1) whether the trial court's decision to enter judgment in favor of defendants was against the manifest weight of the evidence because the evidence supported plaintiffs' claim of a valid grant of a utility easement; (2) whether the easement was appurtenant, thereby binding the subsequent owners of the servient estate; and (3) whether Herrera and Devane had actual or constructive notice of the utility easement.

The following facts are relevant to our disposition of this appeal. Plaintiffs alleged in their amended complaint that they had easement rights over a parcel of property owned by Herrera and Devane based on either a grant of an easement by the previous owners of the parcel or an easement created by a plat of resubdivision. The complaint further alleged that Herrera and Devane had notice of "said easement as set forth in John B. Stern's Subdivision" through either a land survey of the property or a title commitment, both of which were prepared for the sale. Plaintiffs eventually amended count II of their complaint to seek compensatory and punitive damages based on Herrera and Devane's refusal to allow them to utilize the easement.

Plaintiffs filed a motion for summary judgment, arguing that an easement had been previously granted to John Stern and that a plat of subdivision had been recorded giving all subsequent title holders notice of the easement. Plaintiffs' motion was denied.

Defendants Herrera and Devane filed a counterclaim seeking a declaration that the Stern resubdivision was invalid and void and an order barring plaintiffs from asserting any easement across the property. On August 27, 1990, the trial court entered an "order of default and declaratory judgment" on the counterclaim. The court found that the plat of subdivision executed on July 19, 1977, was "null, void and of no effect" because of a defective owner's certificate. The court further ruled that any purported easements depicted in the plat of subdivision were null, void and of no effect. The order also contained an express finding pursuant to Supreme Court Rule 304(a) (134 Ill.2d R. 304(a)) but was never appealed.

Herrera and Devane also filed a third-party complaint against George and Sondra Donatelli, the previous owners of the property. The third-party complaint sought money damages from the Donatellis should plaintiffs prevail on their claims against defendants. The third-party complaint was based upon a breach of certain covenants in connection with the execution of a warranty deed.

Defendant Village of Lisle moved for summary judgment, and an agreed order was entered granting the motion. The order contained Rule 304(a) (134 Ill.2d R. 304(a)) language but was not appealed, and Village of Lisle is not a party to this appeal.

On April 9, 1991, Herrera and Devane (defendants) filed a motion for sanctions pursuant to Supreme Court Rule 137 (134 Ill.2d R. 137) against plaintiffs. On that same date, the trial court ordered that defendants' motion for sanctions be reserved for trial. The court further ordered that the complaint and third-party complaint be tried in sequence. Prior to commencement of the trial, the court also ruled that count I and count II of the complaint would also be tried in sequence as a ruling in favor of defendants on count I would necessitate a decision favorable to defendants as to count II.

The testimony and exhibits at trial established the following. The Stern subdivision consisted of a single-family residence and nine lots covering about three acres. Defendants' property is adjacent to lot 8 in the subdivision. John Stern testified that as of July 8, 1977, the property comprising the subdivision was in a land trust of which he and his wife were the beneficiaries. There was no other land in the trust.

The subject property was sold to George and Sondra Donatelli on July 8, 1977. Plaintiffs' exhibit 20 is a document entitled "UTILITY EASEMENT" which is dated July 8, 1977, and is signed by the Donatellis. This document purports to grant to John Stern and his wife a utility easement over the Donatellis' property "for the purpose of providing the property and adjacent property" with certain utilities. While this document sets forth a description of the Donatelli property, it does not describe the property to which the easement will provide benefit. This document was not recorded until after this lawsuit was filed.

According to George Donatelli, he had no discussions with John Stern or his wife prior to the closing regarding the grant of an easement. On the date of the closing, the Sterns telephoned the Donatellis and asked them over to their home. Stern presented George Donatelli with the document granting the utility easement and told him that he wanted him to read it. Donatelli had nothing to do with the preparation of the document and did not know it existed prior to Stern handing it to him. Donatelli testified that he did not "really read" the document but "glanced at it."

Stern testified to a different version of the events surrounding the execution of the grant of easement. He identified the document as a utility easement drawn up at his direction on July 8, 1977. He stated that the document was drafted because they needed a record of the easements before the plat of resubdivision was recorded. According to Stern, he had two or three conversations with the Donatellis prior to the closing concerning the need for an easement on the property. The first such conversation occurred at least a month prior to their purchasing the property. Stern told them that the easements were needed to access Elm Street for the water and sewer lines when they subdivide the remaining property. The Donatellis said, "okay, no problem." He denied calling them to his house on the morning of the closing and giving them an ultimatum or giving them the document at his house. According to Stern, the Donatellis signed the grant of easement at the closing.

The document was present at the closing, and the Donatellis had a copy. The document was to be recorded but apparently was not. Sometime later, after Stern lost the subdivision at a foreclosure sale, he explained to Joseph Giampa, a real estate broker who was involved in the purchase of the property at the foreclosure sale, that "[he] [had] easements on those two lots that were sold." He also told Giampa that the Donatellis were aware of the easements. He then gave Giampa the signed grant of easement which was in a file.

While he knew the property was in a land trust, Stern designated himself and his wife as grantees rather than the trustee. The purchase contract was silent as to any easement. He thought that because the Donatellis were pushing to buy the lot, he told them that they would have to sign an easement document at the closing and they said fine. On redirect examination he explained that it was not his intent that the grant of easement be personal to him and his wife. The document described an easement consisting of the north 10 feet of the property, the south 20 feet of the property and the east 10 feet of the property.

On July 19, 1977, the trustee executed a plat of subdivision which also set forth an easement of the same dimensions as that in the aforementioned document. This plat of subdivision was recorded on July 19, 1977.

Defendants subsequently purchased the property from the Donatellis. George Donatelli testified that he met defendants in 1985 when they came to look at the property. While he testified that he did not tell defendants that they would have to build an attached garage because the driveway was on an easement, plaintiffs introduced his deposition wherein he testified that the only way he could have put a garage on the property was if it were attached because he "didn't have enough easement rights." Donatelli also stated that he told Devane that he did not have enough easement rights but explained that what he meant was access for the Village of Lisle to get to telephone and electric lines at the back of the property. When asked whether he told Devane that any garage would have to be attached because of easements, Donatelli said he did not recall. Again,...