Detrana v. Such

Filed November 20, 2006 No. 1-05-1263 FRANCESCA DETRANA, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) ) JERRY SUCH and SERIFA SUCH, ) ) Defendants-Appellees ) ) (Berton N. Ring, ) Honorable ) Joyce Marie Murphy Gorman, Appellant). ) Judge Presiding. JUSTICE ROBERT E. GORDON delivered the opinion of the court: In this landlord-tenant dispute, plaintiff Francesca Detrana appeals from an order of the circuit court entering partial summary judgment in defendants' favor on the issue of "ownership," and an order (following a bench trial) imposing Supreme Court Rule 137 sanctions (155 Ill. 2d R. 137) against plaintiff's attorney. At trial, the trial court ruled that, pursuant to section 5-12-020(a) of the City of Chicago Residential Landlord and Tenant Ordinance (RLTO) (Chicago Municipal Code §5-12-020(a) (2004)), the subject building coowned by defendants Jerry and Serifa Such and Serifa's father, Nasrulla Murtus,1 was exempted from the operation of the 1 Murtus, who died prior to trial, was not named as a defendant in this case. 1-05-1263 RLTO because it was "owner-occupied." The court further denied plaintiff’s request for sanctions against defendants and their counsel. There was no report of proceedings or bystanders report filed in this matter. However, in reading the record in this case together with the briefs of both parties, this court concludes that it can determine the issues in this appeal. We find that the record is sufficiently complete to allow us to consider the merits of the arguments raised. Robles v. Chicago Transit Authority, 235 Ill. App. 3d 121, 601 N.E.2d 869 (1992). On appeal, plaintiff contends: (1) the term "owner-occupied," as used in the RLTO, should apply only to titleholders who maintain a measure of control over the premises; (2) even if this court finds that bare legal title constitutes ownership within the meaning of the RLTO, summary judgment in favor of defendants was improper because genuine issues of material fact existed regarding whether defendants waived the RLTO exemption and whether Murtus' occupancy was designed to avoid application of the RLTO; and (3) plaintiff presented an objectively reasonable argument regarding the definition of "ownership" as incorporating an element of control, thereby precluding imposition of Supreme Court Rule 137 sanctions (155 Ill. 2d R. 137) against his attorney, Berton Ring. We affirm in part and reverse in part. STATEMENT OF FACTS 2 1-05-1263 Plaintiff entered into a lease on June 5, 1999, "for apartment unit #3" located at 1246 West Altgeld in Chicago. The monthly rent was $1,525 and the security deposit was $2,287.50. Serifa Such was listed as the lessor. The expiration date of the lease was June 30, 2000. Plaintiff renewed the lease on June 30, 2000, with the rent listed as $1,600 and the security deposit $2,362.50. Plaintiff moved out of the premises prior to June 27, 2001, having "paid all the rents to Serifa through June 30, 2001." On August 15, 2001, Serifa sent plaintiff a list of deductions against plaintiff’s security deposit plus the balance of the deposit ($1,077.54), "together with the receipts," explaining the deduction of $116.25 for two late charges, and giving credit for two years of interest on the deposit. On October 22, 2001, plaintiff filed a four-count complaint against defendants. Counts I, II and IV were based on claims under the RLTO. Count III was based on breach of contract for mishandling her security deposit. Plaintiff further alleged in her complaint that the "subject *** building contains two units, is not owner occupied and is subject to the [RLTO]." On January 8, 2003, defendants filed a motion for partial summary judgment on counts I, II and IV of plaintiff's complaint, arguing that the RLTO was inapplicable to the property because Murtus, one of the titleholders, resided in the basement apartment, 3 1-05-1263 thereby excluding the building from operation of the RLTO pursuant to section 5-12-020 of the RLTO. Defendants attached, in support of their motion, the quitclaim deed by which Murtus conveyed title to the building to himself, Serifa, and Jerry; Serifa's supplemental and second supplemental affidavits; and a portion of Serifa’s deposition. In her affidavits, Serifa averred that: Murtus had resided in and occupied the premises for approximately 37 years; during plaintiff’s tenancy, the basement apartment was occupied by Murtus and, at times, by his grandson, Adam; and Murtus was 78 years old in 1999 and was absent from his basement apartment approximately two or three weeks out of the entire year due to medical treatments. In her deposition, Serifa testified that: at times from 1999 to 2001, when Murtus was ill, he would stay with defendants for short periods of time, but then would return to his home at the 1246 West Altgeld building; and Murtus’ furniture, furnishings and clothing were at the Altgeld building. Defendants further argued that plaintiff's affidavit, which they attached, "does not state that Nasrulla Murtus did not occupy the subject property *** from 1999-2001," and that plaintiff admitted in the affidavit that Murtus received his mail at the property. Defendants further argued that plaintiff's affidavit simply stated that plaintiff never saw, communicated with or met Murtus. Defendants explained this fact throughout Serifa's deposition, in 4 1-05-1263 which Serifa testified that Murtus was very ill and a private person. Defendants further explained, pursuant to Serifa's supplemental and second supplemental affidavits, that the reason plaintiff never saw Murtus, but did see Adam, was that Adam went to work every day, while Murtus was retired and stayed at home. Lastly, defendants maintained that because plaintiff was working nights and sleeping during the day, she could not have personal knowledge of Murtus' whereabouts and activities. Plaintiff filed a memorandum of law in opposition to defendants' motion for partial summary judgment. Plaintiff argued that a question of fact existed as to whether Murtus occupied the basement apartment. Plaintiff maintained that Serifa was lying about Murtus' occupancy, based on the fact that the basement apartment did not have electric service or direct heat, and Murtus lived there without a telephone. Plaintiff further argued that a "letter" from defendants to plaintiff, showing a deduction for interest on plaintiff's security deposit for her two-year tenancy pursuant to the RLTO, was evidence that Serifa "treated the RLTO as applying" to the property, and "the purported applicability of the 'owner-occupied' exemption [was] a convenient fabrication concocted after suit was commenced." (Emphases in original.) Plaintiff also argued that, although Murtus was a titleholder, he could not be deemed an owner for purposes of the owner-occupied 5 1-05-1263 exemption because he did nothing concerning the management of the building and kept his "ownership" secret. Plaintiff maintained that the thrust of the RLTO is to ensure the proper treatment of tenants by landlords and that this purpose is not applicable where the party has no control over the status of the tenants' rights. In opposition, plaintiff presented her affidavit, which included her averment that she never saw Murtus in the building and that the basement apartment was unoccupied (except by Adam for two or three months) during her tenancy. Plaintiff also relied on Serifa's deposition testimony regarding the facts that the basement unit did not have its own direct heating, electricity or telephone service to the apartment. The trial court granted partial summary judgment on the issue of ownership, finding that Murtus was a titleholder, but denied the motion on the issue of occupancy, finding that competing deposition testimony sufficiently created a factual dispute. A trial was conducted on plaintiff’s complaint and, on November 3, 2002, the trial court entered judgment in favor of defendants and against plaintiff on the RLTO counts, finding that the RLTO did not apply because the building was "owner-occupied" by Murtus. The trial court also entered judgment in favor of plaintiff on her breach of contract claim regarding her security deposit. Defendants tendered payment of the judgment against them 6 1-05-1263 to plaintiff, but plaintiff’s counsel refused to accept it. Defendants then filed a petition for Supreme Court Rule 137 sanctions against Berton N. Ring, plaintiff