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Keystone Service Co. v. 5040-60 North Marine Drive Condominium Ass'n

Citations: 153 Ill. App. 3d 220; 505 N.E.2d 1269; 106 Ill. Dec. 478; 1987 Ill. App. LEXIS 2155Docket: No. 83—2889

Court: Appellate Court of Illinois; March 13, 1987; Illinois; State Appellate Court

Narrative Opinion Summary

In this case, Keystone Service Company sought injunctive relief to prevent the termination of its lease for a laundry room by the 5040-60 North Marine Drive Condominium Association and its management corporation. The defendants argued that section 18.2 of the Condominium Property Act permitted lease termination following a majority vote by unit owners. The trial court granted partial summary judgment in favor of the defendants but awarded Keystone damages for lost income. The court initially upheld the lease termination, reasoning that it did not conflict with the Illinois Constitution's protections against impairing contractual obligations. However, on appeal, the court scrutinized the retroactive application of legislative enactments, noting the absence of clear legislative intent to apply section 18.2 retroactively to Keystone's pre-existing lease. The court referenced precedent establishing the prospective nature of amendatory acts unless explicitly intended otherwise. As a result, the appellate court reversed the summary judgment favoring the defendants and remanded the case, emphasizing that retroactive application of the statute would unjustifiably impair Keystone's valid contractual rights under the original lease agreement.

Legal Issues Addressed

Application of Condominium Property Act Section 18.2

Application: The court applied Section 18.2 of the Condominium Property Act to determine the validity of lease termination by a majority vote of unit owners.

Reasoning: The court's judgment included a finding that the application of section 18.2 to the earlier lease was appropriate, as it allowed for cancellation if a majority of unit owners voted to do so within a specified timeframe.

Constitutional Protection Against Impairment of Contracts

Application: The court evaluated whether applying section 18.2 to terminate the lease constituted an unconstitutional impairment of contractual obligations.

Reasoning: The court found that the defendants' action to terminate the lease was valid despite being an impairment of a pre-existing contractual obligation, which did not violate the Illinois Constitution.

Prospective Application of Amendatory Acts

Application: The court referenced established case law to support the prospective application of amendatory acts, barring clear legislative intent for retroactivity.

Reasoning: Amendatory acts are generally considered prospective unless explicitly stated otherwise (Maiter v. Chicago Board of Education, 1980).

Retroactive Application of Legislative Enactments

Application: The court considered whether section 18.2 could be applied retroactively to impair a pre-existing lease contract.

Reasoning: Applying these principles, section 18.2 of the Condominium Property Act should not be applied retroactively to the lease in question due to the lack of clear legislative intent.