Opinion ID: 2092601
Heading Depth: 1
Heading Rank: 2

Heading: disposition of counts ii through viii

Text: Siegel next contends that the appellate court's affirmance of the trial court's order with respect to counts II through VIII, without discussion, is violative of appellate jurisprudence and creates internal inconsistencies in the opinion. We agree. In order to develop and maintain a coherent body of law, it is imperative that reviewing courts set forth their rationale and discuss the relevant case law pertaining to the issues in a given case. This policy is embodied in Supreme Court Rule 23 (134 Ill.2d R. 23), which admonishes the appellate court to set forth the reasons for the decision, even in cases of less than great moment. In affirming trial court decisions without disclosing the rationale, the reviewing court abdicates its role in providing future guidance. What constitutes adequate discussion will depend upon the nature of the case and the facts and issues involved. In this case, the appellate court stated in a conclusory fashion that it found no error in [the trial court's] grant of judgment for the Levy Organization on counts II through VIII of the complaint. In our minds, this was an insufficient discussion. The remedy for such insufficient discussions, however, is not automatic reversal as when reversible trial errors occur in criminal cases. Rather, we now review counts II through VIII and supply the necessary rationale. Count II of plaintiff's complaint sought rescission of the purchase agreement predicated on a theory of unilateral mistake by Siegel with respect to the terrace issue. Our appellate court has allowed rescissions of contracts based on unilateral mistakes when the party seeking rescission shows by clear and convincing evidence that (1) the mistake is of a material nature; (2) the mistake is of such consequence that enforcement is unconscionable; (3) the mistake occurred notwithstanding the exercise of due care by the party seeking rescission; and (4) rescission can place the other party in status quo. In re Marriage of Agustsson (1992), 223 Ill.App.3d 510, 519, 165 Ill.Dec. 811, 585 N.E.2d 207. Defendants argue that, as a matter of law, plaintiffs could not have used due care in this case. Defendants contend that plaintiff should have inquired as to the 10 rectangular markings on the full floor plan which represented mullions, regardless of the sales brochure and property report. Defendants insist that a reasonable person paying $1.6 million for a residence would have consulted an architect with regard to the marks on the terrace. Contrary to defendants' claims, however, we do not find the markings on the floor plans so conspicuous or prominent such that it would have raised the reasonable person's suspicion under the circumstances. We are not prepared to say that, as a matter of law, plaintiff did not exercise due care when he failed to investigate the significance of such marks, especially when he had ever been given reason to believe that the terrace he purchased had any obstructions. Thus, we reverse the lower courts' determination on this issue and reinstate count II of plaintiff's claim. Count III of plaintiff's complaint will be addressed separately below. Plaintiff has voluntarily opted to drop count IV of his complaint and Count V has already been addressed above. Count VI of the plaintiff's third-amended complaint alleges a cause of action for breach of contract in that defendants failed to construct a condominium unit with an open expansive terrace, free of mullions. Siegel submits that since there exist triable issues of fact, which would preclude summary judgment as to fraud on this matter, there must similarly exist triable issues of fact which would preclude summary judgment on the issue of whether defendants breached the purchase agreement. We do not agree. Paragraph 3 of the purchase agreement provides: The Purchased Lot [unit 48A] shall be constructed substantially in accordance with (i) the floor plan attached as Exhibit B hereto and made a part hereof (`Plans') and (ii) the outline specifications attached as Exhibit C hereto and made a part hereof (`Specifications'). There is no question that the floor plan, Exhibit B, contained markings on the terrace that an architect would recognize as mullions. Further, there is no evidence that defendants did not construct unit 48A in substantial accordance with the floor plan. Thus, plaintiff's claim that defendants breached the purchase agreement must fall. Counts VII and VIII of the complaint allege that Siegel is entitled to punitive damages due to the defendants' fraud and negligent misrepresentations. Despite having found that triable issues of fact preclude summary judgment as to fraud in this matter, the appellate court affirmed the trial court's summary judgment of counts VII and VIII. If a plaintiff can demonstrate gross deception or willful and wanton misconduct, the determination as to whether plaintiff is entitled to exemplary damages lies with the trier of fact. ( Home Savings & Loan Association v. Schneider (1985), 108 Ill.2d 277, 285, 91 Ill.Dec. 590, 483 N.E.2d 1225.) In light of our reinstatement of plaintiff's fraud claims, we find that affirming summary judgment against the award of punitive damages is premature at this time. Thus we reverse and reinstate counts VII and VIII of plaintiff's complaint.