A commercial property dispute has been overturned by the Illinois Appellate Court, leading to a significant legal victory for the defendant. On August 23, 2024, Amyriad, Inc., successfully appealed a previous judgment from the Circuit Court of Cook County that had found it in violation of its lease agreement with 3850 W. Cortland, LLC. The appellate court's decision reverses the lower court's ruling and remands the case for further proceedings.
The initial complaint was filed by 3850 W. Cortland, LLC in March 2020, alleging that Amyriad had violated their lease agreement by subleasing parts of a commercial property without landlord consent and failing to pay rent and electric charges. The property in question is located at 3850 W. Cortland Avenue in Chicago. The plaintiff sought possession of the property and payment for amounts due under the lease.
The trial court sided with the plaintiff on December 20, 2022, ordering Amyriad to vacate the premises and pay use and occupancy fees totaling $15,972.70 for February to December 2022. This judgment was based on evidence including Craigslist advertisements posted by Amyriad offering "shared space" at specific rates per month and testimonies from various witnesses suggesting that Amyriad had indeed subleased portions of the property.
However, Amyriad contended that it had not entered into subleases but rather granted licenses to use its woodworking equipment under strict control measures. Harry Barnett, president of Amyriad, testified that users signed "Shop Usage & Fee Agreements" which did not confer exclusive possession or control over any part of the property but allowed access to tools and workspace under specific conditions.
The appellate court agreed with Amyriad’s argument that these agreements constituted licenses rather than leases. Justice Navarro noted that "the main difference between a lease and a license is that a lease confers the right to exclusively possess and control property," whereas a license allows use subject to the licensor's control. Evidence showed that Amyriad retained significant control over who could access the property and how it was used.
In addition to reversing the December 20 judgment, the appellate court also vacated subsequent orders issued on October 3, 2023. These orders included a new eviction order against Amyriad and an increase in monthly use and occupancy payments from $1,591 to $5,993 starting September 1, 2023.
Amyriad’s successful appeal highlights critical distinctions between leases and licenses in commercial real estate law. The appellate court has remanded the case back to trial court to determine any outstanding rent payments owed by Amyriad under their original lease terms.
The case was presided over by Honorable Regina Mescall in Cook County Circuit Court before being reviewed by Justices Navarro, Mitchell, and Lyle in Illinois Appellate Court (Case ID: No. 1-23-0132).