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University Club of Chicago v. Deakin
Illinois Supreme Court
106 N.E. 790 (1914)
In March 1909, the University Club of Chicago (University Club) (plaintiff) leased a storeroom in its building to Earl Deakin (defendant). The lease provided that Deakin would use the storeroom as a jewelry shop and gave Deakin some exclusivity rights. Specifically, the University Club was prohibited from renting any other store in the building to “any tenant making a specialty of the sale of Japanese or Chinese goods or pearls.” Shortly after, the University Club leased a storeroom to Sandberg. The University Club included a provision in Sandberg’s lease that prohibited Sandberg from using the store as a pawnshop or making a “specialty therein of the sale of pearls.” In May 1909, Deakin took possession of his leased storeroom and paid rent for May and June. However, upon discovering that Sandberg was selling pearls, Deakin notified the University Club that it had violated the parties’ lease and that Deakin was entitled to terminate the lease. The University Club refused to cancel the lease. Nevertheless, at the end of June 1909, Deakin vacated the premises and refused to pay any further rent. The University Club sued for the unpaid rent. The trial court found for the University Club, and Deakin appealed. The appellate court affirmed, and Deakin appealed again to the Illinois Supreme Court.
Rule of Law
Holding and Reasoning (Cooke, J.)
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