Novack and Macey secured dismissal of all claims against its client to recover the costs for several years of utilities provided to the client’s property by an adjacent land owner under a “reciprocal easement agreement” or “REA.”  The property in question is a landmarked mixed-use high rise in downtown Chicago.

The successful defenses were that:  (1) the plaintiff had sold its interest in the adjacent real estate and, thus, was no longer an owner who had standing to assert claims under the REA; and (2) the plaintiff misconstrued what it means for a covenant to “run with the land.”  It does not mean that a current owner must pay the debts of the prior owner.  

The client was represented by Monte L. Mann, John B. Haarlow, Jr. and Carl M. Johnson.