Legal Question in Insurance Law in Illinois

A business in Granite (the colour room) burned up the other day and I am wanting to know if my friends have a case for some kind of restitution?

The situation is they originally were under the impression that they would be partners in the new salon and then were told that the owner would just rent the space to them. This was a verbal agreement made between the parties (stylists and the property owner). The property owner then sold the business to an investor who then took over.

Now, not in the beginning of the business nor at the sale of the business was there ever any contract put in place that both parties agreed upon, other than the original verbal that they would just pay rent to use the space.

Since the business burned down all of their supplies and client information were destroyed.

None of the stylists had renters insurance.

But I was told that the fire may be determined to have started in the attic after the owner had new insulation blown in and could have been caused by a "hot wire" (this may or may not have been an official conclusion)

So is there some sort of negligence here where the owner can be found at fault? Or lack of due diligence on the part of the business owner to provide some sort of contract?

I would like to see them able to recoup all or a portion of their losses.


Asked on 10/29/10, 11:19 pm

2 Answers from Attorneys
Stephen Messutta

Your friend appears to have been a tenant. Without insurance. If your friend wishes to file a lawsuit for damages against the landlord for loss of your friend's styling equipment, your friend would have to prove negligence, and it is not the landlord's negligence, but that of the contractor, unless the landlord hired a "negligent" contractor. That could take a good couple of years during which your friend will have to fund costs of the lawsuit and still have no styling equipment. Your friend's only recourse may be to declare a business loss and/or expense off replacement equipment. As to any other relationship other than landlord and tenant, your friend was in a business transaction, and had as much duty to clarify the terms as did the landlord, so if your friend didn't get things clear up front, well, what can we say. Other than that, your friend should see a lawyer, not you.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Illinois. Responses are based solely on Illinois law unless stated otherwise.

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Answered on 11/04/10, 3:54 pm
Mark Hartzer

Did a State Fire Marshall come out and investigate the fire? If so, you may be able to obtain a copy of his or her report to see what the cause and origin of the fire might be. You may also want to see if the insurance company for the building owner will share the results of their investigation with you. As Mr. Messutta has correctly pointed out, without negligence on the part of the contractor or building owner, your friend has no right of recovery.

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Answered on 11/07/10, 6:58 am


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