13-year lawsuit of Sears vs. Barrington Hills, South Barrington settled

A lawsuit filed in 2001 by Sears Holding Corp. against Barrington Hills and South Barrington has been settled with no money changing hands.

Sears claimed the two villages cost the company $15 million by interfering with its development plans. It filed the suit to remove land-use restrictions the villages placed on a portion of Sears' 780-acre business park, located entirely in Hoffman Estates.

Barrington Hills and South Barrington had authority over use of the land as the result of a 1980s legal battle stemming from noise complaints at Poplar Creek Music Theater, which closed in 1994. The restrictions added height and setback limitations to the existing Hoffman Estates zoning code.

The two communities were able to work out the settlement with Sears by taking the debate out of the courtroom and moving it into a boardroom, officials said.

“(Barrington Hills Village President Martin McLaughlin) and I decided that we needed to see if we could try another method of communication besides our attorneys,” South Barrington Village President Paula McCombie said.

McLaughlin said that when he was briefed on the lawsuit after being sworn into office last year, the legal documents from the case must have weighed 40 pounds.

“The benefits of this settlement to our communities are significant,” McLaughlin said in an email.

Although no money will change hands, all parties are on the hook for their own attorney's fees, which total $1.4 million for Barrington Hills and $550,000 for South Barrington, officials said.

As part of the settlement, the two villages will remove the restrictions on the majority of Sears' Hoffman Estates land. Restrictions will remain on 5.6 of the 35.2 acres involved in the litigation.

The remaining restrictions, in addition to Hoffman Estates' zoning code, mean the villages can expect any development in the future to match the character and quality of what exists today, McLaughlin said.

As another condition of the settlement, neither village admits to wrongdoing.

Hoffman Estates Mayor Bill McLeod said he is pleased with the settlement, which he believes will generate renewed interest in the site.

“It will have a significant economic impact for the village of Hoffman Estates and for Sears Holdings,” McLeod said.

While there aren't any pending development plans, the restrictions have long discouraged companies like Ashley Furniture from locating there when compared to their options in other communities, he said.

McLeod believes it's no coincidence the breakthrough came when both Barrington Hills and South Barrington voters elected new village presidents last year.

“There's new leadership and they wanted to get out from under a lawsuit,” he said.

McCombie said she and McLaughlin conducted joint executive sessions with their respective village boards before entering into negotiations with Sears, so everyone was on the same page throughout. The settlement has been approved by Barrington Hills and South Barrington trustees, and signed by both village presidents.

During a board meeting earlier this week, Barrington Hills trustees expressed relief that the 12-year-old lawsuit finally was settled.

Trustee Patty Meroni also voiced frustration that it took so long, referencing a recently published comment from Keith Evans, the chairman of the Hoffman Estates Chamber of Commerce & Industry, describing Sears as a great corporate citizen.

“I think the people of Barrington Hills and of South Barrington who have been in court for the last 12 years would not agree with that,” Meroni said. “It's cost us a lot of money and was unnecessary.”