Commercial Banking, Collections, and Bankruptcy

Trinity 83 Development, LLC v. ColFin Midwest Funding, LLC

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 18-2117
Decision Date: 
March 1, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

 

Bankruptcy Ct. did not err in rejecting debtor’s claim that creditor’s mistaken filing of 2013 release of mortgage on debtor’s property at time debtor still owed money on said property extinguished debt and creditor’s security interests in said property that was subsequently sold in foreclosure action. Record showed that creditor recorded subsequent document cancelling satisfaction noted in 2013 release before debtor had filed bankruptcy petition and before property had been sold. As such, Bankruptcy Ct. could properly find that debtor did not obtain rights from 2013 release because it was unilateral and without consideration. Moreover, Ill. case law treats mistaken release of mortgage as ineffective between mortgagor and mortgagee. Also, issue was not moot under 11 USC section 363(m), even though subject property had been sold in foreclosure action.

In the Matter of: Anderson

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 17-3073
Decision Date: 
February 26, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in reversing Bankruptcy Ct. order finding that creditor could assert $650,000 deficiency claim against debtors, where creditor had previously received prior state court in rem judgment in foreclosure action against debtors and others arising out of sale of property that debtors co-owned with others, but had failed to seek deficiency judgment against debtors as it had done with co-owners of said property. Creditor could not seek deficiency judgment, since it had presented claims based on mortgage and note in single action in state court and failed to seek deficiency judgment against debtors on note, especially where, as here, Illinois case law precluded creditor from splitting its claim. As such creditors who do not seek deficiency judgments in foreclosure actions cannot seek that relief in different proceeding. Moreover, if creditor cannot obtain deficiency judgment in state court, section 28 USC section 1738 precludes it from subsequently getting one in federal court .

House Bill 2203

Topic: 
Jury duty

(Hammond, R-Macomb) requires the circuit courts to develop a policy for allowing prospective jurors who are older than a certain age to be permanently excused from jury duty. Requires that a circuit court, when determining the age at which a prospective juror may be excused based on age, consider the following: the age at which jury duty may become difficult for a significant number of jurors and the jury pool available for that circuit court.

Provides that a prospective juror meeting the age requirement may apply for the exemption based on a self-assessment of his or her physical limitations and mobility issues. Requires that the county board, jury administrator, or jury commissioner to permanently exclude the prospective juror from all current and subsequent jury lists. Scheduled for hearing in House Judiciary Committee today. 

House Bill 2256

Topic: 
Emancipation of minors

(Welter, R-Morris) deletes language stating that no order of complete or partial emancipation may be entered if there is any objection by the minor's parents or guardian. Instead, it provides that an order of complete or partial emancipation may be entered if the court finds, in a hearing, that emancipation would be in the minor's best interests. Scheduled for hearing this Wednesday in House Judiciary Committee. 

House Bill 3181

Topic: 
Code of Civil Procedure

(Mazzochi, R-Westmont) provides that if the grounds do not appear on the face of the pleading, the motion must be supported by affidavit that the claim asserted is unenforceable because the claim was (1) filed for a purpose of forcing an individual or entity to change positions or induce or coerce behavior in a manner unrelated to the claim asserted; or (2) based on allegations made to a government entity by an anonymous complainant if: (a) the anonymous complainant is not revealed; or (b) the anonymous complainant, if revealed, made the allegations to a government entity while holding an ulterior motive with regard to the defendant or for the purposes of retaliating against the defendant. Assigned to House Rules Committee. 
 

House Bill 1466

Topic: 
Condos and taxes

(Harris, D-Chicago) authorizes the board of managers acting on behalf of all unit owners to allocate the percentage of ownership in the common elements as a tract for each unit for the limited purpose of calculating the assessment or levy of any such taxes, special assessments, or charges of the State of Illinois or of any political subdivision. It may do so by a two-thirds vote of the members of the board of managers or by the affirmative vote of not less than a majority of the unit owners at a meeting duly called for such a purpose, or upon such greater vote as may be required by the declaration or bylaws.

Requires this allocation of ownership to be based on the square footage of each individual unit and that it be separate from, and in addition to, the allocation for purposes of association assessments for common expenses, association special assessments and charges, and voting rights. It has been assigned to the House Revenue and Finance Committee.

House Bill 29

Topic: 
Condos and common-interest community associations

(Thapedi, D-Chicago) amends the Common Interest Community Association Act to limit the concurrent exercise by units of local government of powers and functions exercised by the State affecting community instruments and accounting practices.

It also amends the Condominium Property Act to limit the concurrent exercise by units of local government of powers and functions exercised by the State affecting an association’s: budgeting practices; sale of property; notice requirements; contracts with board members; voting procedures; property improvement procedures; accounting practices; collection and sharing of records; amendment to the condominium instruments; and subdivision or combination of units. It has been sent to the House floor by the House Judiciary Committee.

Senate Bill 77

Topic: 
Evictions

(Van Pelt, D-Chicago) seals eviction proceedings and remain so unless a final order of eviction in favor of the plaintiff is entered. The unsealed records must remain unsealed for a period of seven years. After seven years, access to the court records may be obtained only by specified parties. If a case is filed by a board of managers of a condominium association and names or joins a tenant of a condominium unit to the proceedings, the tenant’s name must be permanently suppressed by order of the court. It has been assigned to Senate Judiciary Committee.

House Bill 2599

Topic: 
Appearances by corporate officers

(Mazzochi, R-Westmont) amends the Counties Code to authorize a corporation or limited liability company to appear at an administrative hearing proceeding through an officer, a board member, a shareholder with a controlling interest in the corporation, a shareholder of an S Corporation, a member of an limited liability company, or a person with a Master of Laws degree. Applies to counties with more than three million residents. It has been assigned to House Rules Committee