Real Estate Law

Wilmington Savings Fund Society, FSB v. Herzog

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2024 IL App (1st) 221467
Decision Date: 
Tuesday, January 23, 2024
District: 
1st Dist.
Division/County: 
2d Div./Cook Co.
Holding: 
Affirmed.
Justice: 
COBBS

In a mortgage foreclosure action, the defendant appealed from orders of the circuit court entering summary judgment in favor of the plaintiff that confirmed the sale of the property and entered a deficiency judgment against the defendant. Defendant argued on appeal that the trial court erred because the release of the mortgage barred the foreclosure and plaintiff did not provide evidence of fraud, duress, illegality, or mutual mistake. Defendant also argued that the trial court erred when it entered a deficiency judgment without an evidentiary hearing. The appellate court affirmed, finding that the plaintiff presented clear and cogent evidence that no consideration was paid in exchange for the release and because the release was not a valid contract the bank had a valid, existing mortgage against the defendant and plaintiff was entitled to summary judgment as a matter of law. (McBRIDE and ELLIS, concurring)

Kulhanek v. Casper

Illinois Appellate Court
Civil Court
Inconsistent Verdicts
Citation
Case Number: 
2023 IL App (1st) 221454
Decision Date: 
Wednesday, December 20, 2023
District: 
1st Dist.
Division/County: 
3d Div./Cook Co.
Holding: 
Affirmed.
Justice: 
D.B. WALKER

Plaintiff filed a breach of contract lawsuit alleging that defendant had failed to pay rent on a commercial property. The matter proceeded to trial and the jury returned a verdict with answers to special interrogatories indicating that there was a contract between the parties but that defendant did not breach the contract. The trial court granted plaintiffs’ motion for a new trial on the basis that the jury did not render a legally consistent verdict and defendant appealed. Defendant argued on appeal that the trial court erred in granting both plaintiffs’ motion for a new trial as well as plaintiffs’ motions in limine that barred defendant from presenting evidence that plaintiffs’ failed to mitigate their damages. The appellate court affirmed, finding that the trial court did not err and instructing that the parties be allowed to present evidence regarding plaintiffs’ reasonable efforts to mitigate their damages during the second trial. (LAMPKIN and VAN TINE, concurring)

Almazon v. 7354 Corporation

Illinois Appellate Court
Civil Court
Quiet Title
Citation
Case Number: 
2023 IL App (1st) 220894
Decision Date: 
Friday, December 15, 2023
District: 
1st Dist.
Division/County: 
6th Div./Cook Co.
Holding: 
Affirmed and remanded.
Justice: 
ODEN JOHNSON

Plaintiff filed a quiet title action against the defendants. Defendants filed a counterclaim for breach of warranty deed. The trial court granted summary judgment in favor of the plaintiff on the quiet title claim and defendants filed an interlocutory appeal. The appellate court affirmed, finding that the trial court did not abuse its discretion when it declined to find laches where the plaintiff timely recorded her installment contract and where the defendant did not exercise their right to declare a forfeiture. (HYMAN and C.A. WALKER, concurring)

BKA Holding, LLC v. Sam

Illinois Appellate Court
Civil Court
Eviction
Citation
Case Number: 
2023 IL App (2d) 230163
Decision Date: 
Tuesday, November 28, 2023
District: 
2d Dist.
Division/County: 
DeKalb Co.
Holding: 
Vacated and remanded.
Justice: 
SCHOSTOK

Defendants entered into an agreed order with their landlord, the defendant, agreeing to terms to vacate their rental property to avoid having an eviction judgment entered. On defendant’s motion the trial court entered both the agreed order and a judgment of possession. The trial court then denied the defendant’s motion to vacate the judgment and defendants appealed. The appellate court vacated the judgment of possession, finding that based on the agreement between the parties there was no legal justification for the entry of the eviction judgment. (HUTCHINSON and KENNEDY, concurring)

Hahn v. McElroy

Illinois Appellate Court
Civil Court
Residential Real Property Disclosure Act
Citation
Case Number: 
2023 IL App (2d) 220403
Decision Date: 
Friday, November 3, 2023
District: 
2d Dist.
Division/County: 
Kendall Co.
Holding: 
Affirmed.
Justice: 
KENNEDY

Plaintiff filed a lawsuit against defendants alleging violation of the Residential Real Property Disclosure Act, common law fraud, fraudulent concealment, and negligent misrepresentation after plaintiff found mold in the house he purchased from the defendants. During a bench trial, the circuit court entered a directed finding in favor of the defendants and subsequently awarded defendants the full amount of their attorney fees. Plaintiff appealed and the appellate court affirmed, finding that the trial court did not err in the entry of judgment in favor of the defendant or in the award of attorneys’ fees under the terms of the real estate contract. (SCHOSTOK and BIRKETT, concurring)

Willow Way, LLC v. Village of Lyons, Illinois

Federal 7th Circuit Court
Civil Court
Due Process
Citation
Case Number: 
No. 22-1775
Decision Date: 
October 5, 2023
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant-Village’s motion for summary judgment in plaintiff-property owner’s section 1983 action, alleging that defendant’s demolition of long-time empty home on plaintiff’s property that defendant had deemed to be nuisance, as well as sale of said property to satisfy defendant’s lien for demolition costs violated plaintiff’s substantive due process rights, where plaintiff argued that demolition was tantamount taking without compensation. Demolition of dilapidated structure that constituted public nuisance does not violate due process clause and does not require compensation. Moreover, defendant gave notice of demolition and opportunity for plaintiff to file lawsuit to determine whether house met criteria for demolition, but plaintiff failed to take opportunity to file said lawsuit. As such, plaintiff cannot complain about consequences of its own inaction.

The Illinois-Federal Foreclosure Split

By Morgan I. Marcus
October
2023
Article
, Page 36
In personam deficiency judgments, mandatory versus discretionary, and other practical considerations.

MB Financial Bank, N.A. v. Brophy

Illinois Supreme Court
Civil Court
Property Taxes
Citation
Case Number: 
2023 IL 128252
Decision Date: 
Thursday, September 21, 2023
Holding: 
Appellate court judgment affirmed in part and reversed in part. Circuit court judgment affirmed.
Justice: 
CUNNINGHAM

Plaintiffs filed a lawsuit seeking to recover property taxes paid on a property that was subject to condemnation proceedings. The appellate court sided with the plaintiffs; however, the Illinois Supreme Court reversed that finding, concluding that because the plaintiff enjoyed the benefits of ownership from the time the condemnation proceedings were initiated until the time the city took ownership of the property, it would be unreasonable for the plaintiffs to be relieved from having to pay property taxes during that time. (THEIS, NEVILLE, OVERSTREET, HOLDER WHITE, ROCHFORD, and O’BRIEN, concurring)

Public Act 103-298

Topic: 
Illinois Radon Awareness Act

(Williams, D-Chicago; Ellman, D-Naperville) amends the Illinois Radon Awareness Act. It provides that the lessor shall provide the prospective tenant or tenant of a dwelling unit with the Illinois Emergency Management Agency’s “Radon Guide for Tenants” pamphlet, copies of any records or reports pertaining to radon concentrations within the dwelling unit that indicate a radon hazard to the tenant, and the new statutory Disclosure of Information on Radon Hazards to Tenants form. These must be provided at the time of a prospective tenant’s application to lease a dwelling unit, before a lease is entered into, or at any time during the leasing period upon request. Provides that at the commencement of the agreed leasing period, a tenant shall have 90 days to conduct his or her own radon test of the dwelling unit. Requires a tenant who decides to have radon mitigation performed to have the express consent of the lessor before doing so. Makes other changes. Effective Jan. 1, 2024.

Guerrero v. Howard Bank

Federal 7th Circuit Court
Civil Court
Property
Citation
Case Number: 
No. 22-3078
Decision Date: 
July 19, 2023
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in dismissing plaintiffs’ slander of title and unjust enrichment actions, arising out of defendant-bank’s recording of mortgage lien it held on plaintiffs’ property. Record showed that: (1) plaintiffs and another sibling were beneficiaries of trust that held title to property; (2) prior to trust grantor’s death, sibling convinced grantor to make sibling sole beneficiary of trust, with sole power of discretion; (3) plaintiffs brought undue influence claim against sibling in state court to re-establish their interests in property; (4) state court rendered money judgment against sibling; (5) sibling thereafter directs trustee to issue trustee deed to sibling’s daughter; (6) sibling's daughter thereafter obtained mortgage loan from defendant, using property as collateral; (7) state reviewing court subsequently affirms money judgment against sibling and imposes retroactive constructive trust, but declines to rule in rights of any third-party to property; and (8) plaintiffs sell property and pay off mortgage. Plaintiff’s slander of title fails because defendant held valid mortgage to property, where sibling’s daughter held valid title to property at time of mortgage. Moreover, plaintiffs’ unjust enrichment claim, which was based on contention that defendant had refused plaintiffs' request to release mortgage prior to payoff, fails since plaintiffs took title to property subject to valid mortgage, which was continuing security interest on said property.