Real Estate Law

Dismissed but Not Excused

By Stephen T. Saporta & Christy Jepson
November
2022
Article
, Page 34
A mortgage lender that can’t prove its case should not be allowed multiple opportunities to do so by taking multiple voluntary dismissals and refiling its case multiple times. The Second District of the Illinois Appellate Court seems to say otherwise.
1 comment (Most recent December 2, 2022)

In re Application of the County Treasurer

Illinois Appellate Court
Civil Court
Property Tax Code
Citation
Case Number: 
2022 IL App (1st) 200604
Decision Date: 
Friday, October 28, 2022
District: 
1st Dist.
Division/County: 
5th Div./Cook Co.
Holding: 
Affirmed.
Justice: 
CONNORS

Petitioner filed petitions for sales in error for two properties under section 21-310(a)(5) of the Property Tax Code, contending that the assessor incorrectly assessed the two properties. The circuit court granted both petitions and the respondent appealed. The appellate court affirmed, finding that errors in whether the two subject properties had garages were errors that warranted a sale in error under section 21-310(a)(5). (CUNNINGHAM and DELORT, concurring)

Shawnee Community Unit School Dist. No. 84 v. Illinois Property Tax Appeal Board

Illinois Supreme Court PLAs
Civil Court
Property Tax Code
Citation
PLA issue Date: 
September 28, 2022
Docket Number: 
No. 128731
District: 
5th Dist.

This case presents question as to whether Property Tax Appeal Board (PTAB) erred in denying school district’s motion to dismiss respondent’s appeal of County Review Board’s $31,538,245 property tax assessment of respondent’s properties and in reducing said assessment to $3.3 million. While school district argued that respondent could not challenge disputed assessment without having previously paid disputed assessment, Appellate Court, in affirming PTAB’s denial of motion to dismiss, held that prepayment of assessment was not required where respondent appealed assessment pursuant to 35 ILCS 200/16-160. Appellate Court further found that PTAB did not lose jurisdiction over respondent’s challenge even though County had filed application for judgment and order for tax sale, and that record supported PTAB’s finding that subject property had been overvalued.

Findlay v. Chicago Title Insurance Co.

Illinois Appellate Court
Civil Court
Breach of Contract
Citation
Case Number: 
2022 IL App (1st) 210889
Decision Date: 
Thursday, September 29, 2022
District: 
1st Dist.
Division/County: 
4th DIv./Cook Co.
Holding: 
Affirmed.
Justice: 
MARTIN

At issue on appeal was whether a title company’s refusal to defend and indemnify homeowners against an easement claim in a chancy action was a breach of the title company’s contractual duty to defend. The appellate court held that the trial court properly granted summary judgment in favor of the title company on the breach of contract and fraud claims and properly dismissed an additional count in the complaint for being barred by the two-year statute of limitations governing claims for legal malpractice. The appellate court also concluded that the trial court did not abuse its discretion in denying the plaintiff’s requests for additional discovery. (HOFFMAN and ROCHFORD, concurring)

Village of Kirkland v. Kirkland Properties Holdings, LLC 1

Illinois Supreme Court PLAs
Civil Court
Contracts
Citation
PLA issue Date: 
September 28, 2022
Docket Number: 
No. 128612
District: 
2nd Dist.

This case presents question as to whether trial court properly dismissed plaintiff-Village’s action, alleging that defendant breached terms of annexation agreement that, according to plaintiff, required that defendant-owner of certain lots in subdivision to supply letter of credit in amount proportionate to number of lots owned in subdivision to secure completion of roads in subdivision as it was developed. While trial court found that annexation agreement was covenant that ran with subdivision, said agreement would not confer successor status to defendant, where defendant purchased only portion of subdivision. Appellate Court, in reversing trial court, found that annexation agreement was binding on defendant even though it had purchased only portion of subdivision. In its petition for leave to appeal, defendant argued that annexation agreement was binding on it only if drafters of agreement had expressly stated that it was binding on owners of any portion of subdivision, and annexation agreement did not provide as such.

Watters v. The Homeowners’ Association at the Preserve at Bridgewater

Federal 7th Circuit Court
Civil Court
Fair Housing Act
Citation
Case Number: 
No. 19-3499
Decision Date: 
September 12, 2022
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed and vacated in part and remanded

Dist. Ct. erred in granting defendants-Homeowners’ Association’s president and his wife’s motion for summary judgment in plaintiffs-African-American homeowners’ action, alleging race discrimination and failure to accommodate one plaintiff’s post traumatic stress disorder (PTSD) under Fair Housing Act (FHA) and section 1982, arising out of defendants’ encounters with plaintiff, during which defendants used racial slurs while telling plaintiffs that they were not welcome in neighborhood controlled by Homeowners’ Association (HOA), and where HOA denied one plaintiff’s request to build privacy fence to accommodate his PTSD. Plaintiffs provided enough evidence of discriminatory intent to withstand summary judgment with respect to FHA claim, where: (1) section 3617 of FHA prohibits interference with plaintiffs’ exercise or enjoyment of their property; and (2) defendants’ use of racial slurs, by calling plaintiffs “you people,” “black bitch,” “black n*****,” and “little monkey n*****” established discriminatory intent in effort to interfere with plaintiffs’ enjoyment of their property and to have them leave neighborhood. Also, fact that defendants were current and past presidents of HOA had relevance to plaintiffs’ perception of lack of safety in their home. Same evidence also supported plaintiffs’ section 1982 claim against these defendants. Dist. Ct., though, could properly grant HOA’s summary judgment motion as to both claims, where: (1) there was no evidence to show that defendants-president of HOA and his wife were acting on behalf of HOA when uttering racial slurs; and (2) with respect to plaintiff’s disability claim, plaintiff failed to show that HOA was aware of his PTSD at time of denial of plaintiff’s request for privacy fence.

Westberg v. Barcroft

Illinois Appellate Court
Civil Court
Property Lien
Citation
Case Number: 
2022 IL App (2d) 210543
Decision Date: 
Wednesday, August 31, 2022
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
BRENNAN

Plaintiff sued defendants for foreclosure of a judgment lien against real property that the defendants owned in joint tenancy. During the lawsuit one of the defendants died. The parties then filed cross-motions for summary judgment on the issue of whether the decedent’s interest in the property was extinguished on his death. The trial court held that it did and, because the underlying judgment that was the subject of the lien was solely against the decedent, that the plaintiff could no longer foreclose on the judgment lien against the property. The trial court granted summary judgment in favor of the remaining defendants and the appellate court affirmed. (JORGENSEN and SCHOSTOK, concurring)

Finite Resources, Ltd. v. DTE Methane Resources, LLC

Federal 7th Circuit Court
Civil Court
Conversion
Citation
Case Number: 
No. 21-1512
Decision Date: 
August 11, 2022
Federal District: 
S.D. Ill.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendants’ motion for summary judgment in plaintiffs' action, alleging conversion and trespass under circumstances where defendants-neighbors of plaintiffs used vacuum pump to extract valuable coal methane gas from underlying abandoned coal mine. Dist. Ct. held that under rule of capture, plaintiffs could not proceed on their claims because they did not own gas, which could not be owned until it was extracted. Rule of capture allows owner to extract gas from owner’s land, even though said gas had migrated from neighbor’s land. Also, Ct. of Appeals rejected plaintiffs’ contention that defendants’ use of vacuum pump violated their correlative rights because it caused damages, where: (1) Ill. Dept. of Natural Resources had issued permit to defendants to use vacuum pump to extract gas; and (2) use of vacuum pump does not negate rule of capture.

Bryton Properties, LLC v. Kids' Work Chicago, Inc.

Illinois Appellate Court
Civil Court
Forcible Entry and Detainer Act
Citation
Case Number: 
2022 IL App (1st) 210441
Decision Date: 
Monday, July 25, 2022
District: 
1st Dist.
Division/County: 
1st Div./Cook Co.
Holding: 
Affirmed.
Justice: 
HYMAN

Defendant rented property from plaintiff to operate a daycare center, but stopped paying rent after the Covid-19 pandemic forced it to temporarily cease operations. Defendant argued that the pandemic constituted a “casualty” under the terms of the lease. Plaintiff filed a complaint for eviction and for use and occupancy payments. The trial court granted plaintff’s motion for use and occupancy payments and held defendant in indirect civil contempt when the payments were not made. Defendant appealed arguing that the trial court erred because plaintiffs did not have standing and that the trial court failed to hold an evidentiary hearing. The appellate court affirmed, but vacated the contempt and sanction order finding that defendant acted in good faith to obtain appellate review. (PUCINSKI and COGHLAN, concurring)

Material Defects

By Michael J. Rooney
July
2022
Article
, Page 22
Revisions to the Residential Real Property Disclosure Act bring clarity and resolve textual conflicts.