Real Estate Law

House Bill 5201

Topic: 
Mechanics Lien Act

(Ford, D-Chicago; Castro, D-Chicago) amends the Counties Code to create a mechanics lien demand and referral pilot program. Provides that in counties with a code hearing unit, a recorder may adopt rules establishing a mechanics lien demand and referral process for residential property after a public hearing. Provides that if a recorder determines that a mechanics lien recorded in the grantor's index or the grantee's index is a defective lien, the recorder shall serve a Notice of Defective Lien by certified mail to the last known address of the owner.

Provides that if the owner or legal representative of the owner of the residential property confirms in writing that the lien is not involved in pending litigation, the owner may request that the recorder refer the defective mechanics lien to the county's code hearing department for adjudication or serve a Demand to Commence Suit forcing the lienholder to either file suit, respond to the Demand, or forfeit the lien. Provides how the recorder is to serve a Demand to Commence Suit or file a Notice of Referral with the code hearing unit.

Provides that if the mechanics lien is referred to the code hearing unit, the code hearing unit will set a hearing and notify the applicable parties. Provides if the recorder shows by clear and convincing evidence that the lien in question is a defective lien, the administrative law judge shall rule the lien is forfeited and that the lien no longer affects the chain of title of the property in any way.

Repeals the provisions on January 1, 2022. Further amends the Counties Code making conforming changes in county code hearing unit provisions. Amends the Mechanics Lien Act making conforming changes. Scheduled for hearing Tuesday in Senate Judiciary Committee. 

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Blevins v. Marcheschi

Blevins v. Marcheschi
Illinois Appellate Court
Civil Court
Real Estate Contract
Citation
Case Number: 
2018 IL App (2d) 170340
Decision Date: 
Tuesday, April 24, 2018
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Reversed and remanded with directions.
Justice: 
BURKE

Plaintiffs sued Defendants for breach of contract, fraud, and misrepresentation based on Defendants' failure to disclose water damage in house they sold to Plaintiffs. The one-year limitations period of the Residential Real Property Disclosure Act does not govern Plaintiff's common-law actions, and does not limit Plaintiffs' ability to bring claims based on common law or other statutes. Complaint alleged that Defendants knew that there was water infiltration and water damage in or about the damaged wallboard, which satisfies pleading requirement that Plaintiffs need allege only ultimate facts, not evidentiary facts. (ZENOFF and SCHOSTOK, concurring.)

Quadrangle House Condominium Association v. U.S. Bank, N.A.

Quadrangle House Condominium Association v. U.S. Bank, N.A.
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2018 IL App (1st) 171713
Decision Date: 
Friday, April 20, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
HOFFMAN

(Court opinion corrected 4/23/18.) Purchaser of a condominium unit at a judicial foreclosure sale is obligated to pay the common expenses for the unit assessed from and after the first day of the month after the date of the judicial foreclosure sale. This fixes the date when purchaser's liability for assessments begins. Payment of post-purchase assessments, whenever made, is the step necessary to confirm extinguishment of any lien created under section 9(g)(1) of the Condominium Property Act. (CUNNINGHAM and CONNORS, concurring.)

Board of Managers of the Northbrook Country Condominium Association v. Spiezer

Board of Managers of the Northbrook Country Condominium Association v. Spiezer
Illinois Appellate Court
Civil Court
Appellate Jurisdiction
Citation
Case Number: 
2018 IL App (1st) 170868
Decision Date: 
Tuesday, February 20, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Appeal dismissed.
Justice: 
HYMAN

(Supplemental opinion filed 4/10/18.) Condo Board sued Trustee to recover common expenses owed on her condo unit. Court entered default judgment and order of possession, the last such order being in January 2013. Trustee’s son filed a timely notice of appeal, which court dismissed for want of prosecution. Three years later, Trustee’s son filed petition to vacate January 2013 order of possession, which court denied, and motion to reconsider, which court denied. Trustee’s son then filed another notice of appeal.  Motion to vacate does not create right to appeal under Rule 303. Appellate court has no authority to address issues raised in an untimely motion. (NEVILLE and PUCINSKI, concurring.)

Senate Bill 3120

Topic: 
Probate claims

(Nybo, R-Lombard) amends the Probate Act of 1975 in connection with the classification of claims against the estate of the decedent. Provides that a claim for reasonable and necessary medical, hospital, and nursing home expenses for the care of the decedent during the year immediately preceding death is classified equally with claims for money due employees of the decedent for services rendered of not more than $800 for each claimant for services rendered within four months before the decedent's death. Removes expenses of attending the decedent's last illness from the class. Scheduled for hearing Tuesday in Senate Judiciary Committee. 
 

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House Bill 5487

Topic: 
Post-judgment interest

(Currie, D-Chicago) amends the Code of Civil Procedure to provide that for judgments of $50,000 or less that do not include any compensation for bodily injury or death, judgments recovered in any court shall draw interest at a rate of 2% (currently 9% or 6% if the judgment debtor is a governmental entity) per annum. Scheduled for a hearing in House Judiciary Committee next Tuesday and for a subject-matter hearing tomorrow in House Judiciary Committee. 

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U.S. Bank National Assoc. v. Randhurst Crossing LLC

U.S. Bank National Assoc. v. Randhurst Crossing LLC
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2018 IL App (1st) 170348
Decision Date: 
Saturday, March 31, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Affirmed.
Justice: 
GORDON

Foreclosure of Defendant’s mortgage on commercial property. During foreclosure proceedings, prior to appointment of a receiver, Defendant filed for Chapter 11 bankruptcy in federal court, which stayed foreclosure proceedings. After automatic stay was lifted in bankruptcy action, receiver was appointed in foreclosure proceedings, and court ordered all rents paid during bankruptcy to be turned over to receiver.Order entered by bankruptcy court is sufficient to show that Plaintiff obtained constructive possession over rents as of date of order. Court did not err in ordering turnover of prereceivership rents to receiver, and ultimately to Plaintiff. Court did not abuse its discretion in awarding Plaintiff attorney fees as provided by loan documents. (BURKE and McBRIDE, concurring.)

1550 MP Road, LLC v. Teamsters Local Union No. 700

Illinois Supreme Court PLAs
1550 MP Road, LLC v. Teamsters Local Union No. 700
Civil Court
Contracts
Citation
PLA issue Date: 
March 21, 2018
Docket Number: 
No. 123046
District: 
1st Dist.

This case presents question as to whether trial court properly found that defendant-union had breached terms of lease of premises under corporate successor liability theory, where different union had entered into said lease, and where defendant had acquired assets of said union following said union’s dissolution. While defendant argued that lease was void ab initio and could not be enforced because it was not executed in conformity with former union’s bylaws or with Property of Unincorporated Associations Act (Act), Appellate Court, in affirming judgment in favor of plaintiff, found that former union’s failure to comply with its bylaws or with Act did not render lease void ab initio, and that instant defendant was liable for breach of lease based on corporate successor liability principles, where defendant had acquired and retained former union’s operations and had knowledge of instant lease at time of asset acquisition. Appellate Court further noted that nothing in Act outweighed state’s preferred policy of enforcing otherwise legal private contracts entered into for legitimate reasons.

Neighborhood Lending Services, Inc. v. Griffin

Neighborhood Lending Services, Inc. v. Griffin
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2018 IL App (1st) 162855
Decision Date: 
Saturday, March 17, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div,
Holding: 
Affirmed.
Justice: 
GORDON

In mortgage foreclosure action, court properly denied Defendant's motion to quash service by publication, where Defendant's spouse had affirmatively informed special process server that Defendant did not reside at property in question, refused to provide information about how to reach him, and property address was the only address discovered for Defendant after a comprehensive search.(McBRIDE and ELLIS, concurring.)