Real Estate Law

Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation for American Art

Illinois Appellate Court
Civil Court
Easements
Citation
Case Number: 
2014 IL App (1st) 130307
Decision Date: 
Monday, June 9, 2014
District: 
1st Dist.
Division/County: 
Cook Co.,1st Div.
Holding: 
Affirmed as modified.
Justice: 
HOFFMAN
Plaintiff, a municipal corporation, blocked access to alley to which defendant companies, which had purchased adjacent property to develop, had recorded easements. Claim of intentional interference with easement, for which tort damages (including economic losses) are allowed, seeks to protect possessors of real property against unreasonable interference with their rights to access and use their property. District had duty not to interfere with company's use of easement. Company presented evidence of consequential damages, including costs incurred due to District's interference with its right to use easement, including increased interest obligations and rent payments.(CUNNINGHAM and DELORT, concurring.)

Palm v. 2800 Lake Shore Drive Condominium Association

Illinois Appellate Court
Civil Court
Condominium Law
Citation
Case Number: 
2014 IL App (1st) 111290
Decision Date: 
Friday, May 2, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
PALMER
(Court opinion corrected 6/6/14.) Plaintiff, a condo unit owner, filed for declaratory and injunctive relief against condo association and its directors. As there is no conflict between declaration and bylaws or other condominium instruments, Section 4.1(b) of Condominium Property Act does not apply, and notice provision in declaration stands. Court properly ruled that Board breached its fiduciary duty by using operating fund to pay reserve expenses and reimbursing operating fund from reserve fund. Court properly found that business judgment rule did not protect Defendants from breach of fiduciary duty in transferring surplus association income to association's reserve account instead of crediting it against unit owners' future assessments. (McBRIDE, concurring; GORDON, specially concurring.)

Senate Bill 3286

Topic: 
Service of process
(Jacobs, D-Moline; Verschoore, D-Rock Island) amends the Code of Civil Procedure to require an employee of a “gated residential community” to grant entry into the community to an authorized process server who is attempting to serve process on a defendant or witness who resides within or is known to be within the community. This access would include common areas and common elements. The term “gated residential community” includes condominium associations, housing cooperatives, or private communities. Passed both chambers.

Senate Bill 1048

Topic: 
Presumptively void transfers in probate
(Silverstein, D-Chicago; Welch, D-Westchester) creates a civil action in the Probate Act if a “presumptively void transfer” is challenged that applies to “caregivers.” If a “transfer instrument” transfers property in excess of $20,0000 to a caregiver and is challenged, it creates a rebuttable presumption that this transfer is void. A caregiver is defined as anyone who has assumed responsibility for all or a portion of the care of another person who needs assistance with daily living activities. A caregiver doesn’t include a “family member” of the person receiving assistance. There are two exceptions to this rebuttable presumption. (1) If the transferee’s share under the transfer instrument is not greater than the share of the transferee was entitled to under the transferor’s testamentary plan in effect before the transferee became a caregiver. (2) If the transfer was not the product of fraud, duress, or undue influence as proved by clear and convincing evidence. If the caregiver attempts and fails to overcome the presumption, the caregiver must bear the cost of the proceedings, including reasonable attorney’s fees. The statute of limitation for challenging a presumptively void transfer is two years unless the Probate Act requires a shorter period. Senate Bill 1048 applies only transfer instruments executed after January 1, 2015. Passed both chambers.

House Bill 4783

Topic: 
Condominium Property Act
(E. Chris Welch, D-Westchester; Steans, D-Chicago) makes the following declarations unenforceable as against public policy if the declarations affect the common elements or more than one unit and require any of the following before the board can take legal action on behalf of the association: (1) consent of a percentage of unit owners, (2) arbitration, (3) mediation before an action may be filed in court, or (4) a restriction or delay in the board’s ability to bring an action affecting the common elements or more than one unit. An otherwise unenforceable provision may be enforced after the election of the first-unit owner board of managers if it is approved by a unit-owner percentage vote of not less than 75% of the total in the aggregate of the undivided ownership of the common elements.

Senate Bill 2829

Topic: 
Administrative review and attorney's fees
(Link, D-Lake Bluff; Zalewski, D-Chicago) allows court to award attorney’s fees for the prevailing party in certain administrative-review actions. It applies only to the decision of a code-hearing officer that imposes a fine or penalty against the owner of a single-family or multi-family residential dwelling for a violation relating to the condition or use of that residential property. It is limited to municipalities with a population of 500,000 or less. The court may award the plaintiff all reasonable costs, including court costs and attorney’s fees, if the court finds that (1) the hearing officer’s decision was arbitrary and capricious; or (2) the defendant failed to file a record under Section 3-108 of the Code of Civil Procedure that is sufficient to allow the court to determine whether the hearing officer’s decision was arbitrary and capricious. The court may award the municipality the same damages if the court finds that the plaintiff’s action seeking administrative review is not reasonably well grounded in fact, is not warranted by existing law, or is not accompanied by a reasonable argument for the extension, modification, or reversal of existing law. Passed both chambers.

First Mortgage Company, LLC v. Dina

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (2d) 130567
Decision Date: 
Monday, March 31, 2014
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Vacated and remanded.
Justice: 
BURKE
(Modified upon denial of rehearing on 5/22/14.) Material issue of fact existed as to Plaintiff mortgage company's status as a licensed lender under Residential Mortgage License Act, thus precluding summary judgment in foreclosure actions. A mortgage made by entity lacking authorization under License Act to conduct such business is void as against public policy.(ZENOFF and SCHOSTOK, concurring.)

The Bank of New York Mellon F/K/A The Bank of New York v. Karbowski

Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
2014 IL App (1st) 130112
Decision Date: 
Wednesday, May 28, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Reversed and remanded.
Justice: 
MASON
Court entered judgment of foreclosure and confirming foreclosure sale, after allowing service by publication. Affidavit is at odds with notary's seal, and date that affidavit was executed and notarized cannot be determined. Thus, Bank's motion to serve by publication did not strictly comply with requirements of 735 ILCS 5/2-206 and thus publication notice was insufficient to confer personal jurisdiction over Defendant, and subsequent orders based on that service are void.(HYMAN and PUCINSKI, concurring.)