Justia Illinois Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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Habdab, LLC filed a complaint for declaratory judgment in the circuit court of Lake County against the County of Lake and the Village of Mundelein, seeking to invalidate certain fees imposed under an intergovernmental agreement (IGA). Habdab claimed the fees violated the Road Improvement Impact Fee Law (Impact Fee Law) and sought to avoid paying unconstitutional road improvement impact fees. Both parties filed cross-motions for summary judgment. The circuit court denied Habdab's motion and granted summary judgment in favor of the County. The appellate court affirmed the circuit court's decision.The appellate court held that the fees imposed under the IGA did not constitute "road improvement impact fees" under the Impact Fee Law because they were not conditioned on the issuance of a building permit or a certificate of occupancy. The court also found that the doctrine of unconstitutional conditions did not apply, as there was an essential nexus and rough proportionality between the fees and the legitimate state interest of preventing traffic congestion.The Supreme Court of Illinois reviewed the case and affirmed the appellate court's judgment. The court held that the IGA fees did not fall under the definition of "road improvement impact fees" as per the Impact Fee Law, which specifically applies to fees imposed as a condition to the issuance of a building permit or certificate of occupancy. The court also agreed that the unconstitutional conditions doctrine did not apply, as there was a legitimate state interest in minimizing traffic congestion and a rough proportionality between the fees and the impact of the proposed development. View "Habdab, LLC v. County of Lake" on Justia Law

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The case revolves around a dispute between Shawnee Community Unit School District No. 84 (the School District) and Grand Tower Energy Center, LLC (Grand Tower), the owner of a power plant in Jackson County, Illinois. For the 2014 tax year, the Jackson County assessor imposed an assessed value of $33,445,837 on Grand Tower’s property. Grand Tower appealed the assessment to the Jackson County Board of Review, which reduced the assessed value of the property to $31,538,245. Grand Tower then appealed to the Property Tax Appeal Board (PTAB) under section 16-160 of the Property Tax Code, seeking a further reduction of the final assessment imposed by the board of review. The School District, which receives funding from property taxes generated in that county, was granted leave to intervene in the appeal.While the appeal was pending before the PTAB, Grand Tower’s 2014 property taxes came due. Grand Tower did not pay the taxes. In December 2015, the Jackson County collector prepared the annual list of properties with delinquent taxes, which included Grand Tower’s property. The collector then applied to the circuit court of Jackson County for a judgment and order of sale for taxes on the 2014 delinquent properties, including Grand Tower’s. The court entered a judgment and order of sale.The School District filed a motion before the PTAB seeking dismissal of Grand Tower’s appeal, arguing that Grand Tower was required to pay the 2014 property taxes under protest in order to pursue an appeal before the PTAB. The School District also argued that once the Jackson County collector made the application for judgment and order of sale, the circuit court acquired jurisdiction over the taxes and all supplemental matters, including the determination of the assessment, thereby divesting the PTAB of jurisdiction to review the 2014 assessment. The PTAB denied the School District’s motion to dismiss.The School District appealed the PTAB’s decision to the appellate court, which affirmed the decision of the PTAB. The appellate court held that payment of the contested taxes was not a condition precedent to pursuing an appeal before the PTAB and that the tax sale proceedings in the circuit court did not divest the PTAB of jurisdiction to review the 2014 and 2015 property assessments.The School District then appealed to the Supreme Court of the State of Illinois. The Supreme Court affirmed the judgment of the appellate court, holding that the payment of disputed property taxes is not a condition precedent to pursuing an appeal before the PTAB under section 16-160 of the Code, and that the county collector’s application for judgment and order of sale did not divest the PTAB of its jurisdiction to review Grand Tower’s properly filed appeals. The court also held that the entry of the judgment and order of sale did not estop Grand Tower from seeking review of its 2014 and 2015 assessments before the PTAB. View "Shawnee Community Unit School District No. 84 v. Illinois Property Tax Appeal Board" on Justia Law

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In the case under consideration, the Supreme Court of the State of Illinois affirmed the dismissal of Waukegan Hospitality Group, LLC's appeal by the appellate court due to lack of jurisdiction. Waukegan Hospitality Group, LLC filed a notice of appeal five days after the deadline and did not file a motion seeking leave to show good cause or a reasonable excuse for the late filing. Despite the Group's claim that it had electronically submitted the notice of appeal on the due date and that the clerk erroneously rejected it, the Court ruled that the Group failed to seek recourse for its untimely filing as required by the rules of the Illinois Supreme Court. The Court noted that the record did not support the Group's factual assertions and that the Group did not utilize the remedies available to it, making its claim of due process violation baseless. Therefore, the Court held that the appellate court correctly ruled that it lacked jurisdiction to hear the Group's appeal. The case originated from a two-count complaint for eviction filed by the Group against Stretch's Sports Bar & Grill Corporation, in which the trial court ruled in favor of the defendant. View "Waukegan Hospitality Group, LLC v. Stretch's Sports Bar & Grill Corp." on Justia Law

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In the case before the Supreme Court of the State of Illinois, the City of Rock Falls filed a petition against Aims Industrial Services, LLC. The petition sought to enforce compliance with a City ordinance requiring the replacement of a private sewage disposal system with a connection to the City’s public sewage disposal system upon the sale or transfer of any property within the City limits. The trial court determined it would be inequitable to grant the City an injunction and denied the City’s petition. The appellate court reversed this decision, holding that the trial court erred in considering the equities when deciding whether to grant the injunction, as the City sought enforcement of an ordinance that specifically authorized injunctive relief.The Supreme Court of the State of Illinois affirmed the judgment of the appellate court, stating that when a statute or ordinance expressly authorizes injunctive relief, the court has no discretion to refuse to grant the injunctive relief once a violation of the statute or ordinance has been established. The Supreme Court clarified that in such cases, balancing of the equities is not necessary since a violation of the statute or ordinance implies a harm to the public. Therefore, the trial court's refusal to grant the injunction based on its own balancing of the equities was an error. View "City of Rock Falls v. Aims Industrial Services, LLC" on Justia Law

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The Homeowners Association alleged that M/I’s subcontractors caused construction defects in a Hanover Park development by using defective materials, conducting faulty workmanship, and failing to comply with building codes. The Association alleged that it would be required to repair the defects and “damage to other property caused by the [d]efects.” M/I demanded a defense from Acuity as the additional insured on a commercial general liability policy that Acuity issued to one of its subcontractors on which M/I was an additional insured. Acuity sought a declaratory judgment, arguing that the complaint failed to allege any “property damage” caused by an “occurrence” as those terms are defined by the policy and interpreted by Illinois law. The circuit court granted Acuity summary judgment.The Illinois Supreme Court held that the allegations sufficiently fall within the initial grant of coverage requirement that there be “property damage” caused by an “occurrence.” The court remanded for further consideration of whether policy exclusion bar coverage. To hold that all construction defects that result in property damage to the completed project are always excluded would mean that the exclusions in the policy related to business risk become meaningless. The business risk exclusions contemplate that some construction defects that result in property damage are covered and some are not, depending on various factors. View "Acuity v. M/I Homes of Chicago, LLC" on Justia Law

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In 2005, Joliet filed a complaint seeking to acquire, by eminent domain, a low-income apartment complex that was owned and managed by the plaintiffs. Following almost 12 years of litigation, Joliet acquired fee simple title to the property in 2017. During the litigation, the apartment complex remained in operation; the plaintiffs paid the property taxes without filing any protest. In 2018, the plaintiffs filed a tax objection complaint, seeking the refund of over $6 million in property taxes paid between the date Joliet filed its condemnation complaint and the date it acquired the property. The plaintiffs maintained that “once title to property acquired by condemnation vests with the condemning authority, it vests retroactively to the date of filing the condemnation petition,” so the landowner is entitled to a refund for any taxes paid after the date of filing. The trial court dismissed the complaint. The appellate court held that the plaintiffs were entitled to a refund.The Illinois Supreme Court reversed, overruling the precedent on which the appellate court relied. The legal premises on which that case rested—that a taking occurs at the time a condemnation action is filed and that the valuation of the property is fixed at that point—no longer exists. The court rejected an argument that the act of filing a condemnation complaint burdened the property and it would be unfair to require the plaintiffs to pay the property taxes that accrued during the condemnation proceeding. View "MB Financial Bank, N.A. v. Brophy" on Justia Law

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The Village alleged that the defendants breached a 2003 recorded annexation agreement executed by the Trustee that was then the legal owner of the property, which now consists of an annexed 114-acre subdivision. The Village alleged that the defendants were subject to the annexation agreement as successors to the Trustee when they purchased undeveloped portions of the property from Plank, which had acquired the property from the Trustee. The Village alleged that the defendants refused its request for a letter of credit in the amount proportionate to the number of lots the defendants owned in the subdivision, to secure the completion of roads in the subdivision.The defendants argued that, although the annexation agreement was a covenant that ran with the land, it did not confer successor status to an entity that purchased only a portion of the property subject to annexation, as opposed to the whole of the property. The Appellate Court reversed the dismissal of the action. The Illinois Supreme Court affirmed. Reading the annexation agreement as a whole, the court found that its plain language required its provisions to be binding and enforceable on the parties’ successors. Defendants are successors in title to the landowner who agreed to those obligations. The obligations imposed upon any particular purchaser depend upon the obligations of the original developer that remain unsatisfied with respect to the specific parcel sold. View "Village of Kirkland v. Kirkland Properties Holdings Co., LLC I" on Justia Law

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The Condominium Property Act requires condominium unit sellers to obtain specific disclosure documents from the Association or its agent before a sale and to provide them to potential buyers on request. After entering into a standard sales contract with a potential buyer who requested those disclosures, Channon obtained them from Westward, a management agent hired by the Association’s board of managers. Westward charged $245 for the documents. Channon filed a class-action lawsuit, alleging that Westward violated section 22.1 of the Act by charging unreasonable fees for the statutorily required documents and violated the Consumer Fraud and Deceptive Business Practices Act.In response to a certified question, the Illinois Supreme Court held that section 22.1 does not provide an implied cause of action in favor of a condominium unit seller against a property manager, as an agent of an association or board of directors, based on allegations that the manager charged excessive fees for the production of information required to be disclosed under that statute. The standard for a court to imply a private right of action in a statute is quite high. That extraordinary step should be taken only when it is clearly needed to advance the statutory purpose and when the statute would “be ineffective, as a practical matter, unless a private right of action were implied.” View "Channon v. Westward Management, Inc." on Justia Law

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Sheckler rented residential property from McIntosh. The lease provided McIntosh “shall maintain fire and other hazard insurance on the premises only” and that Sheckler was responsible for insurance on possessions contained in the premises. The lease's indemnification clause exculpated McIntosh from any damages or injury occurring on the premises. McIntosh obtained insurance from Auto-Owners; first-party dwelling coverage provided coverage for fire damage and third-party landlord liability coverage provided coverage for claims brought by third parties that the insured “becomes legally obligated to pay as damages because of or arising out of bodily injury or property damage.” The third-party coverage provided a duty to defend any claim covered by the policy, excluding “property damage to property occupied or used by an insured or rented to or in the care of, any insured.” The policy listed McIntosh as the only named insured. McIntosh claims no money received from Sheckler was used to pay the annual premium.Sheckler notified McIntosh that the gas stove was not working. McIntosh placed a service call. The technician’s efforts resulted in a fire that caused substantial property damage. Auto-Owners paid McIntosh for damages incurred due to the fire and lost rental income and filed a subrogation action against the technician (Workman), who filed a third-party contribution complaint against Sheckler. Sheckler tendered the defense to Auto-Owners, which rejected the claim. The Illinois Supreme Court reinstated the rejection of Sheckler’s claim. An insurer’s duty to defend or indemnify does not extend to the tenant of an insured property against a third-party negligence contribution claim when the tenant is not identified as a person insured under the policy. View "Sheckler v. Auto-Owners Insurance Co." on Justia Law

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The plaintiffs own property on the non-navigable Mazon River in Grundy County and want to kayak on the River through the defendants' neighboring properties. They sought a declaration that they had the right as riparian owners to kayak along the entire length of the Mazon River, including through property owned by the defendants, “f[r]ee and clear from any claim of trespass.” The Mazon River is 28 miles long and is a tributary of the Illinois River.The circuit court, appellate court, and the Illinois Supreme Court ruled in favor of the defendants. Neither precedent nor Illinois common law grants a riparian owner on a non-navigable river or stream the right to use that waterway to cross the property of another riparian owner without that owner’s permission. The distinction between property boundaries on a lake versus a river or stream has been recognized in Illinois law for over a century. The Illinois common law “reasonable use” doctrine of water by riparian owners applies to direct consumptive or diversionary uses of the water, not the use of the surface water to enter the property of another riparian owner. View "Holm v. Kodat" on Justia Law