Justia Illinois Supreme Court Opinion Summaries

Henderson Square Condominium Association sued the developers, alleging: breach of the implied warranty of habitability, fraud, negligence, breach of the Chicago Municipal Code’s prohibition against misrepresenting material facts in the course of marketing and selling real estate. The court dismissed with prejudice, finding that plaintiffs failed to adequately plead the Chicago Municipal Code violation and breach of fiduciary duty and that those counts were time-barred. The appellate court reversed the dismissal of those counts and the Illinois Supreme Court affirmed. The claims at issue are construction-related and governed by the limitation and repose of section 13-214 of the Code of Civil Procedure, but the fraud exception applied and issues of material fact remained concerning misrepresentations or actions that could support a finding of fraudulent concealment. The defendants were alleged to be “more than silent” regarding insulation and funding of the reserves. The Municipal Code allows private parties to seek damages under its provisions and there were allegations that defendants had a fiduciary duty to budget for reasonable reserves, given allegedly known latent defects. View "Henderson Square Condo. Assoc'n v. LAB Townhomes, LLC" on Justia Law

Crystal Lake South High School is surrounded by land zoned “R-2 residential single family,” and constitutes a legal, nonconforming use. The campus is owned by District 155. In 2013, the District’s Board decided to replace the bleachers at the Crystal Lake South football stadium after a failed structural inspection. The plan involved relocating new, larger, home bleachers to be adjacent to residential property and closer to the property line than existing bleachers. The McHenry County Regional Superintendent of Schools approved the plans and issued a building permit under the School Code, 105 ILCS 5/3-14.20. The District began work without notifying the city of Crystal Lake or seeking a building permit, zoning approval, or storm water management approval. The city ordered the Board to stop construction until it obtained a special-use permit, a stormwater permit, and zoning variances. The Board disregarded the order and proceeded with construction. Owners of adjoining residential properties sought to privately enforce the zoning restrictions under the Illinois Municipal Code, 65 ILCS 5/11-13-15. The Board sought declaratory judgment. The circuit court awarded the city summary judgment. The appellate court and Illinois Supreme Court affirmed, holding that a school district is subject to, and its school board must comply with, local governmental zoning and storm water restrictions. View "Gurba v. Cmty. High Sch. Dist. No. 155" on Justia Law

On October 14, 2010, OneWest Bank sued Standard, as trustee, and unknown trust beneficiaries, to foreclose a “reverse equity” adjustable-rate mortgage on property held by the trust and executed in 2009. Standard filed an answer and counterclaim on July 19, 2011, seeking to rescind the mortgage, alleging violations of the Truth in Lending Act (TILA). 15 U.S.C. 1601. The circuit court dismissed. The appellate court affirmed, reasoning that Standard was not an “obligor” under TILA and was not entitled to rescind the transaction. The Illinois Supreme Court reversed. The trustee has legal and equitable title to the property and is the only party with an ownership interest in the property since the beneficiary’s interest is in the trust itself and is considered personal property. Standard, was entitled to receive TILA disclosures, including notice of the right to rescind after it entered into the consumer credit transaction. Because TILA disclosures were not provided to Standard, the three-day right to rescind period was extended to three years. Standard timely exercised its right to rescind when it gave notice on June 2, 2011. View "Fin. Freedom Acquisition, LLC v. Standard Bank & Trust Co." on Justia Law

Husband and wife (who did not speak English) entered into a written one-year lease, took possession of the apartment, and tendered the security deposit and first month’s rent. Ten days into the lease, they received “an official 30 days notice” of eviction, stating that “[c]onstruction begins June 10,” and that they did not qualify for an unspecified “new program.” Several additional efforts to force the family to move followed; their tender of rent was refused. They purportedly sought legal advice and were told that the landlord could not unilaterally terminate the lease. They reported feeling discriminated against and harassed; they were confused, depressed, and anxious. Demolition began while the family was occupying the apartment. Husband allegedly told wife that he could not tolerate the situation any longer. The following day, he committed suicide in the apartment. Wife sought damages for intentional infliction of emotional distress, wrongful eviction, breach of contract; under the Wrongful Death Act; and under the survival statute. The trial court dismissed the wrongful death and related survival actions, finding that “wrongful death via suicide” is not cognizable in Illinois. The Illinois Supreme Court agreed. Despite an ostensible connection between severe emotional distress and suicide, suicide may result from a complex combination of factors. It is “rare” that suicide would not break the chain of causation and bar a wrongful death action, even where the plaintiff alleges the defendant inflicted severe emotional distress. Husband’s suicide was not a reasonably foreseeable result of defendant’s alleged conduct in breaking the lease and pressuring the family to vacate. View "Turcios v. DeBruler Co." on Justia Law

Plaintiffs challenged the constitutionality of a $10 Rental Housing Support Program surcharge collected by the recorder of deeds for the recordation of any real estate-related document in a county, 55 ILCS 5/3-5018. Originally $1 was retained by the county in which it was collected. During the litigation, the section was amended to impose a $9 surcharge to fund the Rental Housing Support Program and a separate $1 recordation fee to be paid to the county. The trial court held both versions of the statute to be unconstitutional. The Illinois Supreme Court reversed. The General Assembly has no evidentiary burden and is not required to produce facts to justify the statute. Plaintiffs failed to establish that the section violated the uniformity clause. The court found a rational basis for the fee: By helping provide affordable housing to low-income families throughout the state, the statute provides needed housing security and financial stability to vulnerable residents and a more stable income stream to landlords. It decreases the number of vacant and abandoned buildings and increases the opportunities for building owners to maintain their property. View "Marks v. Vanderventer" on Justia Law

In 2008, Nationwide became the owner of the Barrington Hills property. The Pobudas have owned the adjacent lot since 1986. The northwest corner of the Nationwide property and the adjoining northeast corner of the Pobuda property are 609 feet from Donlea Road. Both would have been landlocked but for a gravel road easement (recorded in 1956) that runs from Donlea Road over other property. The Pobudas allege that access to their property is impossible without crossing the northwest corner of the Nationwide property because utility equipment installed in 1957 and serving both properties and mature trees and shrubs block access on the north line of their property. The Pobudas claim that they, and visitors, have traveled over the northwest corner strip of the Nationwide property during various hours six to seven days each week, for 52 weeks each year, “in an open, visible, notorious, peaceful, uninterrupted adverse manner,” since 1986. They claim that they have regularly plowed snow, mowed grass, filled in low spots, raked leaves, swept debris, picked-up sticks, patched, and seal coated the surface, on that property. The trial court ruled in favor of Nationwide, finding that the claim of prescriptive easement failed because the Pobudas did not establish that their use was “exclusive” to the point of dispossessing the owner. The appellate court affirmed. The Illinois Supreme Court reversed. The Pobudas satisfied the elements of exclusivity and adversity necessary to establish a prescriptive easement. View "Nationwide Fin., L.P. v. Pobuda" on Justia Law

Spanish Court Condominium Association filed a complaint under the Forcible Entry and Detainer Act, 735 ILCS 5/9-101, against Carlson, a unit owners, who allegedly had failed to pay monthly assessments for six months. Carlson admitted that she had not paid her assessments, but denied that she owed those assessments, alleging that she incurred water damage to her unit because Spanish Court failed to properly maintain the roof directly above her unit. She asserted “Breach of Covenants” and “Set-Off” for failure to maintain the roof and that Spanish Court failed to repair or replace her toilet, which was rendered inoperable during the investigation of a water leak in an adjoining unit. The trial court granted Spanish Court’s motion to strike the affirmative defenses and entered an agreed order awarding possession of Carlson’s unit to Spanish Court, and a money judgment for unpaid assessments. The appellate court vacated and remanded for reinstatement of Carlson’s affirmative defenses relating to the roof. The appellate court analogized to a landlord/tenant situation, viewing the obligation to pay assessments, and the obligation to repair and maintain the common elements, as mutually exchanged promises. The Illinois Supreme Court reversed, holding that the failure to repair is not germane to the forcible proceeding.View "Spanish Court Two Condo. Ass'n v. Carlson" on Justia Law

McCluskey executed a promissory note for $330,186, on a Naperville property, with Wells Fargo as the mortgage holder. After service in foreclosure proceedings, McCluskey did not answer or plead. An order of default and judgment of foreclosure entered. After failed negotiations on a loan modification and a rescheduled sale date, Wells Fargo was the successful bidder on the property for a price of $235,985.69. Before Wells Fargo moved to confirm the sale, McCluskey moved to vacate the default judgment and set aside the sale under section 2-1301(e) of the Code of Civil Procedure, rather than the Foreclosure Law (15-1508(b)). The trial court denied her motion and confirmed the sale. The appellate court reversed, holding that the court could exercise discretion under civil procedure law, even after a judicial sale, if the movant could present a compelling excuse for lack of diligence and a meritorious defense. The Illinois Supreme Court reversed. After a motion to confirm a judicial sale, foreclosure law governs and provides standards for exercise of discretion in dealing with a motion to vacate. At that point, it is not sufficient under the foreclosure statute to merely raise a meritorious defense to the complaint. In this case, the motion to vacate preceded the motion to confirm, so the trial court could have considered the motion to vacate under civil procedure law. Under these facts, however, the court did not err in denying the motion, even under that more liberal standard. McCluskey admitted her default, was properly served, and had notice of the default, the judgment of foreclosure, and the sale, then later raised pleading defenses for the first time.View "Wells Fargo Bank, N.A., v. McCluskey" on Justia Law

Lake Holiday, a private community, is governed by the Association, which enacted restrictive covenants, rules, and regulations, including rules that concern speed limits, impose fines, provide for enforcement of rules by private security officers, and require residents to provide security officers with identification when requested to do so. Plaintiff owns property in the development and was driving within the development, when a private security officer measured plaintiff’s speed, pulled plaintiff over, took plaintiff’s license, detained plaintiff for a few minutes, and issued a citation. In his third amended complaint plaintiff sought a declaratory judgment that the practices of the security department were unlawful and that the rules and regulations were void and alleged breach of fiduciary duty and willful and wanton conduct and false imprisonment. The trial court granted defendants summary judgments. The appellate court held that the practice of recording drivers was not a violation of the eavesdropping statute, 720 ILCS 5/14-2(a)(1), nor was the security department prohibited from using radar, but that the Association was not authorized by the Vehicle Code to use amber lights on its vehicles and that stopping and detaining drivers for Association rule violations was unlawful. The Illinois Supreme Court reversed, in favor of the Association. View "Poris v. Lake Holiday Prop. Owners Ass'n" on Justia Law

In 2005, a mortgage was entered into as to property in Naperville. The loan was eventually sold to EMC, which obtained a judgment of foreclosure in 2009. The debtor’s request to have the 2009 foreclosure judgment vacated was denied, as was her subsequent motion to reconsider that denial. To both of these adverse orders, Supreme Court Rule 304(a) language (that there was no just reason for delaying either enforcement or appeal) was added, and the debtor appealed. The appellate court, however, dismissed for lack of jurisdiction. The Illinois Supreme Court agreed and affirmed. Although a foreclosure judgment is final as to what it adjudicates, it is not appealable until entry of an order approving the sale and directing distribution. The orders to which the circuit court added Rule 304(a) language were not themselves final for purposes of appeal. There is no court rule permitting appeal of the nonfinal orders at issue here, and Rule 304(a) cannot confer appellate jurisdiction where none exists. View "EMC Mortg. Corp. v. Kemp" on Justia Law