1010 Lake Shore Ass'n v. Deutsche Bank National Trust Co.
19 N.E.3d 1
Ill. App. Ct.2014Background
- Defendant Deutsche Bank National Trust Co. purchased the condominium unit at a judicial foreclosure sale on June 17, 2010.
- Plaintiff 1010 Lake Shore Association filed suit May 17, 2012 alleging defendant’s unlawful withholding of possession and unpaid assessments as of March 27, 2012.
- Plaintiff sought possession, unpaid assessments, attorney fees, and costs.
- Court granted summary judgment for plaintiff on October 29, 2012 for $70,018.90 and possession.
- Plaintiff later petitioned for attorney fees and costs; the court awarded $6,725 in fees and $698.50 in costs on February 19, 2013.
- Dissent would limit liability to post-July 1, 2010 assessments and would remand for proof of amounts due after that date.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 9(g)(3) governs lien extinguishment upon foreclosure | 9(g)(3) extinguishes the prior lien only after post-sale assessments are paid | Pre-purchase assessments cannot be imposed on the mortgagee | Lien not extinguished until post-sale payments are made; 9(g)(3) interpreted in favor of plaintiff. |
| Whether there was a genuine issue of material fact on post-purchase assessments | Affidavit showed the ongoing balance and accrual rates | Post-purchase payments disputed the amount owing | No genuine issue; affidavit facts admitted for summary judgment. |
| Whether the denial of the motion to reconsider was proper | Res judicata should not bar post-foreclosure claims | Res judicata applies to pre-foreclosure issues | No abuse of discretion; no identity of cause of action with foreclosure action. |
| Whether attorney fees were reasonably awarded | Fees reasonable given hours, rates, and success | Fees excessive relative to stakes | Attorney fees and costs awarded; within discretion and supported by record. |
Key Cases Cited
- Newport Condominium Ass’n v. Talman Home Federal Savings & Loan Ass’n of Chicago, 188 Ill. App. 3d 1054 (1988) (constructive title and lien rules for post-foreclosure assessments)
- River Park, Inc. v. City of Highland Park, 184 Ill. 2d 290 (1998) (identity of cause of action and factual grouping)
- Murray v. Chicago Youth Center, 224 Ill. 2d 213 (2007) (in pari materia and specific vs general statutes)
- Pembrook Condominium Ass’n-One v. North Shore Trust & Savings, 2013 IL App (2d) 130288 (2013) (tender of post-sale assessments can extinguish lien; distinguishable facts)
- Purtill v. Hess, 111 Ill. 2d 229 (1986) (affidavits on summary judgment treated as admitted absent counteraffidavits)
- Palm v. 2800 Lake Shore Drive Condominium Ass’n, 401 Ill. App. 3d 868 (2010) (reasonableness of attorney fees factors)
- Goldfine v. Barack, Ferrazzano, Kirschbaum & Perlman, 2013 IL App (1st) 111779 (2013) (fees considerations and discretion)