5510 Sheridan Road Condominium Association v. U.S. Bank
2017 IL App (1st) 160279
| Ill. App. Ct. | 2017Background
- U.S. Bank foreclosed on the Hoffmans’ condominium unit and purchased it at judicial sale in May 2014; deed issued July 3, 2014. The condominium association had an earlier forcible entry and detainer possession order in its favor (April 2013).
- The association demanded roughly $81,400 (assessments, parking, late fees) in an October 31, 2014 30-day notice, covering arrears from Oct. 1, 2012 to Oct. 1, 2014; U.S. Bank paid $14,968.76 in Jan. 2015 (postsale months Aug 2014–Jan 2015).
- The association sued U.S. Bank under the Forcible Entry and Detainer Act in Jan. 2015 seeking possession, presale common expenses, and fees, arguing U.S. Bank failed to make timely postsale payments required by 765 ILCS 605/9(g)(3), so the association’s lien for presale expenses remained.
- Cross-motions for summary judgment were filed. U.S. Bank argued section 9(g)(3) imposes no strict timing deadline; its payments extinguished the presale lien. The association argued the statute requires payment "the first day of the month after" the sale.
- U.S. Bank made additional payments by Sept. 11, 2015, and the trial court granted summary judgment and possession to the association on Dec. 28, 2015. The appellate court reversed and entered summary judgment for U.S. Bank.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 765 ILCS 605/9(g)(3) impose a strict timing deadline (payment "the first day of the month after" sale) to extinguish a presale lien? | The italicized phrase creates a deadline; payment after that day is untimely and does not extinguish lien. | Phrase only identifies when purchaser becomes liable for postsale assessments; no strict deadline — payment at any time will extinguish lien once postsale amounts are paid. | The phrase denotes when liability begins, not a forfeiture-type timing deadline; no strict timing requirement. |
| Did U.S. Bank extinguish the association's lien for presale common expenses by paying postsale assessments? | Payments were untimely and thus did not extinguish the lien. | U.S. Bank paid all postsale assessments owed by Sept. 11, 2015, satisfying §9(g)(3) and extinguishing the presale lien. | U.S. Bank paid the full postsale amounts before judgment; §9(g)(3) extinguished the lien; summary judgment for U.S. Bank. |
| Can the association rely on §9(f) (board-set due dates) to create a timing requirement for §9(g)(3)? | Association: §9(f)’s first-of-month due date makes late postsale payments ineffective to extinguish lien. | U.S. Bank: §9(f) addresses assessment due dates, §9(g)(3) governs lien extinguishment and contains no incorporation of §9(f). | Court: §9(f) and §9(g)(3) are separate; §9(g)(3) is plain and does not incorporate §9(f); association’s argument fails. |
| Appellate jurisdiction over appeal filed before fee order resolved? | — | — | Notice of appeal filed before fee order was premature, but Rule 303(a)(2) made it effective when the fee order was entered; appellate court had jurisdiction over the appeal of December 28, 2015 orders. |
Key Cases Cited
- Outboard Marine Corp. v. Liberty Mutual Insurance Co., 154 Ill. 2d 90 (discussing de novo review of summary judgment)
- DeLuna v. Burciaga, 223 Ill. 2d 49 (statutory interpretation: plain language controls)
- 1010 Lake Shore Ass’n v. Deutsche Bank National Trust Co., 2015 IL 118372 (construing §9(g)(3) as making purchaser liable for assessments beginning month after sale and framing extinguishment as incentive for prompt payment)
- Secura Insurance Co. v. Illinois Farmers Insurance Co., 232 Ill. 2d 209 (appellate court must ascertain jurisdiction)
- Northern Trust Co. v. Upjohn Co., 213 Ill. App. 3d 390 (attorney-fee claim is a “claim” for appellate timing purposes)