Bank of America, N.A. v. Basile
20 N.E.3d 438
Ill. App. Ct.2014Background
- Mortgage on 1758 Autumn Woods Ln, Romeoville, secured by $135,800 loan; borrowers stopped paying by Feb 2008; Bank of America foreclosed; defendants served but did not answer until after default judgment; defenses raised in 2009 and 2010 answers; court withdrew defenses, granted leave to replead but defendants failed to replead timely; summary judgment foreclosing the mortgage granted; dispute over standing and rescission raised late; sanctions for frivolous appeal imposed in supplemental opinion.
- “Defendants’” conduct included stalling and delay tactics, with failure to comply with court deadlines, contributing to procedural confusion.
- Sale confirmed in 2012; defendants challenged standing post-sale and appealed; supplemental opinion later imposed sanctions.
- Court found no affirmative defenses on file at the summary judgment hearing due to withdrawal and failure to replead timely.
- Rescission claim deemed not properly pled and outside the three-year repose under TILA; rescission is affirmative defense.
- Sanctions for frivolous appeal were imposed totaling $10,000 in attorney fees and $3,505 in costs, split between the Basiles and their counsel.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants had any affirmative defenses on file at summary judgment | BASILEs’ withdrawn defenses left none in court | Defenses remained despite withdrawal | No affirmative defenses on file at summary judgment |
| Whether the court abused its discretion in denying leave to file an amended answer after summary judgment | Amendment would cure defects | Amendment timely and needed | No abuse of discretion; amendment denied |
| Whether rescission was properly pled and viable | Rescission not pled; not viable | Rescission is an affirmative defense | Rescission not properly pled and outside TILA three-year repose |
| Whether sanctions for frivolous appeal were warranted | Appeal frivolous, delay tactics | Not frivolous | Sanctions warranted; total $10,000 attorney fees and $3,505 costs; apportioned between Basiles and law firm |
Key Cases Cited
- Beach v. Ocwen Fed. Bank, 523 U.S. 410 (Supreme Court 1998) (rescission under TILA is a three-year repose; not extendable by mere pleading)
- Loyola Academy v. S&S Roof Maintenance, Inc., 146 Ill.2d 263 (1992) (four-factor test for amending pleadings; abuse of discretion standard)
- Parkway Bank & Trust Co. v. Korzen, 2013 IL App (1st) 130380 (1st Dist. 2013) (sanctions for frivolous appeals; reinforces deterrence and public cost)
- Penn v. Gerig, 334 Ill. App.3d 345 (2002) (context for considering conduct below when imposing sanctions)
- Winnetka Bank v. Mandas, 202 Ill. App.3d 373 (1990) (verbatim point about admissibility of allegations in verified pleadings)