Demos v. Pappas
2011 IL App (1st) 100829
Ill. App. Ct.2011Background
- Petitioners filed a May 15, 2008 indemnity-fund relief petition seeking recovery for loss of property due to a tax sale and tax deed following nonpayment of 1999 taxes.
- Petitioners alleged they paid 1999 taxes by mail, received no notice of sale, and learned of the sale after recording of the 2004 tax deed.
- On Sept 19, 2009, an agreed $497,500 judgment was entered against the Treasurer, as trustee of the indemnity fund; the Treasurer paid $501,425.48 (including $3,925.48 interest) at 6% from Sept 16 to Nov 4, 2009.
- On Nov 18, 2009, petitioners obtained a citation to discover assets against Bank of America to recover additional interest; the issue was whether 6% or 9% postjudgment interest applies.
- The circuit court granted 9% postjudgment interest; the Treasurer appealed arguing 6% applies, and the appellate court reverses and remands for further proceedings consistent with 6%.
- The court concludes the indemnity fund is a governmental entity and the postjudgment rate is 6% under the Interest Act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 6% or 9% postjudgment interest applies | Demos argued for 9% | Pappas argued for 6% | 6% applies |
| Whether the Treasurer, as trustee of the indemnity fund, is a governmental entity under the Interest Act | Demos contends fund is private; 9% should apply | Pappas contends fund is governmental | Treasurer is a governmental entity; 6% applies |
Key Cases Cited
- Phoenix Bond & Indemnity Co. v. Pappas, 194 Ill.2d 99 (2000) (statutory interpretation of the legislature’s intent; standard for ambiguity in statutes)
- Carswell v. Rosewell, 150 Ill. App. 3d 168 (1986) (indemnity fund, trustee status, and interrelation with county treasurer)
- Barry v. Retirement Board of the Fireman’s Annuity & Benefit Fund, 357 Ill. App. 3d 749 (2005) (whether a retirement fund qualifies as a governmental entity under 2-1303)
- Morton Grove Park District v. American National Bank & Trust Co., 78 Ill.2d 353 (1980) (private property and takings considerations; distinction from county monies)
- First Capitol Mortgage Corp. v. Talandis Construction Corp., 63 Ill.2d 128 (1976) (precedes ruling on scope of appellate review in law-based issues)
- In re Application of the County Treasurer of Cook County, Illinois, for Judgement & Sale of Real Estate for General Taxes for the Year 1980, 185 Ill. App. 3d 701 (1989) (indemnity fund framework and remedies)