Gandy v. Kimbrough
406 Ill. App. 3d 867
Ill. App. Ct.2010Background
- Consolidated actions regarding the Laflin Street property in Chicago, IL.
- Kimbrough filed a forcible detainer action against Gandy seeking possession and rent on Sept. 23, 2005.
- Gandy filed a June 19, 2006 quiet title action and claimed unconscionability and unjust enrichment against several defendants.
- WM Specialty Mortgage (assignee of Argent Mortgage) filed a foreclosure action on July 26, 2006.
- Trial court granted Gandy summary judgment, found the Ghafir-Gandy deed void as a deed but valid as an equitable mortgage, and conveyed the Laflin property to Gandy; Ghafir’s death occurred during proceedings.
- Appellate Court affirmed the trial court’s rulings and resolved that Kimbrough’s bona fide purchaser argument was waived.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kimbrough is a bona fide purchaser free of Gandy’s claims. | Kimbrough claims she is a bona fide purchaser for value. | Gandy contends there are issues defeating bona fide purchaser status. | Waived; appellate court declines to decide on this merits. |
| Whether the conveyance from Gandy to Ghafir was an equitable mortgage rather than a deed. | Gandy argues the transfer was not a true conveyance but an equitable mortgage. | Kimbrough and mortgagees contend the transfer was a deed conveying title. | Equitable mortgage found; the trial court’s characterization sustained. |
| Whether summary judgment was proper in favor of Gandy based on the conveyance analysis. | Gandy seeks judgment based on equitable mortgage/void deed status. | Kimbrough asserts factual disputes preclude summary judgment. | Summary judgment proper; trial court affirmed. |
Key Cases Cited
- Daniels v. Anderson, 252 Ill.App.3d 289 (1993) (bona fide purchaser analysis; notice considerations)
- In re Application of County Treasurer, 30 Ill.App.3d 235 (1975) (constructive notice in property transactions)
- Robinson v. Builders Supply & Lumber Co., 223 Ill.App.3d 1007 (1991) (equitable mortgage factors; close relationships; debt implications)
- McGill v. Biggs, 105 Ill.App.3d 706 (1982) (factors for recognizing equitable mortgages)
- Silas v. Robinson, 131 Ill.App.3d 1058 (1985) (equitable mortgage considerations; proof standards)
- Thrall Manufacturing Co. v. Lindquist, 145 Ill.App.3d 712 (1986) (policy on presenting cogent arguments on appeal)
- In re Marriage of Auriemma, 271 Ill.App.3d 68 (1995) (clear statement of contentions requirement; Rule 341(h)(7))