In re Application of the County Treasurer & ex-officio County Collector of Du Page County
2024 IL App (3d) 220465
| Ill. App. Ct. | 2024Background
- Victor Hsing purchased property in Naperville, Illinois, in 1998 and maintained a residence in California.
- ZHY Investments, LLC purchased delinquent property taxes on Hsing's property in 2014 (for the 2013 tax year) and later sought a tax deed to the property after additional tax payments.
- Notices of the tax deed proceedings were sent by ZHY to Hsing's Illinois addresses and “occupant,” but all were returned unclaimed or undelivered, except for one signed receipt with an illegible signature.
- Hsing, claiming lack of due process due to not receiving notice at his known California address (visible on his check for 2015 taxes), filed a petition to vacate the tax deed order; the circuit court granted him summary judgment and found ZHY committed fraud.
- ZHY appealed, challenging both the finding of due process violation and fraud; the appellate court reversed and remanded, finding ZHY met statutory notice requirements and that no fraud had occurred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Due Process—Notice | Hsing: No sufficient notice; ZHY failed to locate him in CA despite clues in public records. | ZHY: Followed statutory notice requirements and performed diligent inquiry. | No due process violation; statutory notice was adequate. |
| Due Diligence in Notifying Parties | Hsing: ZHY should have investigated who paid 2015 taxes (where his CA address was apparent). | ZHY: No obligation to investigate beyond public records; did not need to conduct further inquiries. | No extra duty to search for payor of 2015 taxes beyond statutory requirements. |
| Fraud in Procurement of Tax Deed | Hsing: ZHY misled court by not disclosing all relevant facts, including possible addresses. | ZHY: Made no misleading statements; presented all known and relevant facts. | No fraud committed by ZHY. |
| Summary Judgment | Hsing: Entitled due to due process/fraud failures. | ZHY: Entitled since sufficient notice given and no fraud occurred. | Summary judgment for Hsing reversed; summary judgment for ZHY directed. |
Key Cases Cited
- Jones v. Flowers, 547 U.S. 220 (2006) (reasonableness of notice efforts under due process)
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (1950) (constitutional minimum for notice is reasonableness)
- DG Enterprises, LLC-Will Tax, LLC v. Cornelius, 2015 IL 118975 (Ill. 2015) (statutory notice requirements under the Illinois Property Tax Code generally satisfy due process)
- Lowe, In re Application of the County Collector, 225 Ill. 2d 208 (Ill. 2007) (strict compliance with statutory notice is required for issuance of tax deed)
- Dahlke v. Hawthorne, Lane & Co., 36 Ill. 2d 241 (Ill. 1966) (fraud in tax deed context"