Mayle v. Urban Realty Works, LLC
202 N.E.3d 1011
Ill. App. Ct.2022Background
- In 2012 plaintiffs rented a loft-style apartment in Chicago; in mid-2013 the owner/beneficiaries engaged Urban Realty Works to manage and prepare the unit for sale. Plaintiffs allege defendants unlawfully entered the unit, changed locks, and removed/ disposed of plaintiffs’ personal property during August 2013.
- Plaintiffs filed an 11-count complaint (2017) asserting RLTO claims (Chicago Mun. Code §§5-12-060, 5-12-160) and common-law conversion against Urban Realty Works, 660 Lake, the Koulioufas beneficiaries, and several individuals (Rouches, Johnstone, Parker).
- Trial court dismissed RLTO counts I–VI as time-barred and later dismissed conversion counts VII–XI for failure to state a claim; plaintiffs pleaded multiple amended complaints. Default judgment was entered against Urban Realty Works and 660 Lake, later vacated; earlier appeal was dismissed for lack of jurisdiction because defendant Parker’s claims remained pending. On remand Parker was dismissed and this appeal followed.
- The core legal disputes: (1) which statute of limitations governs RLTO claims (2-year statutory penalty rule v. 5-year property-damage rule), and (2) whether plaintiffs pleaded sufficient facts to state RLTO and conversion claims against the various defendants.
- The appellate court: (a) held RLTO §§5-12-060 and 5-12-160 are remedial (five-year limitations applies) and reversed dismissal as to Urban Realty Works and the Koulioufas defendants, (b) affirmed dismissal of RLTO counts as to Rouches and Johnstone for failure to plead facts tying them to landlord/agency or entry, but vacated the with-prejudice dismissal so plaintiffs may amend, and (c) affirmed dismissal of conversion counts for failure to identify which defendant wrongfully assumed control, also reversing the with-prejudice designation to permit amendment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Governing statute of limitations for RLTO §§5-12-060 & 5-12-160 | Mayle: RLTO claims are remedial; 5-year statute for property/damages (735 ILCS 5/13-205) applies | Defs: RLTO awards are statutory penalties subject to 2-year limit (735 ILCS 5/13-202) | Court: §§5-12-060 and 5-12-160 are remedial (damages contingent on actual harm); 5-year limitations applies; dismissed-with-prejudice reversed as to Urban Realty Works and Koulioufas defs. |
| Sufficiency of RLTO counts vs. individual defendants (Rouches, Johnstone) | Plaintiffs: Complaint alleges defendants acted to remove tenants and were landlords/agents | Rouches/Johnstone: Not alleged to be owners/agents; no allegation they entered or directed removal | Court: Counts I–VI fail as to Rouches and Johnstone for lack of allegations tying them to landlord/agency or unlawful entry; dismissal affirmed but dismissal-with-prejudice reversed to allow amendment. |
| Sufficiency of conversion counts (VII–XI) | Plaintiffs: Property was disposed of (thrown away/left in rain), so demand unnecessary; alleged wrongful dispossession by "Defendants" | Defs: Complaint lacks specific allegations (who assumed control, to whom demand was made, timing) | Court: Plaintiffs failed to identify which defendant wrongfully assumed control; conversion counts properly dismissed, but with-prejudice designation reversed to permit amendment. |
| Jurisdictional/default procedural posture (prior appeal) | Plaintiffs: appealed prior orders | Defs: appeal premature because Parker remained in case | Held: Earlier appeal dismissed for lack of jurisdiction; after remand Parker was dismissed under Rule 103(b) and present appeal proceeds. |
Key Cases Cited
- Landis v. Marc Realty, L.L.C., 235 Ill. 2d 1 (Ill. 2009) (sets three-factor test to decide whether ordinance award is a statutory penalty or remedial for limitations purposes)
- Namur v. The Habitat Co., 294 Ill. App. 3d 1007 (Ill. App. Ct. 1998) (distinguishes remedial vs. penal RLTO provisions; remedial provisions permit recovery of actual damages)
- Sternic v. Hunter Properties, Inc., 344 Ill. App. 3d 915 (Ill. App. Ct. 2003) (RLTO provisions that tie recovery to actual damages are remedial and governed by 5-year limitations)
- Cirrincione v. Johnson, 184 Ill. 2d 109 (Ill. 1998) (elements required to state common-law conversion claim)
- Young v. Bryco Arms, 213 Ill. 2d 433 (Ill. 2004) (standard of review for section 2-615 motions to dismiss)