Shannon Court Condominium Ass'n v. Armada Express, Inc.
152 N.E.3d 1050
Ill. App. Ct.2020Background
- Shannon Court Condominium Assn. obtained a judgment (Jan 11, 2018) against the Voelkers for possession of Unit 101 and $5,272.19 in unpaid assessments; the Association took possession and later rented the unit, collecting $2,625 (Aug–Dec 2018).
- A judicial foreclosure (entered Dec 12, 2018) led to Armada purchasing Unit 101 at sale on Jan 29, 2019; sale confirmed Feb 20, 2019, deed issued Mar 1 and recorded Mar 8, 2019.
- Armada paid post-sale assessments for Feb–Apr 2019 ($1,117) on Apr 5, 2019, and tendered a small additional payment ($59.04) via counsel; Association later demanded ~$19,122.85 and sued Armada (filed June 17, 2019) for possession and unpaid pre-sale assessments/fees.
- The trial court granted summary judgment for Armada, concluding rental proceeds ($2,625) offset six months of pre-suit assessments ($2,681.04) and Armada’s tender ($56.04) satisfied its 9(g)(4) obligation; Association’s reconsideration was denied.
- On appeal the court considered: whether Armada’s tender satisfied its 9(g)(4) duty (including attorney fees “incurred” in the six months pre-suit), whether repair costs or other pre-/post-suit charges were recoverable from a foreclosure purchaser, and the proper application of rental income.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1) Did Armada’s tender ($56.04) satisfy its 9(g)(4) obligation for six months of pre-suit common expenses (including attorney fees)? | Association: Additional attorney fees were "incurred" during the six-month window (even if paid after filing), so $56.04 was insufficient. | Armada: Only the attorney fees actually paid during the six-month period count; its tender satisfied the balance. | Reversed summary judgment. Fees "incurred" before suit (including $970.15) count toward 9(g)(4); a genuine issue exists and $56.04 did not necessarily satisfy the obligation. |
| 2) Can the Association recover all attorney fees from the foreclosure purchaser via sections 9(g)(1), 9(g)(4), or 9(g)(5)? | Association: Entitled to recover full attorney fees incurred in enforcing assessments from purchaser. | Armada: Once purchaser paid post-sale assessments under 9(g)(3), the 9(g)(1) lien is extinguished and recovery is limited to 9(g)(4) amounts; 9(g)(5) is only a notice provision. | Held: After purchaser complies with 9(g)(3), the association's pre-sale recovery is limited to 9(g)(4). Section 9(g)(5) is a notice requirement and does not expand recovery. Attorney fees are recoverable to the extent they were "incurred" within the six-month period under 9.2(b). |
| 3) Are repair costs incurred by the Association after taking possession recoverable from the purchaser under 9(g)(4)? | Association: Repair costs are recoverable from purchaser. | Armada: Repair costs are post-possession and not recoverable under 9(g)(4). | Held: Repair costs incurred after the action was filed/taken (post-possession) are not part of the six-month pre-suit common expenses recoverable under 9(g)(4). |
| 4) How must rental income collected by the association be applied? | Association: Rental income should be applied pursuant to Code of Civil Procedure §9-111.1 (first to assessments sued upon, interest, attorney fees, court costs, etc.), not limited to 9(g)(4). | Armada/Trial court: Applied rent to six months of unpaid assessments under 9(g)(4). | Held: Rents must be applied under 9-111.1: first to assessments sued upon, statutory interest on judgment, attorney fees and court costs from the eviction action, then other expenses; trial court must apply this on remand. |
Key Cases Cited
- 1010 Lake Shore Ass’n v. Deutsche Bank Nat’l Trust Co., 2015 IL 118372 (purchaser must pay post-foreclosure assessments; payment extinguishes 9(g)(1) lien)
- Outboard Marine Corp. v. Liberty Mut. Ins. Co., 154 Ill. 2d 90 (summary judgment standard; construe movant strictly and nonmovant liberally)
- Knolls Condominium Ass’n v. Harms, 202 Ill. 2d 450 (statutory construction requires reading related provisions harmoniously)
- In re Estate of Hoover, 155 Ill. 2d 402 (appellate review de novo on summary judgment)