2018 IL App (1st) 182133
Ill. App. Ct.2019Background
- Siena at Old Orchard Condominium Association (the Association) sued the developer and manager in 2013 for alleged construction defects first discovered in a May 2010 consultant report.
- The original 2006 condominium declaration (Article 12) required mediation, then binding arbitration, for covered disputes.
- The Association recorded an amendment on August 30, 2011 that deleted Article 12 and stated the amendment was effective on recordation.
- On earlier motion practice the trial court dismissed the complaint based on a finding that a letter had triggered the ADR provisions; this court reversed in a 2017 opinion, holding the letter did not constitute the required notice and that the amendment removing Article 12 was valid under section 27 of the Condominium Property Act.
- After remand the developers argued the 2011 amendment could not apply to disputes that arose by May/August 2010 (pre-amendment); the trial court denied the developers’ motion to dismiss on the theory the appellate court already resolved applicability.
- This appeal asks whether the 2011 amendment (deleting mandatory mediation/arbitration) applies retroactively to a dispute that arose in 2010.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether this court’s prior opinion decided retroactivity (law of the case) | Prior opinion resolved amendment validity, so retroactivity question already decided; law of the case bars relitigation | Prior opinion did not address retroactivity; different issue now presented | Prior opinion did not decide retroactivity; law‑of‑the‑case does not apply |
| Whether the 2011 amendment applies to disputes that arose before recordation | Amendment is valid and should control (Association relied on prior ruling that amendment was valid) | The pre‑amendment declaration governed disputes that arose before August 30, 2011; amendment applies only prospectively unless it expressly states retroactive effect | Held that the pre‑amendment declaration governs the 2010 dispute; the amendment recorded in 2011 applies only to disputes arising after its effective date (no retroactive application) |
Key Cases Cited
- People v. Patterson, 154 Ill. 2d 414 (discussing law‑of‑the‑case doctrine)
- Krautsack v. Anderson, 223 Ill. 2d 541 (law‑of‑the‑case and scope of prior rulings)
- La Salle Nat’l Trust v. Bd. of Directors of 1100 Lake Shore Dr. Condominium, 287 Ill. App. 3d 449 (declarations are covenants running with the land)
- Xinos v. Village of Oak Brook, 298 Ill. App. 3d 520 (contract/covenant interpretation principles)
- Kindred Nursing Centers Ltd. P’ship v. Clark, 137 S. Ct. 1421 (addressing arbitration law cited by parties)
