2011 IL App (1st) 103516
Ill. App. Ct.2011Background
- Mortgage foreclosure on 7404 W. 56th St., Summit, IL; original note and mortgage to Bank of Lyons for $41,000; Bank of Lyons merged into East Side Bank and Trust, then Bank Chicago, then Standard Bank by 2003; Standard Bank filed foreclosure Feb. 2, 2009 as successor to Bank of Lyons and holder of note/mortgage; MadoniasAnswer challenged Standard Bank’s standing; trial court granted summary judgment in Standard Bank’s favor on Aug. 13, 2010; Madonias sought to vacate and amend the motion to vacate under 735 ILCS 5/2-1301(e) with oral/unspecified amendments; appellate review focuses on whether Standard Bank’s pleadings complied with 205 ILCS 5/28 and related case law indicating merger-based successor status
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Standard Bank had standing to foreclose | Standard Bank is successor in interest to Bank of Lyons via mergers, thus holder of note/mortgage | Madonias argue no evidence of assignment or holder status | Yes; standing established under 205 ILCS 5/28 via merger |
| Whether Nelson governs standing analysis here | Nelson is inapplicable; mergers confer rights to Standard Bank | Nelson controls where mortgage is assigned to a separate entity | Nelson does not control; standard bank succeeded to rights through merger under 205 ILCS 5/28 |
| Whether the complaint and attached documents satisfied the form and standing allegations under the Mortgage Foreclosure Law | Complaint complied with 15-1504(a) form and attached merger documents showing ownership | Compliant; pleadings and merger documents show ownership and standing |
Key Cases Cited
- Olympic Federal v. Witney Development Co., 113 Ill.App.3d 981 (1983) (merger preserves successor’s rights to note and mortgage without explicit assignment)
- Land of Lincoln Savings & Loan v. Michigan Avenue National Bank of Chicago, 103 Ill.App.3d 1095 (1982) (statutory merger transfers rights automatically to continuing association; no assignment pleading required)
- Bayview Loan Servicing, L.L.C. v. Nelson, 382 Ill.App.3d 1184 (2008) (not controlling where plaintiff is a separate entity from assignee; Nelson distinguished from merger context)
- Mortgage Electronic Registration Systems, Inc. v. Barnes, 406 Ill.App.3d 1 (2010) (recognizes standing considerations in foreclosure pleadings under MERS framework)