U.S. Bank National Ass'n v. Prabhakaran
2013 IL App (1st) 111224
| Ill. App. Ct. | 2013Background
- Foreclosure action filed by U.S. Bank, as trustee, against Prabhakaran for default on residential loan.
- Initial summary judgment and foreclosure judgment entered in June 2008; sale occurred in December 2009 and was confirmed January 2010.
- Defendant filed a petition to stay possession and later a 2-1401 petition to vacate the judgment and sale.
- Defendant argued postjudgment payments were accepted by plaintiff, leading to unjust enrichment and invalidation of the foreclosure.
- Bank argued petition barred by Foreclosure Law and Rule 15-1509(c) because title vested by deed and sale was confirmed.
- Trial court denied the 2-1401 petition; appellate court affirmed, holding 15-1509(c) bars relief and 2-1401 not applicable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 2-1401 petition is barred by 15-1509(c) | Bank: deed vested title; 2-1401 barred relief after sale confirmation. | Prabhakaran: 2-1401 available to review final judgment and merits; seeks meritorious defense. | Barred; 15-1509(c) precludes 2-1401 relief after deed/confirmation. |
| Whether defendant forfeited default-at-foreclosure issue | Default argument not raised in 2-1401 petition; waived on appeal. | Default issue raised in defense to foreclosure; merits in petition. | Forfeited; not reviewable on appeal. |
| Whether the petition presents meritorious defense under 2-1401 | No meritorious defense shown; payments after September 2009 were not wrongful. | Defendant alleges unjust enrichment and improper acceptance of postjudgment payments. | No meritorious defense; petition denied. |
Key Cases Cited
- In re Marriage of Verdung, 126 Ill. 2d 542 (1989) (finality of judgment for appeal after sale confirmation)
- Mortgage Electronic Registration Systems, Inc. v. Barnes, 406 Ill. App. 3d 1 (2010) (Foreclosure Law controls; 15-1508/1509 interplay with 2-1301(e))
- Fiala v. Schulenberg, 256 Ill. App. 3d 922 (1993) (elements for relief under 2-1401 petition)
- Sarkissian v. Chicago Board of Education, 201 Ill. 2d 95 (2002) (2-1401 petition treated as new action; proper pleading required)
- People v. Vincent, 226 Ill. 2d 1 (2007) (de novo review on denial of 2-1401 petition)