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2016 IL App (2d) 150040
Ill. App. Ct.
2016
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Background

  • U.S. Bank filed a mortgage foreclosure in Du Page County against Syeda Nazia Rahman; summonses listed multiple addresses including Rahman’s Hinsdale (subject property) and Hanover Park addresses.
  • Pierce & Associates retained ProVest (special process server); ProVest’s employee Pamela Thornburg filed affidavits claiming service at a Bartlett address (Cook County) and the Hanover Park address.
  • Rahman did not appear; the trial court entered a default foreclosure judgment (July 13, 2010), the property was sold at sheriff’s sale, and the Badermans purchased and received deed in December 2012.
  • Over two years after the sale Rahman filed a petition to quash service, arguing service was improper under 735 ILCS 5/2-202(a) because special process servers in counties with 1,000,000+ population (Cook) require court appointment.
  • The trial court held service was improper and the judgment void for lack of personal jurisdiction, but ruled section 2-1401(e) protected the Badermans’ title because the jurisdictional defect did not affirmatively appear on the face of the record.
  • On appeal the court affirmed: service was defective (judgment void) but the Badermans were bona fide purchasers whose property rights were protected by section 2-1401(e).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was service valid under §2-202(a)? Service was proper; standing order in Cook authorized ProVest; or relevant county is where case filed (Du Page). Service was invalid because special process servers in Cook County required a court appointment and none was in record. Service was improper — personal jurisdiction lacking because service occurred in Cook County without court appointment.
Does GAO 2007-03 / Cook standing order validate service? GAO 2007-03 standing order appointed ProVest for Pierce & Associates in Cook chancery, authorizing the service. GAO 2007-03 applies only to Cook County and is not binding on Du Page courts; thus it cannot validate service here. GAO 2007-03/standing order irrelevant — it applied to Cook chancery cases and did not cure Du Page service defect.
Does the jurisdictional defect affirmatively appear on the face of the record (so §2-1401(e) does not apply)? The summonses/affidavits show DU/DS markings and service locations; defendant had constructive notice, so defect is apparent. The record lacks affirmative proof that service occurred in Cook County; external inquiry required, so defect not apparent. Defect did not affirmatively appear on face of the record; external materials were needed to determine county of service.
Are the Badermans protected as bona fide purchasers under §2-1401(e)? N/A (third-party purchasers argue protection). Rahman contends they had constructive notice and thus were not bona fide purchasers. Badermans were bona fide purchasers; §2-1401(e) protects their title despite the underlying void judgment.

Key Cases Cited

  • Sarkissian v. Chicago Board of Education, 201 Ill. 2d 95 (void judgment for lack of jurisdiction requires strict compliance with service statutes)
  • State Bank of Lake Zurich v. Thill, 113 Ill. 2d 294 (judgment rendered without statutory service is void even if defendant had actual knowledge)
  • Smith v. Airoom, Inc., 114 Ill. 2d 209 (elements and timing for relief under section 2-1401 generally)
  • In re Estate of Barth, 339 Ill. App. 3d 651 (attack on void judgment is not subject to the usual §2-1401 meritorious-defense/due-diligence requirements)
  • In re Application of the County Collector, 397 Ill. App. 3d 535 (§2-1401(e) can protect bona fide purchasers from effects of vacatur of title-affecting judgments)
  • Christiansen v. Saylor, 297 Ill. App. 3d 719 (policy behind §2-1401(e) protects third-party purchasers when jurisdictional defects are not apparent)
  • Bank of New York v. Unknown Heirs & Legatees, 369 Ill. App. 3d 472 (constructive notice defeats bona fide purchaser status)
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Case Details

Case Name: U.S. Bank National Association v. Rahman
Court Name: Appellate Court of Illinois
Date Published: Mar 23, 2016
Citations: 2016 IL App (2d) 150040; 54 N.E.3d 866; 403 Ill. Dec. 725; 2-15-0040
Docket Number: 2-15-0040
Court Abbreviation: Ill. App. Ct.
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    U.S. Bank National Association v. Rahman, 2016 IL App (2d) 150040