Wells Fargo Bank, N.A. v. McCondichie
2017 IL App (1st) 153576
| Ill. App. Ct. | 2017Background
- Wells Fargo acquired the property via an order approving judicial sale on July 24, 2014, and sued for possession (forcible entry and detainer) on July 2, 2015.
- McCondichie answered that she lived in the unit under a lease beginning January 6, 2012, continued month-to-month after the 2013 termination date, and claimed she was a "qualified tenant" under Chicago’s Protecting Tenants in Foreclosed Rental Property Ordinance (Chicago Mun. Code § 5-14-050).
- McCondichie asserted entitlement to a $10,600 relocation assistance fee and that Wells Fargo’s noncompliance with the Ordinance barred possession.
- Wells Fargo moved for summary judgment, arguing the Ordinance did not apply because a September 2014 lease (post-judicial-sale order) was not "bona fide," and contending the Ordinance cannot be used as a defense in the eviction.
- The trial court granted summary judgment for Wells Fargo; the appellate court reversed, finding the Ordinance can be raised in the eviction proceeding and that a genuine factual dispute existed whether McCondichie was a month-to-month qualified tenant under the 2012 lease.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Ordinance can be raised as a defense in forcible entry and detainer | Ordinance obligation to pay arises only after tenant vacates; thus not a defense to possession | Ordinance is germane and a tenant may raise relocation-fee entitlement during eviction proceedings | Ordinance is a viable, germane defense and may be raised in eviction proceedings |
| Whether McCondichie was a "qualified tenant" with a "bona fide rental agreement" | The lease executed Sept. 2014 (post-sale order) is not bona fide; mortgage-foreclosure law controls | The original Jan. 2012 lease (month-to-month thereafter) is bona fide and predates plaintiff’s ownership | Court applies the Ordinance’s own definitions (not foreclosure-law definition) and finds a triable issue whether the 2012 lease created a month-to-month bona fide tenancy |
| Whether defendant raised month-to-month tenancy below | McCondichie failed to show acceptance of rent or otherwise prove month-to-month tenancy | She submitted the 2012 lease and an affidavit attesting continuous residence and rent payments | Court: issue was raised and evidence creates genuine dispute for trial |
| Whether summary judgment for Wells Fargo was proper | No genuine issue of material fact; Wells Fargo entitled to possession as matter of law | Existence of disputed facts re: tenancy/pre-sale bona fide lease prevents judgment as a matter of law | Summary judgment reversed; remanded for further proceedings |
Key Cases Cited
- Gilbert v. Sycamore Municipal Hospital, 156 Ill. 2d 511 (explaining summary judgment is to determine existence of triable issues, not decide facts)
- Outboard Marine Corp. v. Liberty Mutual Insurance Co., 154 Ill. 2d 90 (summary judgment is drastic and granted only when movant’s right is clear)
- Robidoux v. Oliphant, 201 Ill. 2d 324 (nonmoving party must present factual basis that would arguably entitle it to judgment)