Wells Fargo Bank, NA v. Heritage Bank of Central Illinois
984 N.E.2d 1186
Ill. App. Ct.2013Background
- Black Hawk obtained a 1994 judgment and recorded a memorandum of judgment in Tazewell County; Wells Fargo and Heritage later recorded mortages on the property.
- Black Hawk revived its judgment in 2001 and recorded a revived memorandum in Tazewell County; Black Hawk again revived in 2008.
- Wells Fargo filed a foreclosure in 2008; sale occurred in 2011 for $150,001 and proceeds were distributed $115,590.54 to Wells Fargo and $34,410.46 to Heritage.
- The trial court (July 2, 2010) prioritized liens, finding Black Hawk had no lien in effect from June 5–15, 2001, to the 2001 revival period.
- Dispute centers on whether Black Hawk’s lien lapsed under 735 ILCS 5/12-101, and thus whether Wells Fargo and Heritage had priority over Black Hawk.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Black Hawk's lien lapse in June 2001 under 12-101? | Wells Fargo argues Black Hawk’s lien expired June 5, 2001, so it lost priority. | Black Hawk argues revival within seven years and timely memorandum preserved lien. | Lapse; Black Hawk lost priority. |
| Is there appellate jurisdiction to review the July 2, 2010 lien-priority order? | Wells Fargo questions jurisdiction since order not listed in notice of appeal. | Black Hawk contends review is proper as a procedural step leading to final sale order. | We have jurisdiction to review the July 2, 2010 order. |
Key Cases Cited
- JP Morgan Chase Bank v. Fankhauser, 383 Ill. App. 3d 254 (Ill. App. 2008) (finality and appealability of sale-confirmation order)
- Knapp v. Bulun, 392 Ill. App. 3d 1018 (Ill. App. 2009) (interlocutory orders review upon final judgment)
- Dunn v. Thompson, 174 Ill. App. 3d 944 (Ill. App. 1988) (creation of judgment lien is statutory, not common law)
- Barth v. Kantowski, 409 Ill. App. 3d 420 (Ill. App. 2011) (strict compliance with section 12-101 for judgment liens)
- Casey National Bank v. Roan, 282 Ill. App. 3d 55 (Ill. App. 1996) (lien attaches from filing memorandum in recorder's office)
