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Department of Conservation v. Franzen
356 N.E.2d 1245
Ill. App. Ct.
1976
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*1 remedy to determine appropriate is an warranto Clearly, quo Stat., (Ill. Rev. trustee. village office of to hold the eligibility of Thomas 625, 101 N.E.2d Juergensmeyer, Bloome 9; par. 627.) Krantz, N.E.2d Romano People ex rel. 851; Franklin circuit court Therefore, judgment affirm the we County.

Affirmed. JJ., concur. JONES, MORAN and

G. J. CONSERVATION, Plaintiff-Appellee, v. R. A. THE DEPARTMENT OF al., Defendants-Appellants. FRANZEN et (1st Division) District No. 75-500 Sécond Opinion Supplemental opinion filed October filed 1976.— upon rehearing denial of December *2 Weber, Chicago, appellants. & Burke Scott, General, Attоrney Chicago (Frank Righeimer, Jr., William S. Patrick J. General, Agnew, counsel), N. Cinquino, Attorneys and Leo Assistant J. appellee. Mr. SEIDENFELD delivered the court: opinion JUSTICE defendants, Bank, La as under Trust Salle National trustee No. Bowles, (record S. A. trustee under as Trust No. title petition), parcels holders of of real estate described the condemnation trusts, Ziegler, and R. A. Franzen and under both William beneficiaries 110A, appeal Supreme under Stat. par. Court Rule Rev. 308) interlocutоry denying from order leave to file alleged damages judge land not taken. The trial struck cross- petition finding unity on the basis of his no of title to the was parcel condemned and the remainders. The defendants contend contiguous property sought where the to be taken and that to are by separate held in trusts but with title common identical beneficiaries, and the remainder are to be considered as taken purpose determining one to the рarcel for the remainder. 9, 1974, July acquire The eminent domain was filed on *3 expansion for the of the Chain of Lakes State Park. The property here to as Parcels 11 and 12. The La Salle described referred trust as record as record owner of Parcel 11 and Bowles trust owner of Franzen, as R. A. cross-petitioner, 12 were named The Parcel defendants. suit in his as a party allegedly capacity was made a to condemnation Ziegler, The Williаm was not made a taxpayer cross-petitioner, of record. party defendant. trust, R. A. La Salle trust and Franzen appearances

The Bowles 24,1974. 25,1975, trial as to Parcels 11 and July were filed on On June 1975, 25, 16, On August July for the above named was set defendants, court, filed a that alleging without leave acres, 12, larger a of a tract consisting Parcels 11 and are by said of which there is a “owned defendants” remainder (referred 167 acres in in the briefs the “West approximately Parcel to trust an additional 189.7-acre Remainder”) the same La Salle and 7, contiguous (designated to Parcel and referred to remainder Parcel Remainder”). the “North 7,1975, a motion strike the petitioners

On filed to August that to Parcels 11 filed and the title holders alleging timely that was parcels Parcel for each of said and 12 as well as 7 “are different * * on unity of title The court struck therefore no 11, date, the same that “title to Parcels 12 and 7 are finding with the trustees, unity ownership.” different and that there therefore no 15, cross-petition August a Ziegler presented and Franzen second 1975, alleging Ziegler that both and Franzen were owners of La that were they beneficial interests Salle and Bowles trusts and F. (the Remainder), “actual 7” in C. owners of Parcel North with fee title Brehm, trustee under Trust No. 630. Defendants’ motion reconsider August was August appeal denied 1975.Defendants from both August 20 orders. argue Defendants that essentially Ziegler the fact that Franzen (Parcel 7) separate have title to North Remainder land trust from those title to holding parcels preclude the condemned claim does their damages. They reason that those with beneficial interests are in fact the proper parties though they title; legal sue even do not have that a cross-petitionmay i.e., necessary filed one other than a party, by the beneficiary trust; or beneficiaries of a land thаt unity of use between the part taken and the remainder is not an essential element of a cross- petition; but in any event unity there both of title and use Parcel 11 and the Remainder. West

The State argues that the beneficiaries of an Illinois trust owning only personal property necessary parties are not to condemnation proceedings right and therefore had no file cross-petition alleged damages to (Parcel 7). the North Remainder argues State further the order of the trial proper court was for the additional reason that there no showing unity been unity either of use or of ownership between taken and the remainders. long

It has been held that a beneficiary land trust is not a necessary party proceedings against land held in title by Chicago trustee. See North & Shore R.R. Co. v. Milwaukee Title & 610, 613 Trust 328Ill. (1928).See also Land Com. Clearance Darrow, ‍​‌‌‌‌​​​‌​‌‌​‌​‌​‌​​‌‌​​‌‌‌​‌​‌​‌‌‌​​‌‌​​​‌‌‌​‌​‍And see Ill. Rev. Stat. ch. par. 8.31. however, agree,

We do not with the initial clаim of the only State that necessary party to the can cross-petition condemnation suit property not taken. 11 of the Eminent

Section Domain Act Stat. par. Rev. *4 11) provides as material:

“Any a person party may not made by filing become such his petition, setting cross that is forth he the owner or has an in interest and property, damaged which will be taken or by proposed * * work; *.” 1973, Under this 2 section section of the Act Stat. Rev. 378

47, is not par. 2) property the holder of an unrecorded interest who necessary mаy be party proceedings a defendant to the condemnation Miller, entitled, nevertheless, (Illinois file v. cross-petition. a Power Co. 296, addition, is App. 11 Ill. 305-9 a an (1956).) appropriate compensation defendant to seek method named by virtue and not property damaged other taken or & original petition. Freeport Mississippi described v. River Johnson Co., 413, Ry. (1884). 416-17 taken, However, owner, no is abutting an of whose land (County proceedings. cannot file a eminent domain 74, 76-77 A. Wolff, (1908). City Chicago v. 237Ill. also v. Mercer See 51, 70 Co., 127Ill. recover Realty right Schorsch J. injury property public from the construction of works as in an at law may adjoining plaintiff an owner action asserted (or his as a in an property actually where none of is taken defendant actually proceedings property eminent domain for the condemnation Talbott, taken). Corp. Ill. 545 Light See Illinois Power & 321 Co., Geohegan R.R. 266 Ill. 482 (1926). See also v. Union Elevated (1915). & Freeport Mississippi Ry.

As River noted Johnson (1884): property is рroperty damaged “Where some other time, in public many is taken for use at the same instances it would seem questions that the indispensable justice to be almost the ends of should ° ° rule, together general question And as be considered parcel principle two of land within the pieces whether constitute one remaining is injury to be awarded for one permitting damages interpretation statutory law for the court based Annot., (see (1949)). provisions constitutional A.L.R.2d Here, unity order to determine whether sufficient land, remaining and the ownership parcels or interest between the taken interest person we face the whether a who holds the beneficial question taken, trust under Illinois land in the to be well damaged, “is owner or has an interest adjoining property to be damaged” may asserted which will be taken or damages. So far as we are filing for severance aware, directly this has been decided. quеstion never simple a full fee both authority owning

There which holds in a part remaining prerequisite not a so part to be taken and case, owner be awarded even where the proper damages may severance than less full right or interest condemned Dresel, R.R. & Co. See Evanston remaining part. Conness, Indiana, & R.R. Co. v. Illinois Iowa Annot., (1964). 95 A.L.R.2d See also §4

379 clearly phrase The as used in section 11 does property” “interest being legal equitable property or interest in the real require there be land trust has a Undeniably the of an Illinois beneficiary condemned. interest, however, a The not direct property form interest. beneficial interest in the real estate res of the trust. ownership

The the land guarded Illinois courts have incidents of trust, an by construing land form of represented the the legal ‍​‌‌‌‌​​​‌​‌‌​‌​‌​‌​​‌‌​​‌‌‌​‌​‌​‌‌‌​​‌‌​​​‌‌‌​‌​‍(See trust with title in the trustee. equitable exclusively active 535, Cacciatore, Ill. 2d Chicago Savings Federal & Loan Association v. 25 Cacciatore, (1962).) 543 In that a tаx judgment was noted Federal against trust beneficiary against of a land was not a lien real estate. principal The court that the was purpose reasoned land trust device purchasers to insure that of the real and lenders who sole rely estate security of the land trustee’s title would able to invest without fear of 535, unknown (25 547). encumbrances Ill. 2d A number of similarly guarded other cases have land the incidents of trust ownership. The beneficiary has not accept been allowed to benefits of the trust form land and still contract to sell or otherwise deal with the real if property legal as he equitable (See, had or title himself. e.g., Bank, 463, Schneider v. Pioneer Savings App. Trust & 26 Ill. 2d 465- (1960) 66 (beneficiary accept cannot an offer addressed to the land trustee); Co., v. Feinberg & Great Atlantic Tea 131Ill. App. 2d Pacific 1087, (1971) 1089-90 (beneficiary cannot enter into a agent lease an contrary the trustee the express terms agreement).) of the trust The beneficiary claim that cannot he a necessary party or foreclosure Solomon, eminent (see, 302, domain actions e.g., Marshall v. 335Ill. App. (1948); 309-10 Chicago Darrow, 365, Land Clearance Com. v. 12 Ill. 2d 371); nor that he is entitled to as a beneficiary notice proceedings to acquire by (First Bank, title a tax Marquette deed Lien v.Co. National 56 132, Ill. (1973); Lois, Halvorsen, 2d 136 Petition Inc. v. 5 Ill. 3d App. 149, 151(1971); Application Treasurer, In re County Ill. App. 113 2d (1969)) 53-57 beneficiаry and a Federal tax lien against a does attach as a against lien the real superior trust to the lien of the mortgage by executed the land Savings trustee. & Loan Chicago Federal Cacciatore, Association v. litigation trusts,

In involving land the courts have determined whether a particular proceeding properly by brought against or or beneficiary trustee or both examining light the nature of action rights and duties agreement. established the trust exаmple, For has beneficiary been held Hable for negligence management control trust, of the real in the right his own not as an Ill. v. Title & Trust agent (Brazowski land trustee Cooling Adkay Heating Corp., v. & see also Levi App. beneficiary than the has (1971)); rather trustee App. 3d and the Dram Shop Act charged responsibility been with the violation of Walker, (Robinson (1965).) beneficiary 2d 207-10 App. upon also has been ordered to remove a structure which encroaches Zarattini, (Keessen App. easement across the trust property. addition, beneficiary this has that the (1970).) court held County (In Application can redeem the tax sale. re trust from Also, Treasurer, beneficiary 389-90 trustee, standing to file counterclaim to reform lease which the beneficiary, mistakenly (Harden instead as lessor was named *6 Desideri, (1974)) Ill. 3d App. may 20 599 and maintain an action for Ickovitz, 191, 195 Ziv, (Klein App. rent. v. 121Ill. 2d Bellows 38 v. App. (1962).) beneficiary permitted Ill. 342 2d And the has been file the to building permit suit to force a to municipality mandamus issue a Evanston, trust property. City construction on the See v. Solomon of Ill. App. (1975). 3d perceive principle may We that the which be drawn is that a beneficiary reconciliation of these cited cases who chooses the the land trust also act advantage ownership may contrary of form of legal the agreement equitable to terms of the as if he had and it title when convеnience; suits upon his and one who deals the trustee the that with is security impaired the trust res his subject having security by of to possibility intervening anticipate. the of interests he cannot general, however, appears beneficiary that is proper the party litigation to involving rights his and respect liabilities with to control, use, pursuant to management possession property and or of the noted, As of the agreement. the trust this court one tests determining neсessity of of beneficiaries propriety the or involvement litigation protect land the trustee can relating property to trust whether Exchange Co. v. (Chicago the interests. Title & Trust beneficiaries’ Bank., (1974). Lipavsky 569-70 See also App. National Here, trustee' Building Corp., 16th Street because he ‍​‌‌‌‌​​​‌​‌‌​‌​‌​‌​​‌‌​​‌‌‌​‌​‌​‌‌‌​​‌‌​​​‌‌‌​‌​‍cannot adequately represent Brehm beneficiaries cannot and barred claim in the be taken would be under any interest if Wolff, 237 Ill. 74. On the other hand County rule of Mеrcer v. of interrelationship of allegations developed demonstrate the kind are which be would otherwise 7 and land to taken which between Parcel damages (see, e.g., warrant consideration of a severance Dresel, contrary 89), it seems R.R. Chicago & Evanston Co. parties justice say of good efficient administration sense and use, adjoining the two management, control right with the * * * ” ” will property have “an interest properties do not * * ”” damaged by the proposed work and must separate file a at action law.

In addition the case before us appear does not present problems safeguarding of rights creditors, condemnor, the rights of the or the rights of other third parties relying on the record state of the title should we beyond look the form legal title notice that while different trustee is, entitled to the fact, North Remainder there commonality of beneficial ownershiр both the taken and the North Remainder.1 hold, therefore, identity between complete that where there

We in the trust described the holders of the beneficial interest damaged, the petition property alleged and other to be permit interest is sufficientto common of the beneficial requirements other filing provided for severance necessary filing to the are met. See Central Illinois Rider, (1957);City Chicago Public Service Co. 331-34 v. Equitable Society, Assurance Life However, single injury because to land trust constitutes injury legal to the value of the interest of trustee and the equitable personal interest of beneficiary, we further hold that order protect defending condemnor from the a later action necessity the trustee and the possibility compensation, any cross-petition of double filed must joined by beneficiaries the trustee. We further note argument State the second did not fact allegе Ziegler that Franzen and were beneficiaries the Brehm Trust but inartfully they stated that Remainder.” were “actual owners of North *7 However, in if is protected the State will our view on remand there proper allegation ownership cross-petition of beneficial in an amended joins which also the trustee under Trust. the Brehm argues necessary The State also that did find it although judge not issue, go beyond unity may of title his order be sustained on the basis that the defendants pleaded unity have not or shown of use between the and taken remainders. response They argue

The defendants’ first that takes several forms. rejected trial court in this unity of use issue and fact evidenced 7, striking 1975, is August from the order the words “and that there no unity argue legally indication of that are not They of use.” also defendants 1Title to the so-called West is in holding Remainder the same trustee title to the taken unity therefore there is not real claim of ownership lаck of of as to that remainder. The argument appear State’s as to the West Remainder would to be confined to the other issues unity which it has raised such as the of use and the claimed untimeliness of the cross- petitions.

required to allege unity cross-petition unity of use and that use when relevant is a factual appeal matter which is not before us on an from cross-petition. They argue strike the also that where is motion there physical remаinder, contiguity as between the is part taken and the requirement no that unity of use be pleaded proved. or

In support argument of the last defendants cite White v. West Side Co., Elevated R.R. Ill. (1894), City Chicago Equitable Life Society, (1956), Assurance 2d 341 past decisions reviewed opinions those and suggest reading that a fair of the cases reflects that proof unity is only relevant as a physical contiguity substitute for use as between the taken and the agree remaindеr. We do not that this is holding in the cases cited. We read the as standing cases for the rule that the basic issue is properties whether the are so “interrelated as to warrant their single (City consideration unit.” 341, Equitable 348.) Society, Contiguity Assurance is an Life aspect “singleness” physical of the entire tract as contiguity are, course, and commonality inquiries. of use relevant Physical contiguity may important determining factor whether Annot., there is it unity of use but is not conclusive. See 6 A.L.R.2d 1197 true, it is argue, While defendants that unity of use specifically mentioned the statute permitting Stat. ch. par. 11) Rev. since provides only the statute that the cross-petitioner shall that set forth “he has an owner or interest property, damaged by proposed which will be taken or work ; ° there is unity indication case ‍​‌‌‌‌​​​‌​‌‌​‌​‌​‌​​‌‌​​‌‌‌​‌​‌​‌‌‌​​‌‌​​​‌‌‌​‌​‍law that of use is an essential Krol, cross-petition. (See element of a Forest Preserve District v. 12Ill. 2d County Lake Forest Preserve v. Continental Illinois cf. Bank, However, National pleading this deficiency subject correction amendment. See Johnson 417-18; Ill. Freeport Mississippi Ry. River Rev. Stat. 47, par. agree

We do argument with defendants’ that the trial judge ruled their favor this A upon reading issue. fair of the record that indicates trial judge’s decision that lack of unity ownership was sufficient reason to strike caused him go no further. argues

The State also timely was not filed. argue ruling ownership question Defendants thе common necessarily court must first passed have on the issue of timeliness favor However, appear defendants. could also that the court did not reach question ruling unity the timeliness because of his on the *8 issue.

The Eminent Domain Act Rev. Stat. par. 1 et seq.) sets no time within must file a Under the cross-petition. condemnee timely a cross-petition case law the to decide has been discretion whether filed is merely purpose delaying or rather filed fоr the condemnation proceedings is trial judge. vested the In Central Illinois Public Service Rider, (1957), Co. v. 2d the trial court was held not to have its filing abused discretion the the permitting cross-petition during of a Where, impaneling however, jury. strong there is a indication that tactic, the cross-petition simply the trial delaying discretion the court is properly petition. exercised denying favor leave file Krol, See Forest Preserve District 151. also Lake See Bank, County Forest Preserve District v. Continental Illinois National Ill. App. 3d

Here, however, cross-petition approximately forty was filed days before the trial date. The trial had the issue him judge before virtue raising question of the State’s of timeliness its motion to strike cross-petition. In on the first ruling merits of the cross-petition, we must conclude that trial thereby his judge exercised discretion permitting filing timely.

We have also considered the State’s further claims that relate to the sufficiency of the cross-petition and find them merit. without

We, therefore, judgment reverse the and remand the cause with directions to the trial judge to vacate the order of dismissal provided amended cross-petition court, is filed within a time set and to thereafter proceed, all in conformity opinion. with this

Reversed and remanded with directions.

GUILD, J., HALLETT, P. J., concur.

SUPPLEMENTAL OPINION UPON DENIAL OF REHEARING Mr. SEIDENFELD opinion delivered the court: JUSTICE In the opinion we hold that is complete identity where there between the holders of the beneficial interest land trust in a property described petition other not taken but damaged by taking, the common of the beneficial interest permit sufficient filing severance remaining property provided requirements necessary other to the filing met. are rehearing the appellee notes that the beneficial in a

interest land trust is an in personal interest submits City the case of Realty Albert Schorsch J. (1970), controlling question person whether who has *9 in an in land to a propеrty an interest which not estate is entitled file Schorsch, cross-petition damages. cross-petitioner severance In for the It parcels the taken. option purchase had an unexercised to one of also not legal adjoining property was the title holder of described the ruling striking The affirmed trial court’s petition. court the he interest in portion option a witness’s answer which described the response question, you any to the “Did own othеr estate the real this vicinity property?” (City Chicago immediate of v. Albert J. of Schorsch 2d also Realty App. 69 The court held that leave to the was cross-petition properly file denied because the taken, option purchase defendant had an to merely parcels one of did it, not “own” and a mere intention on the of to part put the owner to a properties ‍​‌‌‌‌​​​‌​‌‌​‌​‌​‌​​‌‌​​‌‌‌​‌​‌​‌‌‌​​‌‌​​​‌‌‌​‌​‍a common use is not sufficient to allow a (Schorsch, Ill. Apр. 70.) agree condemnation action. 127 We with property the court Schorsch the mere fact that a owner purchase the time a option neighboring property unexercised at of filing petition property to condemn that does not establish a sufficient parcels interrelationship between the two to warrant their damages single principle permitting consideration as unit within However, injury agree be awarded to land not taken. we not with do question appellee’s contention that Schorsch determinative of the whether one has an interest be taken or who will damaged which is not an estate in land can maintain damages. severance question light in the basic before court was whether justice statutory relevant the ends of provisions, constitutional 7 by permitting question damages to Parcel be

would served question just same in which the proceeding considered 11 Parcel 12 аnd Parcel compensation taking regard, this 11 not taken damages of Parcel are determined. analogous Guptill the court in the agree we with the statement of State, 434, 261 Corp. Div. 2d N.Y.S.2d Holding App. v. paramount “It us that constitutional (1965): appear would must over the just compensation prevail be allowed to requirement of (See Erly Realty by the State.” also legal niceties of title advanced State, 301, 351 (1974); Div. 2d N.Y.S.2d 457 Development, Inc. v. 44, 261 (Ct. State, Misc. N.Y.S.2d 815 Cl. M.T.M. Realty Corp. cf. Further, interest 1965).) holding may public note that serve we our to defend a appellee obliged that the will obviating possibility 7 to determine brought by action at trustee Parcel separate law parcel. to that Dresel, & Evanston R.R. Co. is true decision It that the However, where the cross-petition. (1884), 110 Ill. 89 does mention described both that taken and includes taken, no Lincoln Park v. necessary. Commissioners of Schmidt, Co. v. Central Public Illinois Service Rider,

Rehearing denied.

GUILD, J.,P. concurs. ILLINOIS,

THE PEOPLE OF THE STATE Plaintiff-Appellee, OF MILONE, Defendant-Appellant. RICHARD (1st Division) Second District No. 73-436 *10 Opinion filed November

Case Details

Case Name: Department of Conservation v. Franzen
Court Name: Appellate Court of Illinois
Date Published: Dec 3, 1976
Citation: 356 N.E.2d 1245
Docket Number: 75-500
Court Abbreviation: Ill. App. Ct.
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