*1 Illinois Official Reports
Appellate Court
Schindler v. Watson
,
Aрpellate Court RALPH J. SCHINDLER, JR., Plaintiff-Appellant, v. NORMAN WATSON, PETER H. COZZI, ANNE V. COZZI, U.S. BANK, N.A., Caption
PERL MORTGAGE, INC., and UNKNOWN OWNERS AND OCCUPANTS, Defendants (Peter H. Cozzi, Anne V. Cozzi, and Perl Mortgage, Inc., Defendants-Appellees). Second District
District & No.
Docket No. 2-16-0126 Filed March 16, 2017
Decision Under Appeal from the Circuit Court of Du Page County, No. 15-CH-1817; the Hon. Bonnie M. Wheaton, Judge, presiding. Review Affirmed. Judgment
Counsel on Ralph J. Schindler, Jr., of Chicago, appellant pro se .
Appeal
Peter M. King, of King Holloway Lipinski LLC, of Glen Ellyn, for appellees. JUSTICE HUTCHINSON delivered the judgment of the court, with
Panel
opinion.
Presiding Justice Hudson and Justice Jorgensen concurred in the judgment and opinion.
OPINION ¶ 1 This case involves the expiration of a judgment lien on real estate. Defendant Norman
Watson, the judgment debtor, sold the subject property to defendants Peter H. Cozzi and Annе
V. Cozzi roughly two months before the lien was scheduled to expire. Plaintiff, Ralph J.
Schindler, Jr., the judgment creditor, apparently unaware of the sale, did nothing to enforce his
lien rights before the expiration date. Afterward, he filed a foreclosure complaint, which the
trial court dismissed as untimely. He now contends that the sale operated to extend the
expiration date and allow his foreclosure on the lien. He raises arguments similar to those that
were rejected in
Barth v. Kantowski
,
¶ 2 I. BACKGROUND
¶ 3 The following facts are derived from the pleadings, exhibits, and reports of proceedings. On May 20, 2004, plaintiff obtained a judgment from the trial court against Watson in the
amount of $164,303.20. The judgment related to a $100,000 credit line that plaintiff had extended to a limited liability company. Watson had personally guaranteed the indebtedness. On January 19, 2005, plaintiff filed a memorandum of judgment with the Du Page County recorder of deeds. Included was a certified copy of the judgment against Watson, along with the legal description and permanent real estate index number for property in Bartlett that was оwned by Watson. This recording created a judgment lien on the subject property enforceable for seven years from May 20, 2004, the date of the judgment’s entry. See 735 ILCS 5/12-101 (West 2004). On March 25, 2011, approximately two months prior to the scheduled expiration of the
judgment and the corresponding lien, Watson sold the subject property to the Cozzis. The Cozzis obtained mortgage loans on the subject property from defendants U.S. Bank, N.A., and Perl Mortgage, Inc. A copy of the warranty deed conveying the subject property to the Cozzis was filed with the Du Page County recorder of deeds on April 6, 2011. Plaintiff, who was not given any notice of the sale, made no timely attempt to revive his judgment or foreclose on his lien. More than four years later, on October 26, 2015, plaintiff filed a “Verified Complaint for
Foreclosure of Judgment Lien.” Plaintiff alleged that he was due the principal amount of his lien, $164,303.20, plus $101,282.79 in accrued interest, for a total of $265,585.99. He requested that the trial court order the sale of the subject property and find that his judgment lien had priority over any potential mortgage lien claims of U.S. Bank and Perl Mortgage. The Cozzis filed a motion to dismiss plaintiff’s complaint, pursuant to section 2-619(a)(9) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(9) (Wеst 2014)). The Cozzis argued that plaintiff’s judgment lien had expired on May 20, 2011, and that plaintiff therefore lacked any interest in the subject property. [1] In a written response, plaintiff argued that his claim was “similar to a claim of financial injury.” Plaintiff asserted that he was injured on
March 25, 2011, when Watson sold the subject property to the Cozzis without satisfying his lien. Plaintiff argued that his “cause of action” therefore “arose” on March 25, 2011, and that he was “merely seek[ing] to assert his rights as they existed on that date.” ¶ 8 During a hearing on the motion, the parties disputed whether this case was controlled by . The trial court commented that this appeаred to be a case of first impression, that the
Cozzis were “rolling the dice” when they bought the property, and that the Cozzis were fortunate that plaintiff had not acted in a timely manner to enforce his lien. As in , the trial court determined that plaintiff was precluded from foreclosing on the lien because it had expired. Accordingly, the trial court granted the Cozzis’ motion to dismiss with prejudice. Plaintiff now brings this timely appeal.
¶ 9 II. ANALYSIS The facts in this case are simple. Application of the law becomes complicated. Defendants
admit that the Cozzis were aware of the lien when they purchased the subject property. They acknowledge that the Cozzis knowingly risked having to defend against a possible lien foreclosure. They argue, however, that this risk was “short-lived,” as plaintiff “never sought to enforce his lien rights before the expiration of the lien.” We agree with defendants. For the reasons discussed herein, we believe that plaintiff’s undoing was his inaction during the final year that his lien was enforceable against the subject property. We therefore affirm the trial court’s dismissal of plaintiff’s complaint. A section 2-619 motion to dismiss admits the sufficiency of the complaint, but asserts an
affirmative matter that defeats the claim.
Bjork v. O’Meara
, 2013 IL 114044, ¶ 21. The
purpose of a section 2-619 motiоn is to “dispose of issues of law and easily proved issues of
fact at the outset of litigation.”
Van Meter v. Darien Park District
,
common law, a judgment did not create a lien against the real property of the judgment debtor.
Dunn v. Thompson
,
Pursuant to the statute, “a judgment is a lien on the real estate of the person against whom it is entered *** only from the time a transcript, certified copy or memorandum of the judgment is filed in the office of the recorder in the county in which the real estate is located.” (Emphasis added.) 735 ILCS 5/12-101 (West 2004). The lien may be foreclosed in the same manner as a mortgage on real property. Regarding the life span of a judgment lien, the statute provides as follows:
“A judgment is not a lien on real estate for longer than 7 years from the time it is entеred or revived, unless the judgment is revived within 7 years after its entry or last revival and a memorandum of judgment is filed before the expiration of the prior memorandum of judgment.
When a judgment is revived it is a lien on the real estate of the person against whom it was entered in any county in this State from the time a transcript, certified copy or memorandum of the order of revival is filed in the office of the recorder in the county in which the real estate is located.” (Emphasis added.) Whereas section 12-101 of the Code governs the creation and life span of a judgment lien on real estate, section 12-108 of the Code provides that a judgment itself may continue to be enforced even where it is not revived within seven years. 735 ILCS 5/12-108 (West 2004). Section 12-108 states in pertinent part:
“Except as herein provided, no judgment shall be enforced after the expiration of 7 years from the time the same is rendered, except upon the revival of the same by a proceeding provided by Section 2-1601 of this Act; but real estate, levied upon within the 7 years, may be sold to enforce the judgment at any time within one year after the expiration of the 7 years .” (Emphasis added.) 735 ILCS 5/12-108(a) (West 2004). We will return to the emphasized language from sections 12-101 and 12-108 later. For now, we must move on to section 2-1601 of the Code, which provides that “[a]ny relief which heretofore might have been obtained by scire facias may be had by employing a petition filed in the case in which the original judgment was entered in accordance with Section 2-1602.” 735 ILCS 5/2-1601 (West 2004). [2] In turn, section 2-1602 of the Code provides that a judgment may be revived “by filing a petition to revive the judgment in the seventh year after its entry, or in the seventh year after its last revival, or in the twentieth year after its entry, or at any other time within 20 years after its entry if the judgment becomes dormant.” 735 ILCS 5/2-1602(a) (West 2014). Finally, section 13-218 of the Code states that “[a] petition tо revive a judgment, as provided by Section 2-1601 of this Code, may be filed no later than 20 years next after the date of entry of such judgment.” 735 ILCS 5/13-218 (West 2014). Applying these statutes to the instant case, we first note that plaintiff obtained his judgment
against Watson on May 20, 2004. Plaintiff’s lien on the subject property was created when he
filed a memorandum of judgment with the recorder of deeds on January 19, 2005. See 735
ILCS 5/12-101 (West 2004). Thus, plaintiff possessed a valid judgment lien on the subject
property from January 19, 2005, to May 20, 2011. Therefore, strictly construing section
12-101, the trial court was correct to find that plaintiff’s lien expired on May 20, 2011. This
was an appropriate basis оn which to dismiss plaintiff’s foreclosure complaint. See
Maniez v.
Citibank, F.S.B.
,
*5 Notwithstanding his continued ability to revive his judgment against Watson, plaintiff
contends that the trial court retained the authority to enforce his judgment lien against the subject property as it existed on March 25, 2011, when Watson sold it to the Cоzzis. Just as he argued in the trial court, plaintiff argues here that the sale of the subject property gave rise to a separate cause of action akin to a mortgage foreclosure. Plaintiff notes that a judgment lien may be foreclosed in the same manner as a mortgage on real property. 735 ILCS 5/12-101 (West 2004). He equates the payment period on a mortgage note to the enforcement period on a judgment lien. He points out that a mortgage foreclosure may be commenced within 10 years from the date of default. 735 ILCS 5/13-115 (West 2004). Thus, plaintiff argues, he should be permitted to treat the sаle of the subject property much the same as a default on a mortgage note. Plaintiff accordingly asks this court to hold that Watson’s sale of the subject property gave rise to a new cause of action, which he labels a “breach of lien,” that carries a 10-year limitations period. Plaintiff advances two general arguments in support of his underlying premise that the sale
of the subject property gave rise to a separate cause of action. First, he argues that Watson’s sale of the subject property was “unlawful.” Without providing any legal authority, plaintiff argues that a judgment debtor should not be permitted to sell the subject property to a third party during the life of an enforceable judgment lien without notifying the judgment creditor and satisfying the lien. Plaintiff’s second argument is that it would have been “fruitless” for him to attempt to revive his judgment lien or foreclose on it during the period between the sale of the subject property and the expiration of the judgment lien. As we will explain, plaintiff’s second argument is supported by . By arguing that the sale of the subject property gave rise to his cause of action, plaintiff builds on the notion that a judgment creditor must necessarily have some other way оf enforcing his judgment lien when the subject property has been sold to a third party. We will address these arguments in turn. First, we reject plaintiff’s argument that Watson’s sale of the subject property was
“unlawful,” as we find nothing in the statutes or the case law that would prohibit a judgment
debtor from selling the subject property to a third party during the life of an enforceable
judgment lien.
Cf. Bustard v. Morrison
,
sell the subject property without notifying the judgment creditor or satisfying the judgment
lien. The burden is on the judgment creditor to monitor his lien and take the appropriate steps
for enforcement. Here, all that was required of plaintiff was the performance of a title search on
the subject property at any point during the seventh year of the judgment, between May 20,
2010, and May 20, 2011. See 735 ILCS 5/2-1602(a) (West 2004) (providing that a judgment
may be revived in the seventh year after its entry, or in the seventh year after its last revival).
As noted, a copy of the warranty deed conveying the subject property from Watson to the
Cozzis was filed with the Du Page County recorder of deeds on April 6, 2011. This was the
action that gave plaintiff constructive notice of the sale. See
Wells Fargo Bank, N.A. v.
Simpson
, 2015 IL App (1st) 142925, ¶ 56. Thus, if plaintiff had performed a title search
between May 20, 2010, and April 5, 2011, there would have been no record of the sale, which
took place on March 25, 2011. That being the case, plaintiff could have extended the life of his
judgment lien by filing a memorandum of a revived judgment. See
Guertler v. Barlow Woods,
Inc.
,
between April 6, 2011, and May 20, 2011. Plaintiff argues that it would have been “fruitless” for him to attempt to revive his judgment lien or foreclose on it during this time. We disagree. For the following reasons, we hold that plaintiff could have preserved his judgment lien against the subject property—as it was held by the Cozzis—by filing a foreclosure complaint between April 6, 2011, and May 20, 2011. Our holding in this regard puts us at odds with Barth . Like this case, Barth involved a judgment debtor’s sale of the subject prоperty during the final year of an enforceable judgment lien. [3] The plaintiffs in obtained a judgment against Gregory Pytlewski on February 27, 2002. They filed a memorandum of the judgment that same day, citing Pytlewski’s address as the subject property. Hence, the plaintiffs possessed a valid judgment lien on the subject property from February 27, 2002, to February 27, 2009. On July 11, 2008, Pytlewski sold the subject property to a third party, the Kantowskis. The plaintiffs then filed a complaint to foreclose on their lien on February 17, 2009. However, they made no attempt to revive the judgment or record a memorandum of
revival until
after
February 27, 2009. The Kantowskis in turn filed a section 2-619 motion to
dismiss the foreclosure complaint, contending that the subject property was free of the lien as
of February 27, 2009. ,
their judgment lien against the subject property by filing their foreclosure action within seven years of the date of judgment. The trial court asked whether the plaintiffs could provide any case law to support their position. After the plaintiffs were unable to do so, the trial court granted the Kantowskis’ motion to dismiss. In a motion to reconsider, the plaintiffs argued that they had obtained an equitable lien against the subject propеrty by filing their foreclosure action during the life of the lien. They also noted that they had revived the original judgment on May 21, 2009, and had recorded a memorandum of the revival on June 5, 2009. The plaintiffs argued that this revival should have related back to February 17, 2009, when they filed their foreclosure action. The trial court denied the plaintiffs’ motion to reconsider and the plaintiffs appealed. Id. at 422-23. In affirming the trial court’s ruling, the Third District held as follows:
“In this case, the plaintiffs obtained the original judgment against Pytlewski on February 27, 2002, and filed a memorandum of the judgment that day. Thus, under section 12-101 of the Code, the lien attached to the subject property on February 27, 2002. On July 11, 2008, when the Kantowskis purchased the subject property, the lien existed. However, the record does not indicate that the plaintiffs took any action to revive the judgment, nor did they file a memorandum of an order of revival, prior to the expiration of the original lien on February 27, 2009, as required by section 12-101 to preserve the lien on the subject property. Thus, the plaintiffs did not strictly comply with section 12-101 and, as a result, their judgment lien on the subject property expired on February 27, 2009.
At the time the lien expired, Pytlewski, the judgment debtor, did not own the subject property; the Kantowskis owned it. Thus, sincе the subsequent May 2009 revival and June 2009 recording occurred after the original lien had lapsed, and since it constituted ‘a lien on the real estate of the person against whom it [was] entered,’ the plaintiffs were left to try to collect their judgment against property currently owned by Pytlewski, and not from the subject property as owned by the Kantowskis. [Citation.] We therefore conclude that since the plaintiffs allowed the judgment lien against the subject property to lapse and did not revive the judgment and make the requisite filing while the judgment debtor owned the property , the plaintiffs’ lien cannot be asserted against the Kantowskis and the subject property. [Citation.] The plaintiffs nonetheless contend that they obtained an equitable lien on the property by filing the instant suit. However, they have not cited, and our research has not revealed, a case where a court has permitted the plaintiff to file a lawsuit in lieu of complying with the requirements of section 12-101 and then successfully assert the judgment lien against a subsequent owner of the property who was not the judgment debtor.” (Emphasis added.) at 424-25. To illustrate the flaw in , we return to the statutory language that we emphasized at
the outset of our analysis. Section 12-101 оf the Code provides: “a judgment is a lien on the real estate of the person against whom it is entered *** only from the time a transcript, certified copy or memorandum of the judgment is filed in the office of the recorder in the *8 county in which the real estate is located.” (Emphasis added.) 735 ILCS 5/12-101 (West 2004). The same holds true when a judgment is revived: “[w]hen a judgment is revived it is a lien on the real estate of the person against whom it was entered *** from the time a transcript, certified copy or memorandum of the order of revival is filed.” (Emphasis added.) Id. Strictly construed, the emphasized language provides that, for the purposes of creating or reviving a judgment lien on real estate, a judgment cannot be recorded with any legal effect against real estate not owned by the judgment debtor. In Barth , the plaintiffs’ original lien remained enforceable against the subject property
until February 27, 2009, regardless of who held title. However, a revived judgment could not
have operated to preserve the lien beyond that date—because the subject property was no
longer the real estate of the person against whom the judgment was entered: Pytlewski. Thus, it
would have been pointless for the plaintiffs to record a memorandum of a revived judgment
once Pytlewski was no longer the record owner of the subject property. We believe that the
Barth
court was incorrect to the extent that it held otherwise. ,
plaintiff obtained a judgment against the defendant on February 24, 1984, and recorded a memorandum of the judgment on Marсh 1, 1984. Thus, the judgment lien was enforceable against the subject property from March 1, 1984, to February 24, 1991. The plaintiff filed a complaint to foreclose on its judgment lien on November 13, 1990. Id. In a motion for summary judgment, the defendant argued that the judgment had lapsed because it was not “revived or executed and levied upon.” Id. at 757. The trial court rejected this argument, agreeing with the plaintiff that “revival of the judgment was not required because the foreclosure proceeding was commenced by plaintiff within seven years of the rendition of the judgment.” Id. On appeal, the defendant challenged the trial court’s ruling that the timely commencement
of the foreclosure proceeding absolved the plaintiff of having to revive the judgment. Id. at 759. The appellate court noted that, under section 12-101 of the Code (Ill. Rev. Stat. 1989, ch. 110, ¶ 12-101), a judgment is not a lien against real estate for longer than seven years from the time it is entered or revived. Id. The court proceeded to discuss the import of section 12-108(a) of the Code (Ill. Rev. Stat. 1989, ch. 110, ¶ 12-108(a)), which contained language identical to the statutory language discussed supra . To wit:
“ ‘[N]o judgment shall be enforced after the expiration of 7 years from the time the same is rendered, except upon the revival of the same by a proceeding provided by Section 2-1601 of this Act; but real estate, levied upon within the 7 years, may be sold to enforce the judgment at any time within one year after the expiration of the 7 years .’ ” (Emphasis added.) First National Bank of Mt. Zion ,236 Ill. App. 3d at 759 (quoting Ill. Rev. Stat. 1989, ch. 110, ¶ 12-108(a)).
See also 735 ILCS 5/12-108 (West 2004). Applying the emphasized language, the court first
held that “[a] complaint to foreclose a judgment lien is a levy on real estate in terms of section
12-108 of the Code.”
First National Bank of Mt. Zion
,
standpoint that it did not involve the sale of the subject property to a third party. We find this to be a distinction without consequence. We believe that the rule set forth in First National Bank of Mt. Zion should also apply where the subject property has been sold to a third party. So long as the judgment creditor files a foreclosure action before the end of the seventh year of the judgment’s enforceability, he preserves his lien against thе subject property regardless of who holds title . Applying that rule to the instant case, and contrary to plaintiff’s argument and the holding in , it would not have been “fruitless” for plaintiff to attempt to foreclose on his *10 judgment lien against the subject property after Watson conveyed the property to the Cozzis. Rather, plaintiff could have preserved his judgment lien by filing a foreclosure action before May 20, 2011. This was the risk that the Cozzis acknowledge having taken—having to defend against a timely foreclosure action. Hence, the Cozzis’ gamble paid off when plaintiff failed to act accordingly.
¶ 35 In sum, we reject plaintiff’s contention that his cause of action arose when Watson sold the
subject property to the Cozzis on March 25, 2011. Not only do plaintiff’s arguments lack legal support, but accepting them would effectively reward plaintiff’s lack of diligence during the seventh year of his judgment’s enforceability. As we have explained, a judgment debtor may lawfully convey the subject property to a third party during the life of an enforceable judgment lien without notifying the judgment creditor and satisfying the lien. However, such a conveyance does nothing to impair the judgment creditor’s lien rights. The judgment creditor must simply act during the seventh year of his judgment tо preserve his judgment lien’s enforceability against the subject property. Here, plaintiff could have revived his judgment and recorded a memorandum of revival
with the Du Page County recorder of deeds at any point between May 20, 2010, and April 5, 2011. This would have preserved the judgment against the subject property, regardless of the owner, for seven years from the date of the revived judgment. If, on the other hand, plaintiff waited to act until sometime between April 6, 2011, and May 20, 2011, a title search would have revealed that Watson no longer owned the subject property. Under these circumstances, plaintiff would havе been left with one option: file a foreclosure action against the subject property before May 20, 2011. Under the strictly construed statutory language, plaintiff’s inaction led to the expiration of his judgment and the corresponding judgment lien on May 20, 2011. See 735 ILCS 5/12-101, 12-108 (West 2004). The trial court was therefore correct to dismiss plaintiff’s complaint with prejudice. III. CONCLUSION For the reasons stated, we affirm the trial court’s dismissal of plaintiff’s complaint Affirmed.
Notes
[1] Perl Mortgage joined the Cozzis’ motion to dismiss. Perl Mortgage has also joined the Cozzis in filing an appellees’ brief. Watson and U.S. Bank are not parties to this appeal.
[2] A scire facias prоceeding is a common law action to revive a judgment; it is not a new proceeding, but a continuation of the suit in which the judgment was originally entered. Revolution Portfolio, LLC v. Beale , 332 Ill. App. 3d 595, 603 (2002). Black’s Law Dictionary defines “ scire facias ” as “[a] writ requiring the person against whom it is issued to appear and show cause why some matter of record should not be enforced, annulled, or vacated, or why a dormant judgment against that person should not be revived.” Black’s Law Dictionary 1547 (10th ed. 2014).
[3] Although we disagree with the conclusion in , it remains that the judgment debtor in that case sold the subject property without satisfying the judgment lien. This is consistent with our conclusion here that Watson’s conveyance to the Cozzis was lawful.
