THE FOREST PRESERVE DISTRICT OF COOK COUNTY, ILLINOIS, a Body Corporate and Politic of the State of Illinois, Plaintiff-Appellant, v. CHICAGO TITLE AND TRUST COMPANY, an Illinois Corporation, as Successor Trustee of America Trust Company, as Trustee Under Trust Agreement Dated December 18, 1992, and Known as Trust Number 36-4033; and ALLEN HOGER, Defendants-Appellees (Manufacturers Bank, an Illinois Banking Corporation; Illinois Bell Telephone Company, an Illinois Corporation; and Unknown Owners, Defendants).
No. 1-13-1925
Appellate Court of Illinois, First District
SEPTEMBER 30, 2015
2015 IL App (1st) 131925
Honorable Eileen O‘Neill-Burke, Judge Presiding.
FIRST DIVISION; Appeal from the Circuit Court of Cook County; No. 00 L 50709
Presiding Justice Liu and Justice Harris concurred in the judgment and opinion.
OPINION
¶ 1 Plaintiff-appellant The Forest Preserve District of Cook County, Illinois (the District) appeals from an order of the circuit court of Cook County granting the defendants-appellees’ petition pursuant to section 2-1401 of the Code of Civil Procedure (
BACKGROUND
¶ 2 ¶ 3 The District commenced this eminent domain proceeding in 2000 to acquire land in unincorporated Orland Park, Illinois that was owned by the defendants-appellees, Chicago Title and Trust Company and Allen Hoger (the defendants). The District sought to acquire the property by condemnation pursuant to an ordinance that was purportedly passed several years earlier by the District‘s board of commissioners on May 20, 1991 (the “May 1991 ordinance“), authorizing the acquisition of land to connect two preexisting parcels of forest preserve.
¶ 4 The instant action against the defendants was one of multiple condemnation proceedings initiated by the District against various property owners premised on the May 1991 ordinance. However, trial courts in other cases subsequently concluded (in decisions later affirmed by our court in 2008) that the procedural requirements for the passage of the ordinance at the May 1991 board meeting were not met, and thus the ordinance was never enacted. As explained by our appellate court in an unpublished decision (the Evergreen Park decision) that consolidated appeals from two separate cases concerning the May 1991 ordinance: “The original record of the proceedings of the May 20, 1991 meeting of the District board included an ordinance enabling the acquisition of land for the forest preserve connection project, but that record did not show that the ordinance was formally introduced, read, discussed or submitted to an approval vote. That record instead shows *** that the acquisition ordinance was deferred.” Forest Preserve District v. First National Bank of Evergreen Park, Nos. 1-04-1536, 1-04-3777 cons., slip order at 6 (2008), (unpublished order under Illinois Supreme Court Rule 23).
¶ 5 The District initiated the instant case by filing a condemnation complaint against the defendants on July 19, 2000, which cited the May 1991 ordinance as the basis for the District‘s authority to condemn the defendants’ property. During discovery in the underlying action, the
¶ 6 The District and the defendants reached a settlement agreement under which the defendants agreed to accept $1.7 million as the total just compensation for their property. On March 6, 2003, the settlement was memorialized and approved by the trial court in an “Agreed Final Judgment Order” (the Agreed Order). The Agreed Order included a release provision stating that upon receipt of the specified compensation, the “owners of the property release the [District] *** from any and all claims or causes of action of any kind or character made or which could have been made in this action or any state or federal court, including any claim for compensation for the property *** and any and all known and unknown losses and damage relating to or arising from the taking of said property through eminent domain.”
¶ 7 Meanwhile, certain other property owners in separate condemnation actions brought by the District raised challenges to the validity of the May 1991 ordinance. After such challenges, the District in May 2003 passed a new ordinance purporting to cure any procedural defects in the May 1991 ordinance. As noted in our court‘s subsequent Evergreen Park decision, the District‘s May 2003 ordinance “stated that the acquisition ordinance was in fact passed by the District‘s board at the May 20, 1991 meeting” and “purported to amend retroactively the record of the proceedings of that meeting to indicate that the acquisition ordinance had been passed by a unanimous vote.” Id.
¶ 9 In February 2004, the defendants filed their first section 2-1401 petition seeking to vacate the March 2003 Agreed Order, which alleged that the District‘s condemnation complaint had falsely represented that a valid ordinance authorizing condemnation of the property had been passed when in fact “[n]o such condemnation ordinance was considered, voted upon, or adopted.” The defendants alleged that, without the District‘s claims of a valid ordinance, the Agreed Order would not have been consented to by the defendants or the trial court.
¶ 10 On March 10, 2004, the District filed a motion to dismiss the section 2-1401 petition, relying primarily on the release language in the Agreed Order as a bar to a section 2-1401 petition. The District otherwise argued that the defendants failed to allege sufficient facts to sustain a section 2-1401 petition, including a meritorious defense, due diligence in bringing the defense in the original action, and diligence in bringing the petition. Specifically, the District argued that the defendants had failed to assert a traverse or other objection to challenge the District‘s authority prior to agreeing to settle the case.
¶ 11 On July 7, 2004, the court granted the District‘s motion to dismiss the original petition, but granted the defendants leave to file an amended petition, which was filed on August 10,
¶ 12 On February 10, 2005, the defendants filed a response to the motion to dismiss, contending that they should not be bound by the release contained in the Agreed Order since they had entered into that agreement under the mistaken belief that the District was empowered to condemn their property. With respect to due diligence, the defendants urged that “the non-existence of an ordinance was withheld from them,” that they had reasonably relied on the District‘s representations that a valid ordinance existed, and that they had filed their petition within a reasonable time after learning, through separate cases, that the ordinance was not valid.
¶ 13 On August 29, 2005, the court heard oral argument on the motion to dismiss the amended section 2-1401 petition, although no transcript of such argument appears in the record. On November 22, 2005, the court granted, without prejudice, the District‘s motion to dismiss the amended section 2-1401 petition. The trial court‘s written order noted that the court had “reviewed the briefs of the parties and the arguments of counsel,” although the defendants’ counsel apparently was not present at the November 22, 2005 hearing. On December 12, 2005, the defendants moved to vacate the dismissal, claiming that their counsel had been unaware of the November 22, 2005 hearing. On February 14, 2006, the District responded by filing a motion to strike the defendants’ motion to vacate the dismissal.
¶ 15 In August 2008, while this action was stayed, our appellate court issued its Evergreen Park order affirming the dismissal of two separate cases brought by the District pursuant to the May 1991 ordinance. See Forest Preserve District v. First National Bank of Evergreen Park, Nos. 1-04-1536, 1-04-3777 cons. (2008) (unpublished order under Illinois Supreme Court Rule 23). In that order, our court affirmed two trial court rulings that the District “could not acquire property by condemnation because its board did not complete a necessary prerequisite to the exercise of its eminent domain power: the enactment of a valid ordinance approving the acquisitions.” Id. at 1.
¶ 16 The property owners in the two underlying cases had filed “a traverse and motion to dismiss, asserting that the District had not properly enacted an ordinance approving the acquisition of their properties and could not exercise the power of eminent domain without first doing so.” Id. Our order noted that: “The parties agree that the district could not properly exercise its power to condemn unless it first passed an ordinance enabling the acquisitions.” Id. at 5.
¶ 17 Our court in Evergreen Park reviewed the trial courts’ findings of fact regarding the purported ordinance under the “manifest weight of the evidence standard.” Id. at 4-5. Although the parties had “presented competing views” of the actions taken by the District, our court concluded that the record on appeal, including a videotape of the May 1991 board meeting,
¶ 18 Following our Evergreen Park decision, in October 2008 the defendants in this case sought a status hearing, asserting that “a related matter of potential precedential significance” had been decided by our appellate court. Over two years later, after numerous status conferences without substantive rulings, the defendants moved for leave to file a second amended section 2-1401 petition on December 9, 2010.
¶ 19 On September 8, 2011, the District filed an opposition to the defendants’ motion for leave to file a second amended petition. As in its prior submissions, the District contended that the release language in the 2003 Agreed Order barred a section 2-1401 petition, and that the defendants could not establish due diligence because they had not raised any challenge to the May 1991 ordinance in the underlying action. Specifically, the District noted that although property owners in other cases had successfully filed a traverse or motion to dismiss challenging the May 1991 ordinance, the defendants in this case did not raise such a challenge before entering the Agreed Order.
¶ 20 On December 16, 2011, the defendants submitted a reply brief in which they contended that because the May 1991 ordinance had not been passed, the Agreed Order was “void as the court lacked subject matter jurisdiction.” Alternatively, the defendants contended that the
¶ 21 On December 22, 2011, the District filed a surreply, in which it disputed the contention that an invalid ordinance would deprive the trial court of jurisdiction. The District contended: “The failure of the condemning body to fully comply with the statutory requirements goes only to the exercise of the right of the condemnor to acquire property” but did not affect the court‘s jurisdiction.
¶ 22 On December 22, 2011, the court heard oral argument on the defendants’ motion for leave to file a second amended section 2-1401 petition. The defendants’ counsel argued that the requirements for a section 2-1401 petition, including a meritorious defense and due diligence by the defendants, were satisfied. The defendants argued that, prior to the March 2003 Agreed Order, the defendants had no way to know that the May 1991 ordinance had been invalid, particularly as they “relied upon [the District‘s] representations that they had the valid authority” to bring the action. The defendants thus argued that the settlement contained in the Agreed Order was “based upon either a mutual mistake or fraud.”
¶ 23 The District‘s counsel responded that if a defendant suspects “some defect in the taking or in the authority of the District,” “the remedy is to bring a traverse” or motion to dismiss, but the
¶ 24 Similarly, the District argued that the defendants’ “lack of diligence” was demonstrated by the fact that, although property owners in other cases had filed a traverse challenging the ordinance and “asked for additional documentation,” the defendants in this case did “nothing to follow-up” after the District produced the purported ordinance in discovery: “They were given a copy of the ordinance which they say was defective on its face, and they did nothing to challenge that” but “chose instead to settle the case.” In response, the defendants’ counsel urged that they had no reason to file such an objection, as they had relied on the District‘s representations that there was a valid ordinance. The defendants’ counsel argued that “waiver requires knowledge” and the defendants “didn‘t know of any defect in the ordinance before the settlement agreement.”
¶ 25 On February 15, 2012, the court issued a memorandum opinion and order granting the defendants’ motion for leave to file a second amended section 2-1401 petition. Importantly, the trial court also addressed the merits of the second amended petition at that time, explaining: “although the Defendants’ motion is merely seeking leave to file the petition to vacate under Section 2-1401, the parties have briefed this matter on the merits of the motion.” The trial court proceeded to conclude that it had lacked subject matter jurisdiction when it entered the Agreed Order. Nonetheless, the court went on to hold that the defendants had satisfied the pleading requirements of a section 2-1401 petition and that the Agreed Order should be vacated.
¶ 27 The court‘s February 2012 order next addressed whether the defendants had complied with section 2-1401, recognizing that such a petition “must allege (1) a meritorious defense and (2) diligence in bringing the defense in the original action; and (3) diligence on the part of the petitioner in bringing the petition to vacate.” The court found that the “meritorious defense” requirement was fulfilled, because “the defense that no ordinance was enacted has been proven in a different matter,” citing our court‘s 2008 Evergreen Park decision.
¶ 28 The court then addressed whether the defendants had failed to demonstrate due diligence. The court first rejected the District‘s argument that the defendants “failed to pursue the defense in the original action” because they “did not bring a traverse to test the authority of the District.” The court reasoned that this argument “ignores the request of the Defendants, pursuant to *** discovery, requiring the District [to] produce the records supporting its authority to proceed with the condemnation” and “the District‘s response *** claiming that the District in fact did have
¶ 29 The court similarly rejected the District‘s criticism of the defendants’ timeliness in bringing the section 2-1401 petition. The court explained: “Given that the District initially asserted in a pleading that it had the requisite authority, responded in discovery that it had the requisite authority and subsequently tried to back-door authority for the taking by adopting another ordinance [in May 2003] to cure the lack of the requisite ordinance, any delay by the Defendants can be excused based upon their reliance on the District‘s misrepresentations.”
¶ 30 Furthermore, the trial court accepted the defendants’ additional argument that “the actions of the District in that it proceeded knowingly or with reckless disregard for the truth through pleadings and discovery to assert that it had passed a valid ordinance constitutes fraud” or that “at best this was a situation of mutual mistake.” The court found that, “subsequent to the [Agreed Order], the Defendants learned that the requisite ordinance was not adopted.” Criticizing the District‘s conduct, the court noted that the District “produced during discovery an unsigned document that was held out to be the valid basis of the action” and “then actively concealed the lack of the ordinance and tried to correct the situation by adopting a ‘curative ordinance’ ” in May 2003. In granting the defendants’ motion, the court remarked that “had the Court known that there was not a valid ordinance, the Court would not have entered judgment” and concluded that “mutual mistake or even active concealment requires that the Court vacate” the March 2003 Agreed Order.
¶ 31 On March 16, 2012, the District filed a motion to reconsider the February 2012 order. In its supporting memorandum, the District argued that the trial court had maintained subject matter jurisdiction “even if *** there was a defect in the District‘s exercise of its power of eminent
¶ 32 On January 4, 2013, the defendants filed their second amended section 2-1401 petition seeking to vacate the Agreed Order, which stated that the court had “already determined the merits” of the petition. On March 21, 2013, the District moved to dismiss the second amended section 2-1401 petition. The District again argued that a “challenge to an enabling ordinance in an eminent domain proceeding requires a traverse or motion to dismiss” and that the defendants had forfeited such a challenge.
¶ 33 The District‘s motion to dismiss the second amended petition also included factual contentions regarding the history of the May 1991 ordinance and the District board meeting at which it was purportedly passed. In support of the motion, the District submitted an affidavit of Herbert T. Schumann, Jr., who averred that he served as a commissioner of the District at the time of the May 20, 1991 board meeting. Schumann‘s affidavit stated that the ordinance at issue was placed on the District board‘s agenda as “Item #5” at the District‘s May 20, 1991 board meeting, that the board president “called for a vote on Item #5 and it was unanimously approved by the Board,” and that this vote represented approval of the ordinance. Thus, according to the affidavit: “To the extent that the Journal of Proceedings of the [District] *** reflects any deferral of consideration of the Acquisition Ordinance, rather than its approval and passage, the Journal of Proceedings is in error.” The District thus urged in its motion to dismiss that the May 1991 ordinance had been validly passed, but that an “unfortunate error” in the District‘s record of proceedings inaccurately reflected that the vote on the ordinance had not occurred.
¶ 35 The District‘s motion to dismiss also disputed the trial court‘s conclusion that it had lacked subject matter jurisdiction, contending that a valid ordinance is “not required to invest the Court with jurisdiction” over an eminent domain proceeding. The District argued that “the Circuit Court has jurisdiction when a public body with the power of eminent domain files an eminent domain case,” and that the District‘s statutory authority to condemn was set forth in its enabling statute, the Cook County Forest Preserve District Act. See
¶ 36 The District‘s motion to dismiss the second amended section 2-1401 petition concluded by requesting that the court find that it did have subject matter jurisdiction and hold an “evidentiary hearing on due diligence.” The District alternatively requested that, if the court
¶ 37 On April 25, 2013, the defendants filed an opposition to the motion to dismiss which argued that there was “no genuine issue of fact *** that the District cannot establish authority to condemn” because no valid ordinance was passed. The defendants argued that the District was “collaterally estopped from re-litigating the issue” since our appellate court‘s 2008 Evergreen Park order determined that the May 1991 ordinance was invalid. Also on April 25, 2013, the defendants filed a “Motion for Summary Judgment” which made identical collateral estoppel arguments, and additionally sought leave to file a petition to recover attorney‘s fees. On May 9, 2013, the trial court (a different judge than the judge who had issued the February 2012 order) entered and continued the defendants’ motion for summary judgment.
¶ 38 On June 3, 2013, the trial court denied the District‘s motion to dismiss the second amended section 2-1401 petition. In the same order, the trial court also proceeded to grant the relief sought by the second amended section 2-1401 petition, thus vacating the March 2003 Agreed Order. The court stated that “the defendants’ petition to vacate pursuant to section 2-1401 is appropriate and the court hereby vacates the Agreed Final Judgment Order entered in March 2003.” In the same June 3, 2013 order, the court instructed the District to respond to the defendants’ separate motion for summary judgment and motion for leave to file a petition for legal fees.
¶ 39 On June 12, 2013, the District filed a notice of appeal from the June 3, 2013 order. The trial court subsequently stayed further proceedings pending this appeal.
¶ 41 We first note that we have jurisdiction pursuant to Supreme Court Rule 304(b)(3), which allows appeals from “[a] judgment or order granting *** any of the relief prayed in a petition under section 2-1401 of the Code of Civil Procedure.”
¶ 42 The parties dispute the applicable standard of review. The District contends that the standard of review is de novo, whereas the defendants contend that the deferential “abuse of discretion” standard applies to review of an order granting a section 2-1401 petition.
¶ 43 Our supreme court has recently explained that “a section 2-1401 petition can present either a factual or legal challenge to a final judgment or order,” and “the nature of the challenge presented in a section 2-1401 petition is critical because it dictates the proper standard of review on appeal.” Warren County Soil & Water Conservation District v. Walters, 2015 IL 117783, ¶ 31.
¶ 44 Warren County noted that the “seminal decision on section 2-1401 practice is Smith v. Airoom, Inc., 114 Ill. 2d 209 (1986).” Id. ¶ 36. As explained by Warren County: ”Airoom established that to be entitled to relief from a final judgment or order under section 2-1401, the petition must set forth specific factual allegations supporting each of the following elements: (1) the existence of a meritorious defense; (2) due diligence in presenting this defense or claim to the circuit court in the original action; and (3) due diligence in filing the section 2-1401 petition for relief.” Id. ¶ 37 (citing Smith v. Airoom, Inc., 114 Ill. 2d at 209, 220-21 (1986)). “The question of whether relief should be granted lies within the sound discretion of the circuit court, depending on the facts and equities presented” and “a reviewing court will reverse the circuit court‘s ruling on the petition only if it constitutes an abuse of discretion.” Id. (citing Airoom, 114 Ill. 2d at 221).
¶ 46 In Warren County, our supreme court clarified that ”Vincent must be viewed in its narrow context of a section 2-1401 petition that raises a purely legal challenge to a judgment by alleging that it is void ***. [Citation.] When viewed in this context, our decision to apply de novo review is consistent with established principles of appellate review for cases involving purely legal questions.” Warren County, 2015 IL 117783, ¶ 47. Moreover, “a section 2-1401 petition seeking to vacate a void judgment, a purely legal issue, does not need to establish a meritorious defense or satisfy due diligence requirements” that otherwise must be met. Id. ¶ 48.
¶ 47 Thus, the requirements for a successful section 2-401 petition, and the standard of review, differ depending on whether the petition seeks to vacate a “void” judgment. In this case, it is not immediately apparent whether the section 2-1401 petition at issue is appropriately reviewed as a petition seeking relief from a “void” judgment, especially since the District disputes the trial court‘s determination that it lacked subject matter jurisdiction in the underlying action.
¶ 48 Thus, in order to assess the propriety of the section 2-1401 petition in this case, we must resolve whether this was a petition from a “void” judgment. The question of “voidness,” in turn,
¶ 49 The defendants’ appellate brief maintain that, based on the invalidity of the May 20, 1991 ordinance, the trial court lacked subject matter jurisdiction, and so the Agreed Order was void.2 On the other hand, the District urges that the trial court had subject matter jurisdiction in the eminent domain action, notwithstanding any failure to comply with the statutory requirement in the Cook County Forest Preserve District Act for a valid ordinance. See
¶ 51 “With the exception of the circuit court‘s power to review administrative action, which is conferred by statute, a circuit court‘s subject matter jurisdiction is conferred entirely by our state constitution.” Belleville Toyota, Inc. v. Toyota Motor Sales, U.S.A., Inc., 199 Ill. 2d 325, 334 (2002). Specifically, “[u]nder section 9 of article VI, that jurisdiction extends to all ‘justiciable matters.’ ” Id. (quoting
¶ 52 Thus, if the District was statutorily required to pass an ordinance authorizing the acquisition of the property at issue, the failure to do so did not divest the circuit court of subject
¶ 53 As the trial court had subject matter jurisdiction, the March 2003 Agreed Order cannot be considered “void.” In turn, we do not review the section 2-1401 petition at issue in this appeal as a petition to vacate a “void judgment.” However, that conclusion does not resolve the question of whether the court properly granted the section 2-1401 petition. Rather, our recognition that the Agreed Order was not a void judgment simply means that the section 2-1401 petition had to meet the usual requirements to vacate nonvoid judgments, including due diligence.
¶ 54 Before we assess those section 2-1401 requirements, however, we address the District‘s arguments that defendants’ waiver, in addition to the release language within the Agreed Order, constitute independent bases for dismissing the section 2-1401 petition. With respect to waiver, the District urges that “a defendant who wishes to contest the authority of the condemning body must preserve the objection by filing a traverse and/or a motion to dismiss” or “the objection is waived and cannot be brought subsequent to judgment being entered.” The District urges that “[t]his waiver is completely separate and apart from the issue of diligence” required to sustain a section 2-1401 petition.
¶ 55 The District cites several cases—none of which discuss a section 2-1401 petition—for the proposition that an objection to a condemning entity‘s authority is waived if not asserted through means of a traverse. The most recent supreme court precedent relied upon by the District for its
¶ 56 The defendants filed a motion to vacate the judgment, claiming that it was “void for lack of jurisdiction, and that certain facts existed which, if they had been made known to the trial court, would have precluded the entry of judgment.” Id. Following the trial court‘s denial of the motion to vacate, the defendants contended on appeal that the CHA had “failed to obtain the approval of the governing body of the city of Chicago before acquiring private property for public purposes, as it was required to do, and that this failure deprived the trial court of jurisdiction to enter the condemnation judgment.” Id. at 161.
¶ 57 The supreme court disagreed, finding that when the CHA had filed its amended petition to condemn, “there was no requirement that the governing body of the city approve the proposed land acquisitions of the [CHA].” Id. The supreme court recognized that, after the filing of the CHA‘s amended petition but before the entry of the condemnation judgment, the Housing Authorities Act had been amended to require a housing authority to obtain approval from the governing body of the municipality for the acquisition. Id. at 161 (quoting Ill. Rev. Stat. 1951, ch. 67 1/2, ¶ 9). The Berkson defendants argued that “this amendment *** applies to condemnation proceedings instituted before but completed after the effective date of the amendment, and that the city‘s consent is a jurisdictional condition precedent to a condemnation award.” Id.
¶ 58 The supreme court concluded that such an objection did not implicate jurisdiction and had been forfeited:
“[T]he objection was waived by failure to raise it at the appropriate time. The objection goes only to the right of the condemnor to acquire property by eminent domain. It does not affect the general jurisdiction of the court over the subject matter of an eminent domain action. It is settled that if a property owner wishes to contest the right of a condemnor to acquire his property by eminent domain, he is required to raise that issue before a jury is empaneled to determine the award. [Citations.] In the present case, the objection to the right of [CHA] to take the property, first asserted long after the judgment was entered, came too late.” Id. at 161-62.
Thus, the supreme court affirmed the denial of the defendants’ motion to vacate the judgment of condemnation. Id. at 165.
¶ 59 The District also cites to appellate court precedent indicating that a traverse is a proper method to challenge the condemning entity‘s authority. “A traverse, by definition, is a denial of a material allegation of fact.” Forest Preserve District of Du Page County v. Miller, 339 Ill. App. 3d 244, 250 (2003). In Miller, our Second District held that: “It is well settled that a traverse is a proper method by which to object to a condemning entity‘s authority to condemn.” Id. “When a complaint to condemn is traversed, the trial court may determine all questions raised regarding the condemnor‘s right to condemn the property.” Id. Notably, however, Miller does not suggest that a traverse in the original proceeding is the only way to challenge the condemning entity‘s authority and does not mention a
¶ 60 The District similarly cites an earlier decision, also from our court‘s Second District, which held—although not in the context of a
¶ 61 The District urges that such authorities establish that “if a property owner fails to object to the right or authority of the condemnor to acquire property by eminent domain, the objection is waived.” However, we find the cases cited by the District are distinguishable and do not preclude the
¶ 62 Our supreme court has made clear that
¶ 63 Our appellate court has likewise stated that “[t]he purpose underlying a
¶ 64 Such precedent makes clear that
¶ 65 We similarly reject the District‘s contention that the release language contained in the Agreed Order independently warrants dismissal of the second amended
¶ 66 We find the District‘s argument unpersuasive for a simple reason: the release language that it relies upon as a bar to the
¶ 67 Similarly, in this case, the defendants seek to vacate the Agreed Order (and the release therein) because it was premised, in part, on their mistaken belief based on the representation made by the District that a valid ordinance had been passed. Clearly, if the Agreed Order is invalid on that basis, then so is the release. We decline to accept the argument that a release contained within a challenged judgment insulates that same judgment from a
¶ 68 We have rejected the District‘s arguments that the defendants’
¶ 69 First, we note that “[t]ypically, the [
¶ 70 In addition, “to be entitled to relief from a final judgment or order under
¶ 71 First, we conclude that the requirement of a meritorious defense was clearly established, particularly since the invalidity of the May 1991 ordinance was judicially determined in a prior action. “A petitioner establishes a meritorious defense when he allege[s] facts that would have
¶ 72 As explained by our supreme court: “The doctrine of collateral estoppel applies when a party *** participates in two separate and consecutive cases arising on different causes of action and some controlling fact or question *** has been adjudicated against that party in the former suit ***. The adjudication of the fact or question in the first cause will, if properly presented, be conclusive of the same question in the later suit ***” Nowak v. St. Rita High School, 197 Ill. 2d 381, 389-90 (2001). “The minimum threshold requirements for the application of collateral estoppel are: (1) the issue decided in the prior adjudication is identical with the one presented in the suit in question, (2) there was a final judgment on the merits in the prior adjudication, and (3) the party against whom estoppel is asserted was a party or in privity with a party to the prior adjudication.” (Emphasis in original.) Id. at 390. Collateral estoppel may apply both to prior findings of fact and prior determinations of law. See Du Page Forklift Service, Inc. v. Material Handling Services, Inc., 195 Ill. 2d 71, 79 (2001).
¶ 73 Notwithstanding the District‘s efforts in this case to explain that its records of the May 20, 1991 board meeting were inaccurate, and that its board had in fact approved the May 1991 ordinance, operation of collateral estoppel clearly established the invalidity of the ordinance. The District had litigated and lost that identical issue in the two separate actions leading to our court‘s 2008 Evergreen Park decision, which affirmed the dismissals of those cases on the basis that the ordinance had never been passed. That decision was a final judgment on the merits
¶ 74 We next turn to the due diligence requirements of a
¶ 75 On appeal, the District acknowledges that its complaint relied on the May 1991 ordinance and that it provided a copy of the purported ordinance to the defendants in discovery. The District nonetheless contends that the burden remained on the defendants to conduct further discovery or raise an objection. The District argues that “after having been provided with the unsigned, and therefore, allegedly defective, Ordinance, even though they were tipped off to a
¶ 76 Keeping in mind that “whether relief should be granted lies within the sound discretion of the circuit court, depending on the facts and equities presented,” (id.) we cannot say that the trial court was unreasonable in concluding that the defendants satisfied due diligence under these circumstances. Especially considering the unique equities presented when private property owners are faced with an eminent domain lawsuit brought by a governmental entity, the trial court could conclude that such property owners could rely on the condemning entity‘s explicit statements that the condemnation was based upon a valid ordinance. Notwithstanding the District‘s arguments that its responses should have “tipped off” the defendants of possible defects in the May 1991 ordinance, the trial court could and did reasonably conclude that the defendants were not obligated to undertake further investigation in order to satisfy due diligence.
¶ 77 Similarly, we also find no abuse of discretion with respect to the trial court‘s finding that the defendants satisfied the additional requirement of “due diligence in filing the
¶ 79 Finally, we address the District‘s separate procedural arguments that the trial court should not have made any findings as to due diligence or granted the second amended
¶ 80 The District urges that since it had not filed an answer to the second amended petition, “the trial court could not have been aware of what facts were controverted or at issue.” The District contends that an evidentiary hearing is required whenever there is a disputed issue of fact, and that the defendants’ allegations of mutual mistake and fraud necessitated discovery and a hearing.
¶ 81 We acknowledge that the procedural posture of this case is complex and unusual. Specifically, the February 2012 order upon the defendants’ motion for leave to file a second amended petition not only granted that motion, but proceeded to address the merits of the
¶ 82 However, when viewing the record as a whole and the undisputed facts, we do not find that the court erred in failing to conduct further proceedings before vacating the 2003 Agreed Order. First, as the trial court explained in its February 2012 order, the parties had already “briefed this matter on the merits ***, not merely the incidence of whether such a petition should be filed.” It is clear from the record on appeal that the parties’ numerous filings with respect to the original petition, the amended petition, and the motion for leave to file the second amended petition had thoroughly addressed the merits of the petition and the District‘s defenses thereto.
¶ 83 Moreover, although the District urges that an evidentiary hearing was required to decide issues of fact, there were actually no material issues of fact that needed to be decided. First, as discussed above, operation of collateral estoppel precluded the District from relitigating the issue of whether the May 1991 ordinance had been enacted. The District had already litigated and lost that issue in separate cases. Thus, although the District sought to prove in this case that the ordinance was in fact passed at the May 1991 board meeting, it was estopped from doing so. Thus, the crux of the defendants’
¶ 84 Similarly, although no evidentiary hearing was held to assess the defendants’ due diligence, the material facts underlying the trial court‘s conclusions that due diligence was satisfied by mutual mistake or fraud, were uncontroverted. The District could not dispute that its condemnation complaint explicitly pleaded that the condemnation action was authorized by the May 1991 ordinance. In addition, the District had conceded that, in response to the defendants’ discovery requests, it had produced a copy of the purported May 1991 ordinance which it held out as having been validly enacted. Regardless of whether the District intentionally
¶ 85 Moreover, our supreme court has indicated that, although an evidentiary hearing is usually required to resolve issues of fact, whether to hold a hearing is also subject to the trial court‘s equitable discretion. In the course of describing the deferential “abuse of discretion” standard of review applied to the trial court‘s decision on a
¶ 86 We decline to find that the trial court abused such discretion by failing to hold an evidentiary hearing, considering the unique equitable circumstances of this case and the extensive volume of information and facts available to the trial court throughout the proceedings. In particular, the invalidity of the May 1991 ordinance, upon which the entire condemnation action was premised, had been established as a matter of collateral estoppel. In turn, there could be no dispute that the District had explicitly relied on an invalid ordinance in its pleadings and discovery responses. The trial court could thus find that the meritorious defense of an invalid
¶ 87 For the foregoing reasons, we affirm the judgment of the circuit court of Cook County.
¶ 88 Affirmed.
