Appeal from the Circuit Court of Cook County. Honorable Edwin Berman, Judge Presiding.
Released for Publication August 16, 1995.
The Honorable Justice Theis delivered the opinion of the court: Hoffman, P.j., and Cahill, J., concur.
The opinion of the court was delivered by: Theis
JUSTICE THEIS delivered the opinion of the court:
The administrator of the estate of Albert Lawrence, E.K. Collison (administrator), filed a second amended complaint against D.R.G., Inc. (D.R.G.), to recover monies received by D.R.G. from the sale of property that the administrator alleged belonged to the heirs of Lawrence. The administrator moved for summary judgment as to count II; D.R.G. filed a cross-motion for summary judgment and judgment on the pleadings as to all counts. After hearing arguments, the trial court found in favor of the administrator on counts II and III and entered judgment against D.R.G. in the amount of $10,000 plus interest. D.R.G. appeals the decision, raising several issues for our review. Because we find that the administrator did not have standing to file this complaint, we reverse the decision of the trial court.
An earlier action concerned a suit to foreclose on the mortgages held on the property that is the subject of this appeal. In 1988, the appellate court resolved the foreclosure matter. ( Lincoln Park Federal Savings & Loan Association v. DRG, Inc. (1988), 175 Ill. App. 3d 176, 529 N.E.2d 771, 124 Ill. Dec. 790.) We adopt the following statement from that decision:
"Albert and Vesser Lawrence owned a single-family home in Chicago, and on March 18, 1970, they procured a first mortgage from [Lincoln Park Federal Savings and Loan Association (Lincoln Park Federal)] in the amount of $6,000.
On December 9, 1975, the county clerk executed and delivered a tax deed to DRG. Title was recorded on January 16, 1976, in the office of the recorder of deeds.
On November 16, 1976, the Lawrences procured an unrecorded mortgage from [Lincoln Park Federal] in the amount of $11,750, in order to repurchase the property from DRG. DRG then delivered an unrecorded deed to the Lawrences. Subsequently, [Lincoln Park Federal] filed a foreclosure of the 1970 mortgage and a lis pendens was recorded on August 15, 1978. The minutes of the foreclosure showed DRG as titleholder of record." Lincoln Park Federal, 175 Ill. App. 3d at 178, 529 N.E.2d at 771.
In 1979, Vesser Lawrence died. On July 18, 1982, Albert Lawrence died. On October 17, 1983, D.R.G. sold the property owned by the Lawrences to Jerry and Kathleen Wilson. "Before execution of the real estate installment contract, the Wilsons examined the records in the office of the recorder of deeds. The records showed that the Lawrences lost title when DRG was given title by tax deed in December 1975. The records also showed the 1970 mortgage to [Lincoln Park Federal] and the lis pendens notice filed August 15, 1978." Lincoln Park Federal, 175 Ill. App. 3d at 178, 529 N.E.2d at 771-72.
Lincoln Park Federal then filed a petition to foreclose its unrecorded 1970 mortgage. D.R.G. filed a motion to dismiss Lincoln Park Federal's foreclosure suit. Lincoln Park Federal then recorded the 1976 deed from D.R.G. to the Lawrences and amended its complaint to foreclose an equitable lien. The trial court denied the foreclosure. The appellate court affirmed, finding that Lincoln Park Federal could not foreclose on the 1970 mortgage once the tax deed was issued in 1975. The court also concluded that the unrecorded 1976 mortgage could not have any effect against the Wilsons. Lincoln Park Federal, 175 Ill. App. 3d 176, 529 N.E.2d 771, 124 Ill. Dec. 790.
In 1987, E.K. Collison, a director of Lincoln Park Federal, filed a creditor's petition to open an estate for Albert Lawrence. Lincoln Park Federal apparently then filed a claim against the estate.
On January 19, 1988, Collison was appointed administrator of the estate of Albert Lawrence. On July 26, 1990, the administrator filed a five-count second amended complaint against D.R.G. The complaint sought to recover monies and rights that the Lawrences lost as a result of D.R.G.'s act of selling the property a second time to the Wilsons. On August 13, 1990, D.R.G. filed a motion to dismiss the plaintiff's complaint, alleging that Collison lacked standing to bring this action. On January 17, 1991, D.R.G. filed another motion to dismiss this complaint and the court dismissed count V.
On December 3, 1991, D.R.G. filed a motion for summary judgment, again raising the issue of standing, and a motion for judgment on the pleadings. The trial court entered judgment in favor of the plaintiff, Collison. The court concluded that the Lawrences gave consideration to D.R.G. for their purchase of the real estate. The court found that D.R.G. delivered a deed to the property to the Lawrences but the Lawrences failed to record it until after D.R.G. had resold the home. The court concluded that, at the time of the sale to the Wilsons, D.R.G. was on notice of its earlier sale to the Lawrences. The court therefore found in favor of Collison on counts II and III and imposed a constructive trust ...