Court of Appeals of Illinois, First District, Sixth Division
5510 SHERIDAN ROAD CONDOMINIUM ASSOCIATION, Plaintiff-Appellee,
U.S. BANK, Defendant-Appellant.
March 31, 2017
Appeal from the Circuit Court of Cook County, No.
15-M1-702180; the Hon. Martin Paul Moltz, Judge, presiding.
Maurice Wutscher LLP, of Chicago (Ralph T. Wutscher, Coleman
J. Braun, and Jeffrey T. Karek, of counsel), for appellant.
Johnson & Sullivan, Ltd., of Chicago (Mario A. Sullivan,
of counsel), for appellee.
JUSTICE DELORT delivered the judgment of the court, with
opinion. Presiding Justice Hoffman and Justice Rochford
concurred in the judgment and opinion.
1 After defendant, U.S. Bank, acquired a condominium unit
through a foreclosure sale, plaintiff, 5510 Sheridan Road
Condominium Association (association), filed this lawsuit
against U.S. Bank pursuant to the Forcible Entry and Detainer
Act (Forcible Entry Act) (735 ILCS 5/9-101 et seq.
(West 2014)) seeking possession of the unit, presale common
expenses, and attorney fees. The association's theory of
recovery was that payments U.S. Bank remitted to the
association for postsale common expenses months after the
foreclosure sale were untimely under section 9(g)(3) of the
Condominium Property Act (Act) (765 ILCS 605/9(g)(3) (West
2014)) and thus did not extinguish the association's lien
for presale expenses. The circuit court agreed and granted
summary judgment to the association and an order of
possession, which included a judgment for unpaid presale
expenses. We reverse those orders and enter summary judgment
in favor of U.S. Bank.
3 The following facts are drawn from the pleadings and
motions contained in the record and a joint stipulation,
which the parties submitted to the circuit court at the
summary judgment stage. On February 23, 2012, defendant U.S.
Bank sued Thomas and Marilyn Hoffman to foreclose on the
bank's mortgage encumbering the Hoffmans' interest in
a condominium unit at 5510 North Sheridan Road in Chicago.
U.S. Bank National Ass'n v. Hoffman, 2012 CH
6382 (Cir. Ct. Cook. Co.). The association was named as a
defendant in the foreclosure case but never appeared. On June
14, 2012, the court entered a judgment of foreclosure and
sale and defaulted the association.
4 On December 26, 2012, before the property was sold pursuant
to the foreclosure court's order, the association sued
the Hoffmans pursuant to the Forcible Entry Act. 5510
North Sheridan Road Condominium Ass'n v. Hoffman,
2012 M1 731922 (Cir. Ct. Cook. Co.). On April 17, 2013, the
court hearing that case entered an order of possession in
favor of the association.
5 Pursuant to the foreclosure court's order, the unit was
set for a judicial sale to be held on May 27, 2014. U.S. Bank
was the successful bidder. On June 25, 2014, notwithstanding
the forcible entry and detainer court's April 17, 2013,
possession order in favor of the association, the foreclosure
court confirmed the sale and granted possession to U.S. Bank.
U.S. Bank acquired title to the property on July 3, 2014,
through a deed issued pursuant to the foreclosure court's
6 On October 31, 2014, the association transmitted a 30-day
notice to U.S. Bank, claiming that the bank was "in
default in the payment of [its] proportionate share of the
common expenses." The association demanded payment of
$81, 400.35, which included, among other things, regular and
special assessments, parking fees, and late fees which had
accrued from October 1, 2012, through October 1, 2014. In
January 2015, U.S. Bank paid $14, 968.76 to the association,
representing only the postsale expenses that had accrued from
August 2014 to January 2015.
7 On January 30, 2015, the association filed this lawsuit
under the Forcible Entry Act demanding payment from U.S. Bank
for the preforeclosure sale common expenses for the unit that
were in arrears and for possession. The association's
theory of recovery was that its "lien for all past due
assessments has not been extinguished and remain[ed]
valid" because U.S. Bank "failed to [timely] pay
the condominium association assessments, parking fees, late
fees and other charges the month after the date of the
judicial foreclosure sale" as required by section
9(g)(3) of the Act.
8 On July 24, 2015, U.S. Bank and the association filed
cross-motions for summary judgment. In its motion, U.S. Bank
argued that section 9(g)(3) did not contain a timing
requirement and that its January 2015 payment for postsale
expenses therefore extinguished the association's lien
against the unit for presale expenses. The association, in
contrast, insisted that section 9(g)(3) did contain a timing
requirement with which U.S. Bank failed to comply. As a
result, the association reasoned, U.S. Bank's January
2015 payment did not extinguish the association's lien.
The association claimed that U.S. Bank owed it $94, 873.79,
consisting of (1) $48, 308.17 for presale expenses from
October 2012 through May 2014, (2) ...