Court of Appeals of Illinois, First District, Second Division
U.S. BANK, N.A., as Legal Title Trustee for Truman 2012 SC2 Title Trust, Plaintiff and Counterdefendant-Appellee,
QUADRANGLE HOUSE CONDOMINIUM ASSOCIATION, Defendant and Counterplaintiff-Appellant.
from the Circuit Court of Cook County. No. 16 CH 04811 The
Honorable Celia Gamrath, Judge Presiding.
JUSTICE PUCINSKI delivered the judgment of the court, with
opinion Presiding Justice Mason and Justice Hyman concurred
in the judgment and opinion.
1 Defendant Quadrangle House Condominium Association
(Association) appeals from an order of the circuit court of
Cook County granting plaintiff U.S. Bank's motion for
summary judgment on its complaint for a declaratory judgment
and denying the Association's cross-motion for summary
judgment on its counterclaim for unpaid assessments. The sole
question of law presented for consideration is whether U.S.
Bank's payment of postforeclosure sale assessments,
several months after purchasing a condominium unit at a
judicial foreclosure sale, extinguished the Association's
lien for preforeclosure sale assessments, pursuant to section
9(g)(3) of the Condominium Property Act (Act) (765 ILCS
605/9(g)(3) (West 2016)), and as interpreted by 1010 Lake
Shore Ass'n v. Deutsche Bank National Trust Co.,
2015 IL 118372. We affirm the judgment of the circuit court
for the reasons that follow.
3 The subject property, unit 5B, is located at 6700 South
Shore Drive, in Chicago, Illinois, and was previously owned
by Betty Colvin. In 2011, U.S. Bank's predecessor in
interest, Wells Fargo Bank, commenced an action to foreclose
a mortgage lien interest encumbering unit 5B. The matter was
filed in the Chancery Division and captioned Wells Fargo Bank
v. Colvin, No. 11 CH 19139 (Cir. Ct. Cook County).
4 On July 29, 2015, the circuit court entered an order
confirming the sale and granting possession of unit 5B to
U.S. Bank as the successful bidder at a judicial sale held on
June 24, 2015. The circuit court's order was captioned
U.S. Bank N.A. v. Colvin, No. 11 CH 19139 (Cir. Ct.
Cook County, July 29, 2015). A judicial deed granting U.S.
Bank title to unit 5B was issued pursuant to the order
approving the sale and was recorded by the Cook County
Recorder of Deeds on August 28, 2015. Shortly thereafter,
U.S. Bank retained Parkvue Realty to recover possession of
and market unit 5B. U.S. Bank asked Parkvue to contact the
Association for information about the payment of
postforeclosure sale assessments. Early in September 2015,
Parkvue provided the Association with a copy of the judicial
deed and informed the Association that any correspondence and
assessment invoices were to be sent to U.S. Bank at P.O. Box
830, Armonk, New York 10504.
5 On September 24, after receiving no response from the
Association, U.S. Bank asked the Association for an invoice
reflecting the postforeclosure sale assessments due for unit
5B. However, the Association sent U.S. Bank a resident ledger
for Gloria Carter, who possessed no interest in unit 5B.
6 In October, U.S. Bank received the invoice it had requested
along with a resident ledger for unit 5B, both showing the
amount due from U.S. Bank was $3079.62 for its proportionate
share of common expenses beginning July 1, 2015. U.S. Bank
also received a resident ledger addressed to Mrs. Colvin,
which showed a $62, 579.35 amount due for
preforeclosure sale assessments.
7 According to U.S. Bank, it immediately sent the Association
a $3919.34 check, dated October 6, 2015, comprising the
$3079.62 amount due and $839.72 in assessments for the
upcoming month of November. The Association initially claimed
that it was never received but then acknowledged having
received the check in November, when U.S. Bank placed a stop
payment order on the check. On November 6, U.S. Bank issued
another $3919.34 check, which the Association received and
credited to U.S. Bank. From December 2015 to February 2017,
the Association sent invoices that U.S. Bank paid in full.
8 In 2016, U.S. Bank requested a paid assessment letter from
the Association, and the Association issued a letter on
January 25 stating that a $63, 464.07 lien in favor
of the Association existed under section 9(g)(1) of the Act
(765 ILCS 605/9(g)(1) (West 2016)) for the period from May 1,
2009, to January 25, 2016. The letter stated that U.S. Bank
had not extinguished the lien by payment of assessments under
section 9(g)(3) of the Act (id. § 9(g)(3)). The
letter stated that the amount due from U.S. Bank under
section 9(g)(4) of the Act (id. § 9(g)(4)) was
the $63, 464.07, "due to failure of purchaser
at judicial sale to confirm extinguishment of lien, the
extinguishment of lien by lender will render the amount owed
by the subsequent purchaser to be $0."
9 In March, the Association sent U.S. Bank a notice and
demand for possession of unit 5B as a condition precedent to
an action for forcible entry and detainer. In April, U.S.
Bank filed the underlying complaint for declaratory judgment
in case number 16 CH 04811, asking for a determination that
the Association's lien had been extinguished. In June,
the Association filed a counterclaim for unpaid assessments
totaling $63, 464.07, "inclusive of the Colvin
Balance." In July, U.S. Bank filed an amended complaint
for declaratory judgment.
10 In 2017, the parties filed cross-motions for summary
judgment, and the circuit court entered an order granting
summary judgment in favor of U.S. Bank on June 28. The
Association filed a timely notice of appeal from the June 28
order, which declared that U.S. Bank had paid all
postforeclosure sale assessments required under section
9(g)(3) of the Act and extinguished the Association's
lien on the Colvin balance for the period before July 1,
11 We take judicial notice that, after the Association filed
its notice of appeal, U.S. Bank sold unit 5B to a nonparty on
July 31 and the special warranty deed conveying unit 5B was
recorded on August 3 as document number 1721557092. See
generally City of Chicago v. Soludczyk, 2017 IL App
(1st) 162449, ¶ 3 n.1. On November 13, this court denied
U.S. Bank's motion ...