Our panel of leading appellate attorneys review Thursday's Illinois Supreme Court opinions in the civil cases 1010 Lake Shore Association v. Deutsche Bank National Trust Company and DG Enterprises v. Cornelius. and the criminal cases People v. Carter, People v. Schweihs, People v. Thompson and People v. Espinoza.
CIVIL
1010 Lake Shore Association v. Deutsche Bank National Trust Company
By Karen Kies DeGrand, Donohue Brown Mathewson & Smyth LLC
A condominium association won summary judgment in a lawsuit it brought against a bank in a fight over whether the bank had extinguished the association’s lien rights following purchase of the unit at a judicial foreclosure sale. Interpreting two statutes, section 9(g)(3) of the Condominium Property Act and section 15-1509(c) of the Mortgage Foreclosure Law, the Illinois Supreme Court determined that a lien for unpaid assessments by a previous owner is not fully extinguished at a judicial foreclosure and sale unless the new owner “confirms the extinguishment” of the lien by paying assessments incurred after the sale. The lien is statutorily created upon a unit owner’s failure to pay common expenses when due. Even assuming that the condominium association was included as a party to the prior foreclosure action, the bank still was required to take the additional step to confirm the extinguishment by paying post sale assessments.