Plaintiff attempted to foreclose on residence on basis of a mortgage that turned out to be ineffective as a matter of law. When homeowners raised these defenses, Plaintiff then asserted other claims such as equitable lien, unjust enrichment, and fraud. As Plaintiff has not sufficiently pled claim for equitable subrogation, it has not established a basis for imposition of a debt or duty upon homeowner. Thus, its claim for equitable lien fails. Under discovery reule, when all relevant facts were known or should reasonably have been known when mortgage was released, any cause of action for unjust enrichment or fraud was complete then, and could have been brought, so that 5-year statute of limitations began to run then. (JORGENSEN and SPENCE, concurring.)
Illinois Appellate Court
Civil Court
Mortgage Foreclosure