Real Estate Law

K. Miller: The Supreme Court and the Home Repair and Remodeling Act

By Barbara A. Farrell
June
2011
Article
, Page 302
The Illinois Supreme Court interpreted the old Home Repair and Remodeling Act in light of the newly amended version and rendered a contractor-friendly decision.

How to Be a Good Closer

By Helen W. Gunnarsson
June
2011
Cover Story
, Page 290
In baseball and residential real estate practice alike, it often comes down to the last inning when a lights-out closer can make the difference. Here are tips from veteran lawyers about what you might encounter at a real estate closing and how to handle it.
2 comments (Most recent June 3, 2011)

Tully v. McLean

Illinois Appellate Court
Civil Court
Fraud
Citation
Case Number: 
No. 1-09-2976
Decision Date: 
Tuesday, April 26, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
KARNEZIS
Trustee filed suit against developer and development companies, alleging fraud and breach of fiduciary duties in management of company. After bench trial, court ordered Defendants to pay compensatory and punitive damages for fraud and breach of fiduciary duty, finding that developer made numerous large transfers of funds to benefit his other enterprises. Court abused its discretion neither in determining the compensatory base nor in awarding the 3:1 ratio of punitive damages to compensatory damages. Court properly ordered forfeiture of "loan fees" in finding that they were inappropriate transfers and not actually earned. Court was within its discretion in setting 13% prejudgment interest rate, as reasonable rate for developer having taken "interest-free loans". (CUNNINGHAM and HARRIS, concurring.)

Palmolive Tower Condominiums v. Simon

Illinois Appellate Court
Civil Court
Appeals
Citation
Case Number: 
Nos. 1-10-0427, 1-10-1348 cons.
Decision Date: 
Monday, May 16, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed (No. 1-10-0427); dismissed (No. 1-10-1348).
Justice: 
HOFFMAN
Parties entered into condominium purchase agreement before the Plaintiff had finished construction on the site. Plaintiff sued for declaration of entitlement to escrowed funds, damages for contract breach, and specific performance. Defendants filed counterclaims for contract breach, negligence, and fraud. Circuit court order with language indicating that it is "final and appealable", but not referencing immediate appeal, justness of delay, or Rule 304(a), does not trigger Rule 304(a), and is thus not appealable. Measure of damages is not the value of the items bargained away as part of closing agreement, but the difference in current position and the position which would have been attained had Plaintiff fully performed its duties under the contract. (HALL and LAMPKIN, concurring.)

U.S. v. Buchman

Federal 7th Circuit Court
Civil Court
Real Estate
Citation
Case Number: 
No. 10-2306
Decision Date: 
May 16, 2011
Federal District: 
E.D. Wisc.
Holding: 
Affirmed
In action by govt. to foreclose on mortgage on defendant's farm land after defendant had defaulted on debts owed to Dept. of Agriculture, Dist. Ct. did not err in entering judgment of foreclosure and confirming sale of farm land even though defendant contended that sale price was approximately $200,000 less than what defendant's expert had appraised said land. Dist. Ct. could properly reject defendant's appraisal in favor of instant sale price that was generated through competitive auction. Fact that judgment did not allow defendant opportunity to redeem property did not invalidate judgment where defendant forfeited redemption issue by failing to answer instant complaint and by waiting to raise issue until over year had passed after applicable judgment had been entered.

Christian Assembly Rios De Agua Viva v. The City of Burbank, Illinois

Illinois Appellate Court
Civil Court
Zoning
Citation
Case Number: 
No. 1-10-3822
Decision Date: 
Thursday, March 31, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Affirmed.
Justice: 
QUINN
Plaintiff church entered into contract for purchase of former restaurant building in area zoned commercial, and paid $50,000 in earnest money. Zoning contingency in contract gave 120 days to try to obtain zoning change, but City denied request for special use permit. Plaintiff knew, at time of entering into contract, of commercial zoning and that church use was allowed only by special use permit. Plaintiff could not rely in good faith on probability that City would approve use of property as church. Plaintiff thus failed to establish "probability" that City would approve special use permit, and it had no vested right to do so; thus, court properly denied Plaintiff's motion for preliminary injunction. (MURPHY and STEELE, concurring.)

BCS Services, Inc. v. Heartwood 88, LLC

Federal 7th Circuit Court
Civil Court
RICO
Citation
Case Number: 
Nos. 10-3062 & 10-3068 Cons.
Decision Date: 
March 24, 2011
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed and remanded
Dist. Ct. erred in granting defendants' motion for summary judgment in RICO action alleging that defendants improperly violated local rule prohibiting potential bidders of tax liens to use more than one agent to obtain tax liens where Dist. Ct.'s ruling was based on determination that plaintiffs could not establish that defendants' alleged conduct was proximate cause of plaintiffs losing any tax liens. While record showed possibility that other factors outside of sheer number of bidders in auction room could play role in obtaining winning bids, Dist. Ct. improperly placed burden on plaintiffs to prove nonexistence of potential superceding causes. Moreover, plaintiffs were entitled to trial on their claims where local rule was created for benefit of unrelated bidders, and where plaintiffs' evidence suggested that defendants took business opportunities away by flooding auction room with bidders that should not have been there.

Township of Jubilee v. State of Illinois

Illinois Supreme Court PLAs
Civil Court
Sovereign Immunity
Citation
PLA issue Date: 
January 26, 2011
Docket Number: 
No. 111447
District: 
3rd Dist.
This case presents issue as to whether trial court properly granted plaintiff’s motion for summary judgment in action to quiet title against defendant-State of Illinois, where defendant had previously filed motion to dismiss case based on State Lawsuit Immunity Act and Court of Claims Act, and where motion to dismiss was ultimately denied by trial court. Appellate Court found that while Immunity Act protected State from being named as defendant in instant action, State waived any immunity by filing counterclaim in instant lawsuit, which in turn vested trial court with jurisdiction to determine parties’ rights with respect to subject property.

Enbridge Pipelines (Illinois) LLC v. Moore

Federal 7th Circuit Court
Civil Court
Real Estate
Citation
Case Number: 
Nos. 10-2268 et al. Cons.
Decision Date: 
January 24, 2011
Federal District: 
C. D. Ill.; S. D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff's motions for summary judgment in actions seeking declaration that plaintiff's easements to operate oil pipeline under defendants' properties were still in force. While record showed that 10-inch pipeline had not been in use between 1988 and 2006, Ct. rejected defendants' claim that easements were no longer in force because plaintiff had not maintained pipeline. Rather, Ct. found that easements had not been abandoned where plaintiff had spent some money on maintaining pipeline during relevant period, and where pipeline could have been put back into service with additional expenditures by replacing any broken parts.