Baker v. The Forest of Preserve District of Cook County

2015 IL App (1st) 141457
CourtAppellate Court of Illinois
DecidedMay 18, 2015
Docket1-14-1157
StatusUnpublished

This text of 2015 IL App (1st) 141457 (Baker v. The Forest of Preserve District of Cook County) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. The Forest of Preserve District of Cook County, 2015 IL App (1st) 141457 (Ill. Ct. App. 2015).

Opinion

2015 IL App. (1st) 141157 No. 1-14-1157 FIRST DIVISION May 18, 2015

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

TODD BAKER, RICHARD KIRK CANNON, ) Appeal from the MERYL SQUIRES CANNON, and WANDA ) Circuit Court of DZIOPEK, ) Cook County. ) Plaintiffs-Appellants, ) ) 13 CH 20057 v. ) ) THE FOREST PRESERVE DISTRICT OF COOK ) Honorable COUNTY, and BMO HARRIS BANK, N.A., ) Thomas R. Allen, ) Judge Presiding. Defendants-Appellees. )

JUSTICE CONNORS delivered the judgment of the court, with opinion Presiding Justice Delort and Justice Cunningham concurred in the judgment and opinion.

OPINION

¶1 This appeal, filed by taxpayers of Cook County, concerns the statutory authority of

the Forest Preserve District of Cook County (FPD) to acquire property in foreclosure by

purchasing the mortgage note and subsequently bidding on the property at the foreclosure sale.

¶2 I. BACKGROUND

¶3 A. Foreclosure Action: BMO Harris Bank et al. v. Royalty Properties, LLC

¶4 In December 2006, Cannon Squires Properties, LLC, and Royalty Properties, LLC,

received a loan from Amcore Bank (Amcore) to purchase Horizon Farms (the property or

Horizon Farms), and the two companies mortgaged the property in return for the loan. Richard 1-14-1157

Kirk Cannon and Meryl Squires Cannon, members of the companies, guaranteed the loan. When

the loan matured in May 2009, the entire principal and interest became due and there were also

unpaid taxes on the property. Amcore began foreclosure proceedings. When Amcore failed the

following year, BMO Harris (BMO) assumed the deposits and purchased all of the assets of

Amcore, including the Horizon Farms mortgage and note.

¶5 On March 19, 2013, the Forest Preserve District Board (Board) approved FPD's

purchase of the Horizon Farm's note from BMO. BMO and FPD executed an assignment and

assumption agreement. On June 27, 2013, FPD paid BMO $14 million for the note and to

become the assignee of the Horizon Farms mortgage.

¶6 Shortly thereafter, defendants filed a motion to substitute plaintiff, FPD for BMO, in

the foreclosure proceedings pursuant to section 2-1008 of the Code of Civil Procedure (735 ILCS

5/2-1008(a) (West 2012)) as FPD was the present holder and owner of the assignment and

assumption agreement relating to Horizon Farms. The court granted the motion to substitute

plaintiff.

¶7 On August 30, 2013, a judgment of foreclosure was entered in favor of FPD.

¶8 In October 2013, the Board authorized FPD's participation in the foreclosure sale of

Horizon Farms. On October 18, 2013, FPD participated in the foreclosure sale and credit bid for

the property. FPD was the highest bidder and received the certificate of sale for the property. The

sale was confirmed on May 5, 2014, and FPD acquired title to the property on May 16, 2014,

upon receipt of the sheriff's deed.

¶9 B. Instant Taxpayer Suit

2 1-14-1157

¶ 10 Plaintiffs, Richard Kirk Cannon, Meryl Squires Cannon, and Todd Baker, 1 filed their

complaint in this action (taxpayer suit) against FPD, the Board, 2 and BMO. This taxpayer suit

was filed on August 30, 2013, which was the same day the foreclosure judgment was entered in

favor of FPD in the foreclosure action. All plaintiffs allege that they are Cook County taxpayers.

¶ 11 The crux of plaintiffs' complaint is that FPD's purchase of the mortgage note from

BMO and then its participation in the foreclosure sale was contrary to the Cook County Forest

Preserve District Act (District Act) (70 ILCS 810/1 et seq. (West 2012)) which grants forest

preserve districts the power to acquire land in "fee simple" (70 ILCS 810/7, 8 (West 2012)).

Plaintiffs contend that because public funds were expended in purchasing the note and before

FPD received title to the property, FPD did not acquire Horizon Farms in fee simple.

¶ 12 Plaintiffs' complaint contains three counts—one for declaratory relief and two for

injunctive relief. Count I of the complaint, focusing on FPD's statutory authority, requests that

the court declare that: (1) FPD's actions in entering into the loan agreements are ultra vires and

void; (2) FPD's actions in expending public funds for the acquisition of loan documents and for

litigation in the foreclosure action are ultra vires and void; (3) the purchase of Horizon Farms is

void and BMO must return the funds to FPD; (4) FPD does not have the authority to expend

public funds in foreclosure litigation, to "purchase commercial paper or liens in private litigation,

or act as a private litigant"; (5) FPD's purchase of a promissory note is not equivalent to

acquiring land in fee simple; and (6) FPD does not have the statutory authority to expend public

funds in private foreclosure litigation, purchase commercial paper, or to act as a speculative

investor.

1 During the pendency of the appeal, the fourth plaintiff, Wanda Dziopek, died. 2 The Board was voluntarily dismissed from this taxpayer suit on October 1, 2013. 3 1-14-1157

¶ 13 Count II of the complaint requests: (1) a preliminary and permanent injunction

barring further expenditure of public funds (including attorney fees or litigation costs) in the

foreclosure action; (2) a mandatory injunction to recover all litigation expenses and attorney fees

incurred in the foreclosure action; (3) a preliminary and permanent injunction barring further

transfers of title to third parties, modifications, or improvements to the property acquired in the

foreclosure action until final judgment in the current case; (4) a mandatory injunction requiring

the rescission of the loan documents; and (5) that the court declare the purchase of the land void

and order return of public funds.

¶ 14 Count III of the complaint seeks injunctive relief: (1) enjoining FPD from expending

further public funds in the foreclosure action, or in the purchase of commercial paper or liens in

private litigation; (2) enjoining and preventing the expenditure of any public funds except when

the purchase concurrently bestows FPD with acquisition of land in fee simple; (3) enjoining FPD

from using public funds to act as a speculative investor; (4) enjoining FPD from acquiring loan

documentation secured by property that is appraised at a value less than the price to acquire the

documentation; and (5) enjoining FPD's interpretation of section 10 of the District Act (70 ILCS

810/10 (West 2012)) to allow the purchase of commercial loan documents.

¶ 15 Counts I and II also request recovery of plaintiffs' attorney fees and all three counts

request any other relief the court deems just and appropriate.

¶ 16 Defendants moved for summary judgment and plaintiffs filed a cross-motion for

summary judgment.

¶ 17 On April 23, 2014, the circuit court granted defendants' motion for summary

judgment as to counts I and II of plaintiffs' complaint, finding that FPD acted within its statutory

4 1-14-1157

authority in acquiring Horizon Farms. The court denied plaintiffs' cross-motion for summary

judgment and granted defendants' motion to dismiss count III.

¶ 18 Plaintiffs filed their notice of appeal on April 24, 2014.

¶ 19 II. ANALYSIS

¶ 20 A. Arguments on Appeal

¶ 21 On appeal, plaintiffs argue that FPD is a non-home-rule unit of local government that,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Schultz v. Illinois Farmers Insurance
930 N.E.2d 943 (Illinois Supreme Court, 2010)
Madison Two Associates v. Pappas
884 N.E.2d 142 (Illinois Supreme Court, 2008)
In Re India B.
782 N.E.2d 224 (Illinois Supreme Court, 2002)
Illinois Gasoline Dealers Ass'n v. City of Chicago
519 N.E.2d 447 (Illinois Supreme Court, 1988)
Kinzer v. City of Chicago
523 N.E.2d 919 (Appellate Court of Illinois, 1988)
Chirikos v. Yellow Cab Co.
410 N.E.2d 61 (Appellate Court of Illinois, 1980)
People Ex Rel. Newdelman v. Weaver
278 N.E.2d 81 (Illinois Supreme Court, 1972)
Underground Contractors Ass'n v. City of Chicago
362 N.E.2d 298 (Illinois Supreme Court, 1977)
R.W. Dunteman Co. v. C/G Enterprises Inc.
692 N.E.2d 306 (Illinois Supreme Court, 1998)
Egidi v. Town of Libertyville
578 N.E.2d 1300 (Appellate Court of Illinois, 1991)
Landmarks Preservation Council v. City of Chicago
531 N.E.2d 9 (Illinois Supreme Court, 1988)
Harris v. Manor Healthcare Corp.
489 N.E.2d 1374 (Illinois Supreme Court, 1986)
Caro v. Whitaker
898 N.E.2d 1110 (Appellate Court of Illinois, 2008)
Steinbrecher v. Steinbrecher
759 N.E.2d 509 (Illinois Supreme Court, 2001)
Forest Preserve District of Du Page County v. West Suburban Bank
641 N.E.2d 493 (Illinois Supreme Court, 1994)
Robinson v. Robinson
429 N.E.2d 183 (Appellate Court of Illinois, 1981)
Leafblad v. Skidmore
798 N.E.2d 797 (Appellate Court of Illinois, 2003)
Collins v. Collins
151 N.E.2d 813 (Illinois Supreme Court, 1958)
Madison Park Bank v. Zagel
437 N.E.2d 638 (Illinois Supreme Court, 1982)
People Ex Rel. Hamer v. Board of Education of School District No. 109
264 N.E.2d 420 (Appellate Court of Illinois, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
2015 IL App (1st) 141457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-the-forest-of-preserve-district-of-cook-county-illappct-2015.