CitiMortgage, Inc. v. San Juan

2012 IL App (1st) 110626, 976 N.E.2d 563
CourtAppellate Court of Illinois
DecidedAugust 16, 2012
Docket1-11-0626
StatusPublished
Cited by2 cases

This text of 2012 IL App (1st) 110626 (CitiMortgage, Inc. v. San Juan) 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
CitiMortgage, Inc. v. San Juan, 2012 IL App (1st) 110626, 976 N.E.2d 563 (Ill. Ct. App. 2012).

Opinion

ILLINOIS OFFICIAL REPORTS Appellate Court

CitiMortgage, Inc. v. San Juan, 2012 IL App (1st) 110626

Appellate Court CITIMORTGAGE, INC., Plaintiff-Appellant, v. VIVIAN SAN JUAN; Caption FIVE THOUSAND EAST END AVENUE BUILDING CORPORATION; CAMERON L. BASDEN; CITIBANK, N.A., Under Security Agreement Recorded December 21, 2006 as Document Number 0635555073; NONRECORD CLAIMANTS; AND UNKNOWN OWNERS, Defendants-Appellees.

District & No. First District, Fourth Division Docket No. 1-11-0626

Rule 23 Order filed June 28, 2012 Rule 23 Order withdrawn July 30, 1012 Opinion filed August 16, 2012

Held Plaintiff mortgagee’s petition under section 2-1401 of the Code of Civil (Note: This syllabus Procedure seeking to vacate a judgment of foreclosure and confirmation constitutes no part of of sale entered in its favor but also subjecting it to liability for past-due the opinion of the court assessments was properly denied where plaintiff failed to present a but has been prepared meritorious defense or claim. by the Reporter of Decisions for the convenience of the reader.)

Decision Under Appeal from the Circuit Court of Cook County, No. 09-CH-30407; the Review Hon. Darryl B. Simko, Judge, presiding.

Judgment Affirmed. Counsel on Law Offices of Ira T. Nevel, LLC, of Chicago (Ira T. Nevel, of counsel), Appeal for appellant.

Levenfeld Pearlstein, LLC, of Chicago (Christopher M. Heintskill and Paul J. Ochmanek Jr., of counsel), for appellee Five Thousand East End Avenue Building Corp.

Panel JUSTICE STERBA delivered the judgment of the court, with opinion. Presiding Justice Lavin and Justice Fitzgerald Smith concurred in the judgment and opinion.

OPINION

¶1 CitiMortgage, Inc., commenced foreclosure proceedings on a security interest held in a unit located in a cooperative building. CitiMortgage purchased that unit at a judgment sale and the trial court entered an order confirming the sale. CitiMortgage then filed a petition to vacate the trial court’s order confirming the sale of the unit pursuant to section 2-1401 of the Code of Civil Procedure (735 ILCS 5/2-1401 (West 2010)) when it discovered that it would be liable for paying past-due assessments and that the cooperative building planned to convert its apartments into condominiums. CitiMortgage appeals the trial court’s denial of its section 2-1401 petition claiming that the trial court erred in finding that it failed to raise a meritorious defense. CitiMortgage claims that because it was seeking to vacate a judgment entered in its favor, it was not required to present a meritorious defense. In the alternative, CitiMortgage claims that the newly discovered evidence of past-due assessments amounting to $50,000 and the cooperative building’s conversion into condominiums raises a meritorious defense. For the reasons that follow, we affirm.

¶2 BACKGROUND ¶3 On August 26, 2009, CitiMortgage filed a complaint to foreclose a cooperative security agreement (Agreement). The Agreement was executed on December 19, 2003, between it and Vivian San Juan and Cameron L. Basden, who were the shareholders of property located at 5000 East End, Unit 6D in Hyde Park, Illinois, which was an apartment in a cooperative building. San Juan and Basden owned 66 shares in the cooperative building. The owner of the premises was Five Thousand East End Building Corporation (Building Corporation), and San Juan and Basden were shareholders. The total amount of the original indebtedness stated in the Agreement was $55,600, and the principal balance outstanding was $51,649.25. ¶4 On October 21, 2009, Building Corporation filed its answer to CitiMortgage’s complaint to foreclose the Agreement, which asserted priority as an affirmative defense. Building Corporation claimed that “by virtue of the Proprietary Lease and Recognition Agreement,

-2- the right, title and interest of the Building Corporation to payment of its assessments and fees, is prior and superior to the interest of the Plaintiff herein.” Building Corporation asserted that it must be paid for past-due amounts before CitiMortgage could receive any distributions resulting from the disposition of the shares. Attached to the answer was the affidavit of Brooke Finlan, who was Building Corporation’s property manager, which stated that Building Corporation was owed $18,934.79 in past-due assessments, charges and fees as of October 15, 2009. ¶5 On November 10, 2009, Building Corporation issued to CitiMortgage a certificate identifying it as the owner of 66 shares of capital stock of the building, which were the shares owned by San Juan and Basden. ¶6 On December 8, 2009, CitiMortgage filed a motion for default and certificate of service against San Juan and Basden. On that same day, CitiMortgage also filed a motion for summary judgment against Building Corporation. On January 21, 2010, the trial court entered an order of default against San Juan and Basden. Also on that day, the trial court entered an order granting CitiMortgage’s motion for summary judgment and simultaneously entered the judgment of foreclosure and order of sale. The judgment of foreclosure stated that CitiMortgage’s mortgage was superior to all other defendants’ liens, rights or claims upon the real estate, and that the total amount due to CitiMortgage was $58,726.40. The judgment of foreclosure also provided that CitiMortgage shall pay any real estate taxes, assessments or any other advances during the statutory period of redemption, which expired on April 21, 2010. The foreclosure sale occurred on May 21, 2010, and CitiMortgage was the highest bidder offering $34,126. ¶7 In May 2010, Building Corporation filed a forcible entry and detainer action against Citibank. This action did not proceed to trial because CitiMortgage’s mortgage was superior to all other defendants’ liens, rights or claims. Building Corporation’s counsel was not aware of the pending foreclosure action until Citibank’s counsel brought that proceeding to his and the trial court’s attention. ¶8 On August 4, 2010, Building Corporation filed a stipulated motion for substitution of counsel, motion to vacate the judgment of foreclosure, and to disapprove the report of sale. Building Corporation asserted that in its answer to the complaint, it stated that the foreclosure action involved a residential cooperative and that CitiMortgage’s interest was subject to and subordinate to its interest. Building Corporation claimed that CitiMortgage misled the court because it failed to inform it about the existence and effect of the recognition agreement executed between it and CitiMortgage on December 19, 2003, which provided that Building Corporation’s lien was superior to CitiMortgage’s lien. The trial court entered an order on August 12, 2010 continuing Building Corporation’s motion to vacate to September 2, 2010. ¶9 Also on August 4, 2010, CitiMortgage filed a motion for confirmation of sale, and the trial court on August 10, 2010, entered an order confirming the sale. ¶ 10 On September 2, 2010, the trial court entered an order granting Building Corporation’s stipulated motion for substitution of counsel. The trial court also granted in part Building Corporation’s motion to vacate the judgment of foreclosure, and amended the judgment of

-3- foreclosure to provide it with a lien, right or claim superior to all other parties, including CitiMortgage, and CitiMortgage now had a lien, right or interest subordinate to Building Corporation, but superior to all other defendants. The trial court also ruled that Building Corporation’s motion to disapprove the report of sale was stricken. ¶ 11 Lee Ann Cummings, president of the board of directors of building corporation, sent CitiMortgage’s attorney an e-mail on October 29, 2010.

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Bluebook (online)
2012 IL App (1st) 110626, 976 N.E.2d 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citimortgage-inc-v-san-juan-illappct-2012.