City of Effingham Illinois v. Durga Property Holdings, Inc.

2026 IL App (5th) 241175-U
Appellate Court of Illinois·Decided May 20, 2026·No. 5-24-1175·Unpublished

Opinion

NOTICE

2026 IL App (5th) 241175-U NOTICE

Decision filed 05/20/26. The This order was filed under text of this decision may be NO. 5-24-1175 Supreme Court Rule 23 and is changed or corrected prior to the filing of a Petition for not precedent except in the IN THE limited circumstances allowed Rehearing or the disposition of the same. under Rule 23(e)(1).

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT

CITY OF EFFINGHAM, ILLINOIS, ) Appeal from the a Municipal Corporation, ) Circuit Court of ) Effingham County.

Plaintiff-Appellee, )

)

v. ) No. 20-CH-22 )

DURGA PROPERTY HOLDINGS, INC., ) an Ohio Corporation, )

)

Defendant-Appellant, )

)

VILLAGE SQUARE MALL REALTY ) MANAGEMENT, LLC, an unknown Illinois Limited ) Liability Company, UNKNOWN OWNERS, and ) Honorable NON-RECORD CLAIMANTS, ) Allan F. Lolie, Defendants. ) Judge, presiding.

PRESIDING JUSTICE CATES delivered the judgment of the court.

Justices Sholar and Hackett concurred in the judgment.

ORDER

¶1 Held: The circuit court’s decision to deny the defendant’s motion to continue was not an abuse of discretion. The circuit court decision to grant summary judgment and deny the defendant’s motion to reconsider was not in error, nor did the circuit court abuse its discretion in denying the motion to reconsider.

¶2 The defendant, Durga Property Holdings, Inc. appeals the July 30, 2024, order granting summary judgment and the October 2, 2024, order denying the defendant’s motion to reconsider. For the following reasons, we affirm the decision of the circuit court.

¶3 I. BACKGROUND

¶4 In 2019, the plaintiff, City of Effingham, Illinois, initiated a proceeding pursuant to section 11-31-1 of the Unsafe Property Division of the Illinois Municipal Code (Unsafe Property Act) (65 ILCS 5/11-31-1 (West 2018)) against Village Square Mall Realty Management, LLC (VSM Realty) the owner of property commonly known as Village Square Mall (VS Mall). See City of Effingham v. Village Square Mall Realty Management, LLC, No. 19-MR-68 (Cir. Ct. Effingham County). After that matter was filed, VSM Realty transferred the ownership of VS Mall to Durga Property Holdings, Inc. (the defendant) which then intervened in that matter.

¶5 On August 7, 2020, in City of Effingham, No. 19-MR-68, the plaintiff and the defendant entered into an agreed order. Pursuant to the terms of the agreed order, VS Mall was declared to be “dangerous and unsafe” and the order set forth a schedule of work to be performed by the defendant to address the condition of the property. The plaintiff was authorized to perform the work outlined in the agreed order if the defendant failed to strictly comply with the terms and conditions of the agreed order. Thereafter, the plaintiff filed a rule to show cause in City of Effingham, No. 19-MR-68 and informed the defendant of its intention to complete the work outlined in the agreed order. The defendant responded by filing a petition for a temporary restraining order to prevent the plaintiff from performing work on the property.

¶6 An evidentiary hearing was held in City of Effingham, No. 19-MR-68 on November 23, 2020. The circuit court found that the defendant failed to strictly comply with the terms and conditions of the August 7, 2020, agreed order, and the time for compliance, even with an agreed- to extension, had expired. The circuit court further found that the VS Mall remained in a dangerous and unsafe condition. The circuit court additionally denied the request for the temporary restraining order. The plaintiff was authorized to perform the work identified in the agreed order

on the VS Mall. The defendant appealed this decision in City of Effingham v. Village Square Mall Realty Management LLC, 2021 IL App (5th) 200431-U, which was dismissed for lack of appellate jurisdiction because the appeal was untimely pursuant to Illinois Supreme Court Rule 307(a) (eff. Nov. 1, 2017).

¶7 The plaintiff proceeded to perform work on VS Mall as allowed by the August 7, 2020, agreed order and the November 23, 2020, order entered in City of Effingham, No. 19-MR-68. After separate sections of the work were completed, the plaintiff recorded notices of statutory liens. Four liens were recorded in total, on the following dates: October 28, 2020, July 1, 2021, December 14, 2021, and December 21, 2022.

¶8 On December 1, 2020, after having recorded its first lien, the plaintiff initiated this matter by filing its verified complaint to foreclose a statutory lien and notice of foreclosure regarding the VS Mall property. Three amended complaints were subsequently filed, and ultimately, the plaintiff sought relief pursuant to section 11-31-1(a) of the Unsafe Property Act (65 ILCS 5/11-31-1(a) (West 2018)) for the foreclosure of municipal dangerous and unsafe building liens. The third amended complaint contained four counts corresponding with the four recorded liens.

¶9 The defendant responded to the initial complaint and answered each amended complaint thereafter. The defendant denied the validity of the liens through four affirmative defenses: 1) fraudulent inducement, 2) equitable estoppel, 3) lack of standing, and 4) lack of honest attempt. The plaintiff submitted multiple motions to strike each of the defendant’s affirmative defenses. The circuit court entered corresponding orders striking all four of the defendant’s affirmative defenses, with prejudice.

¶ 10 Defense counsel filed a motion to withdraw on June 12, 2023. On August 15, 2023, new counsel for the defendant filed their entry of appearance in this matter as well as in City of Effingham, No. 19-MR-68.

¶ 11 The plaintiff filed a motion for summary judgment on August 22, 2023. The plaintiff claimed that it had entered into an agreed order with the defendant on August 7. 2020, in City of Effingham, No. 19-MR-68, and the defendant failed to comply with the order. The motion further indicated that after an evidentiary hearing, the circuit court issued an order on November 23, 2020, finding that the plaintiff was authorized to perform the required work as outlined in the agreed- upon order. Thereafter, the plaintiff performed work on the VS Mall and recorded four separate notices of statutory liens pursuant to and in compliance with section 11-31-1(a). The plaintiff additionally served the defendant with a verified complaint, and subsequently amended its complaints, published notice of foreclosure, filed a certificate of publication, and recorded the notice of foreclosure. The plaintiff argued that the defendant had failed to raise a “material issue of fact” concerning its claims because the circuit court had entered orders striking the defendant’s affirmative defenses, with prejudice. Therefore, the entry of summary judgment was proper where there was no disputed material fact concerning the validity of the four recorded statutory liens.

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City of Effingham Illinois v. Durga Property Holdings, Inc., 2026 IL App (5th) 241175-U (Ill. Ct. App. 2026).

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