De L'Ogier Park Development Corp. v. First Federal Savings & Loan Ass'n

286 N.E.2d 583, 6 Ill. App. 3d 807, 1972 Ill. App. LEXIS 2587
CourtAppellate Court of Illinois
DecidedJuly 13, 1972
Docket54779
StatusPublished
Cited by9 cases

This text of 286 N.E.2d 583 (De L'Ogier Park Development Corp. v. First Federal Savings & Loan Ass'n) 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
De L'Ogier Park Development Corp. v. First Federal Savings & Loan Ass'n, 286 N.E.2d 583, 6 Ill. App. 3d 807, 1972 Ill. App. LEXIS 2587 (Ill. Ct. App. 1972).

Opinion

Mr. PRESIDING JUSTICE McGLOON

delivered the opinion of the court:

This is an appeal from an order of the trial court sustaining the motions of the various defendants to strike and dismiss the plaintiff’s complaint.

We affirm.

The facts as set out in the plaintiff’s complaint are as follows: The De L’Ogier Park Development Corporation (hereinafter referred to as De L’Ogier) and the J. Edwards Construction Company were solely owned by John E. Emerson. In August, 1959, De L’Ogier began to develop a subdivision on land owned by Emerson located in Glenview, Illinois. The subdivision was to be known as De L’Ogier Park. Actual construction of the homes in the subdivision was to be done by the Edwards Company.

Prior to commencing the construction of homes, De L’Ogier obtained three construction loans totaling $105,000 from First Federal Savings and Loan Association of Berwyn, Illinois. These loans were secured by first mortgages on lots 12, 14 and 20 of the De L’Ogier subdivision.

In July, 1969, plaintiffs Emerson and De L’Ogier filed suit against the various defendants charging them with a conspiracy to destroy the plaintiffs’ business. The defendants named in the complaint can be briefly identified as follows: a) First Federal Savings and Loan Association is a corporation located in Berwyn, Illinois, b) George W. Hermann is a mortgage broker in Chicago, Illinois. He is not related to defendants Edward or Stephen Herman, c) George W. Foose was the Building and Zoning Director of the Village of Glenview, Illinois, d) Edward M. Herman is an attorney who was counsel for First Federal Savings and Loan, e) Stephen M. Herman is the son of Edward Herman and is an attorney. He also was a counsel for First Federal Savings and Loan. He also acted as special prosecutor for the Village of Glenview.

The plaintiffs’ complaint alleges various acts committed by the defendants pursuant to the conspiracy, the relevant parts of which are as follows:

1. That on or about August 1, 1962, the defendants entered a conspiracy to destroy plaintiffs’ business by preventing them from constructing and selling homes and by forcing De L’Ogier into foreclosure so that defendants, particularly George Hermann, could obtain the mortgaged property.

2. That in the fall of 1962, defendant George Hermann, enlisted the aid of defendant Foose in obstructing plaintiffs’ business, and as a reward for his aid Foose was given a 100 per cent mortgage on a home he purchased in Glenview.

3. That in furtherance of the conspiracy, the following Ulegal and unlawful acts were committed by defendants, particularly defendant George Foose:

a) During 1963 and 1964 Foose charged plaintiffs with 29 building code violations including the issuance of ten warrants for arrest of plaintiff Emerson;

b) A contract for the sale of plaintiffs’ first constructed home on lot 12 of the subdivision was entered with prospective buyers on November 2, 1962. Thereafter, Foose issued a stop-work order charging a violation of the building code. The violation was allegedly that the garage was 6Y4" over the back-set line. Legal proceedings were instituted by Foose and later dismissed because he was unable to prove the violation.

c) On November 10, 1962, Foose entered the De L’Ogier subdivision with police officers and arbitrarily stopped aU construction work.

d) Defendant Foose prepared a three page report seeking revocation of the J. Edwards Company contractor’s license and submitted it to the Glenview Village Manager. Subsequently, Foose with the assistance of defendant Stephen Herman, supplemented the report. No action was taken on either occasion. The purpose of the reports was allegedly to embarrass plaintiffs and destroy their business.

e) On April 16, 1964, plaintiff Emerson was arrested by Glenview police at defendant Foose’s direction and incarcerated for a period of several hours. The arrest warrants involved failure of plaintiffs to obtain occupancy inspections on two houses that had been occupied for a number of months. The occupants had allegedly notified the Village of Glenview prior to the time they moved in. Two other arrest warrants issued involved failure to have prepouring concrete inspections On pourings which had been made some seven to ten months earlier.

f) On September 30, 1963, defendant First Federal filed foreclosure actions on lots 12, 14 and 20. During these proceedings plaintiffs entered a contract with prospective buyers for sale of one of its houses which sale would allegedly have given plaintiffs the necessary funds to get an extension on the mortgage loan. First Federal denied all requests for an extension, and Foose on August 3, 1964, placed a stop-work order on the house, and on August 11, 1964, placed stop-work orders on three additional houses under construction.

g) On September 30, 1963, First Federal filed foreclosure actions on mortgages it held covering lots 7, 14 and 20 of plaintiffs’ subdivision. First Federal allegedy refused to honor payout requests executed by the J. Edwards Construction Company which they had previously honored on many occasions. These requests would then be endorsed over and submitted to First Federal as payments for plaintiff De L’Ogier.

h) That defendants Stephen Herman and Edward Herman represented First Federal in the foreclosure actions. At approximately the same time, Stephen Herman was appointed special prosecutor for the Village of Glenview in which position he prosecuted plaintiffs for the alleged building code violations.

i) On October 15, 1963, plaintiff De L’Ogier entered a contract of sale for a house on lot 14. Allegedly to prevent sale, defendant Stephen Herman, acting as attorney for First Federal, refused to forward necessary papers to the lending institution which was financing the sale. Plaintiff De L’Ogier had to take court action to get the papers forwarded.

j) After foreclosure proceedings had been instituted by defendant First Federal on lots 12, 14 and 20, defendants George Hermann and Edward Herman, together with other bank officers, refused to agree to an extension of time on the loans. On August 12, 1964, lot 20 was purchased by George Hermann at a foreclosure sale for an amount alleged to be considerably less than its market value.

4. Defendant George Hermann was subsequently indicted and prosecuted on a plea of nolo contendere for failure to report as income the 10 per cent discount he received on his loans to plaintiff De L’Ogier which were secured by second mortgages.

5. As a result of defendants’ conspiracy, plaintiff DeL’Ogier’s business reputation and credit rating were allegedly destroyed. Further, plaintiff Emerson’s business career was also allegedly destroyed.

The various defendants filed motions to strike and dismiss the plaintiff’s coinplaint on the grounds that the complaint failed to state a cause of action and also that it was barred by the statute of limitations and by the doctrine of res judicata. The trial judge issued an order dismissing the complaint, and it is from this order that the plaintiffs appeal.

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Bluebook (online)
286 N.E.2d 583, 6 Ill. App. 3d 807, 1972 Ill. App. LEXIS 2587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-logier-park-development-corp-v-first-federal-savings-loan-assn-illappct-1972.