Dedic v. Board of North Shore Towers Condominium Association

2018 IL App (1st) 171842, 105 N.E.3d 821
CourtAppellate Court of Illinois
DecidedMay 17, 2018
Docket1-17-1842
StatusUnpublished
Cited by1 cases

This text of 2018 IL App (1st) 171842 (Dedic v. Board of North Shore Towers Condominium Association) 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
Dedic v. Board of North Shore Towers Condominium Association, 2018 IL App (1st) 171842, 105 N.E.3d 821 (Ill. Ct. App. 2018).

Opinion

JUSTICE McBRIDE delivered the judgment of the court, with opinion.

¶ 1 Condominium unit owner Selma Dedic sought a permanent injunction to prevent the board of managers of North Shore Towers Condominium Association (Board) from levying a $1.01 million special assessment to remediate all 90 balconies in her residential condominium complex in Skokie, Illinois, and from executing a contract to perform the work. 1 Dedic contended the Board could not proceed until it held a referendum vote of the unit owners. The community's declaration of condominium ownership and the Condominium Property Act (Act) provide that the imposition of a special assessment of this magnitude may be nullified by an owner referendum. 765 ILCS 605/18(a)(8)(ii) (West 2014) (20% of condominium association members may demand a referendum of a large special assessment, and unless a majority of voters reject the assessment, it is ratified). However, regardless of the size of a special assessment, if it addresses an "emergenc[y]" or is "mandated by law," then owners are not entitled to vote. 765 ILCS 605/18(a)(8)(ii), (iv) (West 2014). It is undisputed that Dedic's balcony, situated within an interior courtyard of the 40-year-old condominium complex, had not deteriorated to the extent that it posed an imminent safety concern to her. After a two-day bench trial, the circuit court judge found that the railings of 56 of the 90 balconies could not withstand the 200-pound minimum point load required by local building code and, thus, remediation was an "emergency" and was also "mandated by law." On appeal, Dedic contends the evidence showed that only a handful of the balconies actually presented an immediate danger, that a general refurbishment of the balconies may be prudent and a sign of good property management but is not an "emergency," and that, until the Board undertook "extensive repairs," it would not be "mandated by law" to retrofit or replace the balcony railings so that their height and spindle spacing conformed with a new or updated building code.

¶ 2 The Board adopted the special assessment on September 21, 2016, based on competitive bids, which had been received in June and August 2016, and the Board intended to proceed with immediate repairs of the most critical balconies before the arrival of winter weather. However, Dedic and 21 other unit owners petitioned the Board on October 4, 2016, to hold a referendum. Section 14(g) of the North Shore Towers condominium association declaration of condominium ownership allows unit owners to call a referendum vote on any special assessment passed by the Board that exceeds 115% of the sum of the prior year's regular and special assessments. That section states:

"(g) Special Assessment. The Board may levy a special assessment (1) to pay (or to build up reserves to pay) extraordinary expenses incurred (or to be incurred) by the Association for a specific purpose including, without limitation, to make additions, alterations or improvements to the Common Elements, *** or (4) to cover the cost of an emergency. Any special assessment, which will require the aggregate payment with respect to a Unit which results in a sum or all regular separate assessments payable in the current fiscal year exceeding 115% of the sum of all regular and special assessments payable during the preceding fiscal year, the Board, upon written petition of the Unit Owners with twenty percent (20%) of the votes of the Association delivered to the Board within fourteen (14) days of the Board action, shall call a meeting of the Unit Owners within thirty (30) days of the date of delivery of the petition to consider the special assessment; unless a majority of the total votes of the Unit Owners are cast at the meeting to reject the special assessment, it is ratified. Special assessments related to emergencies or mandated by law may be adopted by the Board without Unit Owner approval and will not be subject to the Unit Owners' right to petition as mentioned above . Each Owner shall be responsible for the payment of the amount of the special assessment multiplied by the Unit's Undivided Interest [in the Common Elements appurtenant to a Unit as allocated in the original Declaration]." (Emphasis added.)

¶ 3 Section 14(h) of the declaration further addresses emergency special assessments and defines the term "emergency," stating:

"(h) Emergencies. The Board may levy a special assessment for expenditures related to emergencies or mandated by law, without being subject to Unit Owner approval of [or] the Unit Owners' right to petition as mentioned in section (g) above. An emergency is defined as an immediate danger to the structural integrity of the Common Elements or to the life, health, safety or property of the Unit Owners."

¶ 4 These provisions are consistent with the Act's general rules concerning the minimum content of condominium bylaws. Section 18(a)(8) of the Act stated in relevant part:

"(ii) that except as provided in subsection (iv) below, if an adopted budget or any separate assessment adopted by the board would result in the sum of all regular and separate assessments payable in the current fiscal year exceeding 115% of the sum of all regular and separate assessments payable during the preceding fiscal year, the board of managers, upon written petition by unit owners with 20 percent of the votes of the association delivered to the board within 14 days of the board action, shall call a meeting of the unit owners within 30 days of the date of delivery of the petition to consider the budget or separate assessment; unless a majority of the total votes of the unit owners are cast at the meeting to reject the budget or separate assessment, it is ratified, *** (iv) that separate assessments for expenditures relating to emergencies or mandated by law may be adopted by the board of managers without being subject to unit owner approval or the provisions of item (ii) above or item (v) below. As used herein, 'emergency' means an immediate danger to the structural integrity of the common elements or to the life, health, safety or property of the unit owners ***[.]" (Emphases added.) 765 ILCS 605/18(a)(8)(ii), (iv) (West 2014).

¶ 5 The Board declined to schedule a unit owners' vote. Attorney Kerry T. Bartell, who specializes in Illinois community association law, sent Dedic an explanatory letter, stating in part:

"It is the opinion of [the licensed, independent structural engineering firm engaged by the Board] that a number of the balconies are unsafe for use by the homeowners, and [this law firm] understand[s] that the Board has already advised those owners to refrain from using them until the repairs can be completed. This is an immediate life and safety hazard for the property and we understand it affects many of the balconies. Pursuant to the Act, this is an emergency repair and therefore, the petition that you submitted is ineffective and not appropriate. Accordingly, the Board will not be calling a meeting of the owners to vote on the rejection of the special assessment since this remedy is not available to you at this time."

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Related

Dedic v. Board of North Shore Towers Condominium Ass'n
2018 IL App (1st) 171842 (Appellate Court of Illinois, 2018)

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Bluebook (online)
2018 IL App (1st) 171842, 105 N.E.3d 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dedic-v-board-of-north-shore-towers-condominium-association-illappct-2018.