Diamond Savings & Loan Co. v. Royal Glen Condominium Ass'n

526 N.E.2d 372, 173 Ill. App. 3d 431, 122 Ill. Dec. 113, 1988 Ill. App. LEXIS 473
CourtAppellate Court of Illinois
DecidedApril 14, 1988
Docket2-88-0028
StatusPublished
Cited by4 cases

This text of 526 N.E.2d 372 (Diamond Savings & Loan Co. v. Royal Glen Condominium 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
Diamond Savings & Loan Co. v. Royal Glen Condominium Ass'n, 526 N.E.2d 372, 173 Ill. App. 3d 431, 122 Ill. Dec. 113, 1988 Ill. App. LEXIS 473 (Ill. Ct. App. 1988).

Opinion

JUSTICE WOODWARD

delivered the opinion of the court:

Defendant, Royal Glen Condominium Association (Royal Glen), appeals from the entry of a temporary restraining order by the circuit court of Du Page County which requires it to place rents received from a certain condominium in escrow. Royal Glen contends that the trial court abused its discretion in granting Diamond Savings & Loan Company’s (Diamond’s) request for a temporary restraining order because Diamond’s petition did not adequately allege the requirements for injunctive relief. We reverse.

Maynard Welch, who is not a party to this appeal, was the owner of a condominium unit commonly known as 1183 Royal Glen Drive No. 302 in Glen Ellyn, Illinois. On June 24, 1987, a forcible entry and detainer order was entered in favor of Royal Glen because of overdue assessment payments on the unit, pursuant to section 9.2 of the Condominium Property Act (Ill. Rev. Stat. 1985, ch. 30, par. 309.2). On September 1,1987, Royal Glen began renting the condominium.

Plaintiff’s counsel sent a letter to Royal Glen’s tenant on October 13, 1987, advising her that all rents due under her lease should be forwarded to Diamond because of Diamond’s mortgage with Welch. Royal Glen then advised Diamond that Royal Glen was in possession of the unit under a court order and asked Diamond’s counsel to refrain from contacting Royal Glen’s tenant. Diamond’s counsel refused and informed Royal Glen that it would be named in a foreclosure action against the property.

On November 5, 1987, Diamond filed a foreclosure action against the property in the circuit court of Du Page County, naming Maynard Welch, Royal Glen, and La Salle National Bank as defendants. Diamond filed a verified emergency petition for a temporary restraining order on December 10, 1987. Royal Glen’s counsel received telephonic notice at 5:25 p.m. on December 9 and did not appear the next morning. The court entered the petition, but continued it to December 16.

The defendant filed a response to the petition, and the court heard arguments on Diamond’s request. The plaintiff argued that it had a protectable right in an assignment of rents, and it wanted the money held in escrow until the court determined who was entitled to the rents. The court granted Diamond’s request for injunctive relief and ordered the defendant to place all rent payments in escrow until otherwise ordered by the court. The court found that Diamond had a protectable right in future rent payments and would suffer the irreparable injury of losing the ability to collect such payments if a temporary restraining order was not entered. The court set a new hearing date for January 4, 1988, but did not specify the nature of the hearing. The defendant’s counsel did not appear on January 4, and the court entered an order continuing the injunctive relief. Defendant filed a timely notice of interlocutory appeal pursuant to Supreme Court Rule 307(a)(l) (107 Ill. 2d R. 307(a)(1)) on January 11, 1988, appealing the trial court’s December 16 order.

Our first task is to determine whether the December 16 order entered by the trial court was a temporary restraining order or a preliminary injunction. The plaintiff claims that the order is the functional equivalent of a preliminary injunction because the January 4, 1988, order continued the temporary restraining order for an unlimited duration. As the Illinois Supreme Court has stated:

“In far too many cases the distinction between a temporary restraining order, a preliminary injunction, and a permanent injunction becomes blurred during the proceedings.” (Buzz Barton & Associates, Inc. v. Giannone (1985), 108 Ill. 2d 373, 385.)

The original pleading in this case was a verified emergency petition requesting a temporary restraining order. The order entered on December 16 stated that it was a temporary restraining order. Finally, the January 4 order stated that it was continuing the temporary restraining order. Royal Glen’s notice of appeal indicates that it is not appealing the January 4 extension, but only the original December 16 order. Because the appeal of the December 16 order was timely, we will only consider the proceedings up to and including December 16 in determining the nature of the order.

Section 11 — 101 of the Code of Civil Procedure (Ill. Rev. Stat. 1985, ch. 110, par. 11 — 101) sets out the process for obtaining a temporary restraining order. If a temporary restraining order is granted without notice to the adverse party, it expires after 10 days and may be extended for an additional 10 days for good cause. (Ill. Rev. Stat. 1985, ch. 110, par. 11 — 101.) If a temporary restraining order is granted after notice has been given to the adverse party, there is no time limit on the order. Kable Printing Co. v. Mount Morris Bookbinders Union Local 65-B (1976), 63 Ill. 2d 514, 521.

In Peoples Gas Light & Coke Co. v. City of Chicago (1983), 117 Ill. App. 3d 353, the appellate court was faced with a dilemma similar to the present case. The plaintiff filed a verified complaint to prevent the City of Chicago from implementing a city ordinance. (Peoples Gas Light & Coke Co., 117 Ill. App. 3d at 354.) The trial court granted the request for injunctive relief and ordered that it remain in effect until either party requested a preliminary injunction hearing. (Peoples Gas Light & Coke Co., 117 Ill. App. 3d at 355.) The appellate court found that this temporary restraining order was not the equivalent of a preliminary injunction because it would only be effective until one of the parties requested a hearing on a preliminary injunction, and the order was clearly designed to preserve the status quo pending a hearing on a preliminary injunction. Peoples Gas Light & Coke Co., 117 Ill. App. 3d at 357.

The order in the present case specifically states that it is a temporary restraining order. In addition, it sets out a date for a second hearing less than three weeks after its entry. However, the trial court’s statement at the hearing indicates that it intended this order to remain in force pending further orders. After examining the entire record in this case, we conclude that the trial court intended the December 16 order to be a temporary restraining order which would remain in effect until a hearing on January 4. While it is true that the January 4 order extended the temporary restraining order indefinitely, Royal Glen is appealing the grant of the order, not its extension. Therefore, we will treat the December 16 injunction as a temporary restraining order.

A temporary restraining order is an emergency remedy which should be issued in exceptional circumstances. (Abdulhafedh v. Secretary of State (1987), 161 Ill. App. 3d 413, 417.) The purpose of a temporary restraining order is to preserve the status quo pending a hearing on a preliminary injunction. (Stocker Hinge Manufacturing Co. v. Darnel Industries, Inc. (1983), 94 Ill. 2d 535, 541.) The grant of a temporary restraining order is within the trial court’s discretion and will not be disturbed absent an abuse of that discretion. Peoples Gas Light & Coke Co., 117 Ill. App. 3d at 357.

Royal Glen contends that none of the requirements for issuing a temporary restraining order were met in this case; therefore, the relief was improperly granted. We agree.

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Bluebook (online)
526 N.E.2d 372, 173 Ill. App. 3d 431, 122 Ill. Dec. 113, 1988 Ill. App. LEXIS 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-savings-loan-co-v-royal-glen-condominium-assn-illappct-1988.