Dungan v. Eggleston Street, LLC

2025 IL App (3d) 240648-U
Appellate Court of Illinois·Decided April 13, 2026·No. 3-24-0648·Unpublished

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2025 IL App (3d) 240648-U

Order filed April 13, 2026

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2025

OTIS DUNGAN, individually, KATHRYN ) Appeal from the Circuit Court DUNGAN, individually, KENNETH BLAIR, ) of the 18th Judicial Circuit, individually, SARA BLAIR, individually, ) Du Page County. WILD MEADOWS TRACE TOWNHOME ) ASSOCIATION, INC., a dissolved Illinois ) corporation, and WILD MEADOWS TRACE ) TOWNHOME ASSOCIATION, a voluntary ) Association, )

)

Plaintiffs, )

)

(Kenneth Blair and Sara Blair, )

)

Plaintiffs-Appellants, )

)

v. )

)

EGGLESTON STREET, LLC, an Illinois ) limited liability company, 283 EGGLESTON, ) LLC, an Illinois limited liability company, 481 ) SPRING ROAD, LLC, an Illinois limited ) liability company, 485-489 SPRING ROAD, ) LLC, a limited liability company, 469 SPRING ) Appeal No. 3-24-0648 ROAD, LLC, a limited liability company, and ) Circuit Nos. 23-MR-181 & 70-G-2266 ROBERTO’S RISTORANTE & PIZZERIA, ) INC., an Illinois corporation, )

)

Defendants-Appellees). )

_______________________________________ )

)

GEORGE M. HATCH, LOUISE V. HATCH, ) ROBERT V. KING, and MARGARET H. ) KING, )

)

Plaintiffs, )

)

v. )

)

CITY OF ELMHURST, )

)

Defendant, )

)

and )

)

OTIS DUNGAN and KATHRYN DUNGAN, ) Honorable ) Paul M. Fullerton,

Defendants in Intervention. ) Judge, presiding.

JUSTICE HETTEL delivered the judgment of the court.

Justice Holdridge and Justice Anderson concurred in the judgment.

ORDER

¶1 Held: The circuit court erred when it dismissed, with prejudice, count III of the plaintiffs’

third amended complaint pursuant to sections 2-615 and 2-619 of the Code of Civil Procedure.

¶2 The plaintiffs, Kenneth and Sara Blair and Otis and Kathryn Dungan, sued the defendant, Eggleston Street LLC (hereinafter Eggleston) and other defendants based on the construction of parking lots on two parcels of land in Elmhurst. During pretrial matters, the circuit court dismissed count III of the plaintiffs’ third amended complaint with prejudice. Eggleston sought and received Rule 304(a) (Ill. S. Ct. R. 304(a) (eff. Mar. 8, 2016)) language regarding the ruling, and the Blairs appealed. On appeal, the Blairs argue that the circuit court erred when it granted Eggleston’s motion to dismiss count III. We reverse and remand for further proceedings.

¶3 I. BACKGROUND

¶4 In 1969, four people sought to build a 42-unit apartment complex on two parcels of property they owned in Elmhurst, Illinois. Those parcels, shown in the diagram below, are labeled as the Transite Parcel and the Wild Meadows Trace Townhomes Parcel.

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WILD MEADOWS TRACE PARK

¶5 In 1970, the four property owners sued the City of Elmhurst because a zoning ordinance prohibited the proposed development. The result of that lawsuit was a 1971 circuit court order finding the zoning ordinance unconstitutional as applied to the property owners and compelling the City to issue the permits, if applied for, subject to certain restrictions. One of the restrictions was that “No ‘structure’ (except for surfacing) shall be erected on” the Transite Parcel and 5.41 feet of land to its east on the Wild Meadows Trace Townhomes Parcel. That restriction was ordered

to remain unless and until a certain condition was met. It is undisputed that the condition has never been met.

¶6 The 42-unit apartment complex was never built, and ownership of the Transite Parcel and the Wild Meadows Trace Townhomes Parcel was transferred several times between 1986 and 1989. In 1989, the new owner of the property began the process of constructing condominiums and townhomes on the two parcels. The declaration of condominium ownership gave control of the two parcels to the condominium association and declared easements on the Transite Parcel for the condominium association’s benefit. Additionally, in 1990, the City of Elmhurst filed an unopposed motion to amend the 1971 court order to allow a maximum of 13 units. The motion was granted but, notably, the portion of the 1971 order that restricted development of the Transite Parcel was unaffected by the amendment.

¶7 Eggleston Street LLC acquired the Transite Parcel, and the 5.41 feet of land to its east, in 2017. The following year, it also acquired what is labeled in the diagram as the “Abutting Parcel.” Subsequently, Eggleston Street LLC and several other adjacent property owners filed a zoning application that sought to construct parking lots on those parcels. Over opposition to the zoning application, it was granted by the City in 2021 and a related zoning ordinance was adopted. The parking lots were constructed, which included curbs, light poles, fences, and a stormwater drainage system.

¶8 In February 2023, Otis and Kathryn Dungan, who owned what is labeled in the diagram as the Dungan Parcel, filed a petition to intervene in the case that resulted in the case that resulted in the 1971 order as amended in 1990 (hereinafter the Hatch case). Among other things, the Dungans alleged that the construction of the parking lots violated the 1971 order because more than just

surfacing was constructed. In April 2023, the circuit court denied the Dungans’ petition to intervene. The Dungans appealed that decision.

¶9 While the Dungans’ petition to intervene was pending in the circuit court, in March 2023, the plaintiffs filed a separate cause of action that sought to enforce the 1971 order as amended in 1990. A second amended complaint was filed in September 2023 that set forth seven counts. This appeal involves only count III.

¶ 10 Count III was pled as the Blairs versus Eggleston and alleged that the curbs, light poles, fences, stormwater drainage system, and other related additions to the parking lots violated the 1971 order as amended in 1990, which prohibited “structures” other than “surfacing.” Count III requested “an order enforcing the terms” of the 1971 order as amended in 1990, including “prohibiting and enjoining EGGLESTON STREET LLC from maintaining and operating the improvements ***, [and] compelling removal of the improvements and site restoration.”

¶ 11 Eggleston filed combined motions to dismiss all counts of the complaint except count V. 1 Regarding count III, Eggleston first argued that count III should be dismissed pursuant to section 2-615 of the Code of Civil Procedure (Code) (735 ILCS 5/2-615 (West 2022)) because a “surface parking lot” did not violate the 1971 order as amended in 1990. Eggleston argued that as a matter of law, “a surface level parking lot is not a ‘structure’ under the City’s zoning ordinance.” Further, it emphasized that the 1971 order implemented an agreement between the parties involved and that it would be nonsensical to read the 1971 order as prohibiting “life safety and security improvements ancillary to” surfacing the parcels. In addition, Eggleston alleged that the Blairs

1

In count V, the Dungans sought monetary relief from Eggleston for alleged trespasses onto the Dungan’s property during the construction of the parking lots.

failed to timely challenge the zoning approval granted by the City. Lastly, it contended that if the 1971 order’s use of “surfacing” were ambiguous, the restriction was void.

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