First National Bank v. Board of Managers of Faulker House Condominium Ass'n

625 N.E.2d 79, 252 Ill. App. 3d 139
CourtAppellate Court of Illinois
DecidedAugust 10, 1993
DocketNos. 1-92-1789, 1-92-2483 cons.
StatusPublished
Cited by3 cases

This text of 625 N.E.2d 79 (First National Bank v. Board of Managers of Faulker House 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
First National Bank v. Board of Managers of Faulker House Condominium Ass'n, 625 N.E.2d 79, 252 Ill. App. 3d 139 (Ill. Ct. App. 1993).

Opinion

JUSTICE DiVITO

delivered the opinion of the court:

Plaintiff First National Bank of Blue Island (the Bank) obtained orders of foreclosure and sale for two condominium units, which intervenor Jack Davis purchased at the subsequent sheriff’s sale. Unbeknownst to Davis, however, Midwest Partnership had already purchased the back taxes for the same units. The tax deeds then were issued to Midwest Partnership after confirmation of one of the sheriff’s sales and prior to confirmation of the other, so Davis intervened in these two foreclosure proceedings to petition for vacatur of the orders confirming the sheriff’s sales. Both circuit courts denied the motions. We affirm.

Plaintiff Bank became the mortgagee of the units in February 1988. One year later, Midwest Partnership purchased the units’ taxes for 1987 and 1988. Almost two years passed, and in December 1990, the Bank filed complaints to foreclose the trust deeds. Among the allegations was that the mortgagors had not paid the 1987 and 1988 property taxes. In June 1991, the Bank sought summary judgment on the foreclosure actions. That same month, the Bank was sent a notice of the tax purchases redemption period deadline, which was November 27, 1991; at trial, however, the Bank denied receiving this notice.

In September 1991, the circuit court granted the Bank’s summary judgment motions for foreclosure, which allowed them to be sold by the sheriff. Those orders contained the following provision:

“The subject property is offered for sale without any representation as to quality or quantity of title and without recourse to [the Bank].”

The published notices of the sheriff’s sale included the same disclaimer. The judgments of foreclosure also contained statutory language that upon confirmation of the sale, the sheriff was to issue to the purchaser “a deed sufficient to convey title” and that the conveyance “shall be an entire bar to all claims of the parties *** and all claims of Unknown Owners and any Nonrecord Claimants.” Davis bought the units at the sheriff’s sale on December 3, 1991, that is, six days after the tax redemption period had ended. On December 26, 1991, the circuit court entered an order confirming one of the sheriff’s sales (the December 26 order), and the property was conveyed to Davis the next day. He did not record the deed. On January 17, 1992, in a separate proceeding, the other sale was confirmed (the January 17 order). On December 30, 1991, however, the judge in the tax proceedings had ordered issuance of tax deeds for both units to Midwest Partnership.

On January 27, 1992, the Bank’s attorney told Davis that it “ha[d] become aware that a court action [was] pending which may adversely affect [his] interest” in the units. Approximately two weeks later, on February 14, 1992, Davis moved to intervene and to vacate the January 17 order, asking the court to declare the sale void; 12 days later, he made the same request for the December 26 order. In the latter proceeding, the court decided to relax the due diligence and meritorious claim requirements, but it denied the requested relief. It reasoned that the doctrine of caveat ew/ptor applied to the sheriff’s sale and that the exceptions for fraud, misrepresentation, and mistake of fact did not. Vacatur of the other order was also denied, but there is neither a record of proceedings nor a reason given in the order itself.

I

As our supreme court recently observed:

“There are two types of post-judgment motions: the most common type which challenges the judgment, basing its attack upon facts apparent at the time the judgment was rendered, and another type which raises new facts or matters which were not presented to the court or considered by it when it ruled, but which, arguably, would have prevented rendition of the judgment had they been known to the court. A primary requisite of the latter type of post-judgment motion is that the newly discovered evidence was in fact ‘newly discovered’ and was not previously discoverable prior to judgment by the exercise of ordinary diligence.” (Andersen v. Resource Economics Corp. (1990), 133 Ill. 2d 342, 347-48, 549 N.E.2d 1262, 1265 (absence of valid post-judgment motion results in no appellate jurisdiction).)

The orders here concern the “latter type” because Davis’ argument is that, had the circuit courts known that the units had been sold for taxes and that the redemption period had ended, they would not have confirmed the sales.

Initially, we note that the two orders here present different procedural postures. The December 26 order was attacked more than 30 days after the judgment was entered, so a petition under section 2 — 1401 of the Code of Civil Procedure (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 1401) was the proper vehicle for requesting relief from that order. The purpose of such petitions is to present evidence that, if known at the time of the judgment, would have prevented the court from entering it; the statute is to be liberally construed to achieve justice, and its application invokes a court’s equitable powers. (In re Marriage of Hoppe (1991), 220 Ill. App. 3d 271, 282-83, 580 N.E.2d 1186, 1192-93.) To prevail, a petitioner must demonstrate by a preponderance of the evidence in the common law record or, if there is a factual dispute, at an evidentiary hearing, that:

“(1) a meritorious claim or defense exists; (2) the petitioner exercised due diligence in discovering the defense or claim in the original action; (3) despite such diligence and through no fault on the part of petitioner, the error of fact or valid claim or defense was not made apparent to the trial court at the time of the original action; and (4) petitioner exercised due diligence in the section 2 — 1401 petition.” (Marriage of Hoppe, 220 Ill. App. 3d at 282, 580 N.E.2d at 1193, citing Smith v. Airoom, Inc. (1986), 114 Ill. 2d 209, 220-21, 499 N.E.2d 1381, 1386, and other cases.)

(See generally Klein v. La Salle National Bank (1993), 155 Ill. 2d 201, 205-06, 613 N.E.2d 737, 739; Kaput v. Hoey (1988), 124 Ill. 2d 370, 377-78, 530 N.E.2d 230, 236.) The reasonableness of a petitioner’s reasons for delay must be considered in light of all the circumstances surrounding entry of the challenged judgment, including the conduct of the litigants and their attorneys, and equity requires a liberal construction so that justice is served. (Marriage of Hoppe, 220 Ill. App. 3d at 282-83, 580 N.E.2d at 1193.) The circuit court’s ruling on the petition will be reversed only if it represents an abuse of discretion. Klein, 155 Ill. 2d at 206, 613 N.E.2d at 739.

By contrast, Davis filed his motion attacking the January 17 order within 30 days of its entry, so in that proceeding he could proceed instead under section 2 — 1301(e) (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 1301(e)). (Anglin v. Dearth (1988), 175 Ill. App. 3d 367, 529 N.E.2d 1176

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625 N.E.2d 79, 252 Ill. App. 3d 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-board-of-managers-of-faulker-house-condominium-assn-illappct-1993.