Glenstone Homeowners Ass'n v. State

48 Ill. Ct. Cl. 388, 1996 Ill. Ct. Cl. LEXIS 18
CourtCourt of Claims of Illinois
DecidedMay 13, 1996
DocketNo. 93-CC-1871
StatusPublished
Cited by2 cases

This text of 48 Ill. Ct. Cl. 388 (Glenstone Homeowners Ass'n v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glenstone Homeowners Ass'n v. State, 48 Ill. Ct. Cl. 388, 1996 Ill. Ct. Cl. LEXIS 18 (Ill. Super. Ct. 1996).

Opinion

OPINION ON SUMMARY JUDGMENT

Epstein, J.

In this case of first impression, the Claimant, Glen-stone Homeowners Association (the “association”), seeks (count I) payment of 1991-93 owner’s assessments of $14,120 on four subdivision lots that were purchased by the Department of Transportation (“IDOT”) in 1990, as well as attorney’s fees and other collection expenses, and seeks (count II) foreclosure of the association’s asserted hen on the four lots for non-payment of $9,242 of assessments, which was recorded with the Lake County Recorder (document number 3126118). Our jurisdiction is based on section 8(b) (contract clause) of the Court of Claims Act (705 ILCS 50578(b)).

These claims are before the Court on cross-motions for summary judgment. The association’s motion claims $26,256 in unpaid assessments for the period of July, 1991, through September, 1994, and attorney’s fees of $13,124 and “costs” of $175.40. The Respondent’s motion denies liability altogether. Roth parties assert that there are no disputed material fact issues, and that these claims can be adjudicated on the questions of law presented.

The Undisputed Facts

These claims arise from IDOTs 1990 acquisition of four lots of real estate in the Glenstone Subdivision (unit II) on the north side of Cuba Road in Long Grove, Lake County, Illinois. IDOT bought the lots from the subdivision developer for use as right-of-way for the intended expansion of FAP Route 432, i.e., for highway purposes. The $530,000 price was negotiated under threat of condemnation following IDOTs mandatory purchase offer under the eminent domain statute. (705 ILCS 5/7-102.1.) IDOT took title to the lots and related easements by quitclaim deed dated October 24, 1990, from the developers land trustee; the deed was recorded with the Lake County Recorder on February 21, 1991 (document number 2991579).

On October 27, 1989, the Glenstone Subdivision, including the purchased lots, had been impressed with a “Declaration of Covenants, Conditions and Restrictions” executed by the developers land trustee. The declaration, which also created the homeowners association was recorded with the Lake County Recorder on November 1, 1989 (document number 2847044).1 (See complaint, exhibit C [certified copy of recorded declaration].) The principal covenant in the declaration that is material to the associations claims provides:

“Article 4, Section 1: Creation of Lien and Personal Obligation for Assessments. Each Owner of a Lot * * 8 by acceptance of a deed therefor or otherwise, whether or not it shall be so expressed in any such deed 8 8 8 hereby covenants and agrees and shall be deemed to covenant and agree to pay to the Association or each Lot owned 8 8 8 (1) annual assessments or charges to be paid in equal bi-annual installments (8 8 8 "Annual Assessment”) 8 8 8 and (2) special assessments for purposes including 8 8 8 major capital improvements (8 8 8 “Reserve Assessment”). Reserve assessments are to be fixed, established and collected by the Association shall constitute the maintenance fund of the Association. The annual and special assessments, together with such interest thereon and costs of collection thereof, including 8 8 8 reasonable attorneys’ fees * e * shall be a charge on the land and shall be a continuing lien upon each Lot against which each such assessment is made. Each such assessment, together with such interest thereon and cost of collection thereof, including * * * reasonable attorneys’ fees, " * * shall also be the continuing personal obligation of the “ * * Owner of such Lot at the time when the * * * assessment fell due.”

Other provisions of the declaration also relied upon by the association are article 4, section 3 (“Computation of Assessments” [relating to the 1/24 share to be paid by each lot owner, personal liability of lot owners, and the non-exculpation of lot owners for assessments due to non-use of the association common areas]), section 4 (“Date of Commencement of Annual Assessments” [relating to delinquencies and late fees on assessments]), and article 9, section 3 (“Remedies” [relating, inter alia, to lien foreclosure, cumulation of remedies, and entitlement to recovery of attorney’s fees and collection costs and expenses]). These covenants, conditions and restrictions (“covenants” or “subdivision covenants”) in the declaration, and their enforceability against IDOT as owner of the four lots, are the subject of this dispute.* 2

IDOT acknowledges that it was aware of the declaration and of the homeowners association before it completed its purchase, and that it requested the developer-owner to provide a “release” of the four lots from the homeowners association (departmental report, August 4, 1995, at page 2.) IDOT was informed that the developer had already “turned the homeowners association over to the unit owners.” Ibid.3

Following an internal discussion among IDOT attorneys, the department elected to close on its purchase of the lots without obtaining a release or conveyance from the association. This was based on the IDOT attorneys’ consensus that the subdivision covenants are not enforceable against IDOT, as an agency of the sovereign, for a series of reasons (see, IDOT departmental report, August 4, 1995, at pages 3-4), most of which are advanced in the Respondent’s arguments on the pending cross-motions for summary judgment.

Pursuant to IDOT’s lawyers’ determination, and in the absence of an appropriation specifically for the payment of these association assessments, IDOT has not paid any of the association’s assessments since taking title to the four lots. On February 3, 1993, the association filed its collection and foreclosure claims in this Court.

The Parties’ Legal Positions

On the primary issues presented — whether the State is liable on the covenants contained in the declaration that run with the land, especially on the affirmative covenant to pay assessments, and whether any such pecuniary liability is unenforceable against the State for some other reason, the parties take fundamentally opposing positions.

The Claimant contends that the subdivision covenants are binding on IDOT, notwithstanding its status as an agency of the State. The association maintains that the State is not exempt from covenants that were lawfully imposed on property that the State later acquired and now owns; that IDOT’s purchase of the lots subjects it, by voluntary and express assumption, to the obligations of covenants impressed on the property that run with that land; and that the obligations of those covenants are enforceable in contract in this Court.

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Related

Wulf v. State
51 Ill. Ct. Cl. 383 (Court of Claims of Illinois, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
48 Ill. Ct. Cl. 388, 1996 Ill. Ct. Cl. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glenstone-homeowners-assn-v-state-ilclaimsct-1996.