Haywood v. Superior Bank F S B

614 N.E.2d 461, 244 Ill. App. 3d 326, 185 Ill. Dec. 327, 1993 Ill. App. LEXIS 534
CourtAppellate Court of Illinois
DecidedApril 16, 1993
Docket1-92-0556
StatusPublished
Cited by7 cases

This text of 614 N.E.2d 461 (Haywood v. Superior Bank F S B) 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
Haywood v. Superior Bank F S B, 614 N.E.2d 461, 244 Ill. App. 3d 326, 185 Ill. Dec. 327, 1993 Ill. App. LEXIS 534 (Ill. Ct. App. 1993).

Opinion

JUSTICE McNULTY

delivered the opinion of the court:

Plaintiff Robert G. Haywood appealed the judgment of the circuit court denying his request for class certification of the group of plaintiffs currently or formerly residing in the Green Brier or Commodore apartment buildings, who had entered into rental agreements with either defendant Vanguard Management or defendant Superior Bank pursuant to which the defendants received a security deposit for a period of at least six months, without paying interest on such security deposit within 30 days after the end of each 12-month period as statutorily required. Plaintiff also appealed the court’s denial of his individual claim as well as its determination that he, personally, lacked standing to bring this action and could not act as a class representative, because he had entered into an accord and satisfaction with defendants. For the reasons which follow, we reverse the judgment of the circuit court as to both the certification of the class, plaintiff’s individual claim and his standing as class representative.

Plaintiff Haywood was a tenant in a rental apartment unit at the Green Brier building located at 559-561 West Surf Street, Chicago, Illinois, from May 1, 1988, until April 30, 1990. Defendant Superior Bank owned approximately 40 apartment units at the Green Brier, and approximately 116 units in the Commodore building located across the street. Defendant Vanguard Management was Superior Bank’s property management agent with respect to the aforementioned properties. Haywood paid Vanguard a security deposit of $795 at the time he entered into a lease with Vanguard in May 1988. When Haywood’s rent was increased at the end of the first one-year term, he paid an additional security deposit of $40. Neither Superior Bank nor Vanguard Management paid Haywood the 5% annual interest on his security deposit within 30 days after the end of his first-year rental period in May 1989, as required by both the Security Deposit Interest Act (Ill. Rev. Stat. 1989, ch. 80, pars. 121, 122) and section 5—12—080(c) of the residential landlord and tenant ordinance of the Municipal Code of the City of Chicago (Chicago Municipal Code §5—12—080(c) (1989)). However, in May 1990, when plaintiff vacated the apartment, Vanguard sent him a check for $711.50, which represented the security deposit at issue, plus accrued interest, but less cleaning charges. Although plaintiff admits in his complaint that he “strenuously objected” to the amount of this check, he nevertheless cashed it. Six months later, he filed this lawsuit on behalf of all former and current tenants, who, like himself, had allegedly been deprived of the yearly payments of security deposit interest by defendants, Superior Bank and Vanguard Management.

The prerequisites for the maintenance of a class action are as follows:

“(1) The class is so numerous that joinder of all members is impracticable.
(2) There are questions of fact or law common to the class, which common questions predominate over any questions affecting only individual members.
(3) The representative parties will fairly and adequately protect the interest of the class.
(4) The class action is an appropriate method for the fair and efficient adjudication of the controversy.” (Ill. Rev. Stat. 1989, ch. 110, par. 2-801.)

Only the second and third requirements are at issue in the case at bar. Certification of a class is within the sound discretion of the trial court, and such determination will be disturbed on review only if there is an abuse of discretion or if impermissible legal criteria are applied. (Aguilar v. Safeway Insurance Co. (1991), 221 Ill. App. 3d 1095, 582 N.E.2d 1362.) In the instant action, plaintiff maintains that the trial court relied on impermissible legal criteria by using the common question of law and fact analysis in McCabe v. Burgess (1979), 75 Ill. 2d 457, 389 N.E.2d 565, Rodmaker v. Johns Holding Co. (1990), 205 Ill. App. 3d 520, 563 N.E.2d 1175, and Gutanslcy v. Advance Mortgage Corp. (1981), 102 Ill. App. 3d 496, 430 N.E.2d 122. Plaintiff maintains that these analyses are inopposite and instead relies on the authority provided by another line of cases: Miner v. Gillette Co. (1981), 87 Ill. 2d 7, 428 N.E.2d 478; Slimack v. Country Life Insurance Co. (1992), 227 Ill. App. 3d 287, 591 N.E.2d 70; and Purcell & Wardrope Chartered v. Hertz Corp. (1988), 175 Ill. App. 3d 1069, 530 N.E.2d 744.

In McCabe, the Illinois Supreme Court considered the common question of law and fact requirement as a prerequisite for the maintenance of a class action. This case involved a group of drug users who had been convicted under the 1969 Illinois Uniform Narcotic Drug Act (Ill. Rev. Stat. 1969, ch. 38, par. 22—49.1) for the sale, possession, or control of marijuana. This Act had subsequently been found unconstitutional as applied to marijuana users. Additionally, it had been determined that all those convicted under the Act had a right to the ex-pungement of their convictions and the return of any money and court costs attributable to those convictions. McCabe attempted to bring a class action on behalf of a class of persons from Champaign County convicted for violations of this act. The McCabe court found that since the only common questions at issue were the statute’s constitutionality and the recovery rights of persons convicted under it and that these had already been adjudicated in prior cases, there were no predominant questions left to decide by certifying a class of wrongfully convicted drug users.

In Gutansky, which relied on McCabe, plaintiffs attempted to bring a class action to recover statutory penalties for a mortgagee’s failure to execute and record releases of mortgages within 30 days of the satisfaction of the underlying debt as required by law. The Gutansky court held that under the legislation concerning mortgage releases, the right of the parties similarly situated to those plaintiffs to recover under the statute was settled beyond a reasonable doubt, as defendants in that case had waived the issue of the validity of the applicable statute. Therefore, all that remained to be determined was whose mortgages were not timely released and the amount of attorney fees to be awarded in addition to the statutory penalty. On this basis, the Gutansky court determined that there were no common issues of law or fact and denied class certification.

Likewise in Rodmaker, the appellate court 1 determined that since the validity of the statute at issue (one which regulated a creditor’s serving of notice before pursuing a wage assignment) was not in doubt, the rights of the persons protected under the statute to proceed upon easy proof of a statutory violation was clear.

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Cite This Page — Counsel Stack

Bluebook (online)
614 N.E.2d 461, 244 Ill. App. 3d 326, 185 Ill. Dec. 327, 1993 Ill. App. LEXIS 534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haywood-v-superior-bank-f-s-b-illappct-1993.