Humphrey Property Group, L.L.C. v. Village of Frankfort

925 N.E.2d 219, 392 Ill. App. 3d 611, 338 Ill. Dec. 722
CourtAppellate Court of Illinois
DecidedJune 18, 2009
Docket3-08-0246
StatusPublished
Cited by4 cases

This text of 925 N.E.2d 219 (Humphrey Property Group, L.L.C. v. Village of Frankfort) 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
Humphrey Property Group, L.L.C. v. Village of Frankfort, 925 N.E.2d 219, 392 Ill. App. 3d 611, 338 Ill. Dec. 722 (Ill. Ct. App. 2009).

Opinion

JUSTICE McDADE

delivered the opinion of the court:

Plaintiff, Humphrey Property Group, L.L.C., an Illinois limited liability company (Humphrey), filed a complaint in the circuit court of Will County against defendant, the Village of Frankfort, a municipal corporation, seeking declaratory judgment that Humphrey has the right to develop certain property within the village pursuant to an annexation agreement between Frankfort and Humphrey’s predecessor in interest in the subject property. Pursuant to Supreme Court Rule 308 (134 Ill. 2d R. 308), the trial court certified the following question for review by this court:

“May a municipality invoke the equitable doctrine of estoppel based on the conduct of a prior property owner to nullify a successor property owner’s rights under an annexation agreement in the absence of an amendment to that annexation agreement adopted either (i) in accordance with the terms of the annexation agreement itself; or (ii) in accordance with the procedures set forth in 65 ILCS 5/11 — 15.1—3 for amendment of an annexation agreement?”

This court granted the parties’ request for interlocutory appeal.

BACKGROUND

Frankfort annexed the subject property in September 1997 pursuant to an annexation agreement with H&D Development Corporation and State Bank of Countryside. The annexation agreement zones the subject property “C-4 PUD” and lists authorized uses for the property. The agreement remains in effect until September 2017 and states that it is applicable to the parties’ successors in interest. Humphrey purchased a portion of the property covered by the annexation agreement in August 2005. Humphrey’s proposed use is one of the enumerated authorized uses. The agreement also provides, in pertinent part, as follows:

“[T]his Agreement and all the Exhibits attached hereto may be amended only [by] mutual consent of the parties, by the adoption of an ordinance or resolution of the VILLAGE approving said amendment or resolution, as provided by law, and the execution of said amendment by the parties hereto or their successors in interest.”

Frankfort admitted that the parties never amended the agreement. Nonetheless, Frankfort filed an affirmative defense to plaintiffs complaint arguing that plaintiffs predecessor in interest effectively amended the agreement by subdividing the subject property and requesting a change in zoning. Specifically, the predecessor requested a change in zoning from C-4 PUD to C-2 PUD. A C-2 PUD zoning does not permit the uses enumerated in the agreement. Frankfort granted the zoning change at the then owner’s request including the portion of the property Humphrey now owns. Frankfort later rezoned the subject property again to B-4 as the result of a comprehensive rezoning in the village.

Frankfort asserted that “in reliance on the request of [a predecessor in interest,] the Village of Frankfort changed its position as to what zoning was appropriate for the site and allowed Lot 4 to be subdivided into smaller lots which were no longer suitable for certain *** uses,” including plaintiffs proposed use. As a result of the “effective amendment” of the parties’ agreement, Frankfort argued, it is no longer bound by the original terms of the agreement. Frankfort asserts that Humphrey had actual or constructive knowledge of the rezoning at the request of the then owner of the subject property prior to its purchase of the subject property.

Plaintiff filed a motion for judgment on the pleadings and a motion to strike Frankfort’s affirmative defense. The trial court denied both motions. This appeal followed.

ANALYSIS

An amendment to a zoning ordinance adopted without following statutory procedures is void. County of Kankakee v. Anthony, 304 Ill. App. 3d 1040, 1045, 710 N.E.2d 1242, 1245 (1999) (“[T]he General Assembly has established certain procedures which govern the manner in which county boards carry out their legislative function. Compliance with these statutory procedures is a prerequisite to the valid enactment of an ordinance. [Citation.] When a county board has failed to follow proper procedures in amending a zoning ordinance, the amendment is void”).

In arguing that a nonstatutory change in an annexation agreement is similarly void, plaintiff suggests that “[a] municipality’s attempt to amend an annexation agreement without complying with the mandatory notice and hearing requirements must be treated the same as a court would respond to an attempted zoning change without the requisite notice and hearing.” Plaintiff asserts that “a municipality and property owner who desire to amend an annexation agreement involving valuable property rights [should] observe the simple and straightforward statutory notice and public hearing requirements.”

Plaintiff argues that Frankfort ignored the mandatory notice and hearing requirements when it “effectively amended” the annexation agreement, and that in doing so it prejudiced both plaintiff and the public. Plaintiff cites Cannizzo v. Berwyn Township 708 Community Mental Health Board, 318 Ill. App. 3d 478, 487, 741 N.E.2d 1067, 1074 (2000), for the proposition that Frankfort’s alleged contractual amendment to the annexation agreement (resulting in a statutory zoning change) is void. The amendment to the annexation agreement is void under Cannizzo, plaintiff argues, because under Illinois law a contract entered by a municipality without statutory authority is void ab initio. Cannizzo, 318 Ill. App. 3d at 487, 741 N.E.2d at 1074. Also, plaintiff argues, because the contract is, allegedly, void, the change in the contract may not be rendered valid by estoppel.

Frankfort relies on Berg & Associates, Inc. v. Nelsen Steel & Wire Co., 221 Ill. App. 3d 526, 535, 580 N.E.2d 1198, 1204 (1991), for the proposition that a party to an agreement who agrees to an oral modification is estopped from raising a challenge to the modification based on a term in the agreement precluding oral modifications. Frankfort’s argument assumes that, under Reitman v. Village of River Forest, 9 Ill. 2d 448, 453, 137 N.E.2d 801, 803 (1956), plaintiff in the case at bar stands in the shoes of its predecessor in interest. If that is the case, then legally plaintiff is estopped from contesting the validity of the alleged amendment to the annexation agreement if the original parties amended the annexation agreement by mutual consent and, it argues, plaintiff is thus estopped from challenging the validity of the zoning ordinance. Frankfort is legally correct, but here, factually, the question becomes what is the scope of the estoppel applicable in this situation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

The United City of Yorkville v. Fidelity and Deposit Company of Maryland
2019 IL App (2d) 180230 (Appellate Court of Illinois, 2019)
Doyle v. Village of Tinley Park
2018 IL App (1st) 170357 (Appellate Court of Illinois, 2018)
Lyon Financial Services, Inc. v. Illinois Paper & Copier Co.
247 F. Supp. 3d 923 (N.D. Illinois, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
925 N.E.2d 219, 392 Ill. App. 3d 611, 338 Ill. Dec. 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humphrey-property-group-llc-v-village-of-frankfort-illappct-2009.