J.G. Wahlert v. Kovitz Shifrin Nesbit, a professional corporation; Kalman Management, Inc.; and Loch Lomond Property Owners Association

District Court, N.D. Illinois·Decided September 11, 2026·No. 1:17-cv-08055·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

J.G. WAHLERT, ) ) Plaintiff, ) Case No. 17 C 8055 ) v. ) ) Judge Robert W. Gettleman KOVITZ SHIFRIN NESBIT, a professional ) corporation; KALMAN MANAGEMENT, INC., ) and LOCH LOMOND PROPERTY OWNERS ) ASSOCIATION, ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

Plaintiff J.G. Wahlert is a homeowner in the Loch Lomond Community near Mundelein, Illinois. At the center of Loch Lomond lies Loch Lomond Lake. Plaintiff, on behalf of himself and all others similarly situated, filed a six-count amended putative class action complaint against defendants Kovitz, Shifrin, Nesbit (“KSN”), Kalman Management, Inc. (“Kalman”), and the Loch Lomond Property Owners Association (“LLPOA”), seeking redress for, among other things, the LLPOA’s alleged violation of plaintiff’s and the class’s easement rights to access Loch Lomond Lake. Following motion practice and unsuccessful settlement discussions, the court granted plaintiff’s motion to certify two separate classes—a Perpetual Easement Owner Class and a Fair Debt Collection Practices Act (“FDCPA”) Class (the “FDCPA Class”). In doing so, the court formally certified the FDCPA Class. But because the court had questions about the proposed definition of the Perpetual Easement Owner Class, the court did not certify it, and instead directed the parties to submit a revised definition for it. Plaintiff thereafter proposed a new definition. But before it was adopted, the parties reported that they had reached a settlement in principle. The court then preliminarily approved a settlement agreement with a settlement class that was broader than the proposed Perpetual Easement Owner Class. But certain settlement-class members objected, and the parties and

objectors were ultimately unable to reach an agreement to settle the objections. LLPOA and Kalman (collectively, “defendants”) thereafter moved to decertify the Perpetual Easement Owner Class. But because the court had never formally certified that class, the court denied the motion as moot. The parties then engaged in further settlement discussions, but no settlement was reached. Plaintiff now renews its motion to certify what he calls the “Easement Enforcement Class”—a “narrow, unified subclass of property owners who share identical injuries and legal interests.” Defendants oppose the motion. For the reasons below, the court grants the motion. BACKGROUND Factual Background

In the 1950s, Arthur T. McIntosh & Co. developed property in Mundelein, Illinois, for the purpose of selling homes around man-made Loch Lomond Lake and two parks. The company recorded three documents entitled “Declaration of Restrictions and Easements” in 1954, 1955, and 1956. Each of those recorded documents listed restrictions on each lot in the subdivision that were to be construed as covenants that ran with the land until 1980, at which time “any and all such restrictions may be extended to continue in effect beyond January 1, 1980, by the owner or owners of two-thirds (2/3) in number of said lots in the subdivision . . . .” Those restrictions basically dealt with the types of buildings that could be built on the land.

2 The three recorded documents also listed rights and easements granted to owners of the lots. The documents granted lot owners a perpetual easement “in, upon, and across the Lake and Parks,” subject to “reasonable regulations by the owner or owners from time to time of said Lake or Parks.” The documents also provided that “neither the grant of such easements . . ., nor

the use of said Lake [or Parks] by the grantees of such easements, nor anything in this instrument or in any recorded plat of subdivision contained, shall be construed to impose upon the undersigned or its successors or assigns, or the owner or owners from time to time of said Lake [or Parks], any duty to maintain said Lake [or Parks] in its present, or any other, size depth, or condition.” Finally, all three recorded documents granted the developer or its successors or assigns the “right to convey the Lake [or Parks] or any part or parts thereof, to any association or group of property owners organized for the purpose of acquiring and holding title to the Lake [or Parks]. Any such conveyance shall be made subject to the easements and rights declared, granted and reserved in this instrument.”

In 1957, the LLPOA was chartered and incorporated by ten of 561 lot owners. As listed in the Articles of Incorporation, its purpose was “to promote the civic, education, patriotic, economic, social and charitable purposes of the community known as Loch Lomond, to bring together the members of said community to the end that the strength of their common efforts and unity will result in greater benefit to all.” Four years later, in 1961, McIntosh Co. transferred title to the lake and parks to the LLPOA, subject to the same rights and easements in the original declarations. There were no changes to those rights and easements, no mention of Home Owner Association (“HOA”) fees,

3 assessments, or new restrictions or regulations. McIntosh retained the right to take back title if the LLPOA authorized or permitted use of the premises or any part by any person other than the owners and occupants of the lots and parcels of real estate described in the declarations. From 1963 through 1979, the LLPOA filed annual reports with the Illinois Secretary of State without

claiming that it was an HOA or that it was maintaining the lake or parks. In 1980, the LLPOA recorded an “Agreement to Extend the Declaration of Restrictions and Easements” (the “1980 Extension”). This agreement was signed by 2/3 of the property owners, and extended the original restrictions and easements contained in the original declarations, subject to the same conditions. The agreement repeated the same language in the original declarations indicating that the owners of the lake and parks were under no duty to maintain them. The agreement was not signed by all property owners and contained no language purporting to add any additional restrictions on the use of the lake or parks. Specifically, the agreement contained nothing about HOA fees or assessments. Nonetheless, sometime after the 1980 Extension, the LLPOA began to attempt to collect

assessments from the property owners. It also created a welcome letter sent to new owners, indicating that the title to the lake belongs to the LLPOA “with conditions which were set up by the Arthur T. McIntosh Company when this subdivision was developed. A principal condition was that title would continue to belong to the Association so long as the lake is properly maintained. . . . To satisfy this requirement, the LLPOA has voted into effect rules covering the use of the lake and beaches over the years,” one of which is that “[a]ll residents are required to pay dues or a lien may be placed against your property and the outstanding balance shall bear interest.” These same representations were posted on the LLPOA website. As noted above,

4 however, no such condition to maintain the lake was ever placed on the LLPOA. In fact, the declarations specifically indicated that the owner had no duty to maintain the lake. In 1986 the LLPOA recorded a document titled “Loch Lemond Property Owners Association Public Notice of Annual Assessment.” This document indicated that the current by-

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J.G. Wahlert v. Kovitz Shifrin Nesbit, a professional corporation; Kalman Management, Inc.; and Loch Lomond Property Owners Association, (N.D. Ill. 2026).

J.G. Wahlert v. Kovitz Shifrin Nesbit, a professional corporation; Kalman Management, Inc.; and Loch Lomond Property Owners Association (J.G. Wahlert v. Kovitz Shifrin Nesbit, a professional corporation; Kalman Management, Inc.; and Loch Lomond Property Owners Association) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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