Mountain States Mortgage Center, Inc. v. Allen

628 N.E.2d 1052, 257 Ill. App. 3d 372, 195 Ill. Dec. 588
CourtAppellate Court of Illinois
DecidedDecember 29, 1993
Docket1—91—2629, 1—92—0172 cons.
StatusPublished
Cited by9 cases

This text of 628 N.E.2d 1052 (Mountain States Mortgage Center, Inc. v. Allen) 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
Mountain States Mortgage Center, Inc. v. Allen, 628 N.E.2d 1052, 257 Ill. App. 3d 372, 195 Ill. Dec. 588 (Ill. Ct. App. 1993).

Opinion

JUSTICE RIZZI

delivered the opinion of the court:

Plaintiff, Mountain States Mortgage Center, Inc. (Mountain States), filed an action against defendant, Commercial Credit Loans, Inc. (Commercial Credit), to foreclose on a mortgage executed by defendants Michael L. and Gwendolyn L. Allen. Defendant Commercial Credit filed a counterclaim against plaintiff whereupon it alleged that its lien had priority over plaintiff’s mortgage. The parties filed cross-motions for summary judgment on the issue of priority. Both motions were denied. After a trial, an order was entered classifying defendant Commercial Credit as the priority creditor. The trial court also entered a judgment of foreclosure and sale which culminated in the sale of the subject property to Paul B. Javaras as the bona fide purchaser for value. Plaintiff moved to stay the sale until after the redemption period. The motion was denied and the trial court entered a confirmation order. Subsequently, plaintiff filed an amended complaint in which it argued that it was the priority creditor pursuant to a different mortgage. Defendant Commercial Credit and Javaras, who intervened, filed a motion to dismiss the amended complaint, which was granted. Plaintiff now appeals the dismissal of its amended complaint and the confirmation order. We affirm.

The issues before this court for review are: (1) whether the publication of notice of the judicial sale of the subject property was improper; (2) whether plaintiff was deprived of its right to pay off the senior lienholder, defendant Commercial Credit; (3) whether the judicial sale is invalid based upon the alleged unfitness of the person who conducted the sale and the impropriety of the location of the sale; (4) whether the confirmation of sale must be affirmed to protect the interest of intervenor Javaras as the bona fide purchaser for value; and (5) whether the trial court properly dismissed the amended complaint pursuant to the doctrine of res judicata and section 2 — 613(d) of the Code of Civil Procedure (Code) (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 613(d)).

On June 8, 1991, plaintiff filed an action against defendant Commercial Credit to foreclose on a mortgage recorded on June 1, 1989, and executed by defendants Michael and Gwendolyn Allen for their residence. Plaintiff also sought to foreclose on a mortgage made to defendant Commercial Credit, which was recorded on March 28, 1989.

Defendant Commercial Credit filed a counterclaim against plaintiff, wherein it alleged that it had priority over plaintiff’s mortgage by virtue of the fact that its mortgage was dated and recorded prior in time to plaintiff’s, as a lien upon the subject property. Plaintiff filed an answer to the counterclaim wherein it alleged that its mortgage was the superior lien by virtue of a subordination agreement. Plaintiff attached an unsigned copy of a subordination agreement to its answer.

The parties then filed cross-motions for summary judgment on the issue of priority. Plaintiff alleged in its motion that although the subordination agreement was not signed, it was the understanding between plaintiff and defendant Commercial Credit that defendant Commercial Credit would subordinate its mortgage lien. Both motions for summary judgment were denied on the basis that there was a material issue of fact as to the intentions of the parties with respect to priority and subordination.

On April 4, 1991, the trial court entered an agreed order classifying defendant Commercial Credit as the priority creditor and plaintiff as the junior lienholder. On that same date, the trial court entered an order of default against all of the defendants and a judgment of foreclosure and sale in the sum of $17,089.24 for defendant Commercial Credit. The judgment provided that the redemption expired on July 4, 1991, and thereafter the subject property would be sold by the sheriff of Cook County or the Intercounty Judicial Sales Corporation (Intercounty). The judgment further provided that defendants and all persons claiming under them were forever barred and foreclosed from all rights in equity in and to the subject property. No motion to vacate or modify said judgment was filed.

On May 6, 1991, plaintiff filed an amended complaint to foreclose on an alleged mortgage on the premises dated July 13, 1984, and recorded on July 18, 1984. This action was not filed pursuant to the aforementioned mortgage dated May 24, 1989, and recorded on June 1, 1989.

On June 28, 1991, a notice of sale to be held by Intercounty on July 9, 1991, was filed with the trial court. On the day before the scheduled sale, plaintiff moved to stay the sale alleging that it was improperly scheduled prior to the expiration of the redemption period by virtue of an alleged extension of said period occasioned by the filing of a bankruptcy petition by the mortgagor defendants Allen. This motion was denied.

The subject property was sold to Javaras as the bona fide purchaser for value. On July 15, 1991, the trial court confirmed the report of sale and entered an order granting possession of the subject property to Javaras. On August 12, 1991, plaintiff filed its first notice of appeal relating to the confirmation order.

On August 26, 1991, defendant Commercial Credit and Javaras, an intervenor, filed a joint motion to strike and dismiss plaintiff’s first amended complaint based upon the prior judgment and adjudication of the interest of plaintiff as binding and res judicata. Following a hearing, the trial court granted the motion to dismiss with prejudice. Plaintiff filed a second notice of appeal from this order on January 2, 1992. Plaintiff now appeals the dismissal of its amended complaint and the confirmation order.

First, plaintiff alleges that the initial notice of the sale of the subject property was published prior to the time allowed by statute, and that said publication was defective because it failed to describe the judgment pursuant to which the sale was made. Javaras and defendant Commercial Credit both contend that we cannot address plaintiff’s argument because it was not preserved for appellate review. Specifically, Javaras contends that the above issues were raised for the first time in plaintiff’s appellate brief, and defendant Commercial Credit argues that plaintiff is not entitled to appellate review of this issue because the notice of appeal filed by plaintiff in the present case provides only that defendant "appeals the order of July, 1991, confirming the judicial report of sale and requests that the decision be reversed and the sale voided and rescheduled,” and that there is no mention of a defective sale publication in the notice of appeal. In the alternative, defendant Commercial Credit argues that the initial sale publication did not occur prior to the.time allowed by statute and that it properly described the judgment upon which the sale was made. We agree.

Illinois Supreme Court Rule 303(c)(2) (134 Ill. 2d R. 303(c)(2)) requires that a notice of appeal specify the judgment appealed from and the relief sought from the reviewing court. Rule 303(c), however, does not limit the jurisdiction of this court with respect to the present issue. (Cf. Occidental Chemical Co. v. Agri Profit Systems, Inc. (1975), 37 Ill. App. 3d 599, 603, 346 N.E.2d 482

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Cite This Page — Counsel Stack

Bluebook (online)
628 N.E.2d 1052, 257 Ill. App. 3d 372, 195 Ill. Dec. 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-states-mortgage-center-inc-v-allen-illappct-1993.