Municipal Trust & Savings Bank v. Moriarty

2025 IL App (3d) 240225-U
Appellate Court of Illinois·Decided June 18, 2025·No. 3-24-0225·Unpublished·Cited by 1 cases

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2025 IL App (3d) 240225-U

Order filed June 18, 2025 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

MUNICIPAL TRUST AND ) Appeal from the Circuit Court SAVINGS BANK, ) of the 21st Judicial Circuit, ) Kankakee County, Illinois, Plaintiff-Appellee ) ) Appeal No. 3-24-0225 v. ) Circuit No. 16 CH 258 ) DENIS J. MORIARTY, ) Honorable ) Michael C. Sabol Defendant-Appellant ) Judge, Presiding. ____________________________________________________________________________

JUSTICE HOLDRIDGE delivered the judgment of the court. Justice Davenport and Justice Peterson concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The court erred when it dismissed a section 2-1401 petition for failing to state a cause of action without ruling on each of the claims raised by the petition.

¶2 The plaintiff, Municipal Trust and Savings Bank (Municipal), obtained a foreclosure

judgment against the defendant, Denis Moriarty. Moriarty brought a petition under section 2-

1401 to vacate the judgment, which was denied. Moriarty appealed the denial, and the Supreme

Court reversed and remanded the case for further consideration of Moriarty’s section 2-1401

petition. On remand, the court granted partial relief, vacating all orders entered prior to Moriarty’s appearance in the case, but it declined to rule on whether an order entered on the day

Moriarty entered his appearance should be vacated. Municipal then moved to dismiss the

petition, and the court dismissed the petition with prejudice. Moriarty appealed.

¶3 I. BACKGROUND

¶4 In 2016, Municipal initiated a foreclosure action against Moriarty concerning several

commercial properties located in Kankakee County. Municipal served Moriarty through a private

process server in Cook County. Municipal did not move for appointment of a process server, and

no process server was appointed by the court. Moriarty failed to appear or answer the complaint,

and a default judgment and a judgment of foreclosure and sale were entered on January 30, 2017.

A sheriff’s sale was held approximately six months later at which Municipal was the successful

bidder. Municipal then moved to confirm the sale, and the court held a hearing to confirm the

sale on July 17, 2017.

¶5 On that date, Moriarty appeared, stating he had been in a nursing home, was not aware of

the sale, and did not receive notice. Over Moriarty’s objection, the court found that service was

proper and entered an Order Confirming Sale on that date. On May 21, 2018, Moriarty filed a

petition under section 2-1401, arguing the court lacked jurisdiction to act because service was

defective. Moriarty’s petition also included allegations of negligence on Municipal’s part and

requested, in addition to vacatur of the orders entered in the case, “compensatory damages,

attorney fees, costs, and punitive damages.” The court denied Moriarty’s petition on September

21, 2018. We affirmed the denial of the petition on appeal. Municipal Trust and Savings Bank v.

Moriarty, 2020 IL App (3d) 190016, ¶ 23. Interpreting the statute governing service, the Illinois

Supreme Court reversed, finding that service was defective because Municipal needed special

permission to serve process in Cook County. Municipal Trust and Savings Bank v. Moriarty,

2 2021 IL 126290, ¶ 21. The Supreme Court remanded the case for “further consideration of the

merits of [the] defendant’s section 2-1401 petition.” Id. ¶ 26. The Supreme Court noted that

while Moriarty’s appearance on July 17, 2017, subjected him to the court’s jurisdiction

prospectively, it also observed that his appearance “did not retroactively validate void orders

entered prior to July 17, 2017.” Id. ¶ 25. The Court noted that Municipal raised additional

arguments not considered by the circuit court, such as “[w]hether there was a bona fide third-

party purchaser of the property.” Id. ¶ 26.

¶6 On remand, Moriarty’s section 2-1401 petition was reinstated, and Moriarty moved

separately to vacate all orders entered in the case. Municipal moved to dismiss Moriarty’s

section 2-1401 petition. The case was assigned to a new judge, Judge Nicholson, and the court

held a hearing on the motion to dismiss the petition on October 20, 2021. On that date, both

parties agreed that all orders entered prior to July 17, 2017, were void. Those orders included the

default judgment and the judgment of foreclosure and sale. The court vacated those orders as a

“first step.” However, the court declined to vacate the Order Confirming Sale, finding the court

had jurisdiction on the date that order was entered. The court described the Order Confirming

Sale as “voidable” but not void. However, no orders were entered on that date, and the court

declined to rule on Municipal’s motion to dismiss the petition, stating it wished to do further

research about “what remedies *** fall under [section] 2-1401.”

¶7 Before issuing further rulings in the case, Judge Nicholson recused herself, and the case

was reassigned to Judge Kramer. The case was called again for hearing on Municipal’s motion to

dismiss the section 2-1401 petition on June 21, 2022. At that hearing, Municipal argued that

Judge Nicholson had already determined the Order Confirming Sale was not void, and the only

remaining issue was whether to dismiss the “money damage claims” in the petition. Moriarty

3 insisted his petition requested vacatur of all orders entered in the case, including the Order

Confirming Sale, and the court had not yet determined whether to grant that relief. The court

agreed with Moriarty, denying the motion to dismiss and ruling that “the order confirming sale is

a proper subject for a [section] 2-1401 petition along with the additional issues mentioned in the

Supreme Court’s decision in this matter.” Municipal requested clarification of the court’s ruling,

asking whether any hearing would involve adjudicating Moriarty’s claim for damages. The court

set the petition for hearing and selected a separate date to clarify the issues that would be

presented at the hearing.

¶8 On August 25, 2022, Municipal filed a second motion to dismiss the section 2-1401

petition. This motion argued that the only allegations remaining in the petition were a “gross

negligence” claim and a “wrongful foreclosure” claim, neither of which were cognizable claims

under section 2-1401. Before Municipal’s second motion to dismiss was addressed, Judge

Kramer retired, and the case was reassigned to Judge Sabol, who heard arguments on the motion

on June 28, 2023. On August 7, 2023, the court entered an order striking one paragraph of the

petition and part of a second paragraph. Specifically, the court struck from the petition (1) the

allegation that Municipal acted negligently by failing to properly serve Moriarty and (2)

Moriarty’s request for “compensatory damages, attorney fees, costs and punitive damages for the

wrongfully entered default Judgment of Foreclosure.” The court then requested briefing from the

parties about what issues remained pending in the case.

¶9 Moriarty filed a brief stating that the question of whether to grant Moriarty’s petition as

to the Order Confirming Sale remained pending.

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