Newport Condominium Ass'n v. Talman Home Federal Savings & Loan Ass'n

545 N.E.2d 136, 188 Ill. App. 3d 1054, 136 Ill. Dec. 612, 1988 Ill. App. LEXIS 859
CourtAppellate Court of Illinois
DecidedJune 13, 1988
DocketNo. 1-87-2197
StatusPublished
Cited by19 cases

This text of 545 N.E.2d 136 (Newport Condominium Ass'n v. Talman Home Federal Savings & Loan Ass'n) 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
Newport Condominium Ass'n v. Talman Home Federal Savings & Loan Ass'n, 545 N.E.2d 136, 188 Ill. App. 3d 1054, 136 Ill. Dec. 612, 1988 Ill. App. LEXIS 859 (Ill. Ct. App. 1988).

Opinion

PRESIDING JUSTICE CAMPBELL

delivered the opinion of the court:

Defendants, Taiman Home Federal Savings and Loan Association of Chicago and unknown owners (Taiman), appeal from a judgment of foreclosure and sale entered on June 12, 1987, in favor of plaintiff, Newport Condominium Association, decreeing that Taiman owed Newport $40,085.31 in past-due condominium assessments for condominium unit No. 306 — S, located at 4800 S. Chicago Beach Drive, Chicago. Taiman, record owner of unit 306 — S at the time judgment of foreclosure was entered, does not dispute Newport’s right as a lien-holder to foreclose the property. Rather, Taiman disputes the period of time for which assessments were found due and owing Newport from Taiman. On appeal, Taiman contends that the trial court erred in finding that a certificate of purchase issued to Taiman at a sheriff’s sale conveyed constructive title to unit 306 — S, thereby imposing liability on Taiman for assessments commencing with receipt of the certificate of purchase on July 25, 1983. For the following reasons, we reverse the judgment of the trial court and remand the cause with directions.

The record and briefs indicate the following events which led to Newport’s judgment of foreclosure.1 Troy Thompson held a mortgage with Taiman, secured by unit 306 — S. On March 12, 1982, Taiman filed a complaint to foreclose the first mortgage on unit 306 — S for default in mortgage payments, naming Newport as an additional party defendant. At the time, Newport also had a lien on unit 306 — S for past-due monthly assessments.

On October 7, 1982, judgment of foreclosure was entered in favor of Taiman. Subsequently, on November 9, 1982, an amended judgment of foreclosure was entered, which acknowledged that Newport had a subordinate lien on the premises for past-due condominium assessments in the amount of $3,985.19. On January 25, 1983, a sheriff's sale was held at which Taiman was the successful bidder and received a certificate of purchase. Pursuant to the judgment, the statutory six-month period of redemption commenced to run on that date and expired on July 25, 1983.

Meanwhile, on March 3, 1983, Troy Thompson, mortgagor, filed a voluntary bankruptcy petition under chapter 11 of the United States Bankruptcy Code which was later converted to a chapter 7 proceeding. On February 20, 1985, the bankruptcy court entered an order abandoning unit 306 — S as property of Thompson’s estate. Taiman contends that it did not receive formal notification of the order of abandonment until May 7, 1985. Thereafter, on May 29, 1985, Taiman exchanged its certificate of purchase for the sheriff’s deed to unit ' 306 — S.

On June 25, 1985, Newport filed a complaint against Taiman to foreclose its lien on unit 306 — S for past-due assessments, claiming an amount due of $10,150.96 for monthly assessments from July 25, 1983, to June 18, 1985, plus costs and additional attorney fees. Taiman moved to dismiss the complaint on the grounds that the 1982 judgment of foreclosure barred Newport from foreclosing the lien of unpaid condominium assessments that had attached and accrued on unit 306 — S from the date of judgment to the date Taiman had exchanged its certificate of purchase for the sheriff’s deed. Taiman further stated that it had not been entitled to a deed to unit 306 — S until resolution of the bankruptcy proceedings and modification of the stay. The trial court denied Talman’s motion to dismiss, holding that when the six-month statutory redemption period terminated on July 25, 1983, Talman’s right to take the deed occurred automatically without need for leave of court and without any violation of the Bankruptcy Code’s automatic stay provision.

Thereafter, on February 27, 1986, Newport moved for summary judgment on the foreclosure complaint. The trial court entered partial summary judgment on July 28, 1986, granting Newport leave to file an affidavit in support of its claim for assessments and common expenses. Subsequently, on June 12, 1987, judgment of foreclosure and sale was entered which decreed that Taiman owed Newport the sum of $40,085.31, resulting from default in payment of assessments from July 25, 1983, to June 12, 1987. In entering this judgment, the trial court found, inter alia, that: (1) Taiman had held constructive title to unit 306 — S from July 25, 1983, to June 12, 1987; (2) Taiman was obligated for all assessments for common expenses and other charges lawfully assessed by Newport; and (3) Taiman had defaulted in payment. Taiman appeals from this order.

Preliminarily, we note that the parties agree that Taiman, as record owner of unit 306 — S, is liable for all monthly assessments due and owing after it exchanged its certificate of purchase for a sheriff’s deed on May 29, 1985. The time period in dispute is from July 25, 1983, to May 29, 1985, i.e., from the date the six-month statutory redemption period ended to the date Taiman actually secured the sheriff’s deed. Talman’s position is that it held no title during this period, and, thus, was not liable for monthly assessments that accrued during that time. The trial court held that the certificate of purchase gaveTaiman constructive title and imposed liability for the assessments.

On appeal, Taiman first contends that the determination in an earlier forcible entry and detainer action was res judicata as to the question of when Taiman became liable to Newport for condominium assessments. As indicated, in June 1985 Newport filed its complaint against Taiman for foreclosure. Approximately two months later Newport also filed a forcible entry and detainer action in the municipal court, seeking to recover $13,655.94 in condominium assessments for the period from January 25, 1983, through July 1, 1985. A ruling was entered in the forcible action on January 16, 1986, in favor of Taiman.2 According to Taiman, the order determined that Taiman was liable only for condominium assessments that had accrued since the issuance of the sheriff’s deed on May 29, 1985. Thus, Taiman contends that because the forcible action already litigated and resolved the issue as to the period of time for which Taiman was liable for payment of condominium assessments to Newport, the issue is barred by res judicata in the foreclosure action.

In response, Newport argues that the only matter determined by the forcible court was possession. By contrast, the issue before the trial court on the foreclosure complaint is a determination of title for the disputed period. Further, Newport contends that the doctrine of res judicata requires that the court have had competent jurisdiction over the matter. A forcible entry and detainer court has special and limited jurisdiction reserved only for questions of possession.

It is well established that an action for forcible entry and detainer is purely possessory and the immediate right to possession is all that is involved. A court entertaining such an action has limited and special jurisdiction without equitable powers. (Clark Oil & Refining Corp. v. Banks (1975), 34 Ill. App. 3d 67, 339 N.E.2d 283; Pipitone v. Mandala (1962), 33 Ill. App. 2d 461, 180 N.E.2d 33

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Newport Condo. v. Talman Home Fed.
545 N.E.2d 136 (Appellate Court of Illinois, 1988)

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Bluebook (online)
545 N.E.2d 136, 188 Ill. App. 3d 1054, 136 Ill. Dec. 612, 1988 Ill. App. LEXIS 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newport-condominium-assn-v-talman-home-federal-savings-loan-assn-illappct-1988.