Northern Trust Co. v. Halas

629 N.E.2d 158, 257 Ill. App. 3d 565, 195 Ill. Dec. 850, 1993 Ill. App. LEXIS 2093, 1993 WL 540891
CourtAppellate Court of Illinois
DecidedDecember 30, 1993
Docket1-91-0056, 1-91-0057 and 1-91-0058
StatusPublished
Cited by8 cases

This text of 629 N.E.2d 158 (Northern Trust Co. v. Halas) 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
Northern Trust Co. v. Halas, 629 N.E.2d 158, 257 Ill. App. 3d 565, 195 Ill. Dec. 850, 1993 Ill. App. LEXIS 2093, 1993 WL 540891 (Ill. Ct. App. 1993).

Opinion

JUSTICE COUSINS

delivered the opinion of the court:

In 1986, plaintiff, the Northern Trust Company (Northern), filed a foreclosure action against defendant, Therese Halas (Ms. Halas). Petitioners, Ms. Halas’ children, Stephen G. Halas and Christine D. Halas (Stephen and Christine), sought to intervene. The trial court denied the children’s petition to intervene and granted summary judgment in favor of Northern. On appeal, Ms. Halas asserts that the trial court erred in denying her leave to amend her affirmative defenses and in granting summary judgment for Northern. In separate appeals, Stephen and Christine assert that the trial court erred in denying their petition to intervene.

"We affirm.

BACKGROUND

In 1976, Ms. Halas obtained a $50,000 mortgage loan from Northern to buy a house located at 17 Briar Road, Golf, Illinois. The mortgage agreement required her to make monthly payments of principal and interest through July 1996. In 1985, Ms. Halas refused to make any mortgage payments, asserting that Northern had mismanaged the Uniform Gifts to Minors Act accounts of her two children. Northern filed a foreclosure action on August 11, 1986, naming Ms. Halas and unknown owners as defendants.

On September 9, 1986, Ms. Halas’ two children, Stephen and Christine, filed a pro se verified petition to intervene as parties defendant. Both alleged that they had a "direct and vested interest, both as litigants with their mother in matters of the Estates of George S. Halas, Sr. and George S. Halas, Jr., and as direct heirs of [Ms.] Halas.” The petition indicated that the positions that the Halas children wished to assert were identical to the position taken by their mother. Northern objected and, on January 12, 1987, the trial coart denied the petition to intervene. The order does not contain Illinois Supreme Court Rule 304(a) findings (134 Ill. 2d R. 304(a)).

On October 1,1986, Ms. Halas’ counsel filed an appears ■ ce and a verified answer including affirmative defenses on her b- ;alf. In her answer, Ms. Halas admitted that she was the sole owner and mortgagor of the mortgaged premises. However, she denied that there was any amount due and owning from her to Northern, In her affirmative defense, Ms. Halas asserted that she was "induced to execute” the mortgage documents because George S. Halas, Sr., her former father-in-law, told her that either he or George S. Halas, Jr., her former husband, would guarantee the moHgage debt and would make the mortgage payments if Ms. Halas wss unable to do so. (Both Ms. Halas’ ex-husband and her father-in-law died before the instant litigation arose.) She further alleged that Samuel V. Lizzo (Lizzo), a former vice-president of Northern, told her that George S. Halas, Sr., had agreed to guarantee her mortgage, and that upon information and belief, there was a writing or writings evidencing that agreement. She contended that this agreement estopped Northern from attempting to enforce any alleged mortgage indebtedness against her. She also asserted that Northern’s failure to attempt to enforce said indebtedness against the estates of George S. Halas, Sr., and George S. Halas, Jr., estopped Northern from enforcing the mortgage debt against her. Northern filed a reply denying the allegations of Ms. Halas’ affirmative defense.

On December 3, 1986, Ms. Halas obtained leave of court to file a third-party complaint against the executors of the estates of George S. Halas, Sr., and George S. Halas, Jr. Both complaints were dismissed pursuant to section 2 — 619(a)(3) of the Code of Civil Procedure (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 619(a)(3)) because these claims were the subject of actions already pending in the probate division.

On August, 6, 1987, nearly one year after Northern filed its complaint to foreclose and recorded its lis pendens notice, the Internal Revenue Service (IRS) filed a tax lien against the Halas home. When Ms. Halas did not pay that lien, the IRS sold the mortgaged premises to Peter Theodore (Theodore) at an auction sale for back taxes. Ms. Halas did not redeem from that sale within the time permitted by law, and on November 7, 1988, the IRS issued a district director’s deed purporting to convey title of the Halas home to Theodore. Subsequently, in an unrelated proceeding, Ms. Halas obtained an order setting aside the deed to Theodore.

On November 23, 1988, Ms. Halas’ attorney obtained leave to withdraw as her counsel of record, and on December 12, 1988, the court granted Ms. Halas leave to file instanter her appearance pro se.

On December 12,1988, Ms. Halas filed a motion seeking dismissal of the suit for cause, and other relief. On January 30, 1989, before her motion to dismiss had been ruled on, Ms. Halas filed an emergency motion to strike and dismiss the complaint for cause or, in the alternative, to amend her answer. In this latter motion, Ms. Halas attempted to set forth new allegations, including the following assertions: Northern was negligent in failing to obtain the signatures of Halas Sr., and Halas Jr. relative to their promise to pay the mortgage; in 1976 Northern knew of Ms. Halas’ inability to pay without that guarantee; and, finally, Northern was a custodian to the Halas children’s trust funds established by George Halas, Jr., and Sr., and improperly managed these funds.

On March 21, 1989, the trial court denied both motions in their entirety.

In the interim, Ms. Halas deposed Mr. Lizzo. He testified, inter alia, that he and George S. Halas, Sr., never discussed a guaranty of Ms. Halas’ mortgage and that George S. Halas, Sr., never guaranteed any mortgage loan. Lizzo also denied telling Ms. Halas that George S. Halas, Sr., undertook to guarantee her loan. Northern filed a motion for summary judgment on June 12, 1989.

On August 7, 1989, after obtaining leave to intervene as an unknown owner, the law firm of McGuire, Cornwell & Blakey filed its answer to Northern’s complaint for foreclosure. That answer admitted every allegation in Northern’s complaint but three as to which it claimed no knowledge: the paragraph concerning statement of defaults; the paragraph naming the person alleged to be liable for a deficiency; and the paragraph concerning attorney fees. The counterclaim, which did not name Northern as a defendant, sought to foreclose a $50,000 mortgage executed by Ms. Halas to secure her alleged obligation to pay fees to McGuire, Cornwell & Blakey.

On August 30, 1989, the trial court granted Northern’s motion for summary judgment. The court found that there were no genuine issues of material fact and Northern was entitled to judgment of foreclosure and sale as a matter of law. On September 11, 1989, Ms. Halas filed an emergency motion to reconsider and vacate the order of August 30, 1989. The motion to reconsider was denied on November 13, 1989.

On November 13, 1989, the trial court entered a judgment of foreclosure and sale directing that the mortgaged premises be sold if Ms. Halas did not pay the amount found due. That judgment did not contain Illinois Supreme Court Rule 304(a) findings. Nonetheless, Ms. Halas sought to appeal. On February 6, 1990, this court granted Northern’s motion to dismiss that appeal.

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

Related

In re Adoption of M.W.
2023 IL App (5th) 220791-U (Appellate Court of Illinois, 2023)
In re R.J.
2022 IL App (1st) 211542 (Appellate Court of Illinois, 2022)
Teachers Insurance & Annuity Ass'n of America v. La Salle National Bank
691 N.E.2d 881 (Appellate Court of Illinois, 1998)
Teachers Insurance v. LaSalle National Bank
Appellate Court of Illinois, 1998
People ex rel. Collins v. Burton
658 N.E.2d 49 (Appellate Court of Illinois, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
629 N.E.2d 158, 257 Ill. App. 3d 565, 195 Ill. Dec. 850, 1993 Ill. App. LEXIS 2093, 1993 WL 540891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-trust-co-v-halas-illappct-1993.