Penn v. Gerig

778 N.E.2d 325, 334 Ill. App. 3d 345, 268 Ill. Dec. 339
Appellate Court of Illinois·Decided October 4, 2002·No. 4-01-0196·Published·Cited by 33 cases

Opinion

JUSTICE KNECHT

delivered the opinion of the court:

After discovering certain defects in their recently purchased home, plaintiff home buyers filed a cause of action against defendant home sellers. Count III of plaintiffs’ complaint alleged noncompliance with the Residential Real Property Disclosure Act (Act) (765 ILCS 77/1 through 99 (West 1996)) and count X alleged common-law fraud. The trial court dismissed count III with prejudice, due to the running of the one-year statute of limitations. 765 ILCS 77/60 (West 1996). On plaintiffs’ motion, the trial court also dismissed count X without prejudice. The trial court then granted defendants’ motion for sanctions and ordered plaintiffs to reimburse defendants $4,330 for attorney fees. Plaintiffs appeal the trial court’s order dismissing count III with prejudice and the order granting defendants’ motion for sanctions. We affirm.

I. BACKGROUND

In the fall of 1997, defendants, Roger and Denise Heerdt, listed their Bloomington, Illinois, home for sale with a local realtor. On September 8, 1997, defendants completed a residential real property disclosure report in accordance with the Act. 765 ILCS 77/35 (West 1996). Defendants disclosed they were aware of “material defects in the basement or foundation (including cracks or bulges).” Defendants further explained their answer in the appropriate blank on the disclosure form and stated: “crack in foundation on south side of house” and “small settling cracks on walls throughout.”

Around October 17, 1997, plaintiffs, Donald and Norma Penn, entered into negotiations with defendants for the purchase of defendants’ home. On October 18, 1997, plaintiffs signed a purchase agreement and they also signed the disclosure report in which defendants disclosed the aforementioned defects. On November 28, 1997, defendants delivered possession of the residence to plaintiffs. The instrument of conveyance of the residential real property was recorded on December 4, 1997.

On May 16, 2000, plaintiffs filed a nine-count complaint against five parties: Becky Gerig, Hundman Realty, Inc., Thomas Maloney (doing business as Coldwell Banker Heart of America Realty), Roger A. Heerdt, and Denise Heerdt. This appeal involves only those counts of the complaint directed toward the Heerdts. In count III, plaintiffs alleged defendants violated the Act because they “falsely and intentionally filled out the [r]esidential [r]eal [p]roperty [rjeport in an incorrect manner so as to deceive and mislead the [plaintiffs] and others as to the true condition of the home.” Plaintiffs complained of undisclosed defects in the home’s sewer system, roof, and foundation, which cost them $17,900 to correct.

On June 12, 2000, defendants filed a motion to dismiss count III, alleging it was barred by the applicable one-year statute of limitations. 765 ILCS 77/60 (West 1996). Defendants argued the complaint was filed nearly 21h years after the accrual of the cause of action as set forth in the Act. Defendants also argue they disclosed all known defects in the disclosure report prior to plaintiffs’ purchase of the home, so even if the discovery rule applied to the Act, it would not toll the running of the limitations period in this case. On June 16, the trial court granted plaintiffs’ motion for leave to file count X against defendants, alleging common-law fraud. On August 9, 2000, a hearing was held on defendants’ motion to dismiss count III. The trial court granted the motion and dismissed count III with prejudice due to the expiration of the statute of limitations.

On August 21, 2000, defendants filed a motion to dismiss count X. On November 16, 2000, plaintiffs filed a motion for voluntary dismissal of count III. On November 22, 2000, the trial court granted defendants’ motion to dismiss count X and, noting its earlier dismissal of count III with prejudice, denied plaintiffs’ motion for voluntary dismissal of count III. On December 11, the trial court entered an order dismissing, without prejudice, all other counts of plaintiffs’ complaint (against other defendants) and withdrawing all pending discovery requests.

On December 21, 2000, plaintiffs filed a notice of appeal of the trial court’s order dismissing count III with prejudice. On January 8, 2001, defendants filed a motion for sanctions against plaintiffs and their attorney, Jack Vieley. On February 2, 2001, defendants filed a motion to dismiss plaintiffs’ appeal, which was granted by this court on February 16, 2001. The trial court heard defendants’ motion for sanctions on February 28, 2001, and took the matter under advisement. On March 6, 2001, the trial court entered an order granting defendants’ motion for sanctions, and on March 7, 2001, plaintiffs filed a notice of appeal. On March 20, 2001, the mandate from this court dismissing plaintiffs’ December 21, 2000, appeal (Penn v. Gerig, No. 4 — 00—1081 (February 16, 2001) (unpublished order of dismissal)) was filed with the circuit clerk of McLean County. On March 21, 2001, plaintiffs filed a second-amended notice of appeal. We note defendants have filed with this court a motion for sanctions pursuant to Supreme Court Rule 375 (155 Ill. 2d R. 375(b)), which we will consider as part of this case.

II. ANALYSIS

On review we consider three issues: (1) whether the discovery rule should be applied to the Residential Real Property Disclosure Act to toll the running of the one-year statute of limitations period until a time the plaintiffs knew or reasonably should have known of their injury; (2) whether the trial court erred in granting defendants’ motion for sanctions; and (3) whether this court should grant defendants’ motion for sanctions pursuant to Supreme Court Rule 375 (155 Ill. 2d R. 375(b)).

A. Statute of Limitations

Whether the discovery rule is applicable to the Act is an issue of first impression in Illinois. The limitations period set forth in the Act states: “No action for violation of this Act may be commenced later than one year from the earlier of the date of possession, date of occupancy, or date of recording of an instrument of conveyance of the residential real property.” 765 ILCS 77/60 (West 1996). The primary rule of statutory construction is to ascertain and give effect to the true intent of the statute. If the statutory language is clear, the language should be given effect without further aids of construction. Miller v. Bizzell, 311 Ill. App. 3d 971, 974, 726 N.E.2d 175, 177 (2000).

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

Penn v. Gerig, 778 N.E.2d 325, 334 Ill. App. 3d 345, 268 Ill. Dec. 339 (Ill. Ct. App. 2002).

778 N.E.2d 325 (Penn v. Gerig) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Mote v. Estate of McManus
2025 IL App (4th) 241307 (Appellate Court of Illinois, 2025)
People v. Johnson
2025 IL App (3d) 240204-U (Appellate Court of Illinois, 2025)
Sides v. Manuel
2024 IL App (5th) 220564-U (Appellate Court of Illinois, 2024)
Asher Farm Ltd. Partnership v. Wolsfeld
2022 IL App (2d) 220072 (Appellate Court of Illinois, 2022)
Libby v. Thompson
2020 IL App (2d) 180801-U (Appellate Court of Illinois, 2020)
People v. Abdullah
2018 IL App (2d) 150840 (Appellate Court of Illinois, 2018)
Marxmiller v. Champaign-Urbana Mass Transit District
2017 IL App (4th) 160741 (Appellate Court of Illinois, 2018)
Pekin Insurance Co. v. St. Paul Lutheran Church
2016 IL App (4th) 150966 (Appellate Court of Illinois, 2017)
Pekin Insurance Company v. St. Paul Lutheran Church
2016 IL App (4th) 150966 (Appellate Court of Illinois, 2017)
Fiala v. Bickford Senior Living Group, LLC
2015 IL App (2d) 150067 (Appellate Court of Illinois, 2016)
Pedigo v. Youngblood
2015 IL App (4th) 140222 (Appellate Court of Illinois, 2015)
Bank of America, N.A. v. Basile
2014 IL App (3d) 130204 (Appellate Court of Illinois, 2014)
Kalkman v. Nedved
2013 IL App (3d) 120800 (Appellate Court of Illinois, 2013)
Patton v. Lee
940 N.E.2d 802 (Appellate Court of Illinois, 2010)
Edwards v. City of Henry
924 N.E.2d 978 (Appellate Court of Illinois, 2008)
People v. Clark
Appellate Court of Illinois, 2008
LaSalle National Bank v. Willis
880 N.E.2d 1075 (Appellate Court of Illinois, 2007)
People v. Stefanski
879 N.E.2d 1019 (Appellate Court of Illinois, 2007)
RESURGENCE FINANCIAL, LLC v. Kelly
875 N.E.2d 679 (Appellate Court of Illinois, 2007)
Resurgence v. Kelly
Appellate Court of Illinois, 2007