Republic Bank of Chicago v. Village of Manhattan

2015 IL App (3d) 130379, 32 N.E.3d 1141
CourtAppellate Court of Illinois
DecidedMay 15, 2015
Docket3-13-0379, 3-13-0380 cons.
StatusUnpublished
Cited by1 cases

This text of 2015 IL App (3d) 130379 (Republic Bank of Chicago v. Village of Manhattan) 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
Republic Bank of Chicago v. Village of Manhattan, 2015 IL App (3d) 130379, 32 N.E.3d 1141 (Ill. Ct. App. 2015).

Opinion

2015 IL App (3d) 130379 Consolidated with 3-13-380

Opinion filed May 15, 2015 _____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

A.D., 2015

REPUBLIC BANK OF CHICAGO, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellant, ) Will County, Illinois. ) v. ) ) VILLAGE OF MANHATTAN, ) ) Defendant-Appellee, ) ) LAKESIDE TOWNS AT LIBERTY ) CENTER DEVELOPMENT, LLC, ) Appeal No. 3-13-0379 LAWRENCE W. SISK, JENELL M. SISK, ) Circuit No. 12-CH-1877 MICHAEL K. GALLAGHER, EASTERN ) & SMITH MANHATTAN, LLC, ) GALLAGHER HOMES, LLC, TRAMORE ) TOWNHOME ASSOCIATION, INC., ) COMMONWEALTH EDISON ) COMPANY, AMERITECH ) CORPORATION, ILLINOIS BELL ) TELEPHONE COMPANY, UNKNOWN ) OWNERS, AND NON-RECORD ) CLAIMANTS, ) The Honorable ) Barbara Petrungaro, Defendants. ) Judge, Presiding. ______________________________________________________________________________

REPUBLIC BANK OF CHICAGO, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellant, ) Will County, Illinois. ) v. ) ) VILLAGE OF MANHATTAN, ) ) Defendant-Appellee, ) ) EASTERN & SMITH MANHATTAN, ) LLC, LAWRENCE W. SISK, JENELL M. ) SISK, MICHAEL K. GALLAGHER, ) ROUTE 52 MANHATTAN, LLC, E&S ) DEVELOPMENT NORTH, LLC, ) KRAUSE CONSTRUCTION, LLC, ) BEARY LANDSCAPING, INC., ZAUSA ) DEVEOPMENT CORPORATION, ) STONEGATE DUPLEX ASSOCIATION, ) Appeal No. 3-13-0380 STONEGATE PHASE I HOMEOWNERS ) Circuit No. 12-CH-2045 ASSOCIATION, STONEGATE PHASE II ) HOMEOWNERS ASSOCIATION, ) STONEGATE PHASE III ) HOMEOWNERS ASSOCIATION, ) STONEGATE PHASE IV ) HOMEOWNERS ASSOCIATION, ) STONEGATE PHASE V HOMEOWNERS ) ASSOCIATION, COMMONWEALTH ) EDISON COMPANY, AMERITECH ) CORPORATION, ILLINOIS BELL ) TELEPHONE COMPANY, NICOR GAS ) COMPANY, KRAUS CABLE ) TELEVISION SYSTEMS, LAKESIDE ) TOWNS AT LIBERTY CENTER ) DEVELOPMENT, LLC, UNKNOWN ) OWNERS, AND NON-RECORD ) CLAIMANTS, ) The Honorable ) Barbara Petrungaro, Defendants. ) Judge, Presiding. _____________________________________________________________________________

JUSTICE LYTTON delivered the judgment of the court, with opinion. Justice O’Brien concurred in the judgment and opinion. Justice Carter dissented, with opinion. _____________________________________________________________________________

OPINION

¶1 Plaintiff Republic Bank of Chicago filed two separate complaints against multiple

defendants to foreclose on roads and outlots contained in two failed subdivisions located in the

2 Village of Manhattan (Village). The Village filed motions to dismiss the complaints, arguing

that the roads and common areas had been dedicated to the Village. The trial court granted the

Village’s motions to dismiss. On appeal, Republic Bank argues that (1) the roads and common

areas were not properly dedicated to the Village, and (2) even if they were properly dedicated,

Republic Bank is still entitled to foreclose on them. We affirm.

¶2 In 2006, Eastern & Smith Manhattan, LLC (Eastern & Smith) purchased 134.51 acres of

land in the Village of Manhattan with plans to construct Stonegate Subdivision. Eastern & Smith

obtained the funds to purchase the property from Republic Bank, which held an initial mortgage

on the property in the amount of $8,351,646.66. The initial mortgage was executed in July 2006,

but was later amended and modified on six occasions. Republic Bank recorded a junior

mortgage on the property on February 26, 2007.

¶3 In preparation for development, Stonegate was subdivided and platted in five phases from

August 30, 2007, to April 14, 2009. The plats showed 352 residential lots, as well as streets and

common areas. The plats for Phases 1 through 3 were recorded on August 30, 2007. The plat

for Phase 4 was recorded on December 6, 2007, and the plat for Phase 5 was recorded on April

14, 2009. Republic Bank signed each of the plats under a portion of the plat entitled,

“Mortgagee’s Certificate,” which states: “This is to certify that Republic Bank of Chicago as

Mortgagee *** consents to the recording of the subdivision as herein shown.”

¶4 Each plat identifies roads with names, followed by “(hereby dedicated)” and “(heretofore

dedicated)”, as well as land identified as easements for stormwater draining and detention, public

utility and drainage, and surface overland flow. Each plat contains provisions stating that

stormwater draining and detention easements, public utility and drainage easements, and surface

overland flow easements are “reserved for and granted to the Village of Manhattan.” The plats

3 also contain a “Public Easement” provision, which states: “A public easement of ingress, egress,

and the use and enjoyment of the Village of Manhattan over Outlots 5, 6, 7, 8, 9 and 10 is hereby

reserved, granted and dedicated.”

¶5 Republic Bank released its lien on three lots located in Phase 1 of Stonegate Subdivision

and recorded releases for those lots on October 29, 2007. The releases refer to the lot numbers

contained in the plat for Phase 1 of the subdivision.

¶6 In 2007, Lakeside Towns at Liberty Center Development, LLC (Lakeside Towns)

purchased 23 acres of land in the Village of Manhattan with plans to construct Tramore

Subdivision. Lakeside obtained funds to purchase the property from Republic Bank, which held

a mortgage on the property in the amount of $7,105,000. Republic Bank recorded its mortgage

in February and May 2007.

¶7 In preparation for development, a final Planned Unit Development plat of subdivision

was recorded in August 2007, showing 26 residential lots, containing 150 townhomes, and areas

designated for roadways and common areas. Republic Bank signed the plat for Tramore

Subdivision under a section entitled, “Mortgagee’s Certificate,” which states: “This is to certify

that Republic Bank of Chicago as Mortgagee *** consents to the recording of the subdivision as

herein shown.”

¶8 The plat for Tramore Subdivision identifies general easements “granted to the Village of

Manhattan,” and easements for stormwater retention, public utility and drainage, and emergency

access. The plat states that all stormwater retention easements, public utility and drainage

easements and emergency access easements “are reserved for and granted to the Village of

Manhattan ***.” The plat also contains a provision for “Public Easement,” which states: “A

public easement for ingress, egress, public utilities and storm water detention and drainage, and

4 the use and enjoyment of the Village of Manhattan over lots 27-30, inclusive is hereby reserved,

granted and dedicated.”

¶9 Republic Bank released its lien on one lot in Tramore Subdivision and recorded its

release on April 13, 2010. The release refers to the lot number contained in the recorded plat for

Tramore Subdivision.

¶ 10 By early 2011, both Eastern & Smith and Lakeside Towns had defaulted on their

respective loans from Republic Bank. Although the infrastructure improvements had been

started in each subdivision, they had not been completed, and the properties remained largely

undeveloped.

¶ 11 In April 2012, Republic Bank filed complaints for partial foreclosure, seeking to

foreclose on the roads and outlots of Stonegate Subdivision and Tramore Subdivision. The

Village filed motions to dismiss the complaints, pursuant to section 2-619(a)(9) of the Code of

Civil Procedure (Code) (735 ILCS 5/2-619(a)(9) (West 2012)), arguing that Republic Bank

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Bluebook (online)
2015 IL App (3d) 130379, 32 N.E.3d 1141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/republic-bank-of-chicago-v-village-of-manhattan-illappct-2015.