Republic Bank of Chicago v. Village of Manhattan

2015 IL App (3d) 130379
Procedural entryThis page is a short order in Republic Bank of Chicago v. Village of Manhattan. Read the opinion of the Court — 2015 IL App (3d) 130379
Appellate Court of Illinois·Decided May 26, 2015·No. 3-13-0379, 3-13-0380 cons.·Unpublished

Opinion

2015 IL App (3d) 130379

Consolidated with 3-13-0380

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. )

)

THE VILLAGE OF MANHATTAN, )

)

Defendant-Appellee )

)

(Lakeside Towns at Liberty Center ) Appeal No. 3-13-0379 Development, LLC, Lawerence W. Sisk, ) Circuit No. 12-CH-1877 Jennell M. Sisk, Michael K. Gallagher, ) Eastern and Smith Manhattan, LLC, ) Gallagher Homes, LLC, Tramore ) Townhome Associations, Inc., ) Commonwealth Edison Company, ) Ameritech Corporation, Illinois Bell ) Telephone Company, Unknown Owners, ) and Nonrecord 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. )

)

THE VILLAGE OF MANHATTAN, )

)

Defendant-Appellee )

)

(Eastern and Smith Manhattan, LLC, ) Lawrence W. Sisk, Jennell M. Sisk, ) Michael K. Gallagher, Route 52 Manhattan, ) LLC, E&S Development North, LLC, ) Krause Construction, LLC, Beary ) Landscaping, Inc., Zausa Development ) Appeal No. 3-13-0380 Corporation, Stonegate Duplex Association, ) Circuit No. 12-CH-2045 Stonegate Phase I Homeowners ) Association, Stonegate Phase II ) Homeowners Association, Stonegate Phase ) III Homeowners Assocation, 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 ) Nonrecord 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 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 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 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 could not foreclose on the roads and common areas because they had been dedicated to the Village and Republic Bank had consented to their dedication. In October 2012, Republic Bank amended its complaint to include a count foreclosing on the roads and outlots of Stonegate Subdivision under its junior mortgage.

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