Schweihs v. Chase Home Finance, LLC

2015 IL App (1st) 140683, 41 N.E.3d 1011
Appellate Court of Illinois·Decided September 30, 2015·No. 1-14-0683·Unpublished·Cited by 9 cases

Opinion

2015 IL App (1st) 140683

SIXTH DIVISION

September 30, 2015

No. 1-14-0683

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

MELINDA SCHWEIHS, ) Appeal from the Circuit Court ) of Cook County.

Plaintiff-Appellant, )

)

v. )

)

CHASE HOME FINANCE, LLC, successor ) by merger to CHASE MANHATTAN ) No. 10 L 11302 MORTGAGE COMPANY-WEST, ) formerly known as ) MELLON MORTGAGE COMPANY; ) SAFEGUARD PROPERTIES, INC.; ) TODD GONSALEZ; and EDILFONSO ) CENTENO, )

) Honorable Daniel J. Lynch, Defendants-Appellees. ) Judge Presiding.

JUSTICE DELORT delivered the judgment of the court, with opinion.

Justice Cunningham concurred in the judgment and opinion.

Justice Harris dissented, with opinion.

OPINION

¶1 Illinois courts hear many cases involving mortgage foreclosures. Almost all of those disputes involve whether the mortgage was properly foreclosed. This, however, is a tort case regarding a physical entry into the borrower’s home which occurred before the foreclosure litigation was even over.

¶2 Plaintiff Melinda Schweihs filed a five-count complaint against Chase Home Finance, LLC (Chase), Safeguard Properties, Inc. (Safeguard), Todd Gonsalez, and Edilfonso Centeno,

alleging trespass, negligent trespass, private nuisance, intentional infliction of emotional distress, and negligence. After extensive discovery and pre-trial motion practice, the trial court (1) entered summary judgment in favor of defendants on Schweihs’s claims for private nuisance and intentional infliction of emotional distress; (2) granted Schweihs leave to amend count V of her complaint; and (3) dismissed amended count V, which attempted to set forth a claim for negligent infliction of emotional distress. On appeal, Schweihs argues that (1) there existed genuine issues of material fact with respect to her claims for private nuisance and intentional infliction of emotional distress which should have precluded the entry of judgment against her; and (2) that the trial court erred in dismissing count V as amended because it properly stated a claim for negligent infliction of emotional distress. We disagree and affirm.

¶3 BACKGROUND

¶4 The events leading up the incident underlying this case began on March 6, 1997. On that day, Schweihs obtained a mortgage for a home located in Northbrook, Illinois. 1 As relevant to this case, the mortgage contained a clause granting Chase the right, in the event of a default by Schweihs, to enter onto the property to make repairs. The clause reads as follows:

“7. Protection of Lender’s rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument *** then Lender may do and pay for whatever is reasonable or appropriate to protect the value of the Property and Lender’s rights in the Property. Lender’s actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable

1 The note which accompanied the mortgage was transferred to Chase at some point in time.

attorney’s fees and entering on the Property to make repairs.

Although Lender may take action under this paragraph 7, Lender does not have to do so.”

¶5 Schweihs defaulted on the mortgage in 2007. As a result, on December 3, 2007, Chase filed a complaint to foreclose the mortgage against her. Chase Home Finance v. Schweihs, No. 07 CH 35360 (Cir. Ct. Cook County, IL) (“foreclosure case”). On May 25, 2010, the trial court entered a judgment of foreclosure against Schweihs. The court order permitted Schweihs to continue living at the property at least until her redemption period expired on August 25, 2010.

¶6 On June 17, 2010, Safeguard entered the fray. Safeguard is a company which provides preservation services for properties in foreclosure. Safeguard’s employees do not personally perform property inspections or render preservation services. Instead, Safeguard employs “Client Account Representatives” (CAR) who coordinate with local vendors with whom Safeguard contracts. The local vendors, in turn, perform inspections and preservation services. On that day, Safeguard received a report from one of its vendors that Schweihs’s property was vacant. In response, a Safeguard employee asked the vendor to explain his basis for reporting the property as vacant. The vendor replied, explaining:

“The property looks like it belonged to a hoarder, there was never an answer anytime I have been at the property? This past inspection, the same thing happened, but I did notice that the gas meter is turned off, electricity and water are still?on [sic], and there is a dumpster in front of the property, indicating that someone is trying to clean property. I spoke to the neighbor to the left? and

[sic] across the street of property, and they also verified that they have seen people at property, but not fully occupied??”

¶7 Based on the vendor’s report, a Safeguard CAR placed an “Initial Secure Order” with A1 Builders, a local contractor which performs property inspection services with whom Safeguard contracted. According to Jeff Marlowe, A1’s Vice President, A1 in turn hired subcontractors who performed work orders. In June 2010, Gonsalez and Centeno worked as A1 subcontractors.

¶8 On June 22, 2010, at approximately 4 p.m., Gonsalez and Centeno arrived at Schweihs’s property to execute the initial secure order. Gonsalez and Centeno were required to determine the vacancy status of the property before executing the order. They conducted a visual inspection of the property, observing that the grass on the property was uncut and the trees were overgrown. However, they also saw that there was a dumpster and a car parked on the driveway. Gonsalez knocked on the front door but did not receive an answer. He then checked the gas meter and water spout and determined that both utilities had been shut off.

¶9 The men also spoke to some neighbors. One neighbor told Gonsalez that Schweihs’s property was unoccupied, but that a woman would occasionally visit. Gonsalez was also informed that random people occasionally used the driveway. However, Centeno was told by a neighbor that the car parked in the driveway belonged to the homeowner and that the “owner comes and goes.” In all, Gonsalez and Centeno spent 45 to 90 minutes knocking on the door and gathering information from neighbors to determine if the house was occupied. Gonsalez also looked inside the home from the backyard and observed substantial debris, garbage, and boxes on the floor. Based upon this information, Gonsalez called Marlowe for permission to execute the work order, which Marlowe gave.

¶ 10 In order to gain entry into Schweihs’s home, Gonsalez removed the door lock and

crawled through the doorway, because boxes and debris were piled up against it. Unbeknownst to Gonsalez, Schweihs was inside when he entered the home. When he got inside, Gonsalez saw Schweihs and said “lady, you scared the shit out of me.” Schweihs told Gonsalez to leave and said that she was calling her foreclosure lawyer. Gonsalez told Schweihs that he was “from the mortgage company” and asked her to come to the front door to speak with him. At that point, Schweihs called her foreclosure lawyer, and then the police. The police arrived shortly thereafter. After speaking with all parties involved, as well as neighbors, the police made no arrests.

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Schweihs v. Chase Home Finance, LLC, 2015 IL App (1st) 140683, 41 N.E.3d 1011 (Ill. Ct. App. 2015).

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