Select Portfolio Servicing, Inc. v. Gatzke

2023 IL App (3d) 220194-U
CourtAppellate Court of Illinois
DecidedMay 17, 2023
Docket3-22-0194
StatusUnpublished

This text of 2023 IL App (3d) 220194-U (Select Portfolio Servicing, Inc. v. Gatzke) 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
Select Portfolio Servicing, Inc. v. Gatzke, 2023 IL App (3d) 220194-U (Ill. Ct. App. 2023).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2023 IL App (3d) 220194-U

Order filed May 17, 2023 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

SELECT PORTFOLIO ) Appeal from the Circuit Court SERVICING, INC., ) of the 12th Judicial Circuit, ) Will County, Illinois, Plaintiff-Appellee, ) ) Appeal No. 3-22-0194 v. ) Circuit No. 19-CH-974 ) ) Honorable RICHARD F. GATZKE, ABN AMRO ) Theodore J. Jarz, MORTGAGE GROUP, INC., UNKNOWN ) Judge, Presiding. OWNERS and NON-RECORD CLAIMANTS. ) ) Defendants ) ) (Richard F. Gatzke, ) Defendant-Appellant). ) ____________________________________________________________________________

JUSTICE ALBRECHT delivered the judgment of the court. Justices McDade and Peterson concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The circuit court erred by denying defendant’s motion to quash service without first holding an evidentiary hearing.

¶2 Defendant, Richard F. Gatzke, appeals the judgment in the foreclosure action against him

arguing that the effectuated substitute service was improper, and the circuit court erred in denying his motion to quash service. He further argues that because service was improper, the

court also erred in entering an order to approve the sale of the property when it did not have

jurisdiction over him. We reverse.

¶3 I. BACKGROUND

¶4 In May 2013, Citibank issued a loan to defendant and Delores Nisson. The parties

executed a note, which was secured by a mortgage and recorded on the real property at the

address 6609 Langsford Lane, Plainfield, IL 60586. The loan documents were subsequently

assigned and transferred to plaintiff.

¶5 On July 2, 2019, plaintiff filed a complaint seeking foreclosure against defendant for the

real property. After filing the complaint, plaintiff filed an affidavit signed by a process server on

August 19, 2019, stating that defendant was served by substitute service at the property on July

15, 2019. The affidavit further stated that Vince Nisson, a co-resident, accepted service on

defendant’s behalf.

¶6 On February 10, 2020, plaintiff appeared in court to present motions for judgment and

sale, default, and to dismiss certain party defendants. Defendant did not appear, nor did an

attorney appear on his behalf. The circuit court granted plaintiff’s motions.

¶7 On October 14, 2021, the property was sold at a judicial sale. Following the sale, plaintiff

filed a motion to confirm the sale and scheduled the presentation of the motion for November 29,

2021. Plaintiff sent notice of the motion and hearing date to defendant at the property address.

¶8 On November 22, 2021, defendant filed his appearance through counsel and a motion to

quash service. In his motion, defendant argued that the substitute service was improper because

the property was not defendant’s usual place of abode. It explained that Nisson withheld the

property from him and that he had only just received an order of possession for it on October 31,

2 2021. Defendant alleged that he had been living in Florida and attached a redacted copy of his

Florida driver's license as an exhibit to the motion. Also attached to the motion was an affidavit

signed by defendant that stated he moved to Florida in November 2017 and had been living at

the same property since January 2018. It further stated that in July 2019, when the complaint for

foreclosure and affidavit of service were filed, he was not living at the property at issue. Further,

he averred that the property had been “unlawfully withheld” from him since March 2017, and

that he did not regain possession of the property until October 31, 2021, when Nisson was

ordered to vacate.

¶9 The court ordered a briefing on defendant’s motion, and on February 7, 2022, it entered

an order denying defendant’s motion. The court’s order indicated that parties were represented

by counsel, no witnesses were questioned, and no evidentiary hearing was held. The court then

entered an order approving the report of sale on April 11, 2022. Defendant appealed.

¶ 10 II. ANALYSIS

¶ 11 Defendant argues that the circuit court erred by denying his motion to quash service.

Specifically, he contends that substitute service must be made at a party’s usual place of abode

and that because he was not living at the property at the time service was attempted, the court

lacked personal jurisdiction. Defendant further argues that if the court found that there was a

material issue of fact between his affidavit and the return of service, it also erred by not holding

an evidentiary hearing before ruling on his motion. Finally, defendant asserts that the court erred

in entering the order approving the sale of the property based on the improper service.

¶ 12 It is well established that a court must have personal jurisdiction over the parties, either

by personal or substitute service or by voluntary submission to the court, to enter a valid

judgment. Department of Health Care and Family Services ex rel. Sanders v. Edwards, 2022 IL

3 App (1st) 210409, ¶ 42. The Code of Civil Procedure requires that substitute service may be

effectuated by leaving a copy of the summons “at the defendant’s usual place of abode, with

some person of the family or a person residing there.” 735 ILCS 5/2-203(a)(2) (West 2018).

Strict compliance with the statute is required. State Bank of Lake Zurich v. Thill, 113 Ill. 2d 294,

309 (1986). Failure to properly execute substitute service deprives the court of jurisdiction, and

any default judgment based on the defective service is void. Sanders, 2022 IL App (1st) 210409

¶ 42. Whether substitute service has been properly effectuated is a question of fact that we

review de novo. United Bank of Loves Park v. Dohm, 115 Ill. App. 3d 286, 289 (1983).

¶ 13 When substitute service is challenged by an affidavit contesting the validity of service,

the return of service does not receive a presumption of validity. MB Financial Bank, N.A. v. Ted

& Paul, LLC, 2013 IL App (1st) 122077, ¶ 26. We do note that in relation to matters within the

personal knowledge of the officer executing service, the return is prima facie evidence of

substitute service which may not be set aside based on an uncorroborated affidavit of the person

served. Nibco Inc. v. Johnson, 98 Ill. 2d 166, 172 (1983). However, whether a person occupies a

home as his usual place of abode is not generally a matter within the personal knowledge of the

process server. Chiaro v. Lemberis, 28 Ill. App. 2d 164, 171-72 (1960). Where the information is

not within the process server’s knowledge, such as a defendant’s usual place of abode, the return

may be attacked by an uncorroborated affidavit signed by the defendant. Four Lakes

Management & Development Co. v. Brown, 129 Ill. App. 3d 680, 684 (1984). Further, when the

return “is challenged by affidavit, and there is no counteraffidavit to address this challenge, the

return of service itself is not enough evidence; instead, the affidavit must be taken as true and the

service of summons must be quashed.” MB Financial Bank, N.A., 2013 IL App (1st) 122077, ¶

26.

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Related

Four Lakes Management & Development Co. v. Brown
472 N.E.2d 1199 (Appellate Court of Illinois, 1984)
Nibco, Inc. v. Johnson
456 N.E.2d 120 (Illinois Supreme Court, 1983)
Chiaro v. Lemberis
171 N.E.2d 81 (Appellate Court of Illinois, 1960)
State Bank of Lake Zurich v. Thill
497 N.E.2d 1156 (Illinois Supreme Court, 1986)
United Bank of Loves Park v. Dohm
450 N.E.2d 974 (Appellate Court of Illinois, 1983)
Citimortgage, Inc. v. Cotton
2012 IL App (1st) 102438 (Appellate Court of Illinois, 2012)
MB Financial Bank, N.A. v. Ted & Paul, LLC
2013 IL App (1st) 122077 (Appellate Court of Illinois, 2013)
Department of Healthcare & Family Services ex rel. Sanders v. Edwards
2022 IL App (1st) 210409 (Appellate Court of Illinois, 2022)

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2023 IL App (3d) 220194-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/select-portfolio-servicing-inc-v-gatzke-illappct-2023.