SMS Financial Recovery Services, LLC v. Rodriguez

2023 IL App (3d) 220381-U
CourtAppellate Court of Illinois
DecidedOctober 5, 2023
Docket3-22-0381
StatusUnpublished

This text of 2023 IL App (3d) 220381-U (SMS Financial Recovery Services, LLC v. Rodriguez) 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
SMS Financial Recovery Services, LLC v. Rodriguez, 2023 IL App (3d) 220381-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) 220381-U

Order filed October 5, 2023 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

SMS FINANCIAL RECOVERY SERVICES, ) Appeal from the Circuit Court LLC, assignee of MB FINANCIAL BANK, ) of the 18th Judicial Circuit, ) Du Page County, Illinois, Plaintiff-Appellant, ) ) Appeal No. 3-22-0381 v. ) Circuit No. 10 CH 1632 ) ) Honorable ENRIQUE A. RODRIGUEZ; ) Kenton J. Skarin, GUADALUPE C. RODRIGUEZ; ) Judge, Presiding. MI-HACIENDA, INC., an Illinois ) corporation; E & L CARPET ) CORPORATION, an Illinois corporation; ) NON RECORD CLAIMANTS and ) UNKNOWN OWNERS, ) ) Defendants ) ) (Enrique A. Rodriguez and Guadalupe C. ) Rodriguez, ) ) Defendants-Appellees). ) ____________________________________________________________________________

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

ORDER ¶1 Held: Circuit court properly vacated the nunc pro tunc order when plaintiff failed to provide sufficient notice of its motion to defendants.

¶2 Plaintiff, SMS Financial Recovery Services, LLC, appeals from the circuit court of Du

Page County’s granting of defendant’s motion to vacate the judgment of foreclosure and sale,

arguing that the court erred in its vacation order. We affirm.

¶3 I. BACKGROUND

¶4 On March 23, 2010, MB Financial Bank, N.A., filed a verified complaint to foreclose a

mortgage against defendants, Enrique A. Rodriguez; Guadalupe C. Rodriguez; Mi-Hacienda,

Inc.; E & L Carpet Corporation; and all non-record claimants and unknown owners, for their

failure to make payments on a September 11, 2007, promissory note secured by a mortgage. MB

Financial alleged defendants were in default on the loan and that the total amount due was

$646,083.09. MB Financial sought foreclosure on the property and a personal deficiency

judgment against Enrique and Guadalupe if the proceeds from the sale were insufficient to

satisfy the balance due. Defendants were served with the summons and complaint. An attorney

appeared on their behalf in court but did not file an answer to the complaint.

¶5 On January 28, 2011, MB Financial filed a motion for default and a motion for summary

judgment of foreclosure and sale. The motion for summary judgment requested a judgment of

foreclosure and sale against the property, as well as an order that MB Financial was entitled to a

personal deficiency judgment against Enrique and Guadalupe. Both motions and a memorandum

in support of the motion for summary judgment were sent to defendants’ attorney.

¶6 On February 16, 2011, the court granted MB Financial’s motion for default. It also

entered a judgment of foreclosure and sale which ordered that the property be sold at public sale

by the Du Page County Sheriff’s Department. The court’s judgment further ordered that if the

2 sale resulted in insufficient funds to pay the amount owed, a personal judgment would be entered

against Enrique and Guadalupe for the remaining balance.

¶7 The property was sold via sheriff’s sale on March 22, 2011. The report of sale indicated

the sale price as $371,710. On March 28, 2011, MB Financial filed a motion to confirm the sale.

The motion contended that, including fees, costs, and interest, the final judgment in the matter

was $749,892.60, leaving a total of $378,182.60 due and owing after the sale. MB Financial

requested that the court enter a personal judgment against Enrique and Guadalupe for the

deficiency in the judgment.

¶8 On April 5, 2011, the court entered an order confirming the sale. The order did not enter a

deficiency judgment against defendants, however, and instead entered a deficiency judgment for

the requested amount against the property.

¶9 On May 19, 2011, MB Financial filed a motion for a nunc pro tunc order to amend the

order confirming the sheriff’s sale. The motion asserted that the confirmation order found a

deficiency judgment against the property, but the judgment of foreclosure specifically stated that

the deficiency judgment would be entered against Enrique and Guadalupe. MB Financial

requested that the April 5, 2011, order be corrected to reflect a judgment against Enrique and

Guadalupe as originally requested. A notice of motion was sent to defendants’ attorney. On June

3, 2011, the court granted MB Financial’s motion without objection. The court’s order indicated

that the language in the April 5, 2011, order finding a judgment against the property would be

substituted with language that found a personal deficiency judgment against Enrique and

Guadalupe in the amount still owed to MB Financial after the sale.

¶ 10 On February 26, 2019, MB Financial filed a petition to revive the judgment, which was

served on defendants. The petition attached both the April 5, 2011, and the June 3, 2011, orders.

3 Defendants did not respond to the petition. On March 26, 2019, the court entered an order

reviving the judgment.

¶ 11 On February 1, 2021, SMS filed a notice of assignment showing that, due to a merger and

subsequent assignment, it had been assigned the outstanding personal deficiency judgment

against Enrique and Guadalupe.

¶ 12 On April 13, 2022, Enrique and Guadalupe filed a motion to vacate the deficiency

judgment entered against them. The motion argued that the motion for the nunc pro tunc order

should have been personally served upon them pursuant to Illinois Supreme Court Rule 105, and

that MB Financial failed to comply with that rule. Ill. S. Ct. R. 105 (eff. Jan. 1, 2018). Enrique

and Guadalupe further argued the nunc pro tunc motion sought new or additional relief against

them, and because they were not properly served, the court had no personal jurisdiction over

them when it entered the June 3, 2011, order.

¶ 13 On May 19, 2022, the court granted the motion to vacate; however, it was not for the

grounds argued in the motion. The court found that it lacked jurisdiction to enter the nunc pro

tunc order, because the motion to enter the order had been filed more than thirty days after the

April 5, 2011, order was entered. The court determined that the only method MB Financial could

use to amend the April 5, 2011, order would have been under 735 ILCS 5/2-1401 (West 2010),

and the nunc pro tunc motion did not meet the requirements under the statute. Because it found

that no jurisdiction existed to enter the June 3, 2011, order, the court vacated the personal

deficiency judgment against Enrique and Guadalupe.

¶ 14 On June 15, 2022, SMS filed a motion to reconsider. The court denied the motion, and

SMS appealed.

¶ 15 II. ANALYSIS

4 ¶ 16 On appeal, SMS argues that the court erred in vacating the June 3, 2011, nunc pro tunc

order and asks that we reverse this decision. 735 ILCS 5/2-1401 (West 2010). Generally, courts

lack jurisdiction to modify final orders once thirty days have elapsed from the entry of that order.

Bradley v. Burrell, 97 Ill. App. 979, 981 (1981). However, a court may enter a nunc pro tunc

order even if those thirty days have passed. Krilich v. Plencer, 305 Ill. App.

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2023 IL App (3d) 220381-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sms-financial-recovery-services-llc-v-rodriguez-illappct-2023.