The Illinois State Toll Highway Authority v. South Barrington Office Center

2016 IL App (1st) 150960, 58 N.E.3d 703
Appellate Court of Illinois·Decided June 30, 2016·No. 1-15-0960·Unpublished·Cited by 8 cases

Opinion

2016 IL App (1st) 150960

SIXTH DIVISION

June 30, 2016

No. 1-15-0960

THE ILLINOIS STATE TOLL HIGHWAY ) Appeal from the AUTHORITY, ) Circuit Court of ) Cook County.

Plaintiff-Appellee, )

)

v. )

)

SOUTH BARRINGTON OFFICE CENTER, ) a Limited Liability Company; BANK OF AMERICA, ) N.A.; GUARDIAN LIFE INSURANCE COMPANY ) No. 14 L 50828 OF AMERICA; TOLLWAY, LLC; THE CIT GROUP ) EQUIPMENT FINANCING, INC.; ARA-SOUTH ) BARRINGTON DIALYSIS, LLC; UNKNOWN ) OWNERS; AND NON-RECORD CLAIMANTS, )

)

Defendants )

) Honorable

(South Barrington Office Center, a Limited Liability ) James M. McGing, Company, Defendant-Appellant). ) Judge Presiding.

PRESIDING JUSTICE ROCHFORD delivered the judgment of the court, with opinion.

Justices Hoffman and Delort concurred in the judgment and opinion.

¶1 Plaintiff-appellee, The Illinois State Toll Highway Authority (the Authority), filed the instant suit for condemnation against defendant-appellant, South Barrington Office Center, a limited liability company (South Barrington), and defendants, Bank of America, N.A., successor to LaSalle Bank, N.A.; Guardian Life Insurance Company of America; Tollway, LLC; The CIT Group Equipment Financing, Inc.; Ara-South Barrington Dialysis, LLC; unknown owners; and non-record claimants. The Authority sought to utilize its power of eminent domain to acquire certain interests in three parcels of property necessary to complete improvements to Interstate 90.

¶2 One of the defendants, Guardian Life Insurance Company of America (Guardian), filed a traverse and motion to dismiss, challenging the Authority’s right to condemn the property. South Barrington, the owner of the parcels at issue, adopted the arguments therein as its own traverse

and motion to dismiss. The Authority responded by filing a motion to strike both the motion filed by Guardian and the motion filed by South Barrington, and the motion to strike was granted. The circuit court subsequently entered an order that found–over defendants’ objection–that the Authority was authorized to condemn the parcels and also awarded preliminary compensation. South Barrington has filed the instant interlocutory appeal pursuant to Illinois Supreme Court Rule 307(a)(7) (eff. Feb. 26, 2010). For the following reasons, we affirm. 1

¶3 I. BACKGROUND

¶4 On October 30, 2014, the Authority initiated this lawsuit by filing a complaint for condemnation. Therein, the Authority contended that it was a state agency “authorized to acquire, construct, relocate, operate, regulate and maintain a system of toll highways through and within the State of Illinois,” pursuant to the Toll Highway Act (Act). 605 ILCS 10/1 et seq. (West 2014). Pursuant to that statutory authority and to various resolutions passed by the Authority’s board of directors (including Resolution No. 20446), the Authority had determined that certain improvements needed to be made to “the I-90 East Corridor *** as part of the Jane Addams Memorial Tollway Project” (project). The complaint further contended that, in order to complete the project, the Authority had been authorized to acquire three parcels of property located in South Barrington, Illinois, which the Authority identified as parcel numbers NW-6B- 13-022 (first parcel), NW-6B-13-002.01P (second parcel), and NW-6B-13-002.02A (third parcel) (collectively, the parcels).

¶5 The complaint and the legal descriptions attached thereto reflect that the Authority sought the acquisition of a fee simple interest in the first parcel, which contained 0.068 acres, a permanent easement in the second parcel, which contained 0.011 acres, and “any and all rights of

1 This matter was previously assigned to another division of this court, but was recently transferred to the Sixth Division in April 2016.

access across the access control line” designated as the third parcel, which was comprised of 243.12 linear feet. The property index numbers (PIN) associated with these parcels are 01-34- 400-005 and 06-02-200-014. South Barrington was identified as the record owner of the parcels, with the remaining defendants identified as individuals and other entities who might otherwise have an interest in the parcels. A certified letter sent to South Barrington on July 29, 2014, was also attached to the complaint, and it reflected that the Authority had offered $28,000 as compensation for the parcels. 2

¶6 While the Authority asserted that it had followed all relevant statutory requirements to make a “good faith offer” to South Barrington in an effort to acquire the parcels and had made “diligent and reasonable attempts” to do so prior to filing suit, the Authority further contended that it had been unable to reach an agreement with South Barrington as to the amount of “just compensation” to be paid for the parcels. The Authority’s complaint therefore asked the circuit court to ascertain and determine the amount of just compensation for the parcels and to conduct such proceedings and enter such orders as were necessary to vest the Authority with title to and possession of the interests it sought in the parcels.

¶7 The complaint also asked that these proceedings take place according to the “quick-take” procedure contained in the Eminent Domain Act. See 735 ILCS 30/20-5-10 (West 2014). In connection to this request, the Authority filed a “Motion for Immediate Vesting of Title” on November 12, 2014, in which it is asserted that the failure to obtain the parcels immediately would endanger the construction schedule for the entire project.

¶8 Guardian responded to the complaint by filing a “Traverse and Motion to Dismiss.” Therein, Guardian asserted that it held an interest in the parcels as a mortgagee. Guardian further

2 The record reflects that the parcels were part of a piece of property owned by South Barrington which totaled 12.44 acres.

contended that the Authority did not have the authority to condemn the parcels because it had not fully complied with the statutory requirements. Specifically, Guardian argued that the Authority: (1) failed to make a good faith effort to reach an agreement as to just compensation for the parcels, (2) improperly sought to condemn property in excess of its needs, in that the right of access control the Authority sought with respect to the third parcel actually amounted to a “blanket easement *** for which no compensation has been offered and for which no value has been assigned or determined,” (3) provided an inaccurate legal description for the third parcel, and (4) failed to provide a reasonable description of the parcels in the resolutions adopted by the Authority’s board of directors. South Barrington thereafter filed its own traverse and motion to dismiss, in which it simply adopted and joined in the arguments raised by Guardian. 3

¶9 The Authority filed a motion to strike the traverse and motion to dismiss. The Authority challenged each of the arguments raised by the defendants. Guardian filed a written response to the motion to strike, and the Authority filed a written reply. While the Authority’s motion to strike was ostensibly filed pursuant to section 2-615 of the Code of Civil Procedure (Code) (735 ILCS 5/2-615 (West 2014)), the parties attached a number of exhibits to the motion to strike, the response, and the reply.

¶ 10 On March 5, 2015, a hearing on defendants’ traverse and motion to dismiss, as well as the Authority’s motion to strike, was held at which no additional evidence was presented. At the conclusion of that hearing, the matter was continued to March 23, 2015, for the circuit court’s ruling on both motions. On that date, the circuit court entered a written order which considered and rejected all four of defendants’ arguments, with its analysis significantly relying upon the

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The Illinois State Toll Highway Authority v. South Barrington Office Center, 2016 IL App (1st) 150960, 58 N.E.3d 703 (Ill. Ct. App. 2016).

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