U.S. Bank National Ass'n v. Lesser

2024 IL App (1st) 220606-U
CourtAppellate Court of Illinois
DecidedFebruary 20, 2024
Docket1-22-0606
StatusUnpublished

This text of 2024 IL App (1st) 220606-U (U.S. Bank National Ass'n v. Lesser) 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
U.S. Bank National Ass'n v. Lesser, 2024 IL App (1st) 220606-U (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 220606-U No. 1-22-0606

FIRST DIVISION February 20, 2024

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). ____________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ____________________________________________________________________________

U.S. BANK NATIONAL ASSOCATION AS ) Appeal from the Circuit Court of TRUSTEE OF THE BUNGALOW SERIES IV ) Cook County. TRUST, ) ) ) Plaintiff-Appellee, ) No. 10 CH 45741 ) v. ) ) DAVID M. LESSER, ) The Honorable ) Joel Chupack, Defendant-Appellant. ) Judge Presiding.

____________________________________________________________________________

JUSTICE PUCINSKI delivered the judgment of the court. Presiding Justice Fitzgerald Smith and Justice Lavin concurred in the judgment.

ORDER

Held: In this mortgage foreclosure action, we affirm the decision of the circuit court granting plaintiff summary judgment and confirming the judicial sale of the property. Plaintiff established a prima facie entitlement to foreclosure and defendant-appellant failed to meet his burden to raise an issue of fact supporting his affirmative defenses. Defendant-appellant’s motion to reconsider was also properly denied.

¶1 In this mortgage foreclosure action, defendant-appellant David M. Lesser appeals the

orders in favor of plaintiff-appellee U.S. Bank National Association as Trustee of the Bungalow 1-22-0606

Series IV Trust (“U.S. Bank”) that granted summary judgment in U.S. Bank’s favor, denied

Lesser’s motion to reconsider, and confirmed the judicial sale of the subject property. For the

following reasons, we affirm.

¶2 BACKGROUND

¶3 This action stems from loan and mortgage documents executed in August 2007 by Lesser

and his former spouse, Elizabeth A. Wiener, during their marriage. Harris, N.A. (Harris), made a

loan to Wiener in the amount of $1 million, evidenced by a promissory note signed by Wiener.

Significant to this appeal, the loan was made only to Wiener; Lesser did not sign the promissory

note. The loan was secured by a mortgage encumbering the residence known as 855 W. George

Street in Chicago, Illinois (the property). Whereas the loan was only in Wiener’s name, both Lesser

and Wiener executed the mortgage securing the loan. 1

¶4 On the same date in August 2007, Wiener and Lesser signed and executed a second

mortgage against the property, which secured a home equity line of credit (HELOC) in the

principal amount of $125,000. However, the second mortgage is not at issue in this appeal.

¶5 In September 2009, Wiener filed a petition for dissolution of marriage. 2 In June 2010, the

circuit court entered a plenary order of protection granting Lesser exclusive possession of the

property. In the eventual judgment for dissolution of marriage, Lesser was awarded “100% interest

in the property free and clear of any claim by Wiener.” BMO Harris Bank, N.A. v. Lesser, 2016 IL

App (1st) 143115-U, ¶ 8. The record reflects that Lesser continued to reside at the subject property.

1 The mortgage identified the “mortgagor” as “David M Lesser and Elizabeth A Wiener, Husband and Wife, Not as Joint Tenants or Tenants in Common But as Tenants by the Entirety.” 2 The instant matter was consolidated with the divorce proceeding until December 2018.

-2- 1-22-0606

¶6 It is undisputed that payments due under the loan stopped in 2010. On October 20, 2010,

Harris filed a foreclosure complaint against Lesser, Wiener, and others with potential interests in

the property.3 The complaint contained separate counts regarding the first mortgage securing the

$1 million loan (count I) and the second mortgage corresponding to the HELOC (count II). Count

II was eventually dismissed and is not at issue in this appeal. Copies of the loan and mortgage were

attached to the complaint.

¶7 Lesser’s Affirmative Defenses Based on Harris’ Alleged Fraud

¶8 In July 2011, Lesser filed an answer and pleaded several affirmative defenses. In his

pleading, Lesser did not dispute the authenticity of the mortgage and loan documents attached to

the complaint. However, he raised a number of affirmative defenses, all of which were premised

on alleged fraud by a Harris loan officer regarding the information used to approve the underlying

2007 loan to Wiener and the corresponding mortgage.

¶9 Lesser pleaded a number of factual allegations common to the affirmative defenses. Lesser

alleged that since 2001, he and Wiener had entered into a number of different loan transactions

with Harris, in which they worked with a “particular loan officer” at Harris. Lesser did not identify

the loan officer by name. Lesser pleaded that by 2007, the loan officer and Harris had detailed

information about Wiener and Lesser’s income, assets and employment.

¶ 10 Lesser alleged that he and Wiener approached Harris for a new refinancing loan in 2007.

Lesser pleaded that he and Wiener completed and submitted a residential loan application that

correctly indicated Lesser’s monthly employment income was $18,000 and that Wiener’s monthly

3 The complaint also named as defendants Meghan Mulhern, Laura Wolbeck, Aileen Rooney, the City of Chicago, and “Unknown Owners and non-Record Claimants.” None of those parties is involved in this appeal.

-3- 1-22-0606

employment income as $1200. At that time, Wiener worked part time as a teacher and academic

administrator.

¶ 11 According to Lesser, Harris’s loan officer subsequently contacted him by telephone and

told him that Wiener’s credit rating was “excellent and Defendant Lesser’s credit rating was not.”

The loan officer indicated Harris would agree to a loan of $1,000,000 as well as a $250,000 home

equity line of credit to be secured by a mortgage on the property executed by both Wiener and

Lesser. The interest rate for the loan would be lower (5.75%) if Wiener was the sole borrower,

whereas it would be higher (7.75%) if she and Lesser were co-borrowers. Lesser alleged that in

reliance upon the loan officer’s representations, he agreed for Wiener to be the sole borrower, with

both Wiener and Lesser executing a corresponding mortgage. Lesser pleaded that the loan officer

never indicated that false information about Wiener’s income and employment would be used to

process the loan.

¶ 12 Lesser alleged that Harris subsequently prepared a typewritten residential loan application

containing false information that differed dramatically from the correct information provided by

Wiener and Lesser. The loan application prepared by Harris overstated Wiener’s income level “to

a number nearly twenty times greater” than that indicated by the prior application prepared by

Lesser and Weiner. It also falsely stated that Wiener was employed as the president of “Wieners

Inc.” a non-existent entity. Lesser alleged “upon information and belief” that the fraudulent

application was prepared by the same loan officer.

¶ 13 Lesser further alleged that the false loan application was “presented for the first time to

Defendant Wiener at the 2007 Closing when she was asked to sign that document together with

multiple other documents as part of the standard closing process.” Lesser pleaded that it was never

disclosed to Wiener or Lesser that the loan application contained false information before Wiener

-4- 1-22-0606

was asked to sign it at the closing.

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Bluebook (online)
2024 IL App (1st) 220606-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-bank-national-assn-v-lesser-illappct-2024.