US Bank National Ass'n v. Popovytch

2021 IL App (1st) 200541-U
CourtAppellate Court of Illinois
DecidedApril 21, 2021
Docket1-20-0541
StatusUnpublished

This text of 2021 IL App (1st) 200541-U (US Bank National Ass'n v. Popovytch) 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
US Bank National Ass'n v. Popovytch, 2021 IL App (1st) 200541-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 200541-U

THIRD DIVISION April 21, 2021

No. 1-20-0541

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 ______________________________________________________________________________ US BANK, NATIONAL ASSOCIATION, ) Appeal from ) the Circuit Court Plaintiff-Appellee, ) of Cook County ) v. ) 2016-CH-07349 ) LIOUBOV POPOVYTCH, ) Honorable ) Darryl B. Simko, Defendant-Appellant ) Judge Presiding

JUSTICE McBRIDE delivered the judgment of the court. Justices Ellis and Burke concurred in the judgment.

ORDER

¶1 Held: Appellant failed to show a due process violation occurred when her attorney participated in briefing but not oral arguments because he did not receive notice of rescheduled summary judgment hearing, and appellant failed to show fact dispute precluded granting of summary judgment.

¶2 It was alleged in this mortgage foreclosure action that Lioubov Popovytch defaulted on a

loan secured by Chicago residential property located at 1652 West Ohio Street. The note was held

by U.S. Bank National Association, as Trustee for TBW Mortgage-Backed Trust Series 2006-4,

TBW Mortgage Pass-Through Certificates, Series 2006-4 (“U.S. Bank” or bank). Popovytch

appeals from the entry of summary judgment for U.S. Bank at a hearing which her attorney did 1-20-0541

not attend, and from the denial of her post-judgment motion to vacate the ruling. Popovytch

contends a reversal is warranted because her lawyer was not notified of the summary judgment

hearing date and a material fact persists as to whether U.S. Bank complied with the acceleration

and notice language in paragraphs 15 and 22 of the mortgage contract.

¶3 The property at issue was sold on January 15, 2020 and on February 20, 2020, the trial

court approved the bank’s report of sale and distribution. On Monday, March 23, 2020, Popovytch

filed a notice of appeal. Accordingly, we have jurisdiction over the appeal because of Illinois

Supreme Court Rules 301 and 303, which govern appeals from final judgments of the circuit court

in civil cases. Ill. S. Ct. R. 301 (eff. Feb. 1, 1994); R. 303 (eff. Jan. 1, 2015). We set out the relevant

facts and then address the arguments.

¶4 U.S. Bank initiated this foreclosure action on May 27, 2016, based on a mortgage contract

the parties entered into in 2006. The mortgage provided in relevant part:

“15. Notices. All notices given by Borrower or Lender in connection with this Security

Instrument must be in writing. *** The notice address shall be the Property Address unless

Borrower has designated a substitute notice address by notice to Lender. Borrower shall

promptly notify Lender of Borrower’s change of address. *** There may be only one

designated notice address under this Security Instrument at any one time. ***

***

22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration

following Borrower’s breach of any covenant or agreement to this Security Instrument ***.

The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a

date, not less than 30 days from the date the notice is given to Borrower, by which the

-2- 1-20-0541

default must be cured; and (d) that failure to cure the default on or before the date specified

in the notice may result in acceleration of the sums secured by this Security Instrument,

foreclosure by judicial proceeding and sale of the Property. *** If the default is not cured

on or before the date specified in the notice, Lender at its option may require immediate

payment in full of all sums secured by this Security Instrument without further demand and

may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to

collect all expenses incurred in pursuing the remedies provided in this Section 22,

including, but not limited to, reasonable attorneys’ fees and costs of title evidence.”

¶5 Popovytch, through her first attorney, filed an answer and affirmative defenses. The answer

contained general denials only. Each of the four affirmative defenses were similarly brief and

consisted of a single sentence or a few short sentences, namely: 1) U.S. Bank lacked capacity to

sue because it was “not a real entity,” 2) U.S. Bank lacked standing to sue because it did not possess

the note on the date it filed the complaint, 3) the mortgage had been altered and not accepted by

Popovytch, and, therefore, it did not encumber the subject property, and 4) U.S. Bank did not send

Popovytch a notice of acceleration as required by paragraph 22 of the mortgage.

¶6 U.S. Bank filed a motion to strike and for partial summary judgment as to the affirmative

defenses. U.S. Bank argued in part that all four affirmative defenses were factually deficient and

that the fourth affirmative defense was actually a denial of the complaint rather than a proper

affirmative defense. See Cathay Bank v. Accetturo, 2016 IL App (1st) 152783, ¶ 2 (a notice

provision with an acceleration clause in a mortgage is a condition precedent which a lender must

comply with in order to have a right to file an action to recover possession of a secured property);

Hartmann Realtors v. Biffar, 2014 IL App (5th) 130543, ¶ 20 (an affirmative defense gives color

-3- 1-20-0541

to the plaintiff’s claim but asserts new matter which defeats the claim). After briefing and oral

arguments, the trial court granted U.S. Bank summary judgment as to Popovytch’s first three

affirmative defenses and struck the fourth affirmative defense with prejudice.

¶7 U.S. Bank then filed a motion for summary judgment on its complaint and a judgment of

foreclosure and sale.

¶8 Popovytch’s second attorney, Stephen L. Kalka, filed a motion to vacate the order granting

summary judgment against Popovytch’s first three affirmative defenses and striking the fourth

affirmative defense with prejudice. Kalka also filed a motion to extend the time to respond to U.S.

Bank’s motion for summary judgment and judgment of foreclosure. The trial court denied the

motion to vacate the ruling regarding the disposition of the affirmative defenses, entered and

continued the motion for an extension of time generally, and entered and continued the motion for

summary judgment and judgment of foreclosure until September 25, 2017 (a date more than 10

weeks in the future).

¶9 An order entered on September 25, 2017, indicates that Popovytch’s third attorney was

granted leave to file an appearance, her motion to dismiss the complaint was “advanced and

denied,” and U.S. Bank’s motion for summary judgment and judgment of foreclosure was granted.

¶ 10 Popovytch pursued loss mitigation through Chapter 7 bankruptcy and the possibility of a

short sale.

¶ 11 More than year after the judgment of foreclosure was entered, and more than two years

after the suit began, a judicial sale of the property was conducted on September 5, 2018.

¶ 12 When U.S. Bank filed a motion seeking the court’s approval of the sale, Popovytch’s fourth

attorney responded that the sale should not be approved because the court had not yet ruled on

-4- 1-20-0541

Popovytch’s motion for an extension of time to file a response to the bank’s motion for summary

judgment and judgment of foreclosure.

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2021 IL App (1st) 200541-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-bank-national-assn-v-popovytch-illappct-2021.