Village of Kirkland v. Kirkland Properties Holdings Co.

2025 IL App (2d) 240596
CourtAppellate Court of Illinois
DecidedAugust 21, 2025
Docket2-24-0596
StatusPublished

This text of 2025 IL App (2d) 240596 (Village of Kirkland v. Kirkland Properties Holdings Co.) 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
Village of Kirkland v. Kirkland Properties Holdings Co., 2025 IL App (2d) 240596 (Ill. Ct. App. 2025).

Opinion

2025 IL App (2d) 240596 No. 2-24-0596 Opinion filed August 21, 2025

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

THE VILLAGE OF KIRKLAND, ) Appeal from the Circuit Court ) of De Kalb County. ) Plaintiff-Appellant, ) ) v. ) No. 19-L-33 ) KIRKLAND PROPERTIES HOLDINGS ) COMPANY, LLC I and KIRKLAND ) PROPERTIES HOLDINGS COMPANY, ) LLC II, and JAMES GENTILE, ) Honorable ) Bradley J. Waller, Defendants-Appellees. ) Judge, Presiding.

JUSTICE MULLEN delivered the judgment of the court, with opinion. Justices Schostok and Birkett concurred in the judgment and opinion.

OPINION

¶1 I. INTRODUCTION

¶2 Plaintiff, the Village of Kirkland, appeals an order of the circuit court of De Kalb County

imposing sanctions for plaintiff’s purported collusion regarding a motion for substitution of judge

as a matter of right brought by third-party defendants, a number of property owners impleaded by

defendants (Kirkland Properties Holdings Company, LLC I (KPHC I); Kirkland Properties

Holdings Company, LLC II (KPHC II); and James Gentile). For the reasons that follow, we reverse

and remand. 2025 IL App (2d) 240596

¶3 II. BACKGROUND

¶4 The instant appeal arises out of ongoing litigation between plaintiff and defendants

concerning an annexation agreement pertaining to a subdivision owned by one of defendants’

predecessors in interest. Pursuant to the agreement, defendants’ predecessor was required to

provide letters of credit to secure the completion of roads within the subdivision. Plaintiff alleged

that defendants became bound by the terms of the agreement when they purchased a portion of the

subdivision (KPHC I bought 15 lots in phase I of the subdivision, which comprised 56 lots, and

KPHC II purchased 19 of 26 lots in phase II).

¶5 In June 2019, plaintiff initiated an action alleging defendants breached the agreement by

failing to deposit letters of credit in an amount proportionate to lots they owned in the subdivision.

Defendants moved to dismiss, arguing that, though the agreement ran with the land, it did not apply

to entities that purchased less than all of the subdivision. The trial court agreed and dismissed the

case with prejudice, also awarding defendants $19,381.24 for attorney fees. This court reversed

and vacated the fee award. Village of Kirkland v. Kirkland Properties Holdings Co., 2022 IL App

(2d) 200780, ¶ 2. Defendants sought review before the supreme court, which affirmed our

decision. Village of Kirkland v. Kirkland Properties Holdings Co., 2023 IL 128612.

¶6 Following remand from the supreme court, on September 11, 2023, defendants filed a

third-party complaint naming 54 individual owners of land within the subdivision, seeking to

enforce the annexation agreement against them. Plaintiff sent a letter to third-party defendants

explaining that it was not seeking “any financial contribution from its actual residents.” On April

24, 2024, during a village meeting, plaintiff explained to third-party defendants that it had

contacted an attorney, which it would pay for, to represent them. Attorney Thomas Burney was

-2- 2025 IL App (2d) 240596

hired to represent 43 third-party defendants, who entered into a joint representation agreement with

plaintiff in May 2024.

¶7 On June 10, 2024, the Burney third-party defendants moved for substitution of judge as a

matter of right pursuant to section 2-1001(a)(2) of the Civil Practice Law. 735 ILCS 5/2-1001(a)(2)

(West 2024). Defendants filed a response, asserting that third-party defendants and plaintiff were

acting in concert and that Burney was actually bringing the motion on behalf and for the benefit

of plaintiff. The statute states that a motion to substitute as of right must be made “before trial or

hearing begins and before the judge to whom it is presented has ruled on any substantial issue in

the case.” Id. § 2-1001(a)(2)(ii). The statute also contains the following exception: “[R]ulings in

the case by the judge on any substantial issue before the party’s appearance shall not be grounds

for denying an otherwise timely application for substitution of judge as of right by the party.” Id.

§ 2-1001(a)(2)(iii). Thus, while third-party defendants had a right to request substitution as a

matter of right, plaintiff did not, as several rulings had been made in the case while plaintiff was a

party. See id. Defendants’ response referenced the “test the waters” doctrine, which “permits the

denial of an initial motion for substitution of judge before substantial rulings have been made, if

the party presenting the motion has been able to form an opinion as to the court’s disposition

toward his or her case.” See Bowman v. Ottney, 2015 IL 119000, ¶ 5.

¶8 The trial court held a hearing on the motion to substitute on July 25, 2024. Burney argued

first, emphasizing that third-party defendants had been brought into the case by defendants’ filing

of a third-party complaint. He pointed out that the trial court had made no ruling on a substantial

issue since third-party defendants had become parties. Burney explained that the “test the waters”

doctrine had been rejected by the supreme court in Palos Community Hospital v. Humana

Insurance Co., 2021 IL 126008 (holding the “test the waters” doctrine is inconsistent with the

-3- 2025 IL App (2d) 240596

plain language of section 2-1001). He further explained that, where a court erroneously denies a

motion for substitution, any subsequent order made by the trial court is a nullity. Finally, Burney

asserted that third-party defendants had met all the statutory criteria required to entitle them to a

substitution as of right.

¶9 Defendants responded that the Palos case did not apply under the current circumstances.

Defense counsel explained that, in this case, there had been collusion between plaintiff, who had

been a party when the trial court made substantial rulings, and third-party defendants. Because

they were acting in concert, the previous rulings made while plaintiff was a party should be

imputed to new, third-party defendants.

¶ 10 Defense counsel asserted that defendants had sent a notice to produce documents in

accordance with Illinois Supreme Court Rule 237 (eff. Oct. 1, 2021). Burney stated that the request

had been improperly addressed, delaying when he received it, so the time for him to comply with

it had not yet passed. Defendants asserted that the requested documents would establish that

plaintiff and third-party defendants were acting in concert.

¶ 11 The trial court asked defense counsel whether he had any authority to support his “in-

concert action” argument. Defense counsel stated that it was “a matter of first impression” and that

the supreme court had not “addressed the argument we’re making.” He added that the supreme

court had not foreclosed the argument, either. Further, he believed that the documents plaintiff had

not yet produced in response to his request would show collusion between plaintiff and third-party

defendants and asserted that the motion to substitute amounted to forum shopping.

¶ 12 Burney replied, “There is nothing to suspect that there’s some collusion between myself

on behalf of these 43 people and the village.” He added that the decision to file the motion to

substitute was the decision of third-party defendants. The trial court then stated that it wanted the

-4- 2025 IL App (2d) 240596

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Link v. Wabash Railroad
370 U.S. 626 (Supreme Court, 1962)
United States v. Robert McPartlin
595 F.2d 1321 (Seventh Circuit, 1979)
People v. Smith
631 N.E.2d 738 (Appellate Court of Illinois, 1994)
In Re Estate of Wright
881 N.E.2d 362 (Appellate Court of Illinois, 2007)
Herbes v. Graham
536 N.E.2d 164 (Appellate Court of Illinois, 1989)
Smith v. City of Chicago
702 N.E.2d 274 (Appellate Court of Illinois, 1998)
Sander v. Dow Chemical Co.
651 N.E.2d 1071 (Illinois Supreme Court, 1995)
Santiago v. E.W. Bliss Co.
941 N.E.2d 275 (Appellate Court of Illinois, 2010)
Martin O'boyle v. Borough of Longport
94 A.3d 299 (Supreme Court of New Jersey, 2014)
In re E.H., a Minor
863 N.E.2d 231 (Illinois Supreme Court, 2006)
Santiago v. E.W. Bliss Co.
2012 IL 111792 (Illinois Supreme Court, 2012)
Cronin v. Kottke Associates
2012 IL App (1st) 111632 (Appellate Court of Illinois, 2012)
Bowman v. Ottney
2015 IL 119000 (Illinois Supreme Court, 2015)
Zagorski v. Allstate Insurance Company
2016 IL App (5th) 140056 (Appellate Court of Illinois, 2016)
Palos Community Hospital v. Humana Insurance Co., Inc.
2021 IL 126008 (Illinois Supreme Court, 2021)
Village of Kirkland v. Kirkland Properties Holdings Co., LLC I
2022 IL App (2d) 200780 (Appellate Court of Illinois, 2022)
Sajdak v. Sajdak
586 N.E.2d 716 (Appellate Court of Illinois, 1992)
Village of Kirkland v. Kirkland Properties Holdings Co., LLC I
2023 IL 128612 (Illinois Supreme Court, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
2025 IL App (2d) 240596, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-kirkland-v-kirkland-properties-holdings-co-illappct-2025.