1010 Lake Shore Association vs. Deutsche Bank (Illinois)
This case addresses the interpretation and application of the final sentence in Section 9(g)(3) of the Illinois Condominium Property Act. 9(g)(3) provides: The purchaser of a condominium unit at a judicial foreclosure sale, or a mortgagee who receives title to a unit by deed in lieu of foreclosure or judgment by common law strict foreclosure or otherwise takes possession pursuant to court order under the Illinois Mortgage Foreclosure Law, shall have the duty to pay the unit's proportionate share of the common expenses.
The argument made by the association’s attorneys was that where Deutsche Bank purchased the unit at a judicial foreclosure sale, which sale was confirmed, and failed to make payment of assessments for more than two years, Deutsche Bank had failed to “confirm the extinguishment” of the association’s lien for pre-foreclosure assessments. A majority of the First District Appellate Court agreed with the association. The judgment in this case included approximately $43,000 in pre-foreclosure assessments. While the judgment itself was positive for the association, there is a bigger benefit to the community association industry at large. Namely, the banks (and foreclosure purchasers) will likely come forward more readily and rightfully pay their assessments moving forward.
Brief
Prior Ruling: Appeals Court Modified Opinion
Status: Supreme Court Ruling for CAI's Position
CAI Amicus Brief Sponsor: David Bloomberg, Esq.
CAI Amicus Brief Review Committee: Robert Diamond, Esq; Tom Moriarty, Esq; Lara Anderson, Esq; James Strichartz, Esq; Damien Bielli, Esq.