Cnty. of Cook v. Capital Equity Land Trust #2140215 (In re Cnty. Treasurer & Ex Officio Cnty. Collector of Cook Cnty.)

2022 IL App (1st) 211511

217 N.E.3d 1059

466 Ill.Dec. 783

IN RE The Application of the COUNTY TREASURER AND EX OFFICIO COUNTY COLLECTOR OF COOK COUNTY, Illinois, for Order of Judgment and Sale Against Real Estate Returned Delinquent for the Nonpayment of General Taxes for Three or More Years

(The County of Cook, d/b/a Cook County Land Bank Authority, Petitioner-Appellee,

v.Capital Equity Land Trust #2140215 and Holdings Group, LLC, Respondents-Appellants).

Nos. 1-21-1511 & 1-21-1512 (cons.)

Appellate Court of Illinois, First District, SIXTH DIVISION.

Filed December 30, 2022

Rehearing Denied March 27, 2023

John W. Stanko Jr. and Andrew J.F. Clesen, of Stanko McCarthy Law Group, Ltd., of Chicago, for appellants.

Joel Knosher, Julie Suhl, and Brent Denzin, of Denzin Soltanzadeh, LLC, of Chicago, for appellee.

JUSTICE ODEN JOHNSON delivered the judgment of the court, with opinion.

¶ 1 Respondents Capital Equity Land Trust #2140215 (Capital Equity Trust) and Holdings Group, LLC (Holdings Group), appeal the circuit court of Cook County's denial of their objections against the issuance of tax deeds and the issuance of tax deeds related to two real estate parcels located in Harvey, Illinois. On appeal, respondents contend that the circuit court erred in denying their objections to the issuance of tax deeds for the parcels and by finding strict compliance with section 22-40 ( 35 ILCS 200/22-40 (West 2018) ) of the Property Tax Code (Code) when (1) petitioner listed an incorrect, nonexistent address on its required notices under section 22-5 (id. § 22-5) of the Code; (2) petitioner's section 22-5 notices identified it as the owner of the certificates of purchase prior to its ownership and assignment of the subject properties; (3) petitioner prepared and delivered notices that extended the redemption period which identified it as the owner of the certificates of purchase prior to its ownership and assignment contrary to section 21-385 (id. § 21-385) of the Code; (4) petitioner listed an incorrect, nonexistent address on its notices pursuant to sections 22-10, 22-15, and 22-25 (id. §§ 22-10, 22-15, 22-25) of the Code; and (5) petitioner failed to identify and serve a party with a record interest. For the reasons that follow, we affirm.

¶ 2 BACKGROUND

¶ 3 This case involves real estate improved with a single-story commercial building located in Harvey, Illinois. The building sits on two lots with separate property index numbers: parcel 1 with a property index number (PIN) of 29-29-206-020-0000 and parcel 2 with a PIN of 29-29-206-024-0000.

¶ 4 The record reveals that on July 17, 2019, the Cook County Treasurer sold the parcels at a scavenger tax sale via a "no cash bid" to Cook County Land Bank (Land Bank). Certificates of purchase numbered 19S-0003087 for parcel 1 and 19S-0003088 for parcel 2 were issued to the Land Bank on October 28, 2019, indicating that the delinquent tax years for the parcels were 2015-17. Subsequently on November 20, 2019, the Land Bank filed a notice of extension for both parcels, extending the redemption period to April 30, 2020. On November 26, 2019, the Land Bank filed section 22-5 take notices with the county clerk; parcel 1 was identified as having a street address of 3256 Ridge Road, and parcel 2 was identified as having a street address of 17100 Halsted Street per the property's tax records. The record owner of the parcels was listed as Capital Equity Trust, and the property manager was listed as Holdings Group. The record also contains an assignment of the parcels to Cook County doing business as Cook County Land Bank Authority on December 2, 2019.

¶ 5 A second extension was filed on April 14, 2020, extending the redemption periods to November 18, 2020. On May 18 and 19, 2020, the Land Bank filed petitions for issuance of tax deeds in the circuit court of Cook County for both parcels: case number 2020 COTD 001321 related to parcel 1 and case number 2020 COTD 001369 related to parcel 2.

¶ 6 Section 22-10 take notices for the parcels, dated May 26, 2020, were mailed to the following persons: Monty S. Boatright, as trustee of the Capital Equity Land Trust #2140215, at parcel 1's address; Capital Equity Trust at 17100 S. Halsted Street in Harvey; unknown owners and occupants at parcel 1's address; and Boatright at three additional addresses: 4653 N. Milwaukee Avenue in Chicago, 5602 N. Canfield Avenue in Chicago, and 17100 S. Halsted Street. The record indicates that a certificate of publication for parcel 1 from the Chicago Daily Law Bulletin was filed on June 12, 2020, which indicated that the take notice was published in the newspaper on June 8, 9, and 11, 2020, and placed on the statewide public notice website. Two affidavits from the special process server indicated that service was attempted on Boatright and unknown owners and occupants by certified mail sent to parcel 1 on June 11, 2020, and on Capital Equity Trust through the Illinois Secretary of State on June 9, 2020. The special process server attempted personal service of the take notice at 17100 S. Halsted Street and 3256 Ridge Road but found that the property was vacant and boarded up. The process service did serve Boatright personally at the Milwaukee address on May 29, 2020, and again on June 18, 2020. Notices sent to the Halsted address via certified mail were returned to petitioner with a note that the property was vacant and the mail was unable to be forwarded, while notices sent to parcel 1 were returned with a stamp indicating "no such number" and "unable to forward." Receipt for notices sent to Boatright at the Canfield and Milwaukee addresses were returned to the circuit court.¹

¶ 7 The Land Bank's applications for tax deeds for both parcels were filed on December 21, 2020, and indicated that the name and address of the party in whose name the taxes were last assessed per the most recent tax collector's warrant books on the date notice was required by statute was Capital Equity Trust at the Halsted address. A commitment for title insurance for the parcels dated January 16, 2020, was also attached to the application, showing the owner of record as Capital Equity Trust. The title report also showed that there were proceedings in case number 18 M6 3525 filed by the City of Harvey based on abandonment of the property.²

¶ 8 The cases were subsequently set for prove-up on January 4, 2021, via Zoom. The record indicates that notice of the hearing was sent to Boatright and unknown owners and occupants at both parcel addresses, Capital Equity Trust and Boatright at the Halsted address, and Boatright at the Canfield and Milwaukee addresses. The record indicates that the matter was subsequently continued to January 21, 2021.

¶ 9 On January 21, 2021, Capital Equity Trust filed its appearance and later filed its objections to the order for tax deed on February 18, 2021, amended on April 6, 2021. Capital Equity Trust indicated that it was the owner of the parcels and argued that section 22-40 of the Code was not strictly complied with. In support of its argument, Capital Equity Trust contended that the Land Bank was not the holder of the certificates of purchase when the section 22-5 take notices and notices of extension were sent out. Capital Equity Trust further argued that, for parcel 1, the section 22-5 take notice was insufficient because it did not list the correct property address.

¶ 10 The Land Bank responded that it and Cook County were one and the same and that it was the holder of the certifications of purchase when the section 22-5 take notices and notices of extension were sent out. Additionally, the Land Bank stated that it had statutory authority to bid at Cook County tax sale auctions. It further responded that the property location was correct based on the tax records, which was all it was required to use, and that it was the property owner's duty and obligation to correct any incorrect information that the Cook County Treasurer listed. The Land Bank argued that it was justified in relying on the County records and that it complied with sections 22-5, 22-10, and 22-25 especially since all of the other information in the notices was correct.

¶ 11 The circuit court heard argument on Capital Equity's objections on May 4, 2021. While acknowledging that the address was incorrect, it nonetheless ruled that section 22-5 only required the tax deed petitioner to examine the county warrant books to obtain the name and address for the last taxpayer of record. The court also ruled that Cook County and the Land Bank were one and the same, so the subsequent assignment of the certificates of purchase was just for purposes of cleaning up the name listed in the certificates of purchase. Capital Equity Trust's objections were denied.

¶ 12 On June 15, 2021, Holdings Group filed its appearance and filed its objections on July 15, 2021. Its objections were the same as those raised by Capital Equity Trust and included exhibits showing the "correct" address for the parcels, including portions of pleadings filed by the City of Harvey in case number 18 M6 3525. The circuit court denied Holdings Group's objections for the same reasons it denied Capital Equity Trust's objections and further found that the City of Harvey was not a party entitled to receive notice in the tax deed proceeding.

¶ 13 On October 21, 2021, the circuit court entered orders directing the Cook County Clerk to issue tax deeds for the parcels to the Land Bank. Respondents filed their notices of appeal on November 18, 2021, and the cases were subsequently consolidated. On October 21, 2021, the circuit court entered orders directing the Cook County Clerk to issue tax deeds for the parcels to the Land Bank. Respondents filed their notices of appeal on November 18, 2021, and the cases were subsequently consolidated.

¶ 14 ANALYSIS

¶ 15 On appeal, respondents contend that the circuit court erred in denying their objections to the issuance of tax deeds for the parcels by finding strict compliance...