Lenzi v. Morkin

• Decision Date: 20 September 1984
• Docket Number: No. 58947,58947
• Citation: 103 Ill.2d 290,469 N.E.2d 178,82 Ill.Dec. 644
• Parties: , 82 Ill.Dec. 644 Ronald G. LENZI et al., Appellants, v. Ruth A. MORKIN, Indiv. and as Ex'r and Trustee, Appellee.
• Court: Illinois Supreme Court

Page 178

469 N.E.2d 178

103 Ill.2d 290, 82 Ill.Dec. 644

Ronald G. LENZI et al., Appellants, v. Ruth A. MORKIN, Indiv. and as Ex'r and Trustee, Appellee.

No. 58947.

Supreme Court of Illinois.

Sept. 20, 1984.

Leon C. Wexler, Chicago, for appellants.

Baker & McKenzie, Chicago (Francis D. Morrissey, Robert E. Deignan, George H. Olsen and Gerald L. Maatman, Jr., Chicago, of counsel), for appellee.

GOLDENHERSH, Justice:

Plaintiffs, Ronald G. Lenzi and Geraldine J. Lenzi, appealed from the judgment of the circuit court of Cook County entered upon allowance of the motion to dismiss plaintiffs' action against defendant, Ruth A. Morkin, individually, as co-executrix of the estate of Alma M. Dalmar, and as co-trustee of the Alma Dalmar 1979 Trust. The appellate court affirmed (116 Ill.App.3d 1014, 72 Ill.Dec. 414, 452 N.E.2d 667), and we allowed plaintiffs' petition for leave to appeal (87 Ill.2d R. 315).

It was alleged in plaintiffs' complaint that the parties entered into a contract in which plaintiffs agreed to purchase a house from defendant and that the sale was consummated on May 27, 1981. The contract, attached to the complaint as an exhibit, was executed on March 23, 1981. It was alleged that on February 26, 1981, defendant received notice from the assessor of Cook County that the valuation of the property was increased from $18,712 to $27,201. The contract provided for a proration of real estate taxes as of the date plaintiffs were given possession "based on most recent ascertainable taxes." The 1979 taxes were based on a valuation of $18,712. Plaintiffs also alleged that defendant "intentionally failed to disclose" the increase in assessed valuation and knew that the purchasers relied upon the last tax bill to determine the most recent ascertainable taxes when, in fact, the reassessment provided a means for ascertaining taxes in excess of the last real estate tax bill.

The appellate majority noted that real estate taxes are calculated based on three factors: the assessed value of the property, the State equalization factor (Ill.Rev.Stat.1981, ch. 120, par. 630), and the applicable tax rate (Ill.Rev.Stat.1981, ch. 120, par. 643). (116 Ill.App.3d 1014, 1016, 72 Ill.Dec. 414, 452 N.E.2d 667.) The exact real estate tax for a particular parcel of real estate cannot be determined until each of these factors has been ascertained by the appropriate governmental authority. Plaintiffs did not allege that the equalization factor and the tax rate which would be applied to the new valuation had been established; therefore, the general taxes for the year 1980 were not "ascertainable." It held as a matter of law that the "most recent ascertainable taxes" were reflected in the 1979 tax bill. 116 Ill.App.3d 1014, 1016-17, 72 Ill.Dec. 414, 452 N.E.2d 667.

Plaintiffs contend that because defendant knew that the valuation had been increased and the reassessment provided a means for ascertaining that the taxes would be substantially greater than those reflected in the 1979 tax bill, a duty to disclose this material fact arose and the failure to discharge that duty constituted fraud.

We do not agree that defendant was under a duty to disclose the new valuation. As pointed out by the appellate court, the valuation placed on the property was a matter of public record and not a matter solely within the knowledge of defendant. The parties could have provided in the contract for a pro-rata...