Morgan's Orchard Lake Homeowners' Ass'n v. Morgan

• Citation: 2022 IL App (3d) 220006 U
• Decision Date: 27 September 2022
• Docket Number: 3-22-0006
• Parties: MORGAN'S ORCHARD LAKE HOMEOWNERS' ASSOCIATION, Plaintiff-Appellant, v. MICHAEL C. MORGAN, LESLIE K. MORGAN and UNKNOWN OCCUPANTS, Defendants Michael C. Morgan, Defendant-Appellee.
• Court: United States Appellate Court of Illinois

2022 IL App (3d) 220006-U

MORGAN'S ORCHARD LAKE HOMEOWNERS' ASSOCIATION, Plaintiff-Appellant,
v.
MICHAEL C. MORGAN, LESLIE K. MORGAN and UNKNOWN OCCUPANTS, Defendants

Michael C. Morgan, Defendant-Appellee.

No. 3-22-0006

Court of Appeals of Illinois, Third District

September 27, 2022

This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

Appeal from the Circuit Court of the 18th Judicial Circuit, Du Page County, Illinois. Circuit No. 19-LM-2548 The Honorable James F. McCluskey, Judge, presiding.

JUSTICE DAUGHERITY delivered the judgment of the court. Justices Hettel and Peterson concurred in the judgment.

ORDER

DAUGHERITY, JUSTICE

¶ 1 Held: In proceedings stemming from a complaint for eviction and the recovery of unpaid Homeowners Association (HOA) assessments, the circuit court did not err in entering a judgment in favor of defendant, a lot owner who failed to pay the HOA assessments at issue, where those assessments were not determined by the Voting Members of the HOA as required by the terms of the HOA's Declaration.

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¶ 2 Plaintiff, Morgan's Orchard Lake Homeowners' Association, filed an eviction complaint against defendants, Michael C. Morgan and Leslie K. Morgan, owners of a lot within the development that was part of the plaintiff Homeowners' Association (HOA) at issue. In the complaint, plaintiff requested possession of defendants' premises and money damages in the amount of $6738.14 for unpaid HOA assessments, plus accruing common expenses, late fees, and attorney fees and costs. Following a bench trial, the circuit court entered judgment in favor of plaintiff. After a hearing on defendant, Michael's, subsequent posttrial motion to vacate/modify the judgment, the circuit court vacated the judgment and entered a judgment in favor of Michael. On appeal, plaintiff argues the trial court erred in entering a judgment in favor of Michael because the assessments were validly imposed by way of the approval by the HOA's five-member Board of an annual budget and the Board's subsequent imposition of assessments based on that budget. We affirm the circuit court's judgment entered in favor of Michael.

¶ 3 I. BACKGROUND

¶ 4 Plaintiff, Morgan's Orchard Lake Homeowners' Association, is a not-for-profit homeowners' association (HOA). The HOA's authority is set forth in the "Declaration of Covenants, Conditions and Easements for Morgan's Orchard Lake Planned Unit Development" (Declaration), which was executed on March 1, 1994, and subsequently recorded with the Du Page County Recorder's office on March 8, 1994. The Declaration was made by the Declarant- collectively, Suburban Trust & Savings Bank (as a trustee under a 1987 trust), Edward F. Morgan, Jr., (E.F. Morgan), Sally E.L. Morgan (S. Morgan), and First Chicago Trust Company of Illinois (as trustee under a 1993 trust). At the time the Declaration was executed, the Declarant owned the Morgan's Orchard Lake Planned Unit Development (the Development), which was located in Wheaton, Illinois, rezoned by the City of Wheaton, and subdivided into nine

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residential lots and three outlots. The Development was subject to and governed by the Declaration.

¶ 5 A. Declaration

¶ 6 Under the terms of the Declaration, the management and maintenance of the Development were vested in the HOA. The Declaration indicated that the association, "acting through its membership or its Board of Managers, as the case may be," had the responsibility of (in pertinent part) establishing and approving the annual budget, establishing assessments, collecting assessments, and performing any other acts reasonable or necessary to enforce and administer the terms of the Declaration.

¶ 7 In regard to voting rights, one "Voting Member" with respect to each lot "shall be entitled to vote at HOA meetings." Where there is more than one owner of a lot, the Voting Member for that lot was to be determined by the owners of the lot as they saw fit. The Declaration indicated that unless waived in writing by all Voting Members, notice of each meeting of the Voting Members shall be provided to each unit owner/designated voting member at least 10 days prior thereto.

¶ 8 The Declaration also indicated: "there shall be a meeting of the Voting Members annually in the months of April or May, at a time and date designated by written notice of the Board delivered to the Voting Members not less than ten (10) days prior thereto" (the annual meeting); special meetings of the Voting Members may be called at any time for the purpose of considering matters that, by the terms of the Declaration, require approval of all or some of the Voting Members (special meetings); and special meetings shall be called by written notice authorized by the Board or by four of the nine Voting Members.

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¶ 9 Under the terms of the Declaration, at each annual meeting, "a Board of Managers...