Thursday, September 17, 2009

Landis v. Marc Realty - A case landlords should know

FACTS: More than four years after they vacated their apartment, plaintiffs Ken and Ana Landis filed suit against defendants Marc Realty, L.L.C., and Elliott Weiner, for the damages provided for in subsection (f) of section 5-12-080 of the Chicago Residential Landlord and Tenant Ordinance (RLTO) (Chicago Municipal Code § 5-12-080(f) (amended May 14, 1997)), based on the defendants' failure to return their security deposit and interest accruing therefrom. The circuit court of Cook County dismissed plaintiffs' complaint as untimely, finding that the two-year limitations period in section 13-202 of the Code of Civil Procedure (735 ILCS 5/13-202 (West 2004)) applied to section 5-12-080 of the RLTO. The appellate court affirmed the decision of the circuit court. No. 1-06-3028 (unpublished order under Supreme Court Rule 23). The IL Supreme Court granted plaintiffs' petition for leave to appeal pursuant to Supreme Court Rule 315 (210 Ill. 2d R. 315).
ISSUE: The question before this court is whether subsection (f) of section 5-12-080 of the RLTO imposes a "statutory penalty" within the meaning of section 13-202 of the Code.
DECISION: The IL Supreme Court found that subsection (f) of section 5-12-080 is a "statutory penalty" under section 13-202 and, thus, IS subject to the two-year statute of limitations.
ANALYSIS: What I found interesting in this IL Supreme Court case was not the decision but another analysis made by the court. The court said "Because subsection (f) of section 5-12-080 imposes automatic liability for a violation of its terms, sets forth a predetermined amount of damages, and imposes liability regardless of plaintiffs' actual damages, the provision is a "penalty" within the meaning of section 13-202."
What does that mean? Well, this should clear up any question about whether the Chicago Residential Landlord Tenant Ordinance actually imposes automatic liability for violation of its terms. Landlords need to be aware of the ordinance and make sure they follow ALL aspects of it. Failure to do so can mean automatic penalties!
Miller Bammi LLC, a full service Chicago-based law firm, focuses on Chicago evictions, Chicago building code violations, residential and commercial closings and loan modifications, contract related matters, business formations, general litigation, estates and trusts and other areas. Contact us at admin@millerbammi.com or 312-238-9298.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.