Justice BIRKETT delivered the judgment of the court, with opinion.
¶ 1 This case involves the continuing efforts of plaintiff, the Village of Ringwood, to remediate the public hazard it claims is posed by a fire-damaged apartment building owned by defendant, Deborah Foster. The fire occurred in October 2006, and in January 2009 the trial court authorized plaintiff to demolish the building. In Village of Ringwood v. Foster, 405 Ill.App.3d 61, 85-86, 342 Ill.Dec. 334, 932 N.E.2d 461 (2010) (Foster I), we vacated the demolition order because the record suggested, and plaintiff did not dispute, that there was a lien on the property and that plaintiff failed to provide the lienholder the requisite statutory notice of plaintiff's intent to seek a demolition order. On remand, plaintiff issued a notice to First National Bank of McHenry (First National), the lienholder. Over defendant's objection that the notice was deficient, the trial court reissued the demolition order. Defendant appeals, and we affirm.
¶ 4 Plaintiff's July 2007 complaint seeking authorization to demolish the building was brought pursuant to section 11-31-1(a) of the Illinois Municipal Code (Code) (65 ILCS 5/11-31-1(a) (West 2006)). The complaint named defendant alone. Section 11-31-1(a) provides in relevant part:
¶ 5 The trial court conducted a bench trial, at which plaintiff had the burden to prove that the building was (1) "dangerous and unsafe" (65 ILCS 5/11-31-1(a) (West 2006)) and (2) "beyond reasonable repair" (Village of Lake Villa v. Stokovich, 211 Ill.2d 106, 131, 284 Ill.Dec. 360, 810 N.E.2d 13 (2004) (citing City of Aurora v. Meyer, 38 Ill.2d 131, 137, 230 N.E.2d 200 (1967))). As defendant would emphasize in her briefs on appeal in Foster I, plaintiff's counsel mentioned in his opening statement that defendant purchased the property in 2005 with financing from First National. Defendant also found it significant that, as the evidence at trial showed, she received an insurance settlement check in connection with the October 2006 fire that was payable to both her and First National. Therefore, according to defendant, plaintiff knew or should have known of the "continuing existence of the mortgage" held by First National. (These facts relate to defendant's claim of deficiency of notice, as we explain below at ¶ 45.)
¶ 6 The court heard testimony from several witnesses on the degree of damage to the building. At one point, plaintiff sought to introduce a November 15, 2006, letter it sent to defendant. In the letter, plaintiff directed defendant "to demolish [the building] * * * on or before May 15, 2007." Defendant objected to the letter on hearsay grounds. The court admitted the letter "for the limited purpose of showing notice," not to prove the truth of the matters stated in the letter.
¶ 7 In closing argument, defendant asserted, inter alia, that plaintiff "failed to prove * * * that the notice which [it] sent [to her] [was] compliant with the law, that [it] gave [her] a reasonable opportunity to repair the building." Thus, defendant's complaint regarding notice was that she was not provided an opportunity to make repairs. She did not claim that some other party, such as a lienholder, did not receive notice of the demolition suit.
¶ 8 In a written opinion, the trial court rejected defendant's arguments and determined that plaintiff met its two-pronged burden of proof under City of Aurora and Stokovich. In particular, the court held that plaintiff's November 2006 letter satisfied the notice provision of section 11-31-1(a).
¶ 9 Defendant filed a posttrial motion, arguing in part that, since the trial court did not admit the "contents" of the November 2006 letter, it was "impossible for [plaintiff] to prove that it complied with [section 11-31-1(a)]." Defendant further asserted that plaintiff "failed to introduce evidence that the lien holder of record was properly notified as per [section 11-31-1(a)]. The record shows that the motion was heard but contains no transcript or other account of the hearing.
¶ 11 On appeal in Foster I, defendant made three main arguments. First, she contended that plaintiff failed to prove that the building was "dangerous and unsafe" under section 11-31-1(a), as there was no evidence that the building threatened "public safety," i.e., the community at large and not just those who entered onto the premises. Applying principles of statutory construction, we concluded that "a structure may be deemed `dangerous and unsafe' under section 11-31-1 even if the danger is confined to those connected to the property." Foster I, 405 Ill.App.3d at 74, 342 Ill.Dec. 334, 932 N.E.2d 461. As defendant had "agree[d] * * * that the damage to the building rendered it uninhabitable," we held that plaintiff sustained its burden to prove that the building was "dangerous and unsafe." Id.
¶ 12 Second, defendant disputed plaintiff's proof that the building was damaged beyond reasonable repair. In making its determination under this second prong of the City of Aurora/Stokovich analysis, the trial court borrowed from plaintiff's zoning ordinance, under which a nonconforming building that was damaged to the extent of more than 50% of its replacement cost could not be rebuilt or reoccupied for any nonconforming use (the 50% ordinance).
In Stokovich and City of Aurora, "repair was unreasonable due to cost," but "[h]ere, repair is unreasonable based on another factor: the ordinance barred such repair." Id. at 80 n. 6, 342 Ill.Dec. 334, 932 N.E.2d 461.
¶ 13 Defendant's third main contention was that plaintiff failed to comply with the 15-day notice provision of section 11-31-1(a). That section allows the corporate authorities of a municipality to "apply to the circuit court * * * for an order authorizing
(We clarified in a footnote that we were not holding that "notice is unnecessary if it is later determined that there is no right to repair because repair is too costly and thus not reasonable under the test articulated in Stokovich." Id. at 82 n. 10, 342 Ill.Dec. 334, 932 N.E.2d 461.)
¶ 14 Yet plaintiff did not, we found, demonstrate full compliance with the notice provision of section 11-31-1(a), as there was "no evidence that notice was given to any lienholders of record, as contemplated by section 11-31-1." Id. at 83, 342 Ill.Dec. 334, 932 N.E.2d 461. We noted that the trial testimony suggested that there was a mortgage on the property. Id. at 84, 342 Ill.Dec. 334, 932 N.E.2d 461. Defendant argued to us that (as quoted from her brief) "the notice requirements of [section] 11-31-1," including notice to lienholders, "must be followed before suit for demolition can be filed." "There is good reason," we explained, "the legislature would have acted to require notice to lienholders of an action to demolish a building." Id. at 84, 342 Ill.Dec. 334, 932 N.E.2d 461. "[A] lienholder * * * unquestionably has an interest in the outcome of demolition proceedings, both because of its interest, as a lienholder, in the building's continued existence (so that the building may continue to secure the obligation), and because section 11-31-1 contemplates the subordination of all prior liens to a new lien in favor of the municipality for the cost of any demolition or repair conducted by the municipality." Id. at 85, 342 Ill.Dec. 334, 932 N.E.2d 461. We then stated:
¶ 15 Because the record did not show that notice was provided to any lienholders before the demolition order was entered, and because plaintiff did not dispute that there was no such showing, we vacated the demolition order and remanded
We clarified that, as with the notice to defendant, notice to a lienholder would not need to include "notice * * * of an illusory right to repair." Id. at 83, 342 Ill.Dec. 334, 932 N.E.2d 461.
¶ 16 Subsequently, defendant filed a petition for rehearing. She contended that we should have instructed the trial court to dismiss plaintiff's action if a necessary party were identified on remand and plaintiff refused to join that party:
Accordingly, defendant asked us to
¶ 17 We denied the petition, but added a footnote stating:
¶ 19 Our mandate issued on January 18, 2011, and the trial court reinstated the case. On February 14, plaintiff moved the court to reissue its demolition order. Plaintiff noted that a tract index search revealed a single lienholder, First National, which had recorded a mortgage of $355,000 in July 2005. Plaintiff attached to its motion a document entitled "Waiver," purportedly signed by the president of First National. The signature was notarized. The document stated that First National acknowledged receipt of a copy of Foster I and "expressly waive[d] its right to any notice as provided in [section 11-31-1(a) ] and * * * also expressly waive[d] its right to any hearing, including notice thereof, in connection with said matter." Given First National's purported waiver, plaintiff asked the court to issue an order authorizing it to demolish the building if defendant failed to do so within 60 days.
¶ 20 On March 22, defendant moved to dismiss the action. First, defendant asked the court to disregard the purported waiver because it had "not been filed with the [c]ourt but merely attached to [plaintiff's
¶ 21 At the May 27 hearing on the motion to dismiss, the trial court declined to consider the purported waiver, as it was an "exhibit" and "[First National] did not file anything with the [c]ourt." The court nonetheless denied the motion to dismiss, conditioned upon plaintiff providing "notice to lienholder [First National] in compliance with [section 11-31-1(a)]." The court directed that the notice include copies of plaintiff's complaint for demolition and our decision in Foster I.
¶ 22 On June 1, plaintiff filed its "Notice to Demolish Building at 5024 Barnard Mill Road, Ringwood, Illinois." The document stated that First National was "hereby given notice, pursuant [to section 11-31-1(a)], to demolish the building" and that, if First National "faile[d] to demolish said building," plaintiff would appear before the trial court on June 22 "and request the court to enter an order of demolition of said building." The proof of service indicated that the notice was mailed to First National on June 1.
¶ 23 On June 22, defendant moved to strike the June 1 notice as deficient because (1) the notice required by section 11-31-1(a) must precede a suit for demolition, and here the matter had already gone to trial; and (2) even if timely, the notice failed to inform First National of its right to repair the building. At the hearing on the motion, plaintiff argued that the trial court had no authority to go beyond our directions in Foster I to "ensure proper notice and hear the lienholder's objections, if any, before entering (or declining to enter) a demolition order" (Foster I, 405 Ill.App.3d at 86, 342 Ill.Dec. 334, 932 N.E.2d 461). Plaintiff argued that, in compliance with these directions, First National was given notice of plaintiff's request for a demolition order, and it made no difference that the complaint had already been filed and gone to trial. According to plaintiff, the trial court had no authority even to entertain defendant's argument that notice under 11-31-1(a) must precede a suit for demolition.
¶ 24 Defendant responded that our footnote 12 in Foster I permitted her to argue on remand that "any failure to involve a lienholder * * * render[ed] the judgment void" (id. at 86 n. 12, 342 Ill.Dec. 334, 932 N.E.2d 461).
¶ 25 The trial court denied the motion to dismiss, reasoning that "notice * * * prior to the entry of [the] demolition order" is "sufficient" under section 11-31-1(a). Defendant then asked for leave to file "another motion." Counsel said:
¶ 26 The trial court entered an order permitting defendant to file "an additional motion as to the nature of the proceedings required at this juncture."
¶ 27 On July 25, defendant filed a motion for a new trial or additional evidentiary proceedings. Defendant raised four points: (1) the notice required by section 11-31-1(a) is a prerequisite to a suit for demolition, and so the court's judgment authorizing demolition was void because First National, a lienholder of record, did not receive notice prior to suit; (2) First National was a necessary party, whose rights could not be protected in its absence, and so the judgment authorizing demolition was void; (3) the court should reopen the evidentiary record to allow evidence of the current state of the building, as defendant would testify to repairs she made since the proofs were closed almost three years ago; and (4) Foster I suggested that use of municipal ordinances in determining the reasonableness of repair "is permissive and not mandatory," and the court should reconsider its use of the 50% ordinance.
¶ 28 At the hearing on the motion, the trial court again held that the June 1 notice provided to First National satisfied section 11-31-1(a). The court further held that it had no authority on remand to reconsider the applicability of the 50% ordinance or take additional evidence on the condition of the building. On September 13, the court entered an order denying defendant's motion.
¶ 29 Thereafter, on September 23, the trial court entered an order directing defendant to demolish the building within 30 days or else plaintiff would have authority to demolish it.
¶ 30 On October 13, defendant filed a motion to reconsider, arguing that the trial court's interpretation of the notice provision of section 11-31-1(a) "render[ed] the statute unconstitutional." The court denied the motion on November 1. Defendant filed her notice of appeal on November 30. On December 7, the court stayed the judgment of demolition.
¶ 32 Defendant renews several of the arguments she made below. First, she contends that plaintiff's failure to serve First National prior to the demolition suit, and First National's consequent absence at the trial on the demolition complaint, require us to remand for a new trial on the complaint.
¶ 33 We deal first with plaintiff's claim that this argument is barred under the law-of-the-case doctrine. "Generally, the law of the case doctrine bars relitigation of an issue previously decided in the same case." Krautsack v. Anderson, 223 Ill.2d 541, 552, 308 Ill.Dec. 302, 861 N.E.2d 633 (2006). "Courts will not permit parties to relitigate the merits of an issue once decided by an appellate court[;] the proper remedy for a dissatisfied party is by petition for rehearing or by petition for leave to appeal to the Illinois Supreme Court." Turner v. Commonwealth Edison Co., 63 Ill.App.3d 693, 698, 20 Ill.Dec. 499, 380 N.E.2d 477 (1978). "Similarly, where a question was open to consideration in a prior appeal and it could have been presented but was not, the question will be deemed to be waived." Id. (citing Kazubowski v. Kazubowski, 45 Ill.2d 405, 413, 259 N.E.2d 282 (1970)). "A second appeal brings up nothing except proceedings subsequent to the remandment[,] and a party will not be allowed to present his case for review piecemeal, one part each time." Id; see also Tribune Co. v. Emery Motor Livery
¶ 34 Our opinion in Foster I expressly stated that, on remand, once the trial court "determined the extent to which any interested lienholder was deprived of notice," defendant or a lienholder could make the argument that "failure to involve a lienholder in [the] litigation should render the judgment void and require a retrial." Foster I, 405 Ill.App.3d at 86 n. 12, 342 Ill.Dec. 334, 932 N.E.2d 461. Therefore, the trial court properly considered defendant's argument on remand that the demolition judgment was void for plaintiff's failure to join First National. That issue is now before us because defendant preserved it for appeal.
¶ 35 We reject the argument on the merits. First, however, we register our agreement with defendant that the interpretation of section 11-31-1(a) advocated by plaintiff, and accepted by the trial court, is foreclosed by Stokovich. Notably, the First District Appellate Court reached the same interpretation in City of Chicago v. James E. Mulligan Enterprises, Inc., 27 Ill.App.2d 481, 170 N.E.2d 13 (1960). The defendants in Mulligan were the owners of a fire-damaged building. The plaintiff brought suit against them under section 23-70.2 of the Cities and Villages Act (Ill.Rev.Stat.1955 ch. 24, ¶ 23-70.2), a predecessor of section 11-31-1(a). The only manner in which section 23-70.2 differed from the portions of section 11-31-1 (a) that are material here is that section 23-70.2 required 30 rather than 15 days' notice. The plaintiff in Mulligan asked for an order requiring the defendants to demolish or repair the building or, alternatively, an order authorizing the plaintiff to demolish the building. The defendants remained part of the action through trial, which occurred 15 months after the complaint was filed. At the conclusion of the trial, the court issued an order authorizing the plaintiff to destroy the building. Mulligan, 27 Ill.App.2d at 484-86, 170 N.E.2d 13.
¶ 36 On appeal, the defendants claimed that the judgment authorizing demolition was invalid because they did not receive the requisite 30-day notice under section 23-70.2. The defendants claimed that the 30-day notice was a "condition precedent to the filing of suit." Id. at 486, 170 N.E.2d 13. The appellate court disagreed and held that the plaintiff's inclusion of the defendants in the demolition lawsuit, which lasted 15 months, was sufficient notice of the plaintiff's intent to have the building repaired or demolished. The court observed that section 23-70.2 "does not say that notice is a condition precedent to suit nor does it prescribe the form of notice." Id. at 488, 170 N.E.2d 13. Moreover, "[t]he time prescribed is related not to the bringing of suit, but to the application for an order directing demolition." Id. The court went on:
Elsewhere in the opinion, the court reiterated that
The court noted that the rules of civil procedure allowed the defendants 30 days after service in which to appear and file their pleadings, to which the plaintiff would have 20 days to reply. Id. at 486, 170 N.E.2d 13. As it happened, the defendants "not only had the statutory notice [under section 23-70.2] of thirty days, but fourteen times that period." Id. at 487, 170 N.E.2d 13. While denying that "there was some basis in the wording of the statute for the argument made by defendants that the service of notice was a condition precedent to suit," the court noted that it would not have found any such basis "controlling," as the defendants' interpretation was "so far out of keeping with the purpose and spirit of the statute," which was "to give the [plaintiff] a quick and effective means of removing those unused and dilapidated structures that present danger and blight." Id.
¶ 37 The Mulligan court distinguished between the filing of a suit for demolition and the seeking of an order for demolition. According to the court, the process described in section 11-31-1(a), by which corporate authorities "apply to the circuit court * * * for an order," is not the demolition suit itself, but a petitioning process that follows the adjudication of the complaint for demolition. The court even seemed to suggest that notice under section 11-31-1(a) would be premature until the complaint for demolition was adjudicated. The supreme court in Stokovich, however, outlined a different process under section 11-31-1(a). According to the supreme court's description, the application to the trial court under section 11-31-1(a) is itself the suit for demolition. The court commented as follows in rejecting a constitutional challenge to section 11-31-1:
¶ 38 Stokovich indicates that this "trial on the merits" is the very proceeding at which the corporate authorities must prove that the building is (1) dangerous and unsafe; and (2) beyond reasonable repair. Id. at 131, 284 Ill.Dec. 360, 810 N.E.2d 13. It is, therefore, nothing short of the "trial on the merits" of the complaint for demolition. Under the procedure outlined in section
¶ 39 We conclude, then, that First National was, by the letter of section 11-31-1(a), entitled to notice of plaintiff's suit for demolition, not simply of a request for a demolition order subsequent to judgment on the complaint. We disagree with defendant, however, that we must vacate the demolition order and remand for a new trial. Our path to that conclusion is not via the purported waiver attached to plaintiff's March 22 motion to dismiss. The trial court refused to consider that document because it was not filed by First National, but was simply an exhibit attached to plaintiff's motion. Plaintiff argues that "even a constitutional provision for the protection of property rights may be waived" and that the purported waiver "even exceeds compliance with the directions of the mandate in Foster I[,] because[,] by its waiver, the [b]ank unambiguously relinquished its rights under [s]ection 11-31-1." This argument fails to address the trial court's apparent concern over the reliability of the document. We decline to address whether the purported waiver was valid and effective, for even without the waiver there is no basis for vacating the demolition order and remanding for a new trial.
¶ 40 Defendant's arguments consist broadly of two approaches: first, First National's presence was a per se requirement, and, second, First National's presence was necessary for the protection of its interests. The latter tack fails because the relief we granted in Foster I remedied any prejudice to First National from the lack of notice of the demolition suit. In Foster I, we vacated the demolition order and directed the trial court to ensure notice to any lienholder of record, and then to "hear the lienholder's objections, if any, before entering (or declining to enter) a demolition order." Foster I, 405 Ill.App.3d at 86, 342 Ill.Dec. 334, 932 N.E.2d 461. If we had meant to leave unassailable on remand the trial court's Stokovich/City of Aurora findings as to the condition of the building, and to afford the lienholder simply the chance to remediate the hazardous condition of the building, we would not have expressly allowed the lienholder to make "objections." Nor would we have left the lienholder to make only formal "objections" to the notice of an impending demolition. Rather, our intent was to afford the lienholder the substantive opportunity to challenge plaintiff's proof on the complaint for demolition. The June 1 notice sent to First National informed it that, if it did not demolish the building within a certain time, plaintiff would appear on June 22 to request an order for demolition. Appended
¶ 41 Defendant challenges the notice provided to First National on remand because it did not inform First National of the right to repair the building. Defendant made substantially the same argument in Foster I. Though, in Foster I, First National had not yet been identified, defendant argued that any notice under section 11-31-1(a) regarding her building would have to inform the owner or lienholder of the right to repair. We rejected that argument. We affirmed the trial court's holding that repair of the building would be unreasonable because the 50% ordinance prohibited repair. Accordingly, there was no right of repair of which to inform either an owner or a lienholder. That holding is the law of the case, and we see no reason to disturb it. Relatedly, defendant renews her argument that it was error for us to hold, under Stokovich and City of Aurora, that the reasonableness of repair can be determined by the ordinances of the governmental body in which the building is located. We will not upset Foster I's holding on this issue either.
¶ 42 We note that, even if our directions on remand in Foster I had not remedied the failure to provide First National notice of the suit for demolition, we would still affirm the judgment for demolition, as defendant has not persuaded us that First National's interests were not protected in the original proceeding. Defendant claims that First National was a necessary party to the suit. She cites First State Bank & Trust Co. of Hanover Park v. Winfrey, 165 Ill.App.3d 767, 117 Ill.Dec. 412, 520 N.E.2d 763 (1987), where the plaintiff filed a complaint against the owner of a business, Illinois Wrecking Company (the company). The owner was named both individually and as owner of the company. The owner was served but the company was not. The owner appeared and moved to dismiss the complaint for failure to serve the company. Months later, without having ruled on the motion, the trial court dismissed the action for want of prosecution. Later, the case was reinstated and a default judgment was entered against the owner. The court subsequently denied the owner's motion to vacate the default judgment. The owner appealed the denial, and the appellate court reversed. The court reasoned that, since the demolition contract was between the plaintiff and the company, the latter "was an indispensable party to [the] litigation in that it was legally interested and affected by the disposition of the action." Id. at 770, 117 Ill.Dec. 412, 520 N.E.2d 763.
¶ 43 Defendant argues that Winfrey compels reversal here. We disagree. First, we must clarify Winfrey's statements about nonjoinder of necessary parties. The court said:
The second statement in this extract sets forth the general definition of a necessary party. See Crum & Forster Specialty Insurance Co. v. Extended Stay America, Inc., 375 Ill.App.3d 654, 665, 314 Ill.Dec. 34, 873 N.E.2d 964 (2007) (same definition). The first statement contains what is, in fact, a more stringent standard that courts now apply only to tardy objections to nonjoinder of an allegedly necessary party. The Winfrey language can be traced to Gaumer v. Snedeker, 330 Ill. 511, 515, 162 N.E. 137 (1928):
¶ 44 Echoes of the Gaumer language are found in Allied American Insurance Co. v. Ayala, 247 Ill.App.3d 538, 543-44, 186 Ill.Dec. 717, 616 N.E.2d 1349 (1993), which states the contemporary approach to nonjoinder objections:
See also Boddiker v. McPartlin, 379 Ill. 567, 575, 41 N.E.2d 756 (1942) ("[W]here objection to non-joinder is not made until the final stage of the proceeding it will receive little favor by the courts, and in such case, to be of avail, it must appear that the decree or order will have the effect of depriving the party omitted of some material rights without a hearing."). In Boddiker, Allied American, and Crescio v. Crescio, 365 Ill. 393, 6 N.E.2d 628 (1937), the court applied the elevated standard because the objection to nonjoinder was tardy. See Boddiker, 379 Ill. at 574-75, 41 N.E.2d 756 (in a proceeding in chancery, objection was not raised before the special master (but the court did not indicate whether the objection was made in the subsequent proceeding before the chancellor)); Crescio, 365 Ill. at 396, 6 N.E.2d 628, (objection first raised in a posttrial motion); Allied American, 247 Ill.App.3d at 544, 186 Ill.Dec. 717, 616 N.E.2d 1349 (objection not made until closing arguments). By contrast, the owner in Winfrey first raised the nonjoinder objection in a motion to dismiss before trial.
¶ 45 We hold that, under the timeliness criteria in the foregoing cases, defendant's objection to the nonjoinder of First National was tardy. Defendant did not raise the issue of notice to lienholders until her posttrial motion.
¶ 46 Defendant also contends that, irrespective of First National's particular interest in the proceeding, its absence rendered the demolition judgment void for lack of subject-matter jurisdiction.
¶ 47 Defendant's final argument on appeal is that the trial court erred in denying her motion to take evidence on the current condition of the building. We find no error.
"After a judgment is reversed and the cause is remanded, the trial court can conduct only such further proceedings as conform to the appellate court's judgment." People ex rel. Department of Transportation v. Firstar Illinois, 365 Ill.App.3d 936, 939, 303 Ill.Dec. 495, 851 N.E.2d 682 (2006).
¶ 48 By allowing a lienholder to raise "objections" on remand, we contemplated the possibility that the evidentiary record would be reopened for the lienholder to challenge plaintiff's proof in support of its complaint for demolition. We did not intimate that the court could reopen the record simply so that defendant could present fresh evidence on the state of the building. The court was correct to adhere to our directions.
¶ 50 For the foregoing reasons, we affirm the judgment of the circuit court of McHenry County.
¶ 51 Affirmed.
Justices McLAREN and ZENOFF concurred in the judgment and opinion.