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Morton Grove Park District v. American National Bank & Trust Co.

Citations: 399 N.E.2d 1295; 78 Ill. 2d 353; 35 Ill. Dec. 767; 1980 Ill. LEXIS 268Docket: 51698

Court: Illinois Supreme Court; January 23, 1980; Illinois; State Supreme Court

Narrative Opinion Summary

In the case of Morton Grove Park District v. American National Bank and Trust Company, the Supreme Court of Illinois addressed whether property owners are entitled to earnings on a condemnation award deposited with the county treasurer during an appeal. The defendants, who owned property in Morton Grove, contested the denial of earned interest on a $1 million condemnation award, arguing it was a taking without just compensation under the Illinois and U.S. Constitutions. The trial and appellate courts had previously upheld the denial, interpreting statutes to mean that earnings on such deposits belonged to the county. However, the Supreme Court reversed these judgments, emphasizing that both statutory and constitutional provisions mandate that interest is due from the judgment date until payment is made to the property owners. The court held that denying the earnings violated the owners' rights under the 'taking clauses' of both constitutions, as the earnings are part of the property rights. Consequently, the court ruled that the defendants were entitled to reimbursement for the earnings generated during the appeal period and remanded the case for further proceedings, applying the ruling prospectively to future deposits made after February 1, 1980.

Legal Issues Addressed

Constitutional Protection of Property Rights

Application: The court found that denying the owners earnings from the award during the appeal violated their constitutional rights under the Illinois and U.S. Constitutions.

Reasoning: The text contends that denying the owners these earnings violates their constitutional rights, as both the Illinois Constitution and the Fifth Amendment of the U.S. Constitution protect against the taking of private property for public use without just compensation.

Disposition of Earnings from Deposited Condemnation Awards

Application: The court ruled that earnings from funds deposited with the county treasurer belong to the property owners, not the county, thus reversing previous interpretations.

Reasoning: Consequently, the court rules that the defendants are entitled to reimbursement for all earnings on the deposited funds.

Eminent Domain and Just Compensation

Application: The court held that the denial of income earned on a condemnation award while the defendants appealed the award's amount constituted a taking without just compensation.

Reasoning: The case centered on the claim that denying this income constituted a taking without just compensation under both Illinois and U.S. constitutions.

Interest on Condemnation Awards

Application: The Supreme Court clarified that interest on awards is due from the judgment date until payment is made, and that earnings on deposited funds are not considered additional compensation.

Reasoning: The court reaffirmed that when an award is deposited with the treasurer, it meets statutory and constitutional requirements for just compensation, while also highlighting the provision in section 13 allowing the condemnor to use the property during the appeal period under a bond agreement.