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First Chicago Trust Co. v. Old Willow Falls Condominium Ass'n
Citations: 228 Ill. App. 3d 750; 593 N.E.2d 581Docket: No. 1—91—1810
Court: Appellate Court of Illinois; February 28, 1992; Illinois; State Appellate Court
Plaintiffs, comprised of First Chicago Trust Company of Illinois as trustee and beneficiaries Saul Azar, Alex Pinsky, and Zal Horn, sought a mandatory injunction against Old Willow Falls Condominium Association to accept their voting proxies and allow Azar to run for the board of managers. The trial court dismissed the case, ruling that the plaintiffs were developers rather than unit owners with voting rights. The plaintiffs hold beneficial ownership of 48 units within the association. During the December 18, 1990 annual meeting, a vote was conducted where the plaintiffs' votes were excluded, resulting in the election of three incumbents and two challengers. When included, Azar’s votes would have secured his election. The central issue for review is whether the plaintiffs, despite their developer status, are entitled to vote and run for board election as unit owners. The plaintiffs argue that their prior developer status does not negate their rights as unit owners, as mandated by the Condominium Property Act and the association's bylaws. These bylaws state that each unit owner is a member of the association with voting rights based on their ownership percentage. While no Illinois cases specifically address a developer's status as a unit owner, precedents from Florida and Texas indicate that developers can be treated as unit owners liable for assessments. The Condominium Property Act defines a unit owner as anyone holding a fee simple absolute ownership of a unit, which, in an Illinois land trust, is collectively held by the trustee and beneficiaries. The Condominium Property Act and the defendant's bylaws do not expressly prohibit a developer from being a unit owner. In this case, the trustee and three beneficiaries collectively own the 48 units in Old Willow Falls Condominium, which qualifies the plaintiff as a unit owner and a member of the condominium association. Consequently, the plaintiff is entitled to voting rights corresponding to his ownership percentage of the common elements. According to the defendant's bylaws, only members of the Association can serve on the board, and if a member is a legal entity, individuals associated with that entity can also be eligible for board membership. Since the plaintiff is a unit owner and a member of the Association, Azar, as the trust beneficiary, can run for a position on the board of managers. The circuit court's judgment is reversed, and the case is remanded for an order consistent with this opinion. Judges Egan and Rakowski concur.