Siena at Old Orchard Condominium Association v. Siena at Old Orchard, LLC

75 N.E.3d 420 (2017)

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Siena at Old Orchard Condominium Association v. Siena at Old Orchard, LLC

Illinois Appellate Court
75 N.E.3d 420 (2017)

  • Written by Rose VanHofwegen, JD

Facts

Siena at Old Orchard Condominium Association (the association) and its board of directors (plaintiffs) sued its president, Larry Keer, and developer Siena at Old Orchard, LLC (defendants). Initially the developer drafted the association’s bylaws and appointed its board of directors. The bylaws specified that a board majority at a meeting with a quorum present could authorize any association officer to enter contracts, or the association’s president or vice president could sign contracts on the association’s behalf if the secretary or an assistant secretary attested to it. In 2007, the developer transferred control to a board elected by unit owners. When leaks in the building appeared, the unit owners retained a consultant who found multiple defects attributable to the developer that compromised the building’s structural integrity. In 2008, the developer paid the association approximately $28,500 in exchange for broad releases of all construction-defect claims, which Keer signed on the association’s behalf without any board meeting or attesting secretary. The association accepted the funds without learning about the releases until over a year later. The trial court found the releases bound the association and dismissed the claims. The association appealed.

Rule of Law

Issue

Holding and Reasoning (Gordon, J.)

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