TRANSMITTAL LETTER FOR BOARD MEETING OF OCTOBER 2, 2014
COMMITTEE ON JUDICIARY
Mr. David St. Pierre, Executive Director
Title
Authority to pay a judgment in an amount not to exceed $39,519,000.00, as entered on January 4, 2013, by Circuit Court of Cook County Judge Kathleen Pantle in Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation for American Art, et al., Case No. 06 CH 13817, Account 901-30000-667220
Body
Dear Sir:
On January 4, 2013, a judgment in the amount of $36,432,047.00 was entered by Circuit Court of Cook County Judge Kathleen Pantle in Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation for American Art, et al., Case No. 06 CH 13817. The dispute involved the alley located between the District's Main Office Building and the newly-developed Ritz Carlton Residences located immediately east of the alleyway. In 2006, during the initial planning stages of the development, the District filed suit against the owner of the land, Terra Foundation for American Art, and the project developers seeking a declaration that the development called for an illegal expansion of certain easement rights created in the 1940's which granted access to the alley. The project developers then countersued the District alleging that the District interfered with that access, thereby delaying its construction project and causing it to incur significant damages. In entering the above judgment, the trial court ruled in favor of the project developers and against the District. The District subsequently filed an appeal, and on June 9, 2014, the Illinois Appellate Court issued a written opinion affirming the full amount of the judgment, minus $670,000.00. A petition seeking leave to further appeal the matter has since been denied by the Illinois Supreme Court. Although the District respectfully disagrees with the decision of the trial court, it has no additional options in which to appeal said judgment.
Under Illinois law, any judgment challenged on appeal by a governmental entity incurs automatic interest at the rate of 6% annually. To date, the original judgment, minus the $670,000.00 on appeal, is $39,495,016.84, including statutory interest. Because the District has no further appellate recourse, and interest keeps accruing daily, immediate payment of the judgment, plus statutory interest, to the project developers is recommended. To ensure full payment, including the date payment is actually made, an amount not to exceed $39,519,000.00 is hereby requested.
It is hereby requested that the Executive Director recommend to the Board of Commissioners that it authorize and direct the Clerk to execute and deliver said check to the General Counsel to pay a judgment in an amount not to exceed $39,519,000.00, as entered on January 4, 2013, by Circuit Court of Cook County Judge Kathleen Pantle in Metropolitan Water Reclamation District of Greater Chicago v. Terra Foundation for American Art, et al., Case No. 06 CH 13817.
Funds are available in Account 901-30000-667220.
Requested, Ronald M. Hill, General Counsel, RMH:STM:CMM:TN:ss
Recommended, David St. Pierre, Executive Director
Respectfully Submitted, Mariyana T. Spyropoulos, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for October 2, 2014