Find Court Cases > Go Back to List > In re Application fo County Treasurer

In re Application fo County Treasurer

Case Date: 12/18/1998
Court: 1st District Appellate
Docket No: 1-97-3705



In re Application of the County Treasurer and ex officio County Collector for Order of Judgment and Sale Against Real Estate Returned Delinquent for the Nonpayment of General Taxes for the Year 1994, No. 1-97-3705

1st Dist. 12-18-98



FIFTH DIVISION

December 18, 1998

No. 1-97-3705

In re APPLICATION OF THE COUNTY TREASURER AND EX OFFICIO COUNTY COLLECTOR FOR ORDER OF JUDGMENT AND SALE AGAINST REAL ESTATE RETURNED DELINQUENT FOR THE NONPAYMENT OF GENERAL TAXES FOR THE YEAR 1994

(First Financial Funding Corporation,

Petitioner-Appellant,

v.

Edward J. Rosewell, Cook County Treasurer and ex officio County Collector of Cook County,

Respondent-Appellee).

 Appeal from

the Circuit Court

of Cook County.

No. VTS-970179

Honorable

Michael J. Murphy,

Judge Presiding.

JUSTICE THEIS delivered the opinion of the court:

On April 29, 1996, First Financial Funding Corporation (First Financial) purchased the lien of the 1994 delinquent real estate taxes against a parcel of real estate at the annual Cook County tax sale. First Financial later filed a petition to declare the sale to be in error pursuant to the provisions of section 21-310 of the Property Tax Code (the Code) (35 ILCS 200/21-310 (West 1996)) because the property was owned by Northwestern University and was not subject to taxation. In addition, First Financial sought reimbursement with interest as provided by section 21-315(a) of the Property Tax Code. 35 ILCS 200/21-315(a) (West 1996).

The trial court granted the petition for a sale in error, but declined to award First Financial interest pursuant to section 21-315(b)(iv) of the Code. 35 ILCS 200/21-315(b)(iv) (West 1996). In so doing, the trial court relied upon its construction of the term "actual knowledge" as used in section 21-315(b)(iv), which precludes an award of interest where the tax purchaser has "actual knowledge" of the grounds for the sale in error prior to the tax sale. 35 ILCS 200/21-315(b)(iv) (West 1996). In denying First Financial interest, the trial court concluded that the failure to perform either a physical inspection of the property or a title inspection on the property "will not be excused where it can be shown that a reasonable inspection would have disclosed the grounds on which the sale in error is declared to be erroneous." First Financial filed a petition for reconsideration, which the trial court denied. On appeal, First Financial maintains that the trial court misconstrued the meaning of the phrase "actual knowledge" as used in section 21-315(b)(iv) and, as a result, erroneously determined that First Financial was not entitled to interest. We reverse.

First Financial is a corporation solely engaged in the business of purchasing delinquent real estate taxes. At the time of the annual tax sale at issue, First Financial had been engaged in this business for approximately 6