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MADISON - ST. CLAIR RECORD

Friday, March 29, 2024

Property owners seek to dismiss tax buyer's defamation suit

Lawsuits

Property owners accused of conspiracy in a St. Clair County tax buyer’s defamation suit seek to dismiss portions of the amended complaint, arguing that they did know about the bid-rigging suit until two years after it was filed. 

John and Kathleen Bloyer filed a motion to dismiss counts III and IV of Joseph Vassen’s first amended complaint, which allege conspiracy and malicious prosecution.

Vassen’s amended complaint was filed April 12 through attorney Paul Slocomb of Hoffman Slocomb LLC in St. Louis against Madison County Board Chairman Kurt Prenzler, tax buyer Kenneth Brosh, and St. Clair County residents Kathleen Dvorak, Kevin Dvorak, John Bloyer and Adriane “Kathleen” Bloyer.

Vassen argues that a federal lawsuit alleging he participated in a bid rigging scheme in St. Clair County contained false statements. 

Vassen claims the alleged false statements were defamatory and damaged his reputation in the community, injured his business and deterred people from associating with him.

He also alleges the defendants gave publicity to a matter that placed him before the public in a false light, which he claims “was highly offensive.”

The Bloyers moved to dismiss counts III and IV of the complaint on May 13 through attorney Hrant “Hud” Norsigian Jr.

The defendants argue that the conspiracy claim should be dismissed because any statements made in the underlying federal lawsuit are protected by the absolute litigation privilege.

“In the case at bar, the Bloyers’ alleged statements made in the federal lawsuit’s complaint are obviously relevant or pertinent to the matters in controversy. Therefore, all such statements are absolutely privileged and cannot form the basis of a defamation or false light claim,” the motion states.

The Bloyers also argue that Vassen’s complaint is barred by the one-year statute of limitations. They argue that the statute of limitations for defamation claims begins to run on the date of publication of the alleged defamatory material, which would be Oct. 17, 2014 when the case was filed.

“At the very latest, the publication was when Vassen was served on Dec. 3, 2014. Likewise, plaintiff obviously knew of the allegations contained in the federal lawsuit and of any alleged ‘false light’ at the very latest when he was served with complaint and summons,” the motion states.

However, Vassen did not file his defamation suit until Jan. 2, which is more than four years after the federal lawsuit was filed.

The Bloyers argue that the malicious prosecution claim should be dismissed because Vassen fails to allege and prove “special damage beyond the usual expense, time or annoyance in defending a lawsuit.”

“Moreover … plaintiff admits the Bloyers did not even know that the federal lawsuit had been filed until well into 2015 and did not even see a copy of the federal lawsuit until over 2 years after it was filed. Plaintiff further admits that Mrs. Bloyer did not even know the Bloyers were named plaintiffs in the federal lawsuit until mid-April 2015.

“Given these admissions by plaintiff, plaintiff cannot allege that the Bloyers filed the federal lawsuit maliciously and without probable cause. It seems axiomatic that one cannot file a lawsuit ‘maliciously and without probable cause’ when one does not even know or authorize a lawsuit to be filed,” the motion states.

Vassen filed his original complaint on Jan. 2. However, he filed his amended complaint after St. Clair County Chief Judge Andrew Gleeson granted motions to dismiss the original complaint on April 2.

The Bloyers and Prenzler moved to dismiss the original complaint, arguing that Vassen’s claims should be barred by the absolute litigation privilege and the statute of limitations.

Prenzler argued that “anything said or written in a legal proceeding, including pleadings is protected by an absolute privilege against defamation actions, subject only to the qualification that the words be relevant or pertinent to the matters in controversy.”

According to Vassen's defamation complaint, he alleges Brosh, a dentist, participates in the annual St. Clair County delinquent tax sales and spends as much as $400,000 per sale. During the 2007 and 2008 tax sales in St. Clair County, Vassen alleges the majority of Brosh’s successful bids were also at the maximum 18 percent.

“Nevertheless, defendant Brosh contacted defendant Kurt Prenzler in Spring 2014 claiming he had doubts about the legality of the 2007 and 2008 tax sales in St. Clair County, and asked defendant Prenzler to review the tax sale data and give him his opinion.

“Defendant Brosh didn’t reference his own large number of 18% winning bids at these sales as part of his inquiry,” the suit states.

Prenzler was the Madison County treasurer at the time and had no official position in St. Clair County.

Vassen alleges Brosh was “a competitive buyer” and “a financial contributor” to Prenzler’s Madison County political campaigns.

Brosh and Prenzler allegedly reached out to Brad Van Hoose, “a St. Clair County Republican Party Operative” to obtain the St. Clair County tax sale data.

Van Hoose was allegedly instructed by Roger Cook, who was running for treasurer against Suarez, to make a Freedom of Information Act request for the tax sale data.

“Mr. Van Hoose was present in several meetings with Roger Cook and defendant Ken Brosh during which he was informed that the purpose of the FOIA request was to file a lawsuit against Mr. Suarez in an effort to embarrass and harass Mr. Suarez before the upcoming November 2014 election,” the suit states.

Prenzler then held a press conference on May 30, 2014 at the St. Clair County Circuit Court in Belleville “in an effort to call attention to the allegedly illegal and improper tax sales.”

Vassen alleges the press conference was orchestrated by Prenzler for political purposes at the behest of Brosh, “who hoped to financially benefit from making public accusations” against other tax buyers.

At the time of the press conference, Prenzler was running for reelection as Madison County treasurer against Maureen Suarez, who is related to Charles Suarez. Prenzler allegedly gave the information he analyzed to the St. Clair County Republican Committee.

An article was published in the St. Louis Post Dispatch in May 2014 indicating that Prenzler planned to announce that he discovered potentially criminal conduct.

Brosh was quoted in a Belleville News Democrat article in May 2014 saying he believed the tax sale practices were rigged and unethical. He was also quoted in a May 2014 article in The Telegraph saying he believed the tax sales were unethical.

“Defendant Brosh was disappointed that the press conference didn’t generate any follow-up press so he spoke to defendant Prenzler numerous times and they decided that defendant Brosh should track down some of the individuals who did not pay their taxes and convince them to contact attorney Don Weber, who was referred by defendant Prenzler, so they could file a lawsuit before the election,” the suit states.

Vassen alleges Brosh looked up publicly available records at the St. Clair County courthouse for several days following the press conference.

A lawsuit was then filed in the U.S. District Court for the Southern District of Illinois on Oct. 17, 2014, less than three weeks before the Nov. 4 election. The plaintiffs in that lawsuit were Kathleen and Kevin Dvorak and Kathleen and John Bloyer.

Vassen alleges the defendants conspired to file a class action against him and other tax buyers with allegations of common-law civil conspiracy, money had and received, violations of the Federal Sherman Act and violations of the Illinois Antitrust Act.

The lawsuit filed in federal court sought recovery for “losses arising from an illegal and improper agreement and conspiracy” between Suarez and several tax purchasers “to artificially inflate” penalties at the 2006 and 2007 tax sales. Those sales were conducted in 2007 and 2008.

Vassen had denied the allegations raised in the federal court lawsuit.

Vassen claims he did not purchase the delinquent taxes in question and did not receive any compensation whatsoever from the sale of the Dvoraks’ taxes or the Bloyers’ taxes.

The federal lawsuit was dismissed in its entirety on March 29, 2018 when District Judge Staci Yandle granted summary judgment for the St. Clair County tax buyer defendants.

Yandle found that there were insufficient facts to state any cause of action against Suarez or any of the tax buyers.

Vassen is also a named defendant in a similar ongoing class action in Madison County, alleging former Madison County Treasurer Fred Bathon orchestrated a "pay to play" scheme.

Bathon pleaded guilty to structuring property tax sales in a way that increased interest rates for tax buyers in exchange for campaign contributions. He was sentenced to 30 months in prison.

St. Clair County Circuit Court case number 19-L-6

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