EAST ST. LOUIS - Illinois counties violate the U.S. Constitution when they hold and sell liens on properties with overdue taxes, former homeowners and a business in East St. Louis alleged at district court on April 10.
Plaintiffs' attorneys Patrick Hughes Daniel Suhr of Chicago proposed a statewide class action, claiming the Supreme Court found a similar Minnesota law unconstitutional last year in Tyler v. Hennepin County.
Hughes and Suhr said Illinois counties continue to deprive property owners of their rightful assets despite the Supreme Court's ruling.
"We are committed to ending this long-standing injustice that has unfairly targeted our most vulnerable citizens, stripping them of their property and their rights," Suhr said. "Home ownership is a core pillar of the American dream. Families have been unfairly deprived of their home equity - the embodiment of their hard work and dreams. We're here to ensure that equity is rightfully restored."
Suhr claims any tax deed foreclosure that stole property since the Supreme Court's Tyler decision demonstrated utter and reckless disregard for constitutional rights.
The lawsuit seeks compensation for "victims of these unconstitutional takings," which could reach millions in potential damages.
Suhr named St. Clair County Treasurer Andrew Lopinot as a defendant and claimed that as president of a state treasurers association, Lopinot could stand as class defendant.
Suhr claims the law operates when people or businesses fall behind on taxes, “often only a few thousand dollars.”
He claims a county treasurer executes a tax deed taking the property into the hands of the county or a tax lien buyer who has purchased the back taxes.
“Either way, that taking is for the entire value of the property, not only the value of the taxes owed,” he wrote.
“That surplus value, the difference between the taxes owed and the value of the property, is never returned to the former owner,” he added.
He claims Pacific Legal Foundation indicated about 1,200 homeowners in Cook County had $136 million in home value stolen from them from 2014 to 2021.
“It is time to end the practice of institutionalized property value theft and justly compensate thousands of Illinoisans who were victims of this practice,” he wrote.
The lawsuit states that lead plaintiff Top Metal Buyers owed $44,090 on property at 1101 Cleveland Avenue in East Saint Louis.
Suhr claims the value of the property was $102,279; and when the treasurer took the property, Top Metal Buyers lost more than $55,000 in surplus value.
Plaintiff Shelly Branson of Cahokia Heights allegedly owed $14,146 on a home in the 200 block of Pittsburg Drive in East Saint Louis.
Suhr claims the value was $76,756, and Branson lost about $60,000.
Plaintiff Debra Mosby of Swansea allegedly owed $14,813 on a property in the 5000 block of North Park Drive in East Saint Louis.
Suhr claims the value was $53,607, and Mosby lost almost $30,000.
Plaintiff Don Gillam of East Carondelet allegedly owed $10,178 on a property in the 100 block of Front Street in East Carondelet.
Suhr claims the value was $112,700 and Gillam lost more than $100,000.
Plaintiff Shirley Ferrell of East St. Louis allegedly owed $7,320 on a property in the 8000 block of Church Lane in East Saint Louis.
Suhr claims the value was $84,708, and she lost about $75,000.
Plaintiff Trenise Hill of Cahokia Heights allegedly owed $8,964 on a property in the 800 block of Otto Street in Cahokia Heights.
Suhr claims the value was $58,200, and she lost almost $50,000.
He included two Sangamon County residents as plaintiffs and Sangamon County Treasurer Joe Aiello as second defendant.
Plaintiff Jesse Beechler of Springfield lost about $50,000 and Mark Harrison of Springfield lost about $55,000, the suit states.
Christopher Mills of South Carolina also represents plaintiffs.
The court clerk randomly assigned Magistrate Judge Gilbert Sison, who will preside unless a party declines consent to magistrate jurisdiction.
If that happens the clerk will assign a district judge.
Hughes and Suhr are also known for their leading roles in the U.S. Supreme Court cases Janus v. AFSCME and BST Holdings LLC v. OSHA.
They said they are working to "protect constitutional rights and ensure justice for those whom unconstitutional practices have wronged."