A protracted legal battle among residents of a Wilmette condominium building has culminated in significant sanctions against one unit owner and his attorney. The Appellate Court of Illinois, First District, affirmed the Circuit Court's decision to impose monetary penalties for what was deemed abusive litigation tactics.
The complaint was filed by Marshall Spiegel and Chicago Title Trust Co., as Trustee of Trust No. 8002351713, in the Circuit Court of Cook County on multiple dates spanning from 2015 to 2016 against the 1618 Sheridan Road Condominium Association and other defendants.
The case's origins trace back to 2015 when health issues forced the president of the condominium association's board to resign, leaving Marshall Spiegel and Valerie Hall as the remaining board members. Spiegel unilaterally assumed the role of president, attempted to fire the association’s legal counsel and property manager, leading Hall to call for a special meeting. At this meeting, held on October 26, 2015, James Waite was elected as the new president. In response, Spiegel’s attorney John Xydakis filed a lawsuit alleging defamation and breach of contract among other claims.
Subsequent events saw Spiegel removed from the board by a vote on December 29, 2015. Following this removal, further complaints were filed by both parties leading to a series of consolidated lawsuits. The court found that Spiegel's actions—including filing numerous frivolous motions—constituted abuse warranting sanctions. On March 29, 2019, Judge Margaret Ann Brennan awarded sanctions against Spiegel and Xydakis citing their "pattern of abuse" intended to harass and delay proceedings.
In her petition for sanctions under Illinois Supreme Court Rule 137, Valerie Hall described Spiegel’s litigation strategy as “scorched earth,” accusing him of using legal means to harass neighbors and increase litigation costs unnecessarily. Supporting documents included letters warning Spiegel about potential sanctions if his baseless claims continued.
The Circuit Court's ruling was appealed but upheld by Justice Mikva with concurrences from Justices Mitchell and Lyle. The appellate court found no abuse of discretion in awarding sanctions or denying substitution motions filed by Xydakis who argued improper ex parte communications had occurred between Judge Brennan and opposing counsel—a claim dismissed due to lack of evidence.
The plaintiffs sought declaratory relief confirming proper election procedures within the board while also aiming to enjoin Spiegel from interfering with its operations. The defendants sought recovery for attorney fees incurred due to what they described as vexatious litigation practices by Spiegel and his counsel.
Attorneys involved include Eugene Murphy representing the Association alongside Michael C. Kim & Associates; Duane Morris LLP also sought compensation for defending against unfounded claims. Judges presiding over various aspects included Margaret Ann Brennan and Mary Colleen Roberts with Case ID Nos: 15 L 10817; 15 CH 18825; 16 L 3564; consolidated under No: 1-22-1427 et al.