Title: Henderson Square Condo. Assoc'n v. LAB Townhomes, LLC
Citation: 2015 IL 118139
Docket Number: 118139
State: Illinois
Issuer: Illinois Supreme Court
Date: November 4, 2015

2015 IL 118139 
 
IN THE 
SUPREME COURT 
OF 
THE STATE OF ILLINOIS 
 
 
(Docket No. 118139) 
HENDERSON SQUARE CONDOMINIUM ASSOCIATION et al., Appellees, 
v. LAB TOWNHOMES, LLC, et al., Appellants. 
 
 
Opinion filed November 4, 2015.—Modified upon denial of rehearing January 28, 
2016. 
 
 
JUSTICE THOMAS delivered the judgment of the court, with opinion. 
 
Chief Justice Garman and Justices Kilbride and Theis concurred in the 
judgment and opinion. 
 
Justice Burke dissented, with opinion, joined by Justices Freeman and 
Karmeier. 
 
OPINION 
 
¶ 1 
 
Plaintiffs, Henderson Square Condominium Association (Henderson) and 
Henderson’s board of managers (Board), filed suit against defendants, alleging five 
separate counts: breach of the implied warranty of habitability, fraud, negligence, 
breach of the Chicago Municipal Code’s prohibition against misrepresenting 
material facts in the course of marketing and selling real estate (see Chicago 
Municipal Code § 13-72-030) and breach of a fiduciary duty. Relevant to this 
 
 
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appeal, the circuit court of Cook County granted defendant’s second motion to 
dismiss with prejudice, finding that plaintiffs failed to adequately plead counts IV 
(Chicago Municipal Code violation) and V (breach of fiduciary duty) and that these 
counts were time-barred under section 13-214 of the Code of Civil Procedure (735 
ILCS 5/13-214 (West 1996)). Plaintiffs appealed, and the appellate court reversed 
the dismissal of counts IV and V, and remanded for further proceedings on those 
counts. 2014 IL App (1st) 130764. We allowed defendants’ petition for leave to 
appeal, and for the reasons that follow, we affirm the judgment of the appellate 
court. 
 
¶ 2 
 
 
 
 
 
BACKGROUND 
¶ 3 
 
Plaintiffs filed their initial complaint on October 31, 2011. Plaintiff Henderson 
is a not-for-profit corporation with its principal place of business located in 
Chicago. Henderson is the governing body of a property of townhomes located in 
Chicago, and Henderson is controlled by its Board, which is comprised of elected 
managers. 
¶ 4 
 
Defendants can be divided into three groups, which we will refer to as (1) the 
development companies; (2) Enterprise; and (3) the Shipkas. The development 
companies are defendants LAB Townhomes, LAB Lofts, and Lincoln, Ashland & 
Belmont, which are limited liability companies incorporated in Delaware. 
Defendant Enterprise Development Company (Enterprise) is an Illinois corporation 
with its principal place of business in Chicago. The Shipkas are defendants Ronald 
Shipka, Sr., Ronald Shipka, Jr., and John Shipka, who are persons residing in Cook 
County. 
¶ 5 
 
Plaintiffs’ original complaint alleged that the Shipkas are in the business of 
developing residential property, and they own, manage and operate Enterprise. The 
plaintiffs further alleged that Enterprise represented on its website that it was the 
“largest and most respected developer” in the Chicago area due to, among other 
things, its “commitment to rigid quality standards.” The Shipkas were chosen by 
the City of Chicago to be the developers for a project known as the 
Lincoln-Belmont-Ashland Redevelopment Project Area. The Shipkas formed the 
development companies, which entered into a contract with the City of Chicago to 
construct a mixed use project. The project included retail space, a parking structure, 
loft condominiums, and townhouses. The development companies entered into an 
 
 
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agreement with Enterprise, under which Enterprise would “perform general 
contracting services to construct the Project or perform other services to assist with 
the development of the Project.” 
¶ 6 
 
Prior to the completion of the project, Henderson was established as a 
condominium association in accordance with the Condominium Property Act (765 
ILCS 605/1 et seq. (West 1996)) and its creation was recorded with the Cook 
County recorder of deeds. On June 20, 1996, Henderson was incorporated with the 
Illinois Secretary of State. The Shipkas designated themselves as Henderson’s first 
board of managers, and during their time as managers, the Shipkas controlled all of 
Henderson’s funds. The Shipkas turned over control to the first elected Board 
sometime in late 1996. 
¶ 7 
 
Plaintiffs alleged that defendants began to market and sell individual units of 
the project in 1996, and in doing so, they represented and impliedly warranted that 
the property and the units would be habitable and free from defects. Plaintiffs also 
alleged that the development companies sold the units with a form sales contract, 
which included a provision stating that the common elements of the project and the 
units would be “constructed substantially in accordance with the plans and 
specifications.” After the project was completed and the owners began to occupy 
the units, certain units began to experience water seepage and resulting damage. 
¶ 8 
 
The Board retained Warton, Inc. (Warton), an exterior restoration consultant 
and engineer, to investigate the water problem. On May 18, 2009, Warton issued a 
report of its findings, concluding that “significant amounts of water were entering 
into certain units at various locations, including various exterior wall components.” 
Warton further concluded that the “overall quality of construction detailing and 
workmanship at the specific areas that were investigated was very poor” and that 
the water penetration problems would be very difficult, if not impossible, to 
mitigate unless there was substantial reconstruction of the units. 
¶ 9 
 
After the Board reviewed the Warton report, it retained a contractor to solve the 
problem. The contractor began its work and confirmed that there were “a 
significant number of deficiencies with the original construction.” The contractor 
reported that the coping leaked, the masonry lacked mortar, there was no flashing 
or drainage system, the lintels and sills were not sealed, and the roofing systems 
were defective. 
 
 
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¶ 10 
 
Plaintiffs alleged that the defects identified by Warton and the contractor could 
not have been discovered without performing extensive testing of the units or 
opening up the walls or common areas and units. The defects were concealed and 
were therefore not reasonably discoverable by the unit owners who did not possess 
special knowledge or skill in the field of construction. Plaintiffs alleged that 
defendants did not construct the units in a workmanlike manner or in accordance 
with the plans and specifications as required. Moreover, plaintiffs alleged on 
information and belief that the development companies and Enterprise knowingly 
failed to comply with the plans and specifications, cutting costs for the purpose of 
realizing greater profits from the city contract. 
¶ 11 
 
On January 3, 2012, defendants filed their first motion to dismiss, brought 
pursuant to section 2-619 of the Code of Civil Procedure (735 ILCS 5/2-619 (West 
2010)). In their motion, defendants addressed counts I, II, and III, but did not 
address counts IV and V. Defendants maintained that under section 13-214(a) and 
(b) of the Code (735 ILCS 5/13-214(a), (b) (West 1996)), plaintiffs’ claims were 
time-barred, having been filed more than 14 years after defendants turned over 
control of Henderson to the Board in 1996. 
¶ 12 
 
The trial court granted defendants’ section 2-619 motion to dismiss counts I, II 
and III without prejudice. The court also granted plaintiffs leave to file an amended 
complaint concerning counts IV and V. 
¶ 13 
 
Plaintiffs filed an amended complaint on July 2, 2012. Plaintiff repleaded the 
allegations of counts I, II, and III for the purpose of preserving them for appeal. 
With respect to count IV of that complaint, plaintiffs allege that defendants 
Enterprise and the development companies, but not the Shipkas, breached section 
13-72-030 of the Chicago Municipal Code (Municipal Code), which states that 
“[n]o person shall with the intent that a prospective purchaser rely on such act or 
omission, advertise, sell or offer for sale any condominium unit by (a) employing 
any statement or pictorial representation which is false or (b) omitting any material 
statement or pictorial representation.” Chicago Municipal Code § 13-72-030. In the 
course of selling the units, Enterprise and the development companies represented 
that the project and the units would be constructed in accordance with the plans and 
specifications, and would be free from defects. Section 13-72-100 of the Municipal 
Code states that “any prospective purchaser, purchaser or owner of a unit” may 
bring an action to enforce section 13-72-030. Chicago Municipal Code § 13-72-100 
(amended Nov. 16, 2011). 
 
 
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¶ 14 
 
Plaintiffs’ amended complaint further alleges that when defendants began 
marketing the units for sale, defendants provided prospective purchasers with an 
information packet (information packet) that included details about the project, 
including building specifications. The information packet, which plaintiffs attached 
to their amended complaint, stated that “[a]ll insulation shall be soundbatt 
fiberglass with the following R values: Exterior walls—R11; Third floor 
ceiling—R30 with integral vapor barrier.” 
¶ 15 
 
The amended complaint also alleges that Enterprise and the development 
companies, in the course of selling the units, made false material representations in 
the information packet, which it summarizes as follows: 
 
“(1) that the Property and the Units reflected ‘new architectural energies 
and solid construction skills’; 
 
(2) that the [development companies] and/or Enterprise was committed to 
‘quality construction and detail’ for the Property and Units; 
 
(3) that the [development companies] and/or Enterprise consistently deliver 
‘quality 
buildings’ 
and 
‘successful 
developments’ 
which 
succeed 
‘architecturally, aesthetically and economically’; and 
 
(4) that ‘[a]ll insulation shall be soundbatt fiberglass with the following R 
values: Exterior walls—R11; Third floor ceiling—R30 with integral vapor 
barrier.’ ” 
Plaintiffs allege that Enterprise and the development companies knew and intended 
the representations in the information packet to be false. 
¶ 16 
 
With respect to count V of the amended complaint, plaintiffs allege that the 
Shipkas breached their fiduciary duty to the unit owners to pay their share of 
common expenses and to fund sufficient reserves. 1 Plaintiffs allege that the 
Shipkas, during their time as members of the Board, failed to fund common 
expenses and reserves sufficiently to repair the project despite the fact that they 
knew or should have known that plaintiff Henderson’s obligations could not be met 
without sufficient reserve funds. Further, the Shipkas knew or should have known 
that the project contained extensive defects and that the funding they provided 
during their tenure on the Board was inadequate to address those defects. The 
                                                 
 
1Plaintiffs’ original complaint alleged that all of the defendants breached a fiduciary duty. 
 
 
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Shipkas also participated in making the above misrepresentations concerning the 
project with the intention of deceiving purchasers. 
¶ 17 
 
On August 6, 2012, defendants filed their second motion to dismiss, this time 
seeking dismissal pursuant to both sections 2-615 and 2-619 of the Code in a 
combined motion to dismiss. See 735 ILCS 5/2-619.1 (West 2010). Defendants 
attached to the motion as exhibits certificates of occupancy to assert that 
construction was completed on November 27, 1996. Defendants also attached the 
affidavit of John Shipka, stating that all units were conveyed to the original owners 
by the end of 1996. Defendants argued that these documents show that more than 
14 years passed from the time of completion of the work and turnover to Henderson 
in 1996 to the filing of the lawsuit on October 31, 2011. 
¶ 18 
 
Defendants based their section 2-619 motion on the argument that all of 
plaintiffs’ causes of action were time-barred. Defendants relied upon section 
13-214(a), (b) of the Code of Civil Procedure (735 ILCS 5/13-214(a), (b) (West 
1996)) to contend that construction claims are subject to a 4-year statute of 
limitations and a 10-year statute of repose. 
¶ 19 
 
Section 13-214 applies only to real estate construction claims, and sets forth 
both (a) a statute of limitations and (b) a statute of repose. Subsection (a) of section 
13-214, which sets forth the statute of limitations, states in relevant part as follows: 
 
“(a) Actions based upon tort, contract or otherwise against any person for an 
act or omission of such person in the design, planning, supervision, observation 
or management of construction, or construction of an improvement to real 
property shall be commenced within 4 years from the time the person bringing 
an action, or his or her privity, knew or should reasonably have known of such 
act or omission.” 735 ILCS 5/13-214(a) (West 1996). 
¶ 20 
 
Subsection (b) of section 13-214, which sets forth the statute of repose, states in 
relevant part as follows: 
 
“(b) No action based upon tort, contract or otherwise may be brought 
against any person for an act or omission of such person in the design, planning, 
supervision, observation or management of construction, or construction of an 
improvement to real property after 10 years have elapsed from the time of such 
act or omission. However, any person who discovers such act or omission prior 
to the expiration of 10 years from the time of such act or omission shall in no 
 
 
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event have less than 4 years to bring an action as provided in subsection (a) of 
this Section.” 735 ILCS 5/13-214(b) (West 1996). 
¶ 21 
 
In the alternative, defendants argued in their motion that all of plaintiffs’ claims 
were time-barred under section 13-205 of the Code of Civil Procedure (735 ILCS 
5/13-205 (West 1996)). Section 13-205 establishes a five-year statute of limitations 
to “recover damages for an injury done to property, real or personal.” Id. 
Defendants argued that plaintiffs failed to allege in their complaint when they first 
became aware they might have a cause of action on their hands, and therefore 
plaintiffs cannot allege they were unaware they had a cause of action until within 
five years from the filing the original complaint on October 13, 2011. 
¶ 22 
 
Defendants also moved to dismiss count IV pursuant to section 2-615, arguing 
that it failed to state a cause of action. Defendants asserted that count IV, alleging a 
violation of the Municipal Code, must be dismissed because the Municipal Code 
does not provide for a private right of action. 
¶ 23 
 
In their response to defendants’ second motion to dismiss, plaintiffs argued, 
among other things, that by its own terms, the limitation of section 13-214 does not 
apply to causes of action arising out of fraudulent misrepresentations or to 
fraudulent concealment of causes of action. See 735 ILCS 5/13-214(e) (West 
1996). For both the statute of limitations and the statute of repose, the section 
provides an exception for fraud: “The limitations of this Section shall not apply to 
causes of action arising out of fraudulent misrepresentations or to fraudulent 
concealment of causes of action.” Id. 
¶ 24 
 
Plaintiffs argued that defendants knowingly misrepresented the condition of the 
property and then concealed the defects. Thus, section 13-214 is not applicable. 
Instead, the appropriate statute of limitations that governs this case is found in 
section 13-205, which has no period of repose, and affords litigants five years after 
the cause of action is discovered to bring their claims. Plaintiffs further argued that 
a question of fact exists as to when the limitations period was triggered. 
¶ 25 
 
The trial court ruled in favor of defendants and dismissed plaintiffs’ amended 
complaint with prejudice. In so doing, the court rejected plaintiffs’ argument that 
the liability was not based on construction-related activity. The court found that 
regardless of whether plaintiffs’ claims were based on a misrepresentation or a 
fiduciary duty, the claims were construction claims for purposes of applying the 
 
 
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statute of limitations and statute of repose because plaintiffs sought to recover the 
costs to repair the alleged deficiencies.  
¶ 26 
 
The trial court found that the fraud exception to the statute of limitations and 
statute of repose did not apply because plaintiffs failed to allege facts with the 
necessary particularity to support a claim for fraud. In the court’s view, a fraudulent 
misrepresentation requires the misrepresentation of a preexisting fact and does not 
encompass a promise to perform future conduct.2 
¶ 27 
 
Moreover, the trial court further found that plaintiffs failed to state a claim for 
either breach of a fiduciary duty or for misrepresentation under section 13-72-030 
of the Municipal Code. According to the court, plaintiffs alleged that defendants 
were silent with regard to construction defects, but silence is not enough to support 
a claim for fraud unless defendant owes plaintiff a fiduciary duty. The trial court 
found that defendants did not owe plaintiffs a fiduciary duty in their role as 
“general contractor, constructor or landowner.” The only fiduciary duty owed by 
defendants arose from their role as members of the Board, and that duty “was 
limited to securing funds, expenses and/or reserves sufficient to repair the common 
elements of property” for a short time through 1996. But defendants “had no duty to 
maintain fund[s] on behalf of the condominium in 2009.” For these reasons, the 
court found that plaintiffs failed to state a claim in either count IV or V. 
¶ 28 
 
The plaintiffs appealed, and the appellate court reversed and remanded for 
further proceedings. 2014 IL App (1st) 130764, ¶ 136. The appellate court found 
that plaintiff’s claims in count IV and V were construction related and therefore the 
limitation and repose of section 13-214 of the Code were applicable in the first 
instance. Id. ¶ 91. The court then found, however, that the fraud exception of 
section 13-214(e) was applicable (id. ¶ 93), and dismissal under section 2-619 of 
the Code was not appropriate because issues of material fact remained (id. 
                                                 
 
2The trial court overlooked a well-recognized exception to the general rule it sets forth. “[T]he 
general rule denies recovery for fraud based on a false representation of intention or future conduct, 
but there is a recognized exception where the false promise or representation of future conduct is 
alleged to be the scheme employed to accomplish the fraud.” Steinberg v. Chicago Medical School, 
69 Ill. 2d 320, 334 (1977); accord HPI Health Care Services, Inc. v. Mt. Vernon Hospital, Inc., 131 
Ill. 2d 145, 168-69 (1989); Stamatakis Industries, Inc. v. King, 165 Ill. App. 3d 879, 882 (1987). 
Here, count II of plaintiffs’ original complaint alleged that the Shipkas made the false 
representations “as part of a scheme to induce prospective purchasers to purchase the units so 
[defendants] could profit from the sales.” Furthermore, that count alleges that “[t]he unit owners 
relied upon those representations when they purchased their units and would not have purchased the 
units had they known the property and the units contained multiple and significant defects.” 
 
 
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¶¶ 93-105). In particular, the appellate court rejected defendants’ argument that 
there were no material misrepresentations or actions that could support a finding of 
fraudulent concealment. Id. ¶ 105. The court determined that defendants were 
“more than silent,” as the amended complaint alleged that the marketing packet 
included specifications regarding the insulation to be used in constructing the 
project and stated that insulation would be used in the exterior walls and third-floor 
ceiling. Id. ¶ 102. Moreover, the plaintiffs’ allegations of insufficient funding of the 
reserves raised a question of fact as to concealment. Id. ¶¶ 104-05. 
¶ 29 
 
The appellate court also found that the circuit court erred in dismissing counts 
IV and V under section 2-615 for failure to state a cause of action. With respect to 
count IV, the appellate court concluded that the Municipal Code allows private 
parties to seek damages under its provisions and that the representations 
here—which were made during the marketing process before construction was 
complete—were actionable under that Code. Id. ¶¶ 108-17. With respect to count 
V, the appellate court concluded that defendants had a fiduciary duty to budget for 
reasonable reserves. Id. ¶ 128. And whether defendants provided reasonable 
reserve funds for the repair and replacement necessitated by the allegedly known 
latent defects was a question of fact that was erroneously decided by the circuit 
court pursuant to a section 2-615 dismissal. Id. 
¶ 30 
 
Defendants filed a petition for leave to appeal (Ill. S. Ct. R. 315 (eff. July 1, 
2013)), which we granted. 
 
¶ 31 
 
 
 
 
 
ANALYSIS 
¶ 32 
 
This appeal arises from an order granting defendants combined motion to 
dismiss filed under section 2-619.1 of the Code of Civil Procedure. 735 ILCS 
5/2-619.1 (West 2010). Section 2-619.1 allows parties to file a single motion, 
containing motions pursuant to both section 2-615 and section 2-619 of the Code, 
so long as each motion is separated into a different part of the document. 
 
¶ 33 
 
 
 
 
 
I. Section 2-619 
¶ 34 
 
Defendants’ motion to dismiss plaintiffs’ amended complaint as time-barred 
was based upon section 2-619(a)(5) of the Code (735 ILCS 5/2-619(a)(5) (West 
 
 
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2010)). A section 2-619 motion to dismiss admits as true all well-pleaded facts, 
along with all reasonable inferences that can be gleaned from those facts. Wackrow 
v. Niemi, 231 Ill. 2d 418, 422 (2008). In ruling on a motion to dismiss, a court must 
interpret the pleadings and supporting documents in the light most favorable to the 
nonmoving party. Id. This court’s review of a section 2-619 motion to dismiss is 
de novo. DeSmet v. County of Rock Island, 219 Ill. 2d 497, 504 (2006). 
 
¶ 35 
 
 
 
 
 
A. Fraudulent Concealment 
¶ 36 
 
Under the fraudulent concealment doctrine, the statute of limitations will be 
tolled if the plaintiff pleads and proves that fraud prevented discovery of the cause 
of action. 735 ILCS 5/13-215 (West 2010); Clay v. Kuhl, 189 Ill. 2d 603, 613 
(2000). If a defendant has fraudulently concealed the cause of action from the 
plaintiff, the action may be brought within five years from the date the plaintiff 
discovers that he has a cause of action. 735 ILCS 5/13-215 (West 2010). Section 
13-214(e) of the Code goes beyond tolling, however, and instead excepts from 
application the limitation period in subsection (a) and the repose period in 
subsection (b) of all “fraud-based construction claims,” as well as all construction 
claims that are fraudulently concealed. Gillespie Community Unit School District 
No. 7 v. Wight & Co., 2014 IL 115330, ¶ 41. But just because a construction-based 
claim has been fraudulently concealed and the limitations of section 13-214 are 
therefore not applicable, does not mean that no limitation period is applicable to the 
claim. Rather, such construction-based claims would still be governed by both the 
five-year statute of limitations in section 13-205 of the Code (735 ILCS 5/13-205 
(West 2010); Gillespie, 2014 IL 115330, ¶ 41), and the discovery rule that provides 
that a party’s cause of action accrues when a party knows or reasonably should 
know of an injury and that it was wrongfully caused (Clay, 189 Ill. 2d at 608). 
¶ 37 
 
Before this court, defendants first argue that plaintiffs failed to establish 
fraudulent concealment of their cause of action. They contend that plaintiffs were 
required to allege affirmative acts by defendants that occurred after the allegedly 
tortious acts (i.e., the misrepresentations in the packet and the breach of fiduciary 
duty in connection with the reserve fund) that were calculated to induce defendants 
 
 
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into delaying the filing of their claims or preventing them from discovering their 
claims.3 
¶ 38 
 
We note that generally the concealment necessary to toll the statute of 
limitations must consist of affirmative acts or representations calculated to lull or 
induce a plaintiff into delaying the filing of his claim or preventing him from 
discovering the claim. Orlak v. Loyola University Health System, 228 Ill. 2d 1, 18 
(2007). Defendants are mistaken, however, in their contention that the affirmative 
acts that constitute the fraudulent concealment must always be subsequent to and 
can never be the same statements or omissions that form the basis of the cause of 
action. This is especially true where section 13-214(e) is involved, which provides 
an exception to the limitation and repose periods for fraud-based construction 
claims. In fact, if defendants’ premise is correct—i.e., that the same fraudulent 
statements used to support fraudulent concealment are also being used to form the 
basis of plaintiffs’ cause of action in this case—then the exception of section 
13-214(e) would apply for the additional reason that it expressly states that “[t]he 
limitations of this Section shall not apply to causes of action arising out of 
fraudulent misrepresentations or to fraudulent concealment of causes of action.” 
(Emphasis added.) 735 ILCS 5/13-214(e) (West 1996). 
¶ 39 
 
At any rate, this court held in Keithley v. Mutual Life Insurance Co. of New 
York, 271 Ill. 584, 598 (1916), that even though the acts constituting the fraudulent 
concealment “ordinarily must be subsequent to the accruing of the cause of action, 
*** they may be concurrent or coincident with it, or even precede it, provided they 
are of such a nature *** as to operate after the time when the cause of action arose 
and thereby prevent its discovery, and were so designed and intended.” Here, 
plaintiffs’ amended complaint alleges that the defendant companies—which the 
Shipkas own, manage and operate—knew and intended the misrepresentations in 
the marketing information packet to be false. Furthermore, plaintiffs allege that the 
defendant companies knowingly failed to comply with the plans and specifications 
                                                 
 
3Defendants additionally argue that the appellate court erred in relying upon cases that discuss 
the tort of fraudulent concealment (see 2014 IL App (1st) 130764, ¶¶ 99-103 (discussing Fichtel v. 
Board of Directors of the River Shore of Naperville Condominium Ass’n, 389 Ill. App. 3d 951 
(2009), Mitchell v. Skubiak, 248 Ill. App. 3d 1000 (1993), and Heider v. Leewards Creative Crafts, 
Inc., 245 Ill. App. 3d 258 (1993))), rather than the doctrine of fraudulent concealment of a cause of 
action. Defendants argue that there is a difference between the tort of fraudulent concealment and 
the fraudulent concealment of a cause of action. See Gillespie, 2014 IL 115330, ¶ 18 n.1. We find, 
however, that it is unnecessary to consider defendants’ point further, as we will conduct our own 
de novo review, which will not rely upon the complained-of case law or the tort of fraudulent 
concealment. 
 
 
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in the packet, including the specifications regarding the insulation to be used in 
constructing the project and that the insulation would be included in the exterior 
walls and third-floor ceiling. Plaintiffs allege that defendants “covered up the 
Units’ deficiencies in brick and mortar,” cutting costs for the purpose of realizing 
greater profits from the city contract, and that these deficiencies could not have 
been discovered by plaintiffs “without extensive testing and opening up the walls 
of the common elements and the Units.” Here, the allegations of plaintiffs’ 
amended complaint read in the light most favorable to plaintiffs indicate a scheme 
to defraud plaintiffs that began with the misrepresentations in the packet and which 
was designed and intended to operate after the cause of action arose to prevent its 
discovery. Accordingly, we believe that the allegations of counts IV and V of the 
amended complaint fall within the exception of Keithley, and therefore dismissal 
pursuant to section 2-619 of the Code would not be proper. 
¶ 40 
 
Plaintiffs’ counts at issue here also survive dismissal pursuant to section 2-619 
of the Code because plaintiffs have sufficiently alleged a fiduciary duty in 
connection with the fraudulent concealment doctrine. Although it has been held 
that mere silence on the part of the defendant is insufficient to constitute fraudulent 
concealment (Orlak, 228 Ill. 2d at 18), a different rule applies when a fiduciary duty 
is involved: 
“ ‘ “ ‘[i]t is the prevailing rule that, as between persons sustaining a fiduciary or 
trust or other confidential relationship toward each other, the person occupying 
the relation of fiduciary or of confidence is under a duty to reveal the facts to the 
plaintiff (the other party), and that his silence when he ought to speak, or his 
failure to disclose what he ought to disclose, is as much a fraud at law as an 
actual affirmative false representation or act; and that mere silence on his part 
as to a cause of action, the facts giving rise to which it was his duty to disclose, 
amounts to a fraudulent concealment ***.’ ” ’ ” Orlak, 228 Ill. 2d at 19 
(quoting Hagney v. Lopeman, 147 Ill. 2d 458, 463 (1992), quoting Chicago 
Park District v. Kenroy, Inc., 78 Ill. 2d 555, 562 (1980), quoting L.S. Tellier, 
Annot., What Constitutes Concealment Which Will Prevent Running of Statute 
of Limitations, 173 A.L.R. 576, 588 (1948)). 
The facts that indicate that the fraud was kept concealed through confidence placed 
in the fiduciary must be specifically pled in order to bring the discovery rule into 
play and to toll the statute of limitations. Hagney, 147 Ill. 2d at 465. 
 
 
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¶ 41 
 
Plaintiffs’ amended complaint alleges a fiduciary duty on the part of the 
Shipkas in connection with the reserve fund during their time on the board of 
managers. Section 9(c)(2) of the Condominium Property Act (765 ILCS 
605/9(c)(2) (West 1996)) states that “[a]ll budgets adopted by a board of managers 
*** shall provide for reasonable reserves for capital expenditures and deferred 
maintenance for repair or replacement of the common elements.” A board of 
managers shall determine what is reasonable by examining various factors, 
including “the repair and replacement cost, and the estimated useful life, of the 
property which the association is obligated to maintain.” Id. The question of what 
constitutes reasonable budgeting for the reserve fund is a question of fact to be 
decided by the trier of fact. See 2014 IL App (1st) 130764, ¶ 104; see also Board of 
Managers of Weathersfield Condominium Ass’n v. Schaumburg Ltd. Partnership, 
307 Ill. App. 3d 614, 623 (1999). 
¶ 42 
 
Specifically, plaintiffs allege that the Shipkas failed to provide sufficient 
funding for the reserve fund to meet the repairs needed due to the extensive defects 
in the construction. Furthermore, the amended complaint alleges that the Shipkas 
participated in making the misrepresentations concerning the project with the intent 
of deceiving the purchasers. Finally, the amended complaint alleges that the 
Shipkas knew or should have known that the project contained extensive defects 
and that the funding they provided during their tenure on the Board was not 
adequate to address those defects. Plaintiffs use these well-pled facts to argue 
before this court that defendants’ misrepresentations, coupled with the Shipkas’ 
failure to adequately fund the reserve fund was sufficient to allege fraudulent 
concealment. Plaintiffs explain that the amount budgeted for repairs by the Shipkas 
gave the appearance that the building was in much better shape than it was. 
¶ 43 
 
Defendants, on the other hand, rely upon this court’s decisions in Hagney and 
Orlak to argue that plaintiffs were required to allege facts attributing the failure to 
discover the cause of action to the trust placed in the fiduciary. Defendants 
maintain that plaintiffs’ amended complaint fails to allege such facts. Moreover, 
defendants take issue with plaintiffs’ allegation that the Shipkas “knew or should 
have known” that the project contained extensive defects and that the funding 
provided during their tenure on the board was therefore inadequate. According to 
defendants, this allegation’s inclusion of the words “or should have known” was 
not sufficient to satisfy the scienter element for a fraudulent concealment claim 
based upon a fiduciary duty. 
 
 
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¶ 44 
 
We reject defendants’ arguments and note that their reliance upon Hagney and 
Orlak is misplaced. Hagney merely requires that the facts necessary to indicate that 
the fraud was kept concealed through confidence placed in the fiduciary be pled in 
the complaint. Plaintiffs’ complaint was inartfully drafted, but nonetheless it is 
apparent that the basic facts to bring the case within the standard set forth in 
Hagney have been met. 
¶ 45 
 
As to the allegation that the Shipkas knew or should have known that the 
project contained extensive defects and that the funding was therefore inadequate, 
we do not find it fatal to the cause of action under the circumstances. Plaintiffs have 
alleged that the Shipkas participated in making the misrepresentations concerning 
the project with the intent of deceiving the purchasers in a scheme to gain greater 
profits from the city contract. Plaintiffs have also alleged that the Shipkas 
controlled and operated the defendant companies that performed the contracting 
work, and those companies were supposed to be committed to “quality 
construction” that was to be performed in accordance with the plans and 
specifications they listed. Moreover, it was alleged that the Shipkas owed a 
fiduciary duty to the unit owners in connection with the funding of the reserve fund 
and that they breached that duty by failing to fund it in a sufficient manner and by 
participating in the fraudulent representations with the intent of deceiving the unit 
owners. These are sufficient facts from which it can reasonably be inferred that “the 
trust which was reposed in the fiduciary prevented the discovery of the cause of 
action” so as to satisfy the Hagney standard. See Hagney, 147 Ill. 2d at 465. 
¶ 46 
 
Defendant’s reliance upon Orlak is also unavailing. There, the plaintiff was 
hospitalized in 1989 for an accident and received a blood transfusion under the 
defendant’s care. In 1990, the defendant advised the plaintiff to be tested for HIV, 
which she did, testing negative. In 2000, the defendant advised the plaintiff to be 
tested for the hepatitis C virus (HCV), and the plaintiff tested positive for that virus. 
The plaintiff filed suit in 2002, alleging that the defendant was liable for failure to 
notify her by March 1997—when accurate testing for HCV allegedly first became 
available—that she should be tested for HCV. The defendant argued that the suit 
was time-barred under the four-year medical malpractice statute of repose (735 
ILCS 5/13-212(a) (West 2002)). The plaintiff argued that the statute of repose was 
tolled by the fraudulent concealment exception of section 13-215 of the Code (735 
ILCS 5/13-215 (West 2002)). Recognizing that she could not point to any 
affirmative acts on the defendant’s part, the plaintiff instead argued that the general 
rule requiring affirmative acts does not apply where the parties have a fiduciary 
 
 
- 15 - 
 
relationship. Orlak, 228 Ill. 2d at 19. This court found that because the plaintiff was 
discharged from the defendant’s care in 1989, there was no fiduciary relationship 
between the plaintiff and the defendant in 1996 and 1997, the time that the plaintiff 
alleges the defendant should have notified her of the need for HCV testing. Id. at 
20. 
¶ 47 
 
Orlak has no application to the present case that is helpful to defendants 
because in Orlak, the plaintiff alleged that the defendant had an obligation to 
disclose facts that the defendant first learned seven years after the fiduciary 
relationship ended. Here, in contrast, plaintiffs’ amended complaint alleges that the 
Shipkas participated in making the misrepresentations in the packet with the 
intention of deceiving the purchasers and that they then should have known that the 
reserve funding was inadequate to address the construction defects during the time 
that the Shipkas were still on the board and during the time they still had a fiduciary 
relationship. The present case is also distinguishable from Orlak because plaintiffs 
here have alleged affirmative acts to constitute fraudulent concealment in the form 
of the misrepresentations in the packet that were designed and intended to operate 
after the cause of action arose. 
¶ 48 
 
In sum, counts IV and V of plaintiffs’ amended complaint were sufficient to 
survive a section 2-619 dismissal given the specific allegations. We find that at the 
very least a question of fact remains as to whether defendants’ failure to speak 
about the construction deficiencies or in the alternative to adequately fund the 
reserve fund, coupled with the earlier alleged misrepresentations, amounted to 
fraudulent concealment so as to invoke the exception of subsection 13-214(e) to the 
limitation and repose periods of subsections 13-214(a) and (b). 
 
¶ 49 
 
 
 
 
 
B. Section 13-205 
¶ 50 
 
Defendants next argue that the appellate court erred by failing to continue its 
statute of limitations analysis to consider whether the amended complaint was 
time-barred under the default five-year statute of limitations set forth in section 
13-205 of the Code. The limitation of that section applies to “all civil actions not 
otherwise provided for.” 735 ILCS 5/13-205 (West 1996). 
¶ 51 
 
As we have already noted, Gillespie holds that the time constraints of section 
13-214 of the Code do not apply to causes of action arising out of fraudulent 
 
 
- 16 - 
 
misrepresentations or to fraudulent concealment, but that this does not mean that no 
limitations shall apply to causes of action arising out of fraudulent 
misrepresentations or to fraudulent concealment. Gillespie, 2014 IL 115330, ¶ 33. 
Rather, the five-year limitation of section 13-205 is applicable to fraud-based and 
fraudulently concealed construction claims. Id. We therefore agree that the 
appellate court should have completed an analysis under section 13-205, but we 
disagree with defendant’s conclusion that the end result would have been a 
dismissal of plaintiffs’ complaint at this stage. 
¶ 52 
 
Section 13-205 provides that the cause of action “shall be commenced within 5 
years next after the cause of action accrued.” 735 ILCS 5/13-205 (West 1996). A 
cause of action “accrues” when facts exist that authorize the bringing of the cause 
of action. Khan v. Deutsche Bank AG, 2012 IL 112219, ¶ 20. This court has, 
however, adopted the discovery rule to ameliorate the potentially harsh effect of a 
mechanical application of the statute of limitations that would result in it expiring 
before a plaintiff even knows of his cause of action. Id. The discovery rule 
postpones the start of the limitations period until a party knows or reasonably 
should know both that an injury has occurred and that it was wrongfully caused. Id. 
¶ 21. At the point when the party knows or reasonably should know that the injury 
was wrongfully caused, the party is under obligation to inquire further to determine 
whether an actionable wrong has been committed. Id. The question of when a party 
knew or reasonably should have known both of an injury and its wrongful cause is 
one of fact, unless the facts are undisputed and only one conclusion may be drawn 
from them. Id. 
¶ 53 
 
Defendants argue that plaintiffs were vague and evasive in their pleading when 
they alleged their discovery of the water leakage “no later than the winter of 
2007/2008.” Defendants also point to the Warton report attached to plaintiffs’ 
amended complaint. According to that report, the water leaks had been “ongoing 
for years” and several different repair attempts had been made. Defendants argue 
that plaintiffs failed to allege sufficient facts as to the date of discovery to properly 
invoke the discovery rule. 
¶ 54 
 
In response, plaintiffs argue that in late 2007 or early 2008, 4 of plaintiffs’ 47 
units, the garden units, first experienced minor leaks from the wooden decks that 
were located on the units above them. Plaintiffs believed that the repairs were 
sufficient, but when the leaks persisted, they engaged an engineer and a contractor 
to investigate. It was only then, in 2009, that plaintiffs first learned the construction 
 
 
- 17 - 
 
of the units was so poor that they would essentially have to be reconstructed. In 
2009, plaintiffs also learned for the first time that the representations defendants 
made about the inclusion of insulation and the vapor barrier when they purchased 
the units were false. It was also at this time that plaintiffs discovered that the 
reserve fund set by the Shipkas was grossly insufficient to cover the deficiencies 
that existed from the time the units were originally constructed. 
¶ 55 
 
From our review of plaintiffs’ amended complaint, we find that a question of 
fact exists that precludes dismissal pursuant to defendants’ section 2-619 motion. 
Defendants focus all of their attention on the date plaintiffs first knew that there 
was water infiltration into the units. Plaintiffs, on the other hand, interpret their 
pleading as having alleged that water infiltration first occurred in late 2007 or early 
2008. We note that if plaintiffs indeed intended to allege that water first infiltrated 
the units in late 2007 or early 2008, they have done an abysmally poor job of it. We 
find, however, that this point is of no moment under the circumstances here where 
the discovery rule requires that a plaintiff know both of his injury and that it was 
wrongfully caused to set the limitations period running. Here, plaintiffs filed their 
initial complaint on October 31, 2011. Thus, if it can be said that before October 31, 
2006, plaintiffs did not know nor should they have reasonably known that their 
injury was wrongfully caused, then plaintiffs’ suit is considered timely filed. 
¶ 56 
 
We find that the allegations of plaintiffs’ complaint were clearly sufficient to 
raise a question of fact as to the time when plaintiffs knew or reasonably should 
have known that their injury was wrongfully caused. It is apparent from plaintiffs’ 
amended complaint that after plaintiffs began experiencing water problems from 
the wood decks, they “hired a contractor to perform minor suggested repairs and 
undertake certain maintenance work to abate the problem.” According to the 
amended complaint, plaintiffs “reasonably believed they had remediated the water 
infiltration problems.” But despite plaintiffs’ best efforts and given their lack of 
knowledge of the latent defects, “the water infiltration problem continued and 
further units began to experience similar problems.” As a result, they then hired 
Warton in 2009 to evaluate the source of water infiltration. Plaintiffs then reviewed 
the Warton report issued in May 2009, and as a result hired a contractor to begin 
remediation work. It was only after the contractor’s work progressed and he opened 
up the walls to undertake invasive testing and repairs, which first started in late 
2009, that plaintiffs first discovered that a significant number of latent deficiencies 
existed with the original construction, including leaky coping, masonry that lacked 
mortar, lack of flashing or a drainage system, unsealed lintels and sills, and walls 
 
 
- 18 - 
 
and top-floor ceilings that lacked insulation and a proper and integral vapor barrier. 
Finally, plaintiffs alleged that the defects could not have been discovered any 
sooner than 2009 when testing and work was begun. 
¶ 57 
 
The facts alleged in the present case are similar to those in a number of cases 
where Illinois courts have found that fixing a date of discovery was a question of 
fact for the trier of fact that could not be decided on a defendant’s motion to 
dismiss. See, e.g., County of Du Page v. Graham, Anderson, Probst & White, Inc., 
109 Ill. 2d 143, 153-54 (1985) (the date the plaintiff knew or reasonably should 
have known that his injury was wrongfully caused is normally a question of fact); 
La Salle National Bank v. Skidmore, Owings & Merrill, 262 Ill. App. 3d 899, 906 
(1994) (same); Society of Mount Carmel v. Fox, 31 Ill. App. 3d 1060 (1975) (same). 
In Graham, this court emphasized that under the discovery rule, the statute of 
limitations in construction cases begins to run “when a person knows or reasonably 
should know of his injury and also knows or reasonably should know that it was 
wrongfully caused.” (Internal quotation marks omitted and emphasis added.) 
Graham, 109 Ill. 2d at 153-54. In Graham, the plaintiff knew of moisture problems 
in its building, which was constructed by the defendant eight years before the 
plaintiff’s complaint was filed in 1982 for faulty construction. The architect had 
provided reasons for the moisture problems that were not actionable, and the 
plaintiff attempted repairs over a number of years that were unsuccessful in solving 
the problem. This court reversed the trial court’s order that dismissed the plaintiff’s 
cause of action. In so doing, this court observed as follows: 
 
“Although the [plaintiff] was aware of the moisture problem as early as 
1974, it is impossible to state, as a matter of law, that this knowledge was 
sufficient to trigger the running of the limitations period. It is possible that the 
suggestions of the architect and the resulting repairs were adequate to keep a 
reasonable person from investigating further.” Id. at 154. 
¶ 58 
 
In Fox, the plaintiffs sued their architect for the faulty construction of a school. 
Plaintiffs noticed cracks and defects in the building more than five years before 
their complaint was filed. Plaintiffs, however, attempted repairs of what they were 
led to believe were “maintenance problems.” Sometime later, the plaintiffs 
obtained a report that indicated the cracks were caused by a design defect involving 
the lack of expansion joints. Fox affirmed a verdict for the plaintiffs after a lengthy 
trial and held that the statute of limitations did not begin to run until the date of the 
discovery of the design defect, rather than the date when the plaintiffs knew of the 
 
 
- 19 - 
 
cracks in the building. Society of Mount Carmel v. Fox, 90 Ill. App. 3d 537, 538-39 
(1980). 
¶ 59 
 
Similar to Graham and Fox, we find that it is possible that the minor repairs in 
the present case, coupled with the limited nature of the water infiltration 
experienced, was enough to reasonably delay plaintiffs’ hiring of professional 
contractors to open up the wall and to discover the latent defects. We conclude that 
the date when plaintiffs knew or reasonably should have known that an injury 
occurred and that it was wrongfully caused was a question of fact not to be decided 
on a motion to dismiss under the circumstances of the present case. 
 
¶ 60 
 
 
 
 
 
II. Section 2-615 
¶ 61 
 
We now turn to the section 2-615 portion of defendants’ motion to dismiss, 
which tests the legal sufficiency of the amended complaint. The question presented 
on review is whether the allegations of the complaint, construed in the light most 
favorable to the plaintiff, are sufficient to state a cause of action upon which relief 
can be granted. Turner v. Memorial Medical Center, 233 Ill. 2d 494, 499 (2009). In 
making this determination, all well-pleaded facts must be taken as true. Doe-3 v. 
McLean County Unit District No. 5 Board of Directors, 2012 IL 112479, ¶ 16. A 
court should not dismiss a complaint pursuant to section 2-615 unless it clearly 
appears that no set of facts can be proved that would entitle the plaintiff to recovery. 
Marshall v. Burger King Corp., 222 Ill. 2d 422, 429 (2006). The standard of review 
is de novo. Id. 
 
¶ 62 
 
 
A. Count IV—Section 13-72-030 of the Chicago Municipal Code 
¶ 63 
 
As previously noted, count IV of plaintiffs’ amended complaint alleges a 
violation of section 13-72-030 of the Municipal Code. That section provides as 
follows: 
 
“No person shall with the intent that a prospective purchaser rely on such 
act or omission, advertise, sell or offer for sale any condominium unit by (a) 
employing any statement or pictorial representation which is false or (b) 
omitting any material statement or pictorial representation.” Chicago 
Municipal Code § 13-72-030. 
 
 
- 20 - 
 
¶ 64 
 
The trial court found that because section 13-72-030 “appears to prohibit 
misrepresentations or omissions of material fact[,] *** it is similar to a fraud 
claim.” The trial court noted that the statements regarding the kind of construction 
methods and material to be used were “not the sort of specific statements which 
form the basis of a misrepresentation claim.” The trial court then concluded that 
“[s]imilar to a fraud claim, the language of section 13-72-030 applies to 
misrepresentations of pre-existing facts, and therefore does not apply to a promise 
to perform future conduct.” 
¶ 65 
 
The appellate court disagreed with the trial court’s analysis and found that 
section 13-72-030 is not a codification of common-law fraud and the trial court’s 
conclusion that it only applies to preexisting facts was erroneous. The appellate 
court found that the provision was a remedy in addition to common-law fraud and 
was not limited to preexisting facts because it “concerns the marketing and sale of 
condominiums, which may occur before construction is complete.” 2014 IL App 
(1st) 130764, ¶ 117. Justice Palmer in his special concurrence wrote to emphasize 
that section 13-72-030 cannot be equated with common-law fraud because by its 
plain language, it does not require that the offending statement be a statement of 
fact. He noted that if the city council had wanted to equate this section with 
common-law fraud it could have easily done so by using the phrase, “statement of 
fact which is false,” as opposed to simply using the phrase “any statement *** 
which is false.” (Emphasis in original.) 2014 IL App (1st) 130764, ¶ 143 (Palmer, 
J., specially concurring).  
¶ 66 
 
Defendants argue that the trial court has the better view, and the protections of 
the Municipal Code should be construed narrowly to bar recovery for statements 
that do not concern purported preexisting facts but are instead simply promises that 
turn out to be false. Defendants also argue that the phrase “any statement” in 
section 13-72-030 should be limited to refer to the specific statements a developer 
is required to disclose to a prospective purchaser in its “property report.” A 
property report is mentioned in a different section of the Municipal Code, section 
13-72-020. See Chicago Municipal Code § 13-72-020. Section 13-72-020 requires 
disclosure in a “property report” of certain information, such as the name of the 
developer, whether the purchaser may purchase more than one unit, whether there 
is anything that would affect title to the property, the current taxes and the 
estimated monthly payments in the first year that includes a list of certain expenses 
associated with the property, and other items. Chicago Municipal Code 
 
 
- 21 - 
 
§ 13-72-020. Defendants note that section 13-72-020 does not require any 
disclosures about the insulation to be used in the units. 
¶ 67 
 
This court’s primary objective in interpreting a statute or ordinance is to 
ascertain and give effect to the intent of the legislative body. See Gillespie, 2014 IL 
115330, ¶ 31; People v. Martino, 2012 IL App (2d) 101244, ¶ 25. The best 
indication of that intent is the language used, which must be given its plain and 
ordinary meaning. Metropolitan Life Insurance Co. v. Hamer, 2013 IL 114234, 
¶ 18. If the language is clear and unambiguous, it will be given effect without resort 
to other aids of statutory construction. Kunkel v. Walton, 179 Ill. 2d 519, 534 
(1997). 
¶ 68 
 
Here, we find that the language of section 13-72-030 unambiguously provides 
that “any” false statement employed in connection with the advertising or sale of a 
condominium unit with the intent that the prospective purchaser rely upon it is 
actionable. Moreover, nothing in the section tethers the “any statement *** which 
is false” language to the kind of statement required to maintain a common-law 
fraud claim. Section 13-72-030 relates to the marketing and sale of condominiums, 
which may occur before construction is complete. Thus, the statements made in 
connection with the marketing and sale may not, and probably do not, concern 
preexisting facts. Instead, the statements are made with the intent that the 
prospective purchaser rely on them, which, in the developer’s view, will hopefully 
lead to that prospective purchaser actually buying a unit. We also find no merit to 
the defendants’ contention that the “any statement” language in section 13-72-030 
should be construed to refer to the limited information required by section 
13-72-020 to be included in the “property report.” It seems to us that defendants’ 
interpretation would be inconsistent with the plain language of the ordinance and 
would defeat the apparent intent of the city council to fully address the problem of 
deceit in the marketing and sale of condominium projects that are being newly 
developed. We also agree with the specially concurring justice in the appellate 
court who believed that if the city council had intended to limit the scope of section 
13-72-030 to statements that involve preexisting facts, it would have said so. 
¶ 69 
 
We further note that the trial court’s analysis seems to have ignored the 
well-recognized exception to the general rule against common-law promissory 
fraud actions. Under that exception, false promises or misrepresentations of future 
conduct are actionable where they are alleged to be the scheme employed to 
accomplish the fraud. HPI Health Care Services, Inc. v. Mt. Vernon Hospital, Inc., 
 
 
- 22 - 
 
131 Ill. 2d 145, 168-69 (1989); Steinberg v. Chicago Medical School, 69 Ill. 2d 
320, 334 (1977); Roda v. Berko, 401 Ill. 335, 340 (1948); Stamatakis Industries, 
Inc. v. King, 165 Ill. App. 3d 879, 882-83 (1987). Here, count II of plaintiffs’ 
complaint, which was also dismissed by the trial court, did allege that the 
defendants made false representations in a “scheme to induce prospective 
purchasers to purchase the units so [defendants] could profit from the sales.” 
Furthermore, that count alleges that “[t]he unit owners relied upon those 
representations when they purchased the units and would not have purchased the 
units had they known the property and the units contained multiple and significant 
defects.” Thus, it is apparent that even if we were to accept the trial court’s and 
defendants’ narrow interpretation of section 13-72-030 that limits it to a form of 
common-law fraud known as fraudulent misrepresentation (which we do not), 
dismissal of count IV of plaintiffs’ amended complaint under section 2-615 would 
still seem suspect. This is because even under a traditional, common-law 
fraudulent-misrepresentation analysis, it is not clearly apparent that no set of facts 
could be alleged and proved that would entitle plaintiffs to recovery where 
plaintiffs have demonstrated that they can allege that the false promises were the 
scheme employed to accomplish the fraud, a recognized exception to the rule 
against promissory fraud claims. 
¶ 70 
 
Defendants next argue that the appellate court misconstrued the facts in 
reaching its holding that defendants made false statements about the insulation. In 
our view, much of defendants’ argument in connection with the missing insulation 
raises irrelevant points. Defendants’ main point, however, seems to be that the 
appellate court misread the marketing packet to say that insulation would be 
provided when the packet actually states that “[a]ll insulation shall be soundbatt 
fiberglass with the following R values: Exterior walls—R11; Third floor 
ceiling—R30 with integral vapor barrier.” According to defendants, this language 
simply means that to the extent that any insulation is installed at all, it would be of 
the specified values. In other words, according to defendant, there was no 
representation that insulation or a vapor barrier would be installed.4 We reject 
                                                 
 
4Defendants seem to have dropped the argument that they made in the appellate court that the 
disclaimer in the packet covered them so that they could not be deemed to have made any 
representations about the insulation. The disclaimer provides that the specifications “are subject to 
revisions deemed advisable by the developer or architect, or required by law.” We agree with the 
appellate court that the disclaimer does not cover defendants “for the sections of the exterior wall 
and third-floor ceiling where insulation was missing entirely, or those sections that used insulation 
of a different grade than that advertised in the packet.” 2014 IL App (1st) 130764, ¶ 103. 
 
 
- 23 - 
 
defendants’ argument. We instead find the statement in the packet to be an 
advertisement promising that insulation and a vapor barrier would be installed. 
¶ 71 
 
Defendants next argue that the appellate court’s interpretation of section 
13-72-030 would change real estate practice in the City of Chicago with respect to 
the sale of condominiums by creating a cause of action for false statements without 
regard to certain “contractual disclaimers,” such as integration clauses, the parol 
evidence rule and the statute of frauds. We find nothing persuasive in defendants’ 
argument. The appellate court applied the plain meaning of the language used by 
the city council to find that any false statement made with the intent that the 
prospective purchaser rely upon it in connection with the advertising or offering for 
sale of a condominium unit is actionable. The “contractual disclaimers” defendant 
mentions have no application to a tort action based on a violation of an ordinance 
that seeks to protect prospective purchasers from being induced to enter 
condominium sales by false statements made by the developer. Defendants’ 
concerns about the ordinance seem to be more pointed toward the propriety of the 
legislation rather than to the straightforward application of it by the appellate court. 
¶ 72 
 
Defendants next argue that the appellate court erred in holding that private 
parties could recover monetary damages as a remedy under the preamended version 
of section 13-72-100, which is the version applicable here. Section 13-72-100 
currently provides that prevailing parties bringing a cause of action for a violation 
of chapter 13-72, including section 13-72-030, “shall be entitled to recover, in 
addition to any other remedy available, his damages and reasonable attorney fees.” 
See Chicago Municipal Code § 13-72-100 (amended Nov. 16, 2011). Defendants 
argue that the inclusion of the word “damages” in the above-quoted language 
where it was not previously included until the Chicago Municipal Code was 
amended in 2011 indicates that the preamended version did not allow a private 
party to recover damages for a violation of chapter 13-72. 
¶ 73 
 
In rejecting this same argument, the instant appellate court relied upon 
Wolinsky v. Kadison, 2013 IL App (1st) 111186, which addressed a remedies 
provision in a chapter of the Chicago Municipal Code dealing with discrimination 
in the sale or lease of condominiums, which was similar to the preamended 
remedies provision in the present case. Wolinsky found that the broad provision that 
remedies under the ordinance be cumulative and in addition to other remedies 
reflected the legislature’s intent that a cause of action for damages be allowed for 
violations of the ordinance. Id. ¶ 40. 
 
 
- 24 - 
 
¶ 74 
 
Defendants argue that instead of relying upon Wolinsky, the appellate court 
should have looked to the factors set forth in Abbasi v. Paraskevoulakos, 187 Ill. 2d 
386, 393 (1999), for determining when a court may imply a private right of action, 
which are (1) whether the plaintiff is a member of the class for whose benefit the 
statute was enacted, (2) whether a private right of action is consistent with the 
underlying purpose of the statute, (3) whether the plaintiff’s injury is one the statute 
was designed to prevent, and (4) whether it is necessary to provide an adequate 
remedy for violations of the statute. There is no merit to defendants’ argument 
given that both the amended and preamended version of the Chicago Municipal 
Code expressly gives the plaintiffs a private right of action. Section 13-72-100 of 
the Chicago Municipal Code has always provided that “any prospective purchaser, 
purchaser or owner of a unit” may bring an action to enforce section 13-72-030 and 
“shall be entitled to recover, in addition to any other remedy available, his 
reasonable attorney fees.” Thus, the question here is different than Abbasi and 
involves the more narrow point of whether plaintiffs could recover damages under 
the preamended version, where that version allows a private right of action and 
does not limit the remedies set forth but rather states that they are cumulative to 
“any others available.” 
¶ 75 
 
We believe that the appellate court and Wolinsky have provided the correct 
analysis. But we find that plaintiffs would prevail even upon application of the 
Abbasi factors. Defendants argue that section 13-72-030 was intended to benefit 
only those to whom defendants directly marketed the units, but defendants then 
admit that a number of the current unit owners were original purchasers. Moreover, 
it is clear that a condominium association generally has standing to pursue claims 
that affect the unit owners or the common elements. See Poulet v. H.F.O., L.L.C., 
353 Ill. App. 3d 82, 90 (2004); St. Francis Courts Condominium Ass’n v. Investors 
Real Estate, 104 Ill. App. 3d 663, 668 (1982). Thus, we find defendants’ argument 
to be unpersuasive. 
 
¶ 76 
 
 
 
 
 
B. Count V—Breach of Fiduciary Duty 
¶ 77 
 
Defendants’ final argument is that plaintiffs failed to allege sufficient facts to 
overcome the business judgment rule. Under the business judgment rule, in the 
absence of bad faith, fraud, illegality or gross overreaching, courts will not interfere 
with the exercise of business judgment by corporate directors. See Palm v. 2800 
 
 
- 25 - 
 
Lake Shore Drive Condominium Ass’n, 2014 IL App (1st) 111290. When a board 
properly exercises its business judgment in interpreting its own declaration, a court 
will not find the board’s interpretation to be a breach of fiduciary duty. See Carney 
v. Donley, 261 Ill. App. 3d 1002, 1011 (1994). If, however, the board members fail 
to exercise due care, then they may not use the business judgment rule as a shield 
for their conduct. See Palm, 2014 IL App (1st) 111290, ¶ 111. 
¶ 78 
 
Defendants argue that they only had a duty to prepare an estimated operating 
budget projecting a first year reserve fund following turnover. Furthermore, 
defendants cite section 13-72-020 (amended May 4, 2011) of the Chicago 
Municipal Code, which provides that a developer does not have to fund the reserve 
at all if the developer includes a statement in the property report disclosing that the 
developer has not provided for the reserve fund and therefore a special assessment 
directed to all condominium unit owners may be necessary to pay for future 
possible costs should they occur. See Chicago Municipal Code § 13-72-020 
(amended May 4, 2011). Defendants fault plaintiffs for failing to allege in their 
complaint an absence of such a disclaimer. But defendants do not argue that they 
actually chose not to fund the reserve and instead provided a disclaimer. Rather, 
defendants take issue with the fact that according to defendants, plaintiffs’ 
complaint “alleges nearly 15 years after control of the board was turned over to the 
unit owners, that the first year initial budget was inadequate, in hindsight, because 
it did not set a high enough reserve fund to perform all of the required repairs in the 
first year.” Finally, defendants weave into their argument the fact that the 
condominium bylaws in this case required that in setting the amount of a reserve 
fund, the board take into consideration a number of factors, which includes, among 
other things, “the repair and replacement cost, and estimated useful life of the 
property, which the association is obligated to maintain.”5  
¶ 79 
 
Defendants’ invocation of the business judgment rule at this point must be 
rejected. Plaintiffs’ amended complaint specifically alleges that defendants acted 
fraudulently and in bad faith when they knew of the shoddy construction yet failed 
to account for those repairs (that would have been immediately required in 1996 
had the unit owners known about the latent defects) when they set the reserves. We 
find that the questions presented—whether defendants’ actions were reasonable in 
                                                 
 
5The other factors are “(ii) the current and anticipated return on investment of association funds; 
(iii) any independent professional reserve study which the association may obtain; (iv) the financial 
impact on unit owners, and the market value of the units, of any assessment increase needed to fund 
the reserves; and (v) the ability of the association to obtain financing or refinancing.” 
 
 
- 26 - 
 
light of what they knew, what constitutes reasonable budgeting of a reserve fund in 
view of the factors listed in the bylaws, and whether the business judgment rule 
prevents plaintiffs from recovering under the particular circumstances—are 
questions of fact. See Board of Managers of Weathersfield Condominium Ass’n, 
307 Ill. App. 3d at 623. We therefore conclude that plaintiffs’ allegations are 
sufficient to state a cause of action for breach of fiduciary duty.  
 
¶ 80 
 
 
 
 
 
CONCLUSION 
¶ 81 
 
For the foregoing reasons, we affirm the appellate court’s decision reversing the 
trial court’s order dismissing counts IV and V of plaintiffs’ amended complaint. 
We remand the cause to the circuit court of Cook County for further proceedings 
consistent with this opinion. 
 
¶ 82 
 
Appellate court judgment affirmed. 
¶ 83 
 
Cause remanded. 
 
¶ 84 
 
JUSTICE BURKE, dissenting: 
¶ 85 
 
I disagree with both the majority’s holding that plaintiffs have adequately 
alleged fraudulent concealment under section 13-214(e) of the Code of Civil 
Procedure (735 ILCS 5/13-214(e) (West 1996)), as well as the majority’s holding 
that plaintiffs have adequately pled a violation of section 13-72-030 of the Chicago 
Municipal Code (Chicago Municipal Code § 13-72-030). I therefore respectfully 
dissent. 
 
¶ 86 
 
 
 
 
 
I. Fraudulent Concealment 
¶ 87 
 
The threshold issue in this case is whether plaintiffs’ complaint is barred by 
section 13-214(b) of the Code of Civil Procedure (735 ILCS 5/13-214(b) (West 
1996)). This provision, which sets forth the statute of repose for construction 
related causes of action, states: 
 
 
- 27 - 
 
 
“(b) No action based upon tort, contract or otherwise may be brought 
against any person for an act or omission of such person in the design, planning, 
supervision, observation or management of construction, or construction of an 
improvement to real property after 10 years have elapsed from the time of such 
act or omission. However, any person who discovers such act or omission prior 
to expiration of 10 years from the time of such act or omission shall in no event 
have less than 4 years to bring an action as provided in subsection (a) of this 
Section.” Id. 
There is no question that section 13-214(b) is applicable in this case as plaintiffs’ 
complaint was filed approximately 15 years after defendants completed 
construction on the residences that plaintiffs allege are defective. 
¶ 88 
 
The majority concludes, however, that plaintiffs’ complaint may go forward 
under section 13-214(e) (735 ILCS 5/13-214(e) (West 1996)). This provision states 
that the 10-year statute of repose “shall not apply to causes of action arising out of 
fraudulent misrepresentations or to fraudulent concealment of causes of action.” Id. 
According to the majority, plaintiffs’ complaint sufficiently alleges that defendants 
fraudulently concealed plaintiffs’ causes of action. The majority offers two 
rationales in support of this conclusion: (1) plaintiffs allege that all defendants 
knowingly made certain false statements in a sales brochure or informational 
packet that was part of the defendants’ marketing efforts when the Henderson 
Square units were being sold in 1995 and 1996 and, (2) plaintiffs allege that the 
reserve fund set by defendants Ronald Shipka, Sr., Ronald Shipka, Jr., and John 
Shipka, when they were on the board of managers for the condominium association 
in 1996 was knowingly set at too low a level. Supra ¶¶ 35-48. I address these 
rationales in turn. 
 
¶ 89 
 
 
 
 
 A. The Statements in Defendants’ Sales Brochure  
¶ 90 
 
To establish fraudulent concealment under section 13-214(e), a plaintiff must 
plead and prove that the defendant made affirmative representations or acts which 
were calculated to lull or induce the plaintiff into delaying the filing of his claim or 
to prevent the plaintiff from discovering his claim. Orlak v. Loyola University 
Health System, 228 Ill. 2d 1, 18 (2007). In addition, the plaintiff must plead and 
prove that these representations were known by the defendant to be false, that they 
 
 
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were made by the defendant with the intent to deceive the plaintiff, and that the 
plaintiff detrimentally relied upon the representations. Id. 
¶ 91 
 
In holding that plaintiffs have adequately pled fraudulent concealment, the 
majority relies primarily on representations made by defendants in a sales brochure 
that was part of the defendants’ marketing in 1995 and 1996. The brochure is 
attached to plaintiffs’ complaint and a copy is included in appendix A to this 
dissent. Infra ¶ 121. The relevant representations made in the brochure were: 
 
“ ‘(1) that the Property and the Units reflected “new architectural energies 
and solid construction skills”; 
 
(2) that the [development companies] and/or Enterprise was committed to 
“quality construction and detail” for the Property and Units; 
 
(3) that the [development companies] and/or Enterprise consistently deliver 
“quality 
buildings” 
and 
“successful 
developments” 
which 
succeed 
“architecturally, aesthetically and economically”; and 
 
(4) that “[a]ll insulation shall be soundbatt fiberglass with the following R 
values: Exterior walls—R11; Third floor ceiling—R30 with integral vapor 
barrier.” ’ ” Supra ¶ 15. 
¶ 92 
 
The majority notes that plaintiffs have alleged in their complaint that 
defendants knew these statements “to be false” and that plaintiffs have alleged the 
statements were made with the intent to deceive those who read the brochure. 
Supra ¶ 39. On this basis, the majority concludes that plaintiffs have adequately 
pled a fraudulent scheme by defendants “designed and intended” to prevent 
plaintiffs from discovering their causes of action. Id. Therefore, the majority holds, 
dismissal of plaintiffs’ complaint “pursuant to section 2-619 of the Code would not 
be proper.” Id. I disagree. 
¶ 93 
 
The first three statements on the majority’s list, all of which are variations of a 
statement by defendants that they provide “quality” construction, cannot form the 
basis of fraudulent concealment. As this court has stated, “[d]escribing a product as 
‘quality’ or as having ‘high performance criteria’ are the types of subjective 
characterizations that Illinois courts have repeatedly held to be mere puffing.” 
Avery v. State Farm Mutual Automobile Insurance Co., 216 Ill. 2d 100, 174 (2005). 
As an expression of subjective opinion, a puffing statement cannot be proven true 
or false and, therefore, cannot be a basis for fraud. Barbara’s Sales, Inc. v. Intel 
 
 
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Corp., 227 Ill. 2d 45, 72 (2007). Further, a statement by a builder asserting that it 
provides “quality” construction is not only a subjective characterization, it is also 
the type of statement made by every builder to its customers—no builder tells its 
customers it provides poor quality construction. If, as the majority holds, a mere 
statement by a builder that it performs “quality” work can form the basis of 
fraudulent concealment so as to negate the statute of repose, then the statute has 
effectively been written out of existence. 
¶ 94 
 
The fourth statement on the majority’s list is a specification by defendants to 
provide thermal insulation of a certain quality in exterior walls and the “third-floor 
ceiling,” which plaintiffs allege defendants failed to do. The majority concludes 
that defendants’ statement regarding insulation also properly forms the basis of 
fraudulent concealment under section 13-214(e). Supra ¶ 39.  
¶ 95 
 
Defendants’ specification of a certain type of insulation is not puffing. 
However, plaintiffs are not suing defendants because some of the occupants of the 
Henderson Square residences are too cold in the winter or too hot in the summer. 
They are suing to recover for water damage caused by structural defects. This is 
stated explicitly in plaintiffs’ complaint, which alleges “significant water 
infiltration and resulting damages,” and spelled out in detail in a report prepared by 
a consulting firm, Warton, Inc., that is appended to plaintiffs’ complaint. 
¶ 96 
 
In this report, the Warton firm describes how its engineers examined two 
“garden-level” units in the Henderson Square development that sit beneath 
street-level townhomes. (A picture is included in appendix B to this dissent. Infra ¶ 
122.) The exterior front walls of the street-level townhomes, as well as outdoor 
decks, sit directly over the living areas of the garden-level units. The problem, 
according to the report, was that rain and melting snow were penetrating through 
various gaps in the exterior front walls of the upper townhomes, such as around the 
windows and doors, and then traveling downward into the ceilings of the garden 
units. The report does not say, and there is no allegation in plaintiffs’ complaint, 
that the water problems in the garden-level units had anything to do with a lack of 
insulation, and there is obviously no assertion that these problems had anything to 
do with insulation in the “third floor ceiling”—the top floor of the street-level 
townhomes, three stories above.6 
                                                 
 
6The vapor barrier mentioned in the sales brochure for the third-floor ceiling insulation is a 
material, such as a treated paper, plastic sheet or metallic foil used to prevent moist, indoor air from 
 
 
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¶ 97 
 
To properly plead fraudulent concealment it is not enough to simply allege that 
the defendant made a false statement. The plaintiff must also plead causation by 
alleging that he “detrimentally relied” on the false statement. Orlak, 228 Ill. 2d at 
18. See also, e.g., Clay v. Kuhl, 189 Ill. 2d 603, 613 (2000) (to establish fraudulent 
concealment, a plaintiff must “plead[ ] and prove[ ] that fraud prevented the 
discovery of the cause of action”); Foster v. Plaut, 252 Ill. App. 3d 692, 699 (1993) 
(“it is necessary to show affirmative acts by the defendant which were designed to 
prevent, and in fact did prevent, the discovery of the claim”). 
¶ 98 
 
Plaintiffs’ complaint is deficient because, even assuming that defendants’ 
specification of a certain type of insulation was a false statement for the purposes of 
fraudulent concealment under section 13-214(e), plaintiffs have failed to allege 
detrimental reliance and, hence, causation. Specifically, plaintiffs have failed to 
allege that the statement about insulation prevented any occupant of the Henderson 
Square residences from discovering the water penetration in the garden-level units, 
or from discovering any cause of action related to the water penetration. 
¶ 99 
 
The majority opinion suffers from the same problem. Indeed, the majority’s 
holding that defendants’ specification of a certain type of insulation can form the 
basis for fraudulent concealment in this case appears to mean that any false 
statement made by a defendant, even if it did not, and could not, cause the 
plaintiff’s failure to discover the underlying cause of action, can serve as the basis 
for fraudulent concealment under section 13-214(e). This is clearly error.  
¶ 100 
 
The majority also offers the following statement in support of its holding that 
plaintiffs have adequately alleged fraudulent concealment with respect to the 
representations in the sales brochure: “Plaintiffs allege that defendants ‘covered up 
the Units’ deficiencies in brick and mortar,’ cutting costs ‘for the purpose of 
realizing greater profits from the city contract,’ and that these deficiencies could 
not have been discovered by plaintiffs ‘without extensive testing and opening up 
                                                                                                                                                             
diffusing into the ceiling. Keep Warm Illinois, Insulation, at 1 https://www.illinois.gov/KeepWarm/ 
Documents/insulation.pdf (last visited Oct. 21, 2015). “The warm air inside your house contains 
water vapor. If this vapor passes into the insulation and condenses, it can cause significant loss of 
insulating value, it can cause mold growth, peeling paint, and eventual rotting of structural wood.” 
To prevent this, a vapor barrier is “installed on the warm side, the lived-in side, of the space to be 
insulated. This placement prevents the moisture in the warm indoor air from reaching the 
insulation.” Id. The vapor barrier referenced in the brochure, in addition to being three stories away 
from the garden-level units, has nothing to do with preventing rain or melting snow from penetrating 
into the interior of the homes. 
 
 
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the walls of the common elements and the Units.’ ” Supra ¶ 39. The implication 
from this is that because the alleged structural problems in the residential units were 
latent defects covered up by “brick and mortar,” the statute of repose is 
inapplicable. 
¶ 101 
 
However, this court has rejected this proposition. As the appellate court below 
stated: 
 
“The presence of latent defects, by themselves, are not sufficient to 
circumvent the statute of repose under the section 13-214(e) fraud exception. 
For example, in VonHoldt v. Barba & Barba Construction, Inc., 175 Ill. 2d 426 
(1997), our supreme court considered whether a cause of action involving a 
latent defect was barred by the statute of repose. The supreme court found that 
the plaintiff had successfully pleaded a cause of action for breach of the implied 
warranty of habitability because a latent defect existed. VonHoldt, 175 Ill. 2d at 
432. However, the plaintiff filed the lawsuit 11 years after construction was 
completed. VonHoldt, 175 Ill. 2d at 433. The supreme court concluded that the 
lawsuit was time-barred by the statute of repose. VonHoldt, 175 Ill. 2d at 434.” 
2014 IL App (1st) 130764, ¶ 98. 
The majority does not explain why it is rejecting the reasoning of VonHoldt. This, 
too, is error. 
¶ 102 
 
The statements in defendants’ sales brochure cannot form the basis for 
fraudulent concealment. I would hold, therefore, that section 13-214(e) is 
inapplicable on this ground. 
 
¶ 103 
 
 
 
 
 
B. Insufficient Reserve Fund 
¶ 104 
 
The majority offers a second basis for finding that plaintiffs have alleged 
fraudulent concealment, at least with respect to defendants Ronald Shipka, Sr., 
Ronald Shipka, Jr., and John Shipka. The majority observes that the Shipkas served 
as the first board of managers for the condominium association for approximately 
six months in 1996, from June until the end of that year, when control was turned 
over to the first elected board. During that time, the Shipkas had a fiduciary duty to 
maintain a reserve fund for capital expenditures and repairs of common elements in 
the condominium association. Supra ¶ 42. 
 
 
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¶ 105 
 
The majority notes plaintiffs’ allegation that “the Shipkas failed to provide 
sufficient funding for the reserve fund to meet the repairs needed due to the 
extensive defects in the construction.” Id. According to the majority, this 
inadequate funding was essentially a false statement which “gave the appearance 
that the building was in much better shape than it was.” Id. The majority further 
notes that plaintiffs have alleged that the Shipkas kept the reserve fund low “with 
the intent of deceiving the unit owners.” Supra ¶ 45. This, the majority concludes, 
adequately alleges a basis for fraudulent concealment on the part of the Shipkas 
sufficient to defeat the statute of repose.  
¶ 106 
 
Again, however, to plead fraudulent concealment it is not enough to simply 
allege that the defendant made a false statement. The plaintiff must also plead 
causation by alleging detrimental reliance. Orlak, 228 Ill. 2d at 18. There is no 
allegation in plaintiffs’ complaint that any occupant of the Henderson Square 
development, whether at the time the residences were first constructed or later, was, 
in fact, aware of the amount of money in the reserve fund, and because of that 
awareness, was prevented from discovering the water problems in the garden-level 
units, or from discovering any cause of action related to those problems. This is 
fatal to an assertion of fraudulent concealment under section 13-214(e). See Orlak, 
228 Ill. 2d at 18. 
¶ 107 
 
Moreover, an inadequate reserve fund is going to exist in every instance where 
a condominium board sues a builder for construction problems; if there were an 
adequate reserve there would be no need for litigation. Thus, the majority appears 
to be saying that whenever a condominium board has to sue a builder, the statute of 
repose simply does not apply. I do not think the legislature intended this result. 
¶ 108 
 
A statute of repose, such as section 13-214(b), can lead to harsh consequences 
since it can cut off a cause of action before the plaintiff has discovered the 
underlying injury. See, e.g., Orlak, 228 Ill. 2d at 7-8. Nevertheless, the legislature 
has made a policy decision in section 13-214(b) that 10 years (with a possible 
four-year extension depending on when the injury is discovered), is sufficient time 
to uncover and file construction related causes of action. We should not interpret an 
exception to this law in such a way as to render the legislature’s policy decision 
meaningless. 
¶ 109 
 
I would hold that plaintiffs have failed to plead fraudulent concealment within 
the meaning of section 13-214(e) and, therefore, the statute of repose is applicable 
 
 
- 33 - 
 
in this case. Accordingly, I would reverse the judgment of the appellate court and 
affirm the judgment of the circuit court granting defendants’ motion to dismiss. 
 
¶ 110 
 
 
 
II. Count IV—Section 13-72-030 of the Chicago Municipal Code 
¶ 111 
 
In count IV of their complaint, plaintiffs allege that defendants violated section 
13-72-030 of the Chicago Municipal Code. This section provides: 
 
“No person shall with the intent that a prospective purchaser rely on such 
act or omission, advertise, sell or offer for sale any condominium unit by (a) 
employing any statement or pictorial representation which is false or (b) 
omitting any material statement or pictorial representation.” Chicago 
Municipal Code § 13-72-030. 
Plaintiffs allege that the four statements in defendants’ sales brochure discussed 
above (see supra ¶ 15), constitute “false” statements within the meaning of section 
13-72-030. 
¶ 112 
 
In addition, plaintiffs contend that, should they prove defendants violated the 
ordinance, they are entitled to money damages. Specifically, plaintiffs argue they 
would be entitled to the “total cost of remediation of the deficiencies and damage to 
the common elements and residential units” plus “reasonable attorney fees.” 
¶ 113 
 
The majority agrees and holds that plaintiffs have properly alleged a violation 
of section 13-72-030. In so holding, the majority emphasizes that section 
13-72-030 cannot be equated with common-law fraud and that the statements 
prohibited under the ordinance are not limited to the “kind of statement required to 
maintain a common-law fraud claim.” Supra ¶ 68. The majority states that it 
“agree[s] with the specially concurring justice in the appellate court” (id.), who 
concluded that, by its plain language, section 13-72-030 does not require that the 
offending statement be a statement of fact. See 2014 IL App (1st) 130764, ¶ 143 
(Palmer, J., specially concurring). Thus, according to the majority, even puffing 
statements by a builder that it does “quality” work, like the statements in 
defendants’ brochure at issue here, are prohibited under the ordinance. 
¶ 114 
 
The majority also concludes that plaintiffs need not prove detrimental reliance 
or causation to recover under the ordinance. According to the majority, recovery 
 
 
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may be had, so long as the “statements are made with the intent that the prospective 
purchaser rely on them” (emphasis in original). Supra ¶ 68. 
¶ 115 
 
Finally, the majority agrees with plaintiffs that recovery under section 
13-72-030 is not limited to fines and attorney fees. Instead, recovery may include 
monetary damages such as those sought in plaintiffs’ complaint. Supra ¶¶ 72-75. 
¶ 116 
 
The majority’s reasoning cannot be correct. Section 13-72-030 prohibits only 
“false” statements. Chicago Municipal Code § 13-72-030. The ordinance must be 
referring to factual statements because a mere statement of opinion, such as 
puffing, cannot be proven false. See, e.g., O’Donnell v. Field Enterprises, Inc., 145 
Ill. App. 3d 1032, 1039 (1986) (“There is no such thing as a false idea or opinion.”). 
By its plain terms, the ordinance does not apply to the puffing statements in 
defendants’ brochure. 
¶ 117 
 
Further, consider the scope of the majority’s holding here. According to the 
majority, not only is puffing prohibited under the ordinance, but a plaintiff can 
recover damages that were not caused by the puffing. In this case, for example, 
even if plaintiffs are unable to prove that anyone actually saw defendants’ sales 
brochure, and are unable to prove that the statements in the brochure were in any 
way related to the water damage (which is a given), it does not matter. Under the 
majority’s reading of section 13-72-030, if plaintiffs show merely that defendants 
intended for the statements in the brochure to be relied on in some way, plaintiffs 
can recover the “total cost of remediation of the deficiencies and damage to the 
common elements and residential units” plus “reasonable attorney fees.” This is an 
absurd result. It cannot have been intended by the drafters of the ordinance. 
¶ 118 
 
I would hold that section 13-72-030 does not prohibit puffing. I would also hold 
that, to successfully plead an action for the recovery of monetary damages under 
section 13-72-030, the plaintiff must allege that the false statement or statements 
were detrimentally relied upon and thereby caused the damages being sought. That 
standard has not been met here. Accordingly, I would affirm the judgment of the 
circuit court finding that plaintiffs failed to state a cause of action for monetary 
damages under section 13-72-030. 
¶ 119 
 
For the foregoing reasons, I respectfully dissent. 
 
¶ 120 
 
JUSTICES FREEMAN and KARMEIER join in this dissent. 
 
 
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¶ 121 
 
Appendix A 
 
 
 
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- 40 - 
 
 
 
 
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¶ 122 
 
Appendix B