Illinois court calls deconversion bid-suppression predatory and holds the association cannot sue over it
Illinois court calls deconversion bid-suppression predatory and holds the association cannot sue over it
2026-09-10 · Illinois · Courts
What happened. On March 18, 2025 the Illinois Appellate Court, First District, Second Division, issued 540 North Lake Shore Drive Condominium Ass'n v. MCZ Development Corp., 2025 IL App (1st) 230733 — a published, precedential opinion and now the governing Illinois authority on deconversion vote-suppression tactics.1
The association alleged that developers and brokers bought a blocking stake in the 149-unit building and spread disinformation to suppress competing bids, forcing a below-market bulk sale. Dismissal of the third amended complaint was affirmed in all respects.
The court's own description of the conduct
This is not a case where the court doubted the allegations. Justice Ellis wrote that the alleged conduct was “capitalism at its most Darwinian — conduct that, if true, could best be described as predatory and even cruel” — while holding that “plaintiff is unable to identify any actionable tort or statutory violation.”
Why each claim failed
Tortious interference with prospective economic advantage failed on the first element. With a building that had never reached the point of a bid, the expectancy of a sale was not “sufficiently concrete.” The court expressly declined to adopt a bright-line rule that a real-estate sale can never support the tort.
Defamation and slander of title failed for want of pleadable special damages. Civil conspiracy fell with the predicate torts.
The standing holding is the important one
Keep reading with the Illinois State Pass
The rest of this analysis — what an association can actually do, the recent bills and rulings, and how Illinois compares nationally — is for subscribers. $49/month for every Illinois topic on HOA Weekly.
$49/month, $449/year, or a $19.99 day pass.
What you unlock
- What this means operationally
- How this fits with the rest of Illinois deconversion law
- What a board facing a bulk offer should actually do
and 1 more section in detail
Already a subscriber? Sign in
Recurring monthly subscription · Cancel anytime · Need help?
Related Illinois HOA Topics
- 540 North Lake Shore Drive Condominium Ass'n v. MCZ Development Corp., 2025 IL App (1st) 230733 (published opinion, March 18, 2025) ↩
- CAI Illinois Legislative Action Committee, deconversion threshold history (HB 2401; Chicago § 13-72-085) ↩
- Chicago Municipal Code Chapter 13-72, Condominiums, including § 13-72-085 ↩
Stay on top of Illinois HOA law
Every week: new Illinois legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.