ILLINOIS POLLUTION CONTROL BOARD
May 5,
1994
JOHN
ZARLENGA and
)
JEAN
ZARLENGA,
)
)
Complainants,
)
v.
)
PCB 92—178
(Enforcement)
JOHN HANCOCK MUTUAL LIFE
)
INSURANCE
COMPANY
AND
)
LINCOLN
EASTERN
MANAGEMENT
)
CORPORATION,1
)
)
Respondents.
ORDER OF THE BOARD
(by M.
McFawn):
Respondents Bloomingdale Partners, Howard Edison,
Bruce
McClaren, and Gary Laken filed a joint status report and
stipulations agreement on April
1,
1994, and an “agreed” motion
to dismiss on April 11,
1994.
The motion to dismiss,
filed only
by respondents,
seeks to have this action dismissed as to all
named respondents.
On April 6,
1994,
complainants John and Jean
zarlenga filed a motion seeking to add Lincoln Eastern Management
Corporation and John Hancock to this proceeding as indispensable
parties and real parties in interest.
In their joint status report and stipulations agreement,
the
parties report that on January 28,
1994, the Bankruptcy Court in
the proceeding captioned In Re Bloomingdale Partners, case no.
91
B 11678,
issued an order striking Bloomingdale Partner’s Modified
Third Plan of Reorganization and dismissing the case.
On
February 7,
1994, the Circuit Court of DuPage County issued an
order appointing Gregory O’Berry, Vice President of Finance for
Lincoln Eastern Management Corporation,
as receiver for One
Bloomingdale Place in the foreclosure proceedings captioned John
Hancock Mutual Life Insurance Company v. Bloomingdale Partners et
~
91 CH 280.
Complainants assert that as receiver, Lincoln
Eastern Management Corporation is the entity with the power and
authority to initiate remedial action at One Bloomingdale Place.
On March 29,
1994, John Hancock obtained from the Bankruptcy
Court a Judgment of Foreclosure and Order of Sale for the
property known as One Bloomingdale Place.
The foreclosure
judgment divested respondents of any and all interests in One
Bloomingdale Place.
In their motion, complainants assert that
the foreclosure judgment placed John Hancock in a position to
~.
This caption has been changed to reflect the Board’s
decision in this order.
exercise control and authority over One Bloomingdale Place by
making advances to preserve and maintain the property in order to
protect its lien interest.
As a result of these events, the parties have stipulated to
an agreement intended to resolve this matter as to the named
respondents and allow complainants to add to the proceeding the
real parties in interest.
Respondents stipulate they will not
directly or indirectly bid on or otherwise seek to acquire an
ownership interest in One Bloomingdale Place at the judicial sale
to be conducted on or after May 3,
1994,
and agree not to oppose
complainants’ motion to join the court appointed receiver and
John Hancock as real parties in interest.
Complainants stipulate
they will not seek to enforce the Board’s order dated February 3,
1994,
or otherwise seek to obtain or compel production of
respondents’ financial records.
Complainants further stipulate
they will not oppose respondents’ motion seeking to dismiss the
action as to each of them.
Complainants have attached as exhibits to their motion
copies of the original notice and complaint,
and the November 20,
1992 notice and motion to amend the complaint which was granted
December 3,
1992.
The certificate of service indicates that
copies of complainants’ motion were served on Lincoln Eastern
Management Corporation and John Hancock.
This satisfies the
Board’s procedural requirement that respondents be served with a
copy of the complaint.
(35 Ill. Adm. Code 103.123(a).)
No
response has been received from Lincoln Eastern Management or
John Hancock.
Respondents Bloomingdale Partners, Howard Edison,
Bruce
McClaren, and Gary Laken’s motion to have the action dismissed
with prejudice as to each of them is hereby granted.
Complainants’ motion to add Lincoln Eastern Management
Corporation and John Hancock Mutual Life Insurance Company as
indispensable parties and real parties in interest is also
granted.
The Clerk of the Board is directed to add these two
parties to the caption in this case as respondents, and any
future pleadings and motions made on behalf of the Zarlengas must
be served on them.
IT IS SO ORDERED.
I, Dorothy M. Gunn,
Clerk
of the Illinois Pollution Control
Board, hereby certify that the above order was adopted on the
~
day of
_______________,
1994, by a vote of
_______
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Illinois Po~