Chicago Church Loses Property Tax Challenge On Jurisdictional Grounds In 7th Circuit

Yesterday, the U.S. 7th Circuit Court of Appeals dismissed for lack of jurisdiction a church's attempt to avoid eviction from its property by the city of Chicago. The city had obtained a tax deed to the church after the church failed to pay over $100,000 in assessed property taxes. In Beth-El All Nations Church v. City of Chicago, (7th Cir., May 14, 2007), the court dealt with a range of procedural complexities in applying the Rooker-Feldman doctrine that precludes use of lower federal courts to overturn a final state court judgment. Attorneys for the church focused their arguments primarily on a notice that had been sent to the church at a wrong address. However state courts had already held that this did not amount to fraudulent concealment of the tax sale of the church's property, so the church could not avoid the statute of limitations that by then barred the church's challenge to the lack of notice. The Court of Appeals pointed out that the church still had the possible option of challenging the tax sale in state court on the grounds that the property was in fact tax exempt. [Thanks to Alliance Alert for the lead.]