HAMMOND — A Hammond landlord ordered by the city to tear out the five apartments he's rented to tenants in what once was a single-family home is getting a chance to challenge the administrative process that led to that order.
The 7th U.S. Circuit Court of Appeals recently overturned a ruling by U.S. District Court Judge Theresa Springmann that held the legal issues raised by landlord Jose Andrade already had been addressed and resolved by Indiana state courts, and there was no reason to litigate the case again in federal court.
While the appeals court agreed Andrade is a "state-court loser" who generally would be barred from pursuing subsequent litigation in federal court, it also determined Andrade's claim he was denied due process by the Hammond Board of Public Works and Safety, prior to the state court action, is sufficiently distinct to qualify as the basis for a federal lawsuit.
Specifically, Andrade says the Hammond board acted improperly when it did not comply with his subpoena for city records and exceeded its statutory authority by making a zoning determination.
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"The complaint alleges, at most, an independent prior injury that the state court failed to remedy and not an injury caused by the state court judgment," the appeals court said.
"His federal claims could exist even without any state-court judgment. And for that reason, the injuries complained of by Andrade can be separated from the state court judgment."
At the same time, the appeals court noted it will be up to the federal district court to determine if Andrade's due process rights were violated by the board, and whether that's a sufficient basis for overturning the order to tear out the apartments.
A pretrial conference in the case is scheduled for Thursday.
Andrade's attorney, Patrick McEuen, of Portage, is optimistic his client will succeed.
"I was confident the 7th Circuit was going to reverse. You never say, 'We won' until the decision is written, but I had a good feeling about this one," McEuen said. "Mr. Andrade and I fully expect other efforts to derail a trial by the mayor and the city, but we remain confident we will prevail on all counts."
According to court records, a 2016 city inspection of Andrade's property at 6609 Jefferson Ave. found 12 structural issues, 11 fire hazards and six maintenance concerns, all of which rendered the home an unsafe structure under Indiana's Unsafe Building Law.
In particular, records show the unsafe conditions included inadequate fire stopping, lack of fire blocking, flammable support beams, inadequate fire separation, lack of basement apartment bedroom windows, too narrow staircases and inadequate smoke detectors.
The Hammond safety board ordered Andrade to restore the home to a single-family dwelling after determining the building was illegally converted into apartments sometime between its 1927 construction and Andrade purchasing the property in 1998.
Following a lawsuit filed by Andrade, both Lake Superior Judge Calvin Hawkins and the Indiana Court of Appeals agreed the Hammond board did not exceed its statutory authority by requiring the unsafe apartments be removed from the home.
The Indiana Supreme Court and the U.S. Supreme Court both declined to hear Andrade's appeal, thereby leaving intact the lower court rulings affirming the city's order for Andrade to remove the apartments.
Hammond Mayor Thomas McDermott Jr. has said it's a top priority for his administration to protect residents by taking action to eliminate unsafe apartments that have illegally been created out of single-family homes in Lake County's most populous city.
Gallery: A look inside the near-century-old Bank Calumet tower in Hammond
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

The main lobby area of Bank Calumet has not seen activity in many years.
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

NWI Development Group Principal Anastacia Fratto, left, and developer Alan Schachtman tour the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

NWI Development Group Principal Anastacia Fratto, left, and developer Alan Schachtman examine the lobby area of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

View of Hohman Avenue looking south in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

The old Bank Calumet building in downtown Hammond is going to be converted into condos.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

A stairway leads to the basement of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

NWI Development Group Principal Anastacia Fratto, left, developer Alan Schachtman and Donald Babcock, right, tour the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This is the vault in the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

NWI Development Group Principal Anastacia Fratto, left, and developer Alan Schachtman tour the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This is a view of the lobby of the old Bank Calumet from the mezzanine level of the building.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

The main lobby area of Bank Calumet has not seen activity in many years.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

The old Bank Calumet building in downtown Hammond is going to be converted into apartments.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Donald Babcock peers out a window of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This is the vault in the old Bank Calumet building in downtown Hammond. Because there was no electricity to power sump pumps, the basement of the building flooded.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Because there was no electricity to power sump pumps, the basement of the old Bank Calumet building in downtown Hammond flooded.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

A parking lot on Fayette Street was once the site of The Times building.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartment

Stairs lead to the penthouse of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This was once the lunch room on the ninth floor of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This is the view to the south as seen from one of the upper floors of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

The old Bank Calumet building in downtown Hammond is going to be converted into condos.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Hohman Avenue looking south near the old Bank Calumet building in downtown Hammond
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

The Chicago skyline as seen from the roof of the old Bank Calumet building in downtown Hammond
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

This is First Baptist Church as seen from one of the upper floors of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into condos

Donald Babcock looks at an old work bench in the mechanical room the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Strack and Van Til and the Chicago skyline as seen from the roof of the old Bank Calumet building in downtown Hammond
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Hohman Avenue as seen from the roof of the old Bank Calumet building in downtown Hammond
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Apartments will be created from the rooms and offices of the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Developer Alan Schachtman looks at the elevator motor and control unit at the old Bank Calumet building in downtown Hammond.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

The old Bank Calumet building in downtown Hammond is going to be converted into apartments.
Historic Bank Calumet building in downtown Hammond to be redeveloped into apartments

Apartments will be created from the rooms and offices of the old Bank Calumet building in downtown Hammond.