By Claire Murphy
September 3, 2026
Federal claims filed by a group of 25 Winnetka homeowners over regulations restricting what can be constructed along the shoreline were dismissed Tuesday, likely ending a yearslong tussle between the village and some of its wealthiest residents.
The original suit, filed against the Village of Winnetka in May 2024, was dismissed in October 2025, but allowed the homeowners to refile an amended complaint providing new theories of liability for why the lakefront construction ordinance could effectively lower their property values, which they did in December.
Federal judge LaShonda A. Hunt ruled on Sept. 1 that the amended complaint “added nothing new” to the homeowners’ previous claims that the village’s lake bluff and steep slope protection regulations were an unconstitutional taking of their properties.
Hunt wrote in her initial dismissal that the suit failed on “ripeness grounds,” based upon the fact that none of the property owners cited new development plans for their homes since the adoption of the zoning ordinance, “applied for any variations, exceptions, or waivers,” or provided evidence as to having been previously denied building permits or zoning approvals for construction on their private properties by the village.
“Those same concerns are implicated in Plaintiffs’ amended complaint,” Hunt ruled.
Hunt also dismissed the homeowners’ state law claims without prejudice, meaning plaintiffs can refile the complaint at a later date, but only in state court.
Winnetka attorney Peter Freidman of the law firm Elrod Friedman wrote in a statement to Pioneer Press that the village is “pleased that the validity of the ordinance has once again been confirmed” and “hopeful that the litigation is now over.”
Friedman added that the village would welcome any resident, “including of course lakefront property owners, to engage with the Village on the ongoing implementation and application of the lakefront regulations.”
A spokesperson for the village added that officials will “continue to defend” the protection of one of Winnetka’s “most significant assets” – its lakeshore – in future court proceedings.
Lead attorney Mark Karasik of Baker McKenzie, the Chicago-based law firm representing the homeowners, did not immediately respond to a Pioneer Press request for comment on the ruling. Winnetka President Bob Dearborn also declined to comment.
Per previous reports, Winnetka trustees voted in February 2024 to approve updated regulations for what property owners are allowed to construct on their private land. The measures were aimed at preserving existing lake bluffs and “sensitive areas” along the lakefront.
President Dearborn told Pioneer Press in a prior statement that officials made changes to the zoning ordinance only after listening to “hours of public testimony” and resident comments. The village also made several changes to the ordinance before it was formally adopted, he said.
Discussion over increased zoning oversight picked up following billionaire private equity investor Justin Ishbia’s decision to construct a 68,000-square-foot mansion on Winnetka’s lakefront in 2023, totaling nearly $44 million.
Ishbia and his wife, Kristen, previously paid $39.9 million to purchase four separate properties, three along the lakefront, to make room for the construction of their new home.
The project reportedly included an attempted land swap deal between Ishbia and the Winnetka Park District to purchase a portion of the south end of Centennial Park Beach, but plans for the acquisition were later abandoned following a subsequent lawsuit filed by a local resident.
Officials previously told the Chicago Tribune added regulations to the village’s zoning ordinance were intended to restrict future efforts like Ishbia’s.