The City of Chicago has filed a lawsuit against the owners of South Chicago Chapel, seeking fines of $11,500 per day after an inspection allegedly uncovered 23 building code violations at the funeral home where 56 decomposing bodies were discovered in August.
The lawsuit was filed Aug. 28, 2026, in Cook County Circuit Court against owners Johanna and Clark Morgan and business entities connected to the property. The city alleges that the unlicensed funeral home violated the municipal code by maintaining dangerous, hazardous and unsanitary conditions.
The Chicago Department of Buildings inspected the South Deering property at 2939 E. 95th St. on Aug. 6, 2026, after concerns were raised about conditions inside the building.
The department documented alleged violations involving work performed without permits, fire-safety hazards, structural problems and failure to keep the property clean, sanitary and safe.
The lawsuit asks a judge to impose penalties of $11,500 for each day the alleged violations remain uncorrected. It also seeks temporary and permanent injunctions requiring the owners to correct the violations.
In a statement, the Department of Buildings said, “The Department of Buildings extends our deepest condolences to the families of those whose loved ones were not properly cared for. Our thoughts are with them.”
The department said its authority is limited to public assembly, building and life-safety requirements.
“The preparation, embalming, and storage of human remains are back-of-the-house functions that fall under the jurisdiction of the Illinois Department of Financial and Professional Regulation and are outside the Department of Buildings’ authority,” the department said.
The department added that it “remains committed to enforcing the building and life-safety codes within its jurisdiction and will continue to be available to coordinate with state and local partners, as appropriate, for any future enforcement actions.”
The complaint does not specifically demand the immediate demolition or condemnation of the building. However, it asks the court to order repairs, cleanup, security measures or demolition if those actions are determined to be necessary.
The Cook County Medical Examiner’s Office and the Chicago Police Department launched investigations after the 56 bodies were discovered inside the facility.
According to the complaint, 51 bodies were found in a rear storage room in “varying degrees of severe decay/decomposition.” Approximately half were inside what the lawsuit described as an “insufficiently operating cooler.” The others were allegedly scattered throughout the storage area in advanced stages of decomposition.
“The stench was overwhelming and could be smelled outside the building,” the complaint states. It also alleges that flies and rats were found near or on the bodies and describes the conditions as “an immensely unsanitary situation.”
State business records show that Johanna Morgan incorporated South Chicago Chapel Inc. in 2022. The Illinois Department of Financial and Professional Regulation temporarily suspended her funeral director and embalmer license after the bodies were discovered. Clark Morgan’s funeral director and embalmer intern license had been revoked in 2024.
Illinois Comptroller Susana Mendoza previously criticized the Morgans’ “egregious past practices” after her office shut down another business they operated, Heights Crematory in Chicago Heights. Several improperly stored bodies reportedly were found stacked, unrefrigerated and partially exposed at that facility.
The Medical Examiner’s Office has continued working to identify the bodies recovered from South Chicago Chapel and notify their families.
The Morgans had not been criminally charged as of Sept. 2, 2026. The Illinois State Police has continued investigating their conduct at Heights Crematory after Cook County State’s Attorney Eileen O’Neill Burke initially declined to file charges in that case.
Chicago police also are conducting an independent investigation into the Morgans’ handling of bodies at South Chicago Chapel.