Justia Illinois Supreme Court Opinion Summaries

Articles Posted in Trusts & Estates
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Karavidas, admitted to practice law in Illinois in 1979, worked for the City of Chicago, the Attorney General, and several law firms. In 1988, he opened his own practice. His father executed will and trust documents prepared by another attorney in 2000, and died later the same day. Karavidas was named executor and successor trustee. His dealings with the estate resulted in charges of conversion of assets entrusted to him; breach of fiduciary obligations; conduct involving dishonesty, fraud, deceit, or misrepresentation, in violation of Illinois Rules of Professional Conduct; conduct prejudicial to the administration of justice; and conduct tending to defeat the administration of justice or to bring the courts or the legal profession into disrepute. The Review Board of the IARDC recommended that charges be dismissed. The Illinois Supreme Court agreed. Before professional discipline may be imposed under Supreme Court Rule 770, the Administrator must demonstrate that the attorney violated the Rules of Professional Conduct. Personal misconduct that falls outside the scope of the Rules may be the basis for civil liability or other adverse consequences, but may not result in professional discipline.View "In re Karavidas" on Justia Law

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A February 2008 automobile accident resulted in the death of the driver who was purportedly at fault. His son was issued letters of office to serve as independent administrator of the driver’s estate. The limitations period for plaintiff’s claim of personal injuries was two years. Just before that limitations period was to expire, plaintiff filed suit, apparently unaware of the driver’s death. Her action against a dead person was invalid. Attempts to serve process were unsuccessful, but a special process server eventually notified the plaintiff that the defendant was dead. The Code of Civil Procedure, 735 ILCS 5/13-209, allows a two-year extension of the limitations period under certain conditions, including when a plaintiff moves to substitute the decedent’s personal representative as defendant. The plaintiff did not do so, but obtained the circuit court’s permission to have an employee of plaintiff’s attorney appointed as “special administrator” to defend the estate, a procedure that has no statutory authorization. The circuit court dismissed the action on limitations grounds, but the appellate court reversed. The Illinois Supreme Court reinstated the dismissal. Upon learning of the defendant’s demise, the plaintiff should have sought leave to amend the complaint to substitute as defendant the decedent’s son, as decedent’s personal representative, and should have then served process on that representative. The plaintiff failed to use reasonable diligence. View "Relf v. Shatayeva" on Justia Law

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Bjork was a nurse for Dama’s late wife. O’Meara was Dama’s dentist. Dama, then 90 years old, told Bjork that O’Meara had been asking for money and that “he did not want O’Meara to get everything.” Dama’s banker, Williams, informed Bjork that Dama wanted to name Bjork as death-beneficiary on a bank account and sent Bjork a “Power of Attorney,” signed by Dama. Bjork signed and returned it to Williams. Later, Dama signed a power of attorney, appointing O’Meara as agent, and revoking powers previously granted to Bjork, then executed a will, leaving his entire estate to O’Meara. Bjork and Dama remained in contact by mail, telephone, and visits until shortly before Dama’s death. O’Meara filed the will and was appointed independent representative of Dama’s estate. Bjork filed citation petitions (Probate Act, 755 ILCS 5/16-2). After the estate closed, Bjork sued for intentional interference with testamentary expectancy. The circuit court dismissed, citing the six-month limitation period of the Probate Act. The appellate court affirmed. The Illinois Supreme Court reversed. Bjork’s tort claim does not implicate concerns regarding certainty in property rights or efficient estate administration. The probate proceeding did not provide meaningful relief and the claim does not seek to invalidate Dama’s will. View "Bjork v. O'Meara" on Justia Law

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In 1994 Sessions created a trust for his personal benefit, with a "spendthrift" provision prohibiting use of trust assets to pay creditors. In 1995, he irrevocably promised $1.5 million to Rush Medical Center for a building and provided for it in his will. The building, now in operation, bears his name. Sessions later blamed Rush for not diagnosing sooner the cancer of which he died in 2005, without having paid the pledge. Six weeks before his death, he executed a new will making no provision for the pledge. Rush filed a successful probate claim, but estate assets were insufficient to fulfill the pledge. Rush filed a supplemental proceeding to reach assets in the 1994 trust, worth almost $19 million in 2005. The trial court entered summary judgment for Rush; the appellate court reversed, based on the Uniform Fraudulent Transfer Act. The Illinois Supreme Court reversed, reinstating the award. At common law, a person cannot settle his estate in trust for his own benefit so as to be free from liability for his debts. The fact that the Act specifies certain instances in which transfers can be considered fraudulent does not mean that the statute abrogates the common law rule. View "Rush Univ. Med. Ctr. v. Sessions" on Justia Law