Ghantous v. Ghantous

2014 IL App (3d) 130792, 20 N.E.3d 834
CourtAppellate Court of Illinois
DecidedNovember 4, 2014
Docket3-13-0792
StatusUnpublished
Cited by1 cases

This text of 2014 IL App (3d) 130792 (Ghantous v. Ghantous) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ghantous v. Ghantous, 2014 IL App (3d) 130792, 20 N.E.3d 834 (Ill. Ct. App. 2014).

Opinion

2014 IL App (3d) 130792

Opinion filed November 4, 2014 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

A.D., 2014

SOUAD GHANTOUS, Individually, and as ) Appeal from the Circuit Court Administrator with Will Annexed of the Estate of ) of the 10th Judicial Circuit, Camille I. Ghantous Revocable Trust Agreement) Peoria County, Illinois. Dated April 4, 1999, and as Trustee of the Souad ) Ghantous Revocable Trust Agreement Dated ) April 8, 1999, ) ) Plaintiff-Appellant, ) v. ) Appeal No. 3-13-0792 ) Circuit No. 12-CH-95 ELIAS C. GHANTOUS, a/k/a Leo Ghantous, ) REGIONS BANK and HAYMEADOW ) INVESTMENTS, LLC, an Illinois Limited ) Liability Corporation, ) ) Honorable Michael E. Brandt, Defendants-Appellees. ) Judge, Presiding. ___________________________________________________________________________

JUSTICE WRIGHT delivered the judgment of the court, with opinion. Justices Holdridge and O’Brien concurred in the judgment and opinion. ___________________________________________________________________________

OPINION

¶1 The controversy in the case at bar was one of five lawsuits simultaneously pending in the

Peoria County circuit court involving disputes between plaintiff Souad Ghantous (Souad) and/or

her children. Defendant Leo Ghantous (Leo) is a party in all five cases and Souad is either named as a party plaintiff or beneficiary in two cases, namely, the instant chancery case, case

No. 12-CH-95 and a pending probate case, case No. 10-P-100.

¶2 Even though Souad was not a named party in all five cases, she initiated settlement

discussions with Leo by proposing a global settlement agreement to resolve all five pending

cases. Souad’s proposal suggested the dismissal of four lawsuits with prejudice and dictated, in

part, the conduct of the beneficiaries with respect to the administration of the probate estate.

¶3 According to Leo, he incorporated every one of the enforceable conditions his mother

proposed into a written release and settlement agreement (Exhibit E), which his mother, Souad,

refused to sign. Consequently, Leo simultaneously filed the identical “Motion to Enforce the

Settlement Agreement” (Motion to Enforce) in all five pending cases. After two contested

motion hearings, the trial court found the parties had reached a global release and settlement

agreement affecting all five cases and ordered the parties to sign a modified release and

settlement agreement (Exhibit G) prepared by Souad’s attorney. The court denied Souad’s

motion to reconsider that ruling.

¶4 Souad appeals the order denying her request to reconsider the entry of the order enforcing

the global release and settlement agreement in case No. 12-CH-95, alone. The same order

enforcing the global release and settlement agreement has not been challenged in the other four

cases and remains binding on all parties to the agreement, including Souad. Consequently, we

are unable to effectuate the relief requested by Souad and dismiss the appeal according to the

doctrine of mootness and the doctrine of release of errors.

¶5 BACKGROUND

¶6 On February 7, 2012, Souad Ghantous filed this chancery complaint against her son, Leo,

alleging Leo breached a fiduciary duty. According to the complaint, Souad and Camille

2 Ghantous were “elderly immigrants from Lebanon” who relied on their son, Leo, a licensed

attorney, for both legal and financial advice. In addition to their son Leo, Souad and Camille had

three more children: Elza, Ibrahim, and Antoun Ghantous. This controversy was one of five

lawsuits simultaneously pending in the Peoria County circuit court involving disputes between

Souad and/or three of her children, Leo, Elza, and Ibrahim, and the probate of Camille’s estate

following his death in 2010.

¶7 In Camille’s probate case, case No. 10-P-100 -- In re Estate of Ghantous -- Souad was

named administrator of Camille’s estate. Thereafter, Leo initiated the following three separate

lawsuits involving financial disputes with his siblings: case No. 11-L-343 -- Ghantous v. Elza

Ghantous; case No. 12-L-240 -- Ghantous v. Elza Ghantous; and case No. 12-L-287 -- Ghantous

v. Elza and Ibrahim Ghantous.

¶8 On February 7, 2012, Souad initiated this chancery action against Leo; Leo’s company,

Haymeadow Investments, LLC; and Regions Bank. In this complaint, Souad is named plaintiff,

acting in three separate and distinct capacities: (1) as the “Administrator with Will annexed of

the Estate of Camille I. Ghantous Revocable Trust Agreement dated April 4, 1999”; (2) as the

“Trustee of the Souad Ghantous Revocable Trust Agreement dated April 8, 1999”; and (3)

individually, on her own behalf.

¶9 The chancery complaint, filed by Souad, sought equitable relief and money damages

against Leo for “Breach of Fiduciary Duty.” The complaint stated Leo persuaded his parents to

personally borrow $1.1 million in January of 2007, using their own multiple properties as

collateral, to contribute toward the purchase price of the Haymeadow Apartments as a “family

business.” Souad, Camille, and Leo were to share ownership interests in the apartments in

percentages that reflected their contributions toward the purchase of the property. According to

3 this complaint, Leo breached a fiduciary duty to his parents when he drafted legal documents

creating Haymeadow Investments, LLC (LLC), in his name alone as the only title holder to the

newly acquired Haymeadow Apartments. The complaint alleged Leo’s actions were contrary to

his verbal agreement with his elderly parents.

¶ 10 According to the complaint, the documents Leo prepared did not address the $1.1 million

investment Souad and Camille made toward the purchase of the apartments, which they believed

would be operated as a family business. Souad alleged in the complaint that Leo obtained a loan

for the Haymeadow Apartments, excluding the $1.1 million paid by Souad and Camille, for

$7,100,000. Souad and Camille’s $1.1 million investment came from a loan that was secured by

Souad and Camille’s other real estate properties and not the Haymeadow Apartments. Thus, the

complaint alleged Leo, through his LLC, solely obtained title to the Haymeadow Apartments

while his parents became solely responsible to repay the $1.1 million loan for their contribution

to the Haymeadow Apartments.

¶ 11 After Camille’s death in 2010, Souad first discovered that she and Camille did not have

any ownership interest that corresponded to the percentage of funds they contributed to the

purchase price of the Haymeadow Apartments. She made this discovery when she became the

administrator of Camille’s estate in Peoria County case No. 10-P-100. The complaint in this

chancery matter alleges Leo had partially repaid some money toward the $1.1 million loan, at the

time of filing, leaving a remaining balance of $675,000.

¶ 12 In this chancery proceeding, Souad requested equitable relief by asking the court to place

the Haymeadow Apartments into a constructive trust, naming Souad personally, together with

Camille’s estate, as the equitable trustees, and ordering Leo to transfer all legal and equitable

interests in these apartments to Souad and the estate of Camille. Souad also asked for money

4 damages in the amount of $675,000, the unpaid balance of the loan, plus attorney fees and the

costs of the lawsuit.

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Ghantous v. Ghantous
2014 IL App (3d) 130792 (Appellate Court of Illinois, 2014)

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2014 IL App (3d) 130792, 20 N.E.3d 834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ghantous-v-ghantous-illappct-2014.