In re Estate of Carlen

2015 IL App (5th) 130599, 2015 WL 1069177
CourtAppellate Court of Illinois
DecidedMarch 11, 2015
Docket5-13-0599
StatusUnpublished
Cited by1 cases

This text of 2015 IL App (5th) 130599 (In re Estate of Carlen) 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
In re Estate of Carlen, 2015 IL App (5th) 130599, 2015 WL 1069177 (Ill. Ct. App. 2015).

Opinion

NOTICE 2015 IL App (5th) 130599 Decision filed 03/11/15. The text of this decision may be NO. 5-13-0599 changed or corrected prior to the filing of a Peti ion for Rehearing or the disposition of IN THE the same.

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ________________________________________________________________________

In re ESTATE OF WALTER L. CARLEN, ) Appeal from the Deceased ) Circuit Court of ) Effingham County. (First State Bank of Beecher City, ) ) Petitioner-Appellee, ) ) v. ) No. 94-P-61 ) David V. Carlen, ) Honorable ) James J. Eder, Respondent-Appellant). ) Judge, presiding. ________________________________________________________________________

PRESIDING JUSTICE CATES delivered the judgment of the court, with opinion. Justice Chapman concurred in the judgment and opinion. Justice Welch dissented, with opinion.

OPINION

¶1 This is an appeal from orders of the circuit court of Effingham County which

reopened the estate of Walter L. Carlen, deceased, for the purpose of reviving a judgment

which had been previously obtained against the estate, but which was about to lapse due

to the passage of time.

¶2 On June 7, 1994, the decedent, Walter L. Carlen, died. His will was admitted to

probate on July 5, 1994, in the circuit court of Effingham County, and David V. Carlen

1 and Lisa M. Carlen were appointed as independent coexecutors of the estate. For reasons

not relevant to this decision, Lisa M. Carlen withdrew as a coexecutor, leaving David V.

Carlen (Executor) as the sole executor of the estate. The verified petition for independent

administration set the approximate value of the estate at $40,000.

¶3 At the time of the decedent's death, the First State Bank of Beecher City (Bank)

was in possession of several promissory notes executed by the decedent. The Bank also

had a security interest in the decedent's farm machinery and equipment, made in

conjunction with a loan to Carlen Fertilizer, Inc., the business operated by the decedent

prior to his death. On January 3, 1995, the Bank filed a claim against the estate, seeking

to hold the estate accountable for all of the decedent's debts. In January of 1998, the

court found in favor of the Bank's claim and entered judgment against the estate in the

amount of $139,470.13, plus costs.

¶4 Once the Bank determined that the assets of the Carlen estate were inadequate to

satisfy its judgment, the Bank began an aggressive campaign against the Carlen estate

hoping to find additional assets or attach property that had been transferred predeath into

the Walter L. Carlen Revocable Trust, dated November 1991. The Bank believed that the

trust property should also be used to satisfy the Bank's judgment. The Executor objected

to the use of the trust res to satisfy the majority of the Bank's debt and claimed that the

property in trust was not a part of the Carlen estate. The parties engaged in contentious

2 litigation which lasted for more than six years. 1 Ultimately, the court found that certain

parcels contained within the Walter L. Carlen trust were available to satisfy the

indebtedness to the Bank. On March 15, 2000, the court entered an order for a judicial

lien in favor of the Bank, consisting of the previous "judgment entered in the amount of

$139,470.13 *** plus interest on the Judgment [in] the sum of $25,551.69 *** from

January 9, 1998, to February 23, 2000, at the rate of 9% per annum." The court further

ordered "[t]hat any and all property subject to the Walter L. Carlen Revocable Trust,

above and beyond the sum of $165,021.82, [was] not subject to this lien."

¶5 On August 14, 2006, toward the end of the legal mêlée between the parties, and

some eight years after the Bank's judgment was entered against the estate, the Bank filed

its first "Petition to Revive Judgment." At the time this petition was filed, the Carlen

estate was still open. As a result of an objection by the Executor, the Bank filed an

"Amended Petition to Revive Judgment" on September 20, 2006. In its amended

petition, the only request made by the Bank was for the accrued interest from the date of

judgment to August 14, 2006. On January 18, 2007, the court entered an order approving

the Bank's amended petition for revival of the judgment, giving the estate credit for

monies paid by the estate on the Bank's debt and granting statutory postjudgment interest

from June 27, 1998, to December 14, 2006. The court found that the Bank was entitled

1 The parties did have another proceeding pending in the circuit court of Effingham

County, State of Illinois, cause No. 00-CH-6, which is not before us.

3 to judgment as of December 14, 2006, in the "total sum of $227,944.52, consisting of

$129,373.52 in principal and $98,571.00 in post-judgment interest."

¶6 On March 27, 2007, almost 13 years after decedent's death, the court approved the

inventory and final accounting submitted by the Executor. In its order, the court found

that the Bank appeared to have been the only creditor of the estate and that there were no

assets available for distribution to the heirs. The court further stated "that the Executor

[had] completed all duties necessary in his capacity as Executor *** and there [was] no

just reason to delay closing the Estate." The Executor was then discharged from his

duties, and the estate was closed on March 27, 2007.

¶7 On June 28, 2013, almost 19 years after the estate was originally opened and some

6 years after the closure of the Carlen estate, the Bank filed a "Petition to Reopen Estate"

pursuant to section 24-9 of the Probate Act of 1975 (755 ILCS 5/24-9 (West 2006)). The

Bank alleged that its judgment remained unpaid and that its unsatisfied judgment was "an

unsettled portion of the estate" within the meaning of the statute.

¶8 On July 2, 2013, the court, finding that notice was unnecessary, entered an ex

parte order granting the Bank's petition, vacated its March 27, 2007, order closing the

estate, and further vacated that portion of the order discharging the Executor.

Additionally, the court required that a new bond be furnished by the Executor, "as

provided by law."

¶9 The former Executor filed a motion to vacate the court's July 2 order. On August

30, 2013, while the Executor's motion to vacate was pending, the Bank filed a new

"Petition to Revive Judgment." In its petition, the Bank went through a summary of the 4 previously granted judgments, as amended with interest, and then requested that the court

add additional interest that had accrued from December 14, 2006, to August 30, 2013.

The Bank did not allege the discovery of any new assets, but merely requested an

increase in the monthly interest due based upon the statute that allows for accruing

interest at the rate of 9% on judgments that remain unsatisfied. 735 ILCS 5/2-1303 (West

2012).

¶ 10 On October 23, 2013, after hearing arguments from the Executor and the Bank, the

court left intact its July 2 order reopening the estate and set a hearing on the Bank's

petition for revival of its judgment. After the Bank's "Petition to Revive Judgment" was

heard, the court granted the petition and added the statutory interest which the Bank had

requested.

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Related

In re Estate of Carlen
2015 IL App (5th) 130599 (Appellate Court of Illinois, 2015)

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2015 IL App (5th) 130599, 2015 WL 1069177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-carlen-illappct-2015.