In re Estate of Matteis

2022 IL App (1st) 210800-U
CourtAppellate Court of Illinois
DecidedJuly 14, 2022
Docket1-21-0800
StatusUnpublished
Cited by1 cases

This text of 2022 IL App (1st) 210800-U (In re Estate of Matteis) 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 Matteis, 2022 IL App (1st) 210800-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (1st) 210800-U No. 1-21-0800 Order filed July 14, 2022 Fourth Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ In re ESTATE OF MARY MAROL MATTEIS, Deceased ) Appeal from the ) Circuit Court of (Giovanni Matteis, Petitioner-Appellee; and Marol State, ) Cook County. LLC, Marol Rush, LLC, Ralph W. Marol, Individually ) and in his Capacity as Manager of Marol State, LLC, and ) Marol Rush, LLC, and Matthew Marol, Respondents- ) No. 20 P 1580 Appellants). ) ---------------------------------------------------------------------- ) RALPH W. MAROL, Individually and in his Capacity as ) Consolidated Manager of Marol State, LLC, and Marol Rush, LLC, ) MAROL STATE, LLC, and MAROL RUSH, LLC, ) ) Plaintiffs-Appellants, ) ) v. ) No. 20 CH 4401 ) BYLINE BANK, Successor Trustee of The Mary Marol ) Matteis Declaration of Trust dated September 6, 2006, and ) The Mary Marol Matteis Declaration of Trust dated ) September 6, 2006, ) ) Defendants ) ) Honorable (Giovanni Matteis, Petitioner-Appellee; and Matthew ) Terrence J. McGuire, Marol, Respondent-Appellant). ) Judge, presiding. No. 1-21-0800

JUSTICE LAMPKIN delivered the judgment of the court. Justices Rochford and Martin concurred in the judgment.

ORDER

¶1 Held: (1) Petitioner, who was entitled to distributions from a trust that consisted of the decedent’s interests in two companies, had standing to move to disqualify opposing counsel because petitioner had a legally cognizable interest that was threatened by the companies’ and their individual members’ joint representation by the same counsel.

(2) The trial court did not abuse its discretion by disqualifying counsel from jointly representing the two companies and their members in their individual capacities because there was a significant risk that counsel’s joint representation of one or more clients would be materially limited by counsel’s responsibilities to another client.

¶2 In litigation involving, inter alia, the parties’ disagreement about the nature and extent of

their ownership, management, and participation rights in two companies, i.e., Marol State, LLC

and Marol Rush, LLC, the trial court entered an order disqualifying the companies’ counsel of

record from jointly representing both the two companies and their members, Ralph and Matthew

Marol, individually. The court allowed counsel to represent either the two companies or Ralph and

Matthew.

¶3 On appeal, appellants Marol State, LLC, Marol Rush, LLC, and Ralph and Matthew Marol

argue that appellee Giovanni Matteis’s motions to disqualify their counsel was a tactical weapon

to harass them and they have been deprived of their fundamental right to counsel of their choice.

They also argue that Giovanni lacked standing to assert the attorney disqualification motions and

the trial court erroneously disqualified their counsel based on a mere potential conflict of interest.

-2- No. 1-21-0800

¶4 For the reasons that follow, we affirm the judgment of the circuit court. 1

¶5 I. BACKGROUND

¶6 In April 2020, a probate case was filed to administer the estate of decedent Mary Marol

Matteis, who died testate in March 2019. Her sole heir at law is her surviving spouse, appellee

Giovanni Matteis, but he was not a legatee under her will. Appellant Ralph Marol is decedent’s

brother. Appellant Matthew Marol is Ralph’s son and decedent’s nephew. As of January 2021,

Byline Bank is the successor trustee of decedent’s trust and successor executor of her estate.

¶7 During her lifetime, decedent established The Mary Marol Matteis Declaration of Trust,

dated September 6, 2006. The trust was amended and restated on September 23, 2008, and again

on October 8, 2016. The trust is the sole legatee under decedent’s will, dated October 8, 2016.

¶8 Decedent died owning a 50% interest of two limited liability companies, i.e., appellants

Marol State, LLC and Marol Rush, LLC (collectively, the companies), which held and managed

parcels of real estate. Also, decedent was a member of the companies at the time of her death.

During decedent’s lifetime, Ralph was the other 50% owner of the companies. Both Ralph and

decedent were co-managers of the companies. After decedent’s death, Matthew became a manager

and member of both companies.

¶9 During her lifetime, decedent assigned on October 16, 2016, her economic interest in the

companies to herself in her capacity as the trustee of the trust. She was the sole beneficiary of the

trust until her death. Her will stated that after personal effects were distributed, the estate residue

was to be distributed to the trust. The trust agreement provided that, after her death, the trust residue

1 In adherence with the requirements of Illinois Supreme Court Rule 352(a) (eff. July 1, 2018), this appeal has been resolved without oral argument upon the entry of a separate written order.

-3- No. 1-21-0800

would be divided into a marital trust and a family trust. During his lifetime, Giovanni would be

entitled to mandatory income distributions and discretionary principal distributions from the

marital and family trusts for reasonable support, maintenance and health. Upon Giovanni’s death,

Matthew would receive the trust corpus.

¶ 10 In May 2020, the probate court granted the executor’s petition for issuance of citations to

discover assets against Ralph, Matthew, the companies, and the companies’ accountants. The

petition sought information regarding the management and finances of the companies, including

profit and loss statements, tax records, bank statements, payroll records, and management records.

¶ 11 In June 2020, Ralph, individually and on behalf of and as a manager of the companies, and

the companies, by their counsel Robbins, Salomon & Patt, Ltd. (Robbins), 2 filed a chancery case

against the trustee, seeking a declaratory judgment regarding issues related to the trust, the citation

proceedings, and the ownership of the companies. Specifically, Ralph and the companies sought

entry of a judgment that the trust and estate were not members of the companies, were limited to

transferee interests only, and thus were not entitled to review the companies’ books and papers.

¶ 12 Also in June 2020, Robbins filed in the probate case its appearance on behalf of Ralph and

the companies and moved the court to issue a protective order to supervise and limit discovery

pending resolution of Ralph and the companies’ contemporaneous action for declaratory relief in

chancery court.

¶ 13 In July 2020, Giovanni filed in the probate case petitions to issue citations to recover assets

against the companies, and the citations were issued in August 2020. In response, Robbins moved

2 Effective January 11, 2022, Robbins, Saloman & Patt, Ltd. changed its name to Robbins DiMonte, Ltd.

-4- No. 1-21-0800

to dismiss the recovery citations on behalf of the companies, arguing that decedent was dissociated

from the companies at the time of her death as a matter of law and the most her estate could claim

was a distributional interest.

¶ 14 In October 2020, Giovanni filed a renunciation of decedent’s will.

¶ 15 In November 2020, the probate court denied Ralph and the companies’ motion for a

protective order.

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Related

In re Estate of Matteis
2022 IL App (1st) 220793-U (Appellate Court of Illinois, 2022)

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Bluebook (online)
2022 IL App (1st) 210800-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-matteis-illappct-2022.