In re Estate of Pawlinski

942 N.E.2d 728, 407 Ill. App. 3d 957, 347 Ill. Dec. 525, 2011 Ill. App. LEXIS 29
CourtAppellate Court of Illinois
DecidedJanuary 21, 2011
Docket1-09-2785 Rel
StatusPublished
Cited by16 cases

This text of 942 N.E.2d 728 (In re Estate of Pawlinski) 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 Pawlinski, 942 N.E.2d 728, 407 Ill. App. 3d 957, 347 Ill. Dec. 525, 2011 Ill. App. LEXIS 29 (Ill. Ct. App. 2011).

Opinion

PRESIDING JUSTICE GARCIA

delivered the judgment of the court, with opinion.

Justices Cahill and McBride concurred in the judgment and opinion.

OPINION

The decedent, Victoria M. Pawlinski, is survived by three children, appellant Sidmund J. Pawlinski (Sid) and appellees Edward Pawlinski (Ed) and Margaret Pawlinski Calvert. Sid, as executor of Victoria’s will, filed a final account of the estate’s assets for distribution amongst the three heirs. The final account did not include a number of bank certificates of deposit (CDs), worth over $500,000 combined and each titled jointly to Sid and Victoria. Ed and Margaret challenged the omissions in a citation to recover the CDs. Following an evidentiary hearing, Judge Jeffery A. Malak ordered the CDs be included in the assets of the estate. The CDs were retitled to Sid and Victoria as joint tenants after a grant of power of attorney by Victoria to Sid. Judge Malak found Sid failed to overcome the presumption of undue influence by clear and convincing evidence. Sid contends Judge Malak erred in his application of the presumption of undue influence in light of the evidence presented, in his failure to find that Ed and Margaret “conceded” that Sid met his burden of overcoming the presumption of undue influence when Ed and Margaret introduced rebuttal evidence, and in his rejection of Sid’s motion to reopen the proofs. We find Judge Malak properly applied the strong presumption of undue influence, favored by Illinois courts, against a fiduciary and his ruling at the conclusion of the evidentiary hearing is not against the manifest weight of the evidence. Because Sid’s motion to reopen the proofs was filed on the same day as the notice of appeal and was not ruled upon until several months thereafter, the propriety of that ruling is not properly before us. We affirm in part and dismiss in part.

BACKGROUND

Victoria Pawlinski died on August 24, 2004, survived by her three children, Sid, Ed, and Margaret. Victoria moved to Sid’s home in early February 2002 following the death of her husband, Sidmund Pawlinski, Sr. (Sid Sr.), on January 31, 2002. At the time of Sid Sr.’s death, both he and Victoria were residing in a nursing home. While a resident of the nursing home, Victoria granted Sid power of attorney on February 1, 2002. Victoria resided with Sid until her death on August 24, 2004.

Victoria’s will was admitted to probate on December 3, 2004, and, in accordance with its terms, Sid was appointed executor of her estate. The will stated Vitoria’s intention “to provide for all [her] children.” The will provided that the tangible personal property and all remaining property Victoria owned at the time of her death pass to the trustee of the “Victoria M. Pawlinski Trust [Pawlinski Trust] dated May 31, 2002.” However, the parties were unable to locate the Pawlinski Trust document by the time of the hearing. Following the entry of the order declaring the three children sole heirs of Victoria, Sid filed a first and final account of the assets of the estate for equal distribution amongst Sid, Ed, and Margaret.

On July 7, 2006, Ed and Margaret filed a citation to discover assets of the estate alleging Sid possessed and withheld from the estate CDs with multiple banks worth over $500,000. Upon review of the citation, Judge Malak converted it to a citation to recover assets, which he issued on October 18, 2006. Judge Malak also granted Ed and Margaret’s motion for partial summary judgment, finding that a fiduciary relationship existed between Sid and Victoria from February 1, 2002, when she appointed Sid as her attorney-in-fact, until her death. The existence of a fiduciary relationship gave rise to a presumption that any transaction executed by Victoria for Sid’s benefit during that period was fraudulent as a product of undue influence. Judge Malak noted that the presumption could only be overcome by clear and convincing evidence. Beginning in April and concluding in June 2009, Judge Malak conducted an evidentiary hearing on the citation to recover assets to determine whether the CDs should be included as assets of the estate. We set out the testimony of only those witnesses that impact the issue on appeal.

Attorney Arthur Douglas Wellman testified he had represented Sid in various matters for the previous 15 years. In January 2002, Sid contacted him regarding his parents, both of whom were ill and living in a nursing home. Attorney Wellman met with Sid Sr., who stated his wish to grant Sid power of attorney over the assets he held jointly with Victoria. Before a power of attorney could be executed, Sid Sr. passed away on January 31, 2002. Attorney Wellman then met with Victoria in the nursing home on February 1, 2002. She granted power of attorney to Sid that same day and indicated to attorney Wellman that she “entrusted [Sid] implicitly.” Sid was present when Victoria signed the power of attorney, accepted the appointment as Victoria’s attorney-in-fact and agreed to “perform in said fiduciary capacity consistent with [Victoria’s] best interests.”

Attorney Wellman met with Victoria again later in February 2002 at Sid’s home. According to attorney Wellman, the two met alone in a bedroom. Victoria revealed that her estate was worth over $1 million. Attorney Wellman encouraged Victoria to have financial representatives meet with her in the home to discuss how she could get the highest rate of return on her money. Victoria informed attorney Wellman that both she and her husband wanted Sid to help them with their financial affairs and that the bulk of her bank accounts and CDs should go to him upon her death. They discussed retitling some of her accounts jointly with Sid.

Attorney Wellman testified he prepared a will for Victoria, which was designed to pour the majority of her assets into an irrevocable trust he also prepared. The assets placed into the trust would go to Sid, Sid’s wife, and Sid’s son; any assets not placed in the trust would be distributed equally amongst Sid, Ed, and Margaret. To challenge the existence of a pourover trust, Ed and Margaret’s attorney introduced into evidence a letter from attorney Wellman dated April 5, 2005, which stated, “There was no living trust or trust of any kind executed or in existence at the time of [Victoria’s] death to [my] knowledge or in my possession.” No pourover trust was ever introduced at the citation hearing.

Sid testified that he never discussed the power of attorney with attorney Wellman and that it was his parents’ wish that he hold power of attorney over their assets. Under the power of attorney, Sid paid bills for his mother through a checking account his mother opened listing Sid as a joint tenant. He also added his name as joint tenant with Victoria to CDs at three different banks that had been previously titled to Victoria and Sid Sr. Sid denied participating in any of the meetings between attorney Wellman and Victoria, although he was aware attorney Wellman was preparing her will.

Sid testified that sometime in early March 2002, at Victoria’s request, he arranged for representatives from LaSalle Bank to come to his house to speak with Victoria. According to Sid, he remained in the kitchen having coffee while the two LaSalle Bank representatives met with Victoria in the dining room.

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Cite This Page — Counsel Stack

Bluebook (online)
942 N.E.2d 728, 407 Ill. App. 3d 957, 347 Ill. Dec. 525, 2011 Ill. App. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-pawlinski-illappct-2011.