In re Marriage of Kane

2016 IL App (2d) 150774, 76 N.E.3d 20
CourtAppellate Court of Illinois
DecidedDecember 29, 2016
Docket2-15-0774
StatusUnpublished
Cited by5 cases

This text of 2016 IL App (2d) 150774 (In re Marriage of Kane) 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 Marriage of Kane, 2016 IL App (2d) 150774, 76 N.E.3d 20 (Ill. Ct. App. 2016).

Opinion

2016 IL App (2d) 150774 No. 2-15-0774 Opinion filed December 29, 2016 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

In re MARRIAGE OF ) Appeal from the Circuit Court GREGORY PHILLIP KANE, ) of Du Page County ) Petitioner-Appellee, ) ) and ) No. 14-D-1199 ) HEATHER ANN KANE, ) ) Respondent-Appellee ) Honorable ) Linda E. Davenport, (Michael D. Canulli, Appellant). ) Judge, Presiding ______________________________________________________________________________

JUSTICE SPENCE delivered the judgment of the court, with opinion. Justices McLaren and Schostok concurred in the judgment and opinion.

OPINION

¶1 This dispute concerns fees sought by attorney Michael D. Canulli, who represented

petitioner, Gregory Phillip Kane, during a portion of his dissolution-of-marriage proceeding.

Upon withdrawing as counsel, Canulli filed against Gregory a petition for setting final fees and

costs pursuant to section 508(c) of the Illinois Marriage and Dissolution of Marriage Act (Act)

(750 ILCS 5/508(c) (West 2014)), and against respondent, Heather Ann Kane, a petition for

contribution pursuant to section 503(j) of the Act (750 ILCS 5/503(j) (West 2014)). In both

petitions, Canulli sought an award of approximately $48,000, which was in addition to the

$37,500 that he had already been paid. Following a full evidentiary hearing, the trial court 2016 IL App (2d) 150774

denied Canulli’s request for contribution from Heather, but it awarded Canulli $12,500 on his

petition against Gregory. Because the trial court’s rulings on the petitions were not an abuse of

discretion, we affirm.

¶2 I. BACKGROUND

¶3 Gregory and Heather were married in 1995 and have two minor children. In June 2014,

Gregory filed a pro se petition for dissolution of marriage. He thereafter retained Canulli on July

1, 2014. Canulli and Gregory’s written engagement agreement provided that, if Gregory had an

objection regarding any of Canulli’s billing statements, he would notify Canulli in writing within

seven days of receiving the statement; otherwise the objection would be considered waived.

Canulli filed his appearance on behalf of Gregory on July 23, 2014. On September 23, 2014, the

trial court entered an order awarding Canulli $37,500 in interim attorney fees, by way of a

Qualified Domestic Relations Order that partially liquidated Heather’s retirement account.

Canulli’s billing records indicated that from July 1, 2014, through September 23, 2014, he billed

Gregory approximately $35,000 in attorney fees. On January 15, 2015, Canulli filed a second

petition for interim fees, seeking an additional $72,000. According to the petition, said sum

would satisfy his then-unpaid fees of $37,000 and provide an additional retainer of $35,000.

¶4 On February 4, 2015, Canulli sent Gregory an email stating that his balance due was

nearly $43,000, and that he would be willing to stay on the case if Gregory and Heather entered

an agreed order to each receive $200,000 from Heather’s retirement account, and that Gregory

would have to further agree to use $90,000 to pay Canulli’s fees, with the surplus funds

constituting an additional retainer.

¶5 Gregory did not agree, and on February 10, 2015, Canulli filed an emergency motion to

withdraw as counsel, alleging an inability to communicate with Gregory and unpaid attorney

-2- 2016 IL App (2d) 150774

fees. On February 13, 2015, the trial court granted Canulli’s request to withdraw his appearance

and also granted him leave to file fee petitions. Gregory represented himself pro se for several

weeks and then retained new counsel, who entered an appearance on April 23, 2015. Said

counsel continues to represent Gregory in this appeal.

¶6 Within the dissolution action, on April 15, 2015, Canulli filed against Gregory a petition

for setting final fees and costs pursuant to section 508(c) of the Act. Canulli also filed against

Heather a petition for contribution pursuant to section 503(j) of the Act. The engagement

agreement and 28 pages of itemized billing statements were among the exhibits attached to the

fee petitions. In both petitions, Canulli acknowledged that he had already been paid $37,500 in

fees, but he alleged that he was owed an additional $48,000.

¶7 On May 1, 2015, the trial court entered a judgment for dissolution of marriage, which

incorporated a marital settlement agreement and a joint parenting agreement. Said judgment

awarded Gregory and Heather joint legal custody of the children, awarded Heather primary

residential custody of the children, established a visitation schedule, and awarded Gregory

$27,000 in maintenance in gross.

¶8 The trial court held a day-long evidentiary hearing on Canulli’s fee petitions on July 2,

2015. The court took judicial notice of the court file and admitted into evidence Canulli’s 28

pages of itemized billing statements, which reflected that he had billed Gregory for 268.7 hours

from July 2014 until he withdrew in February 2015. At the hearing, Canulli testified, in relevant

part, as follows. He had practiced family law for 38 years. Gregory filed a number of pleadings

pro se, which Canulli agreed was not normal or customary. The total fees incurred in Canulli’s

representation of Gregory were $85,529.86, of which he had been paid $37,500. Canulli thus

sought the remaining balance of more than $48,000. Gregory and Heather had no ability to

-3- 2016 IL App (2d) 150774

communicate or resolve any matters in the case, and “the case was litigious on both ends.”

Gregory was “unusually extraordinarily emotional” about the divorce. Gregory and Canulli

exchanged emails almost every day, and sometimes more than once a day. Canulli also testified

as to his billing practices that he recorded services contemporaneously when rendered and that he

reviewed each bill for accuracy before mailing it to Gregory.

¶9 On cross-examination, Canulli was questioned regarding billing entries that opposing

counsel asserted were unreasonable and unnecessary. Much of the hearing was spent going line-

by-line through these entries. Canulli was questioned regarding time that he billed to review

pleadings that, according to his billing statements, were filed by Heather when in fact no such

pleadings had been filed. Canulli also billed for drafting motions that were not noticed or

presented to the court and in some cases never filed. Canulli acknowledged that he did not

prepare for trial, nor did he prepare a trial notebook, parenting agreement, or marital settlement

agreement. On several days he billed more than 10 hours on Gregory’s case.

¶ 10 Gregory testified as follows. He was employed by the Illinois River Winery, a

corporation of which he was the sole shareholder and director and from which he drew an annual

salary of $18,000. Gregory was awarded the business by way of the parties’ marital settlement

agreement. The corporation had recently emerged from Chapter 11 bankruptcy, and Gregory

operated it judgment-free. The gross receipts for the winery in 2014 were approximately

$500,000, and its checking account contained approximately $3000. The winery owned the real

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Bluebook (online)
2016 IL App (2d) 150774, 76 N.E.3d 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-kane-illappct-2016.