In re Marriage of Landgren

2022 IL App (2d) 210408-U
Appellate Court of Illinois·Decided May 24, 2023·No. 2-21-0408·Unpublished

Opinion

Nos. 2-21-0408 & 3-22-0037 cons.

Order filed May 24, 2023

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(l).

IN THE

APPELLATE COURT OF ILLINOIS SECOND DISTRICT

In re MARRIAGE of DIANE LANDGREN, ) Appeal from the Circuit Court ) of Du Page County.

Petitioner-Appellant, )

)

and ) No. 15-D-623 )

ROY LANDGREN, ) Honorable ) Linda E. Davenport,

Respondent-Appellee. ) Judge, Presiding.

JUSTICE JORGENSEN delivered the judgment of the court.

Presiding Justice McLaren and Justice Kennedy concurred in the judgment.

ORDER

¶1 Held: Trial court erred in dismissing motions seeking an accounting and distribution of marital assets where marital settlement agreement created express trust, naming respondent as trustee, and petitioner adequately pleaded breach of fiduciary duties;

while petitioner’s claim of damages was speculative, it was not apparent that she could not prove a set of facts that would entitled her to prevail, rendering dismissal with prejudice inappropriate; petitioner’s argument that she should have been allowed to amend her complaint while this appeal was pending is moot.

¶2 I. INTRODUCTION

¶3 Before this court are two consolidated appeals. In the first (No. 2-21-0408), petitioner, Diane Landgren, appeals an order of the circuit court of Du Page County dismissing two motions

she filed relating to the dissolution of her marriage to respondent, Roy Landgren. Respondent moved to dismiss in accordance with section 2-619.1 of the Civil Practice Law (735 Ill. 2d 5/2- 619.1 (West 2020)). Regarding the first appeal, we reverse. In the second (No. 3-22-0037), petitioner appeals the trial court’s denial of her motion to amend her complaint to add two additional counts. We dismiss the second appeal as moot. We remand this cause for further proceedings.

¶4 II. BACKGROUND

¶5 Petitioner filed a petition for dissolution of marriage on March 25, 2015. The parties entered into a marital settlement agreement (MSA), and the trial court entered a final decree on March 7, 2016. The decree incorporated the MSA by reference, but it was not made part of the record due to the parties’ desire for confidentiality. The MSA contained, inter alia, the following provisions:

“A. ROY shall hold DIANE’s beneficial interest in the Business Entity [Greenhouse Group, LLC] as a constructive trustee for and on behalf of DIANE until such time as the Business Entity, or portion thereof, is sold, transferred or terminated, or in any manner effected such that ROY no longer has an ownership interest in the Business Entity and DIANE has received any and all distributions, return of capital or other liquidation funds in compliance with this Agreement.

***

With respect to any option given to a member under the Operating Agreement, ROY shall follow DIANE’s direction regarding her 50% interest therein (i.e. purchase of another member’s interest, sale of her interest, participation in a capital call or other options presented), to the extent allowed by the Operating Agreement.

B. ROY shall provide DIANE, upon his receipt, and [sic] any and all documents received in connection with Greenhouse Group, LLC or any successor business/entity, including but not limited to statements, correspondence, evidence of transactions, distributions, income, sale, transfer, liabilities and withdrawals.

***

In the event there are request [sic] or demands made upon ROY by the Greenhouse Group, LLC or successor business/entity for a vote, decision, capital call, contribution or payment, ROY shall immediately notify DIANE and provide her with all information and documentation provided to ROY.”

It later reiterated:

“[C.](iii) ROY shall hold DIANE’s beneficial interest in the Business Entity as a constructive trustee for and on behalf of DIANE until such time as the Business Entity, or portion thereof, is sold, transferred or terminated, or in any manner effected such that ROY no longer has an ownership interest in the Business Entity and DIANE has received any and all distributions, return of capital or other liquidation funds in compliance with this Agreement.

It further stated:

“ROY and DIANE acknowledge and warrant that they have disclosed to one another all property in which they have an interest, individually or jointly, present or contingent, and any property held by another that could be considered non-marital, marital or divisible under the terms of the PNA and the [Illinois Marriage and Dissolution of Marriage Act] for their benefit in connection with the negotiation of this Agreement. If, after entry of the Judgment for Dissolution of Marriage, it is discovered that additional

property that would otherwise be considered marital under the PNA that is not set forth in this Agreement was owned by ROY or DIANE, whether individually, jointly with another, in trust for his or her benefit, or held by another for his or her benefit at the time of the Triggering Date, or that the values stated for any asset is below that actual value of the asset at the time of entry of the Triggering Date, one-half (1/2) of the value of such additional property at the time of the Triggering Date or such difference between the stated and actual values at the time of the Triggering Date shall become immediately payable (or transferable) from the nondisclosing party to the other party. However, no such division shall take place unless the undisclosed asset exceeded $10,000 in value at the time of entry of Judgment for Dissolution of Marriage. This paragraph shall not apply to the value of the parties’ respective personal property and furniture/furnishings.”

Finally, the MSA stated:

“Diane represents and warrants * * * that she has been fully advised of her rights in this case pending between the parties; and she is conversant with all of Roy’s wealth, property, estate, liabilities, and income, and the value thereof. Whereas the parties acknowledge that any lack of discovery was at their specific instruction and that they were fully informed of the fact they had the right to such information and that legal means are available to secure any and all information that may be necessary to determine facts relating to any matter of concern in the dissolution of the parties’ marriage. The parties have knowingly waived their right to formal discovery including but not limited to interrogatories, depositions, forensic accounting and the like.”

¶6 Petitioner alleges that respondent acquired an interest in Greenhouse Group, LLC (Greenhouse) during the marriage. Greenhouse invested in three medical cannabis dispensaries in

Illinois. Respondent disclosed that they held a 9.7% interest in Greenhouse. During the marriage, respondent invested $300,200 into Greenhouse, and subsequently both parties invested an additional $213,000 each. Greenhouse went through several name changes and mergers, resulting in it having several subsidiaries in various states. Greenhouse eventually became a subsidiary of GR Companies, Inc. (GR). Petitioner asked that her interest in GR be transferred directly to her; however, this could not be accomplished until “after a rollup set to occur by February 2019.” Petitioner received 60.91914 shares of GR on July 26, 2019. She was given no documentation regarding how that amount was determined.

Free access — add to your briefcase to read the full text and ask questions with AI

In re Marriage of Landgren, 2022 IL App (2d) 210408-U (Ill. Ct. App. 2023).

2022 IL App (2d) 210408-U (In re Marriage of Landgren) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Zahl v. Krupa
850 N.E.2d 304 (Appellate Court of Illinois, 2006)
Kurtz v. Solomon
656 N.E.2d 184 (Appellate Court of Illinois, 1995)
R.W. Dunteman Co. v. Village of Lombard
666 N.E.2d 762 (Appellate Court of Illinois, 1996)
ChiCorp, Inc. v. Bower
782 N.E.2d 768 (Appellate Court of Illinois, 2002)
People v. McNulty
892 N.E.2d 73 (Appellate Court of Illinois, 2008)
County of Cook v. Barrett
344 N.E.2d 540 (Appellate Court of Illinois, 1975)
FIRST NAT'L BK. OF JOLIET v. Hampson
410 N.E.2d 1109 (Appellate Court of Illinois, 1980)
Eychaner v. Gross
779 N.E.2d 1115 (Illinois Supreme Court, 2002)
Academy Chicago Publishers v. Cheever
578 N.E.2d 981 (Illinois Supreme Court, 1991)
People Ex Rel. Hartigan v. Candy Club
501 N.E.2d 188 (Appellate Court of Illinois, 1986)
Geist v. Lehmann
312 N.E.2d 42 (Appellate Court of Illinois, 1974)
Village of Lake Villa v. Stokovich
810 N.E.2d 13 (Illinois Supreme Court, 2004)
Swanson v. Randall
195 N.E.2d 656 (Illinois Supreme Court, 1964)
Bruss v. Przybylo
895 N.E.2d 1102 (Appellate Court of Illinois, 2008)
Kerasotes v. Estate of Kerasotes
605 N.E.2d 643 (Appellate Court of Illinois, 1992)
Martin v. Heinold Commodities, Inc.
643 N.E.2d 734 (Illinois Supreme Court, 1994)
Alpha School Bus Co., Inc. v. Wagner
910 N.E.2d 1134 (Appellate Court of Illinois, 2009)
In Re Marriage of Hendry
949 N.E.2d 716 (Appellate Court of Illinois, 2011)
Janowiak v. Tiesi
932 N.E.2d 569 (Appellate Court of Illinois, 2010)
Bennett v. Weber
154 N.E. 105 (Illinois Supreme Court, 1926)