In re Marriage of Landgren

2022 IL App (2d) 210408-U
CourtAppellate Court of Illinois
DecidedMay 24, 2023
Docket2-21-0408
StatusUnpublished

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

Opinion

2022 IL App (2d) 210408-U 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 2022 IL App (2d) 210408-U

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.

-2- 2022 IL App (2d) 210408-U

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

-3- 2022 IL App (2d) 210408-U

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

-4- 2022 IL App (2d) 210408-U

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.

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