In re Marriage of Lyman

2015 IL App (1st) 132832
Appellate Court of Illinois·Decided March 26, 2015·No. 1-13-2832·Published·Cited by 18 cases

Opinion

Illinois Official Reports

Appellate Court

In re Marriage of Lyman, 2015 IL App (1st) 132832

Appellate Court In re MARRIAGE OF DEBORAH L. LYMAN, Petitioner-Appellant Caption and Cross-Appellee, and ROBERT E. LYMAN, Respondent- Appellee and Cross-Appellant.

District & No. First District, First Division Docket No. 1-13-2832

Filed February 2, 2015

Held In the dissolution of the parties’ marriage, the trial court properly (Note: This syllabus dismissed petitioner’s amended and second amended petitions filed constitutes no part of the pursuant to section 2-1401 of the Code of Civil Procedure, and the opinion of the court but appellate court reversed the trial court’s grant of leave to petitioner to has been prepared by the file her second amended section 2-1401 petition and the motion Reporter of Decisions granting sanctions to respondent was vacated and the cause was for the convenience of remanded for a hearing to determine whether respondent should be the reader.) awarded attorney fees under section 508(a) of the Marriage and Dissolution Act, since petitioner failed to show her proposed amendment would cure the defective pleading, the second amended petition to modify the judgment of dissolution was merely a “cut and paste” of the words used in her first pleading, the record did not support petitioner’s claim that respondent concealed his assets, petitioner elected to forego further discovery by accepting a representation and warranty of full and complete disclosure at her own peril, and even though she had the opportunity to negotiate a clause into the settlement agreement requiring respondent to disclose his interest in his businesses, she failed to do so.

Decision Under Appeal from the Circuit Court of Cook County, No. 07-D-7096; the Review Hon. Mark Lopez, Judge, presiding. Judgment Affirmed in part, reversed in part, vacated in part, and remanded with directions.

Counsel on Miller Shakman & Beem LLP (Karen L. Levine and Melissa B. Pryor, Appeal of counsel), and Miner Barnhill & Galland, P.C. (George F. Galland, Jr., of counsel), both of Chicago, for appellant.

Lake Toback, of Chicago (Michael G. DiDomenico and Sean M. Hamann, of counsel), for appellee.

Panel PRESIDING JUSTICE DELORT delivered the judgment of the court, with opinion. Justices Cunningham and Connors concurred in the judgment and opinion.

OPINION

¶1 This divorce case illustrates the difficulty a spouse has in extricating herself from a marital settlement agreement whose terms were, in retrospect, not as generous as she would have liked. Petitioner Deborah Lyman and respondent Robert Lyman entered into a marital settlement agreement (MSA), which was incorporated into a divorce judgment. Deborah filed postjudgment petitions claiming fraud and breach of the MSA pursuant to section 2-1401 of the Illinois Code of Civil Procedure (Code) (735 ILCS 5/2-1401 (West 2010)). She argued that she was fraudulently induced to enter into the MSA because Robert informed her that his businesses were ceasing to operate and would lose their value. Robert moved to dismiss Deborah’s amended section 2-1401 petition pursuant to sections 2-619(a)(4) and (a)(9) of the Code (735 ILCS 5/2-619(a)(4), (a)(9) (West 2010)). Robert also moved for sanctions against Deborah under Illinois Supreme Court Rule 137 (Ill. S. Ct. R. 137 (eff. Feb. 1, 1994)). The trial court granted Robert’s motion to dismiss and motion for sanctions, from which Deborah appeals. For the following reasons, we affirm in part, reverse in part, vacate in part, and remand this matter with directions to the trial court to conduct a hearing to determine whether to award attorney fees to Robert under section 508(a) of the Illinois Marriage and Dissolution of Marriage Act (Act) (750 ILCS 5/508(a) (West 2010)).

-2- ¶2 BACKGROUND1 ¶3 Deborah and Robert were married on November 6, 1982 and have two adult children. On July 16, 2007, Deborah filed for dissolution of marriage in Cook County. 2 Throughout the divorce proceedings, Robert maintained a 40% ownership interest in Mudd-Lyman Set and Service, LLC; ML Sourcing, Inc.; Mudd-Lyman Sales and Service Corporation; and ML Reset, Inc. (collectively, the Mudd-Lyman entities). His partner, Donald Mudd, owned the remaining 60% interest in the Mudd-Lyman entities. According to Deborah, Robert’s interest in the Mudd-Lyman entities represented a substantial portion of the marital estate. ¶4 The parties litigated the divorce for more than two years, during which Deborah conducted discovery of third parties and hired multiple experts to value portions of the marital estate. Deborah focused her efforts on obtaining financial discovery related to the Mudd-Lyman entities. She moved numerous times to compel Robert to produce documents concerning the Mudd-Lyman entities. ¶5 On February 27, 2008, the parties entered into an agreed order providing that Robert would pay Deborah 50% of his net annual salary on a monthly basis beginning March 1, 2008. The order required Robert to provide proof of his monthly net salary at the time he made each payment. In addition, if Robert received a bonus or distribution other than his salary, the net after-tax amount was to be placed in escrow for distribution at a later date to be determined by written agreement or further order of the trial court. ¶6 Also in 2008, Deborah retained an expert to value the Mudd-Lyman entities. The expert had full access to the Mudd-Lyman entities’ corporate documents and scrutinized the companies’ operations for over 30 days. The assessment completed by Deborah’s expert showed that the value of the Mudd-Lyman entities was derived almost exclusively from a contract with Home Depot. The contract with Home Depot accounted for over 90% of the Mudd-Lyman entities’ total annual revenue. On May 15, 2008, the expert valued the Mudd-Lyman entities to be worth approximately $38 million. Throughout the divorce proceedings, Robert informed Deborah that the Mudd-Lyman entities’ lucrative contract with Home Depot was only temporary and that its expiration would affect both the value of Mudd-Lyman and his future earning capacity. ¶7 On November 17, 2008, Deborah moved for leave to subpoena Home Depot to obtain additional information regarding its contract with the Mudd-Lyman entities. She also moved to

1 Robert alleges Deborah’s opening brief violates Illinois Supreme Court Rule 341(h)(6) (Ill. S. Ct. R. 341(h)(6) (eff. July 1, 2008)) by intentionally omitting material facts. Robert requests that her brief be stricken and that other sanctions be imposed. Rule 341(h)(6) requires a statement of the facts, with citation to the record, necessary for an understanding of the case. Id. This rule is not merely a suggestion, but is necessary for the proper and efficient administration of the courts. In re Marriage of Kiferbaum, 2014 IL App (1st) 130736, ¶ 20. Deborah’s fact section does indeed contain some material omissions, most notably, the key portions of the MSA at issue on appeal. We were nevertheless able to access those omitted portions in the record. We deny Robert’s motion to strike, but we note that our supreme court’s rules are not simply hortatory, but are mandatory and are to be scrupulously followed. In re Marriage of Petrik, 2012 IL App (2d) 110495, ¶ 38. 2 Deborah’s verified petition for dissolution of marriage alleges that on July 12, 2005, while both parties were residing in Lake County, Illinois, Robert filed a petition for dissolution of marriage in that county. Deborah alleges that the Lake County proceeding remained pending for two years and was set for trial on November 5, 2007. Robert voluntarily dismissed the Lake County case on July 17, 2007.

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In re Marriage of Lyman
2015 IL App (1st) 132832 (Appellate Court of Illinois, 2015)