In Re Marriage of Madoch

571 N.E.2d 1029, 212 Ill. App. 3d 1007, 157 Ill. Dec. 10, 1991 Ill. App. LEXIS 635
CourtAppellate Court of Illinois
DecidedApril 19, 1991
Docket1-89-1880
StatusPublished
Cited by11 cases

This text of 571 N.E.2d 1029 (In Re Marriage of Madoch) 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 Madoch, 571 N.E.2d 1029, 212 Ill. App. 3d 1007, 157 Ill. Dec. 10, 1991 Ill. App. LEXIS 635 (Ill. Ct. App. 1991).

Opinion

JUSTICE McNAMARA

delivered the opinion of the court:

On October 16, 1984, petitioner, Jean E. Madoch, filed a petition for dissolution of her marriage to respondent, Kenneth Madoch. The trial court’s judgment on July 10, 1989, dissolved the marriage and awarded petitioner a 55% interest and respondent a 45% interest in the marital condominium and in a Merrill Lynch account. The condominium was valued at $114,000, and the Merrill Lynch account at approximately $15,000. The trial court found that respondent’s interests in two bakeries and in certain real estate were nonmarital property. The trial court awarded petitioner, who had since become totally disabled, $500 monthly maintenance. That award was to be reviewed after three years. The parties were ordered to pay their own attorney fees. Petitioner of course does not challenge the judgment of dissolution but appeals from the court’s findings and orders with respect to all of the other findings.

The parties were married on April 23, 1981, and resided as husband and wife until May 1984, at which time respondent vacated the marital home. At the time the complaint was filed, petitioner was 49 years old, and respondent was 37 years old. No children were born of the marriage. During the marriage, the parties purchased a condominium located at 3200 Lake Shore Drive, Chicago, at a cost of $105,000 (consisting of $24,000 of petitioner’s money accumulated prior to the marriage; a $50,000 gift from respondent’s parents; $23,285 from the sale of respondent’s former residence from a previous marriage, and the remainder from the joint checking account of the parties). Petitioner testified and the trial court found that the $50,000 received from respondent’s parents was a gift to both parties.

At the time of trial, respondent had taken an unpaid leave of absence from his position as a supervisor of the official court reporters in Cook County. Respondent’s earnings from that position were approximately $45,000 per year. In addition, respondent earned approximately $3,000 in 1988 for transcribing grand jury transcripts. Respondent currently manages Heck’s Bakery, a business in which he holds a one-third ownership interest. Conflicting testimony exists, as set forth below, concerning the amount of income generated to respondent from Heck’s Bakery.

Petitioner was also employed as an official court reporter from 1970 through October 31, 1987. In November 1987, petitioner was diagnosed with cancer. Petitioner’s treating physician, Dr. A1 Bowen Benson III, opined that petitioner’s condition is incurable. Dr. Benson stated that as a result of her therapy, petitioner experienced severe fatigue as well as additional side effects that would prevent her from working as a court reporter. Petitioner testified that she is unable to work because she is very weak and in pain at times.

Petitioner received her previous salary of $36,000 for the first year during her medical leave of absence. Petitioner currently draws $1,500 per month as disability income from social security and the State of Illinois. Petitioner’s affidavit indicated that she incurred monthly living expenses in the amount of $1,685 for the previous year. At trial, petitioner estimated her average expenses to be approximately $2,000 per month.

Respondent’s interest in two bakeries was among the centrally contested issues, especially as to whether the interest constituted marital property. Petitioner filed a motion in limine arguing that respondent made a judicial admission in the pleadings that he acquired an interest in both bakeries during the marriage; therefore, he should be precluded from introducing any evidence contradicting that admission. The trial court denied petitioner’s motion and allowed respondent to amend his initial response to show that he had no interest in Augusta Bakery, and that he acquired an interest in Heck’s Bakery as a gift from his father.

The record reveals that respondent’s father, Leonard Madoch, purchased a 50% interest in Augusta Bakery in 1972 and obtained the remaining interest in 1976. Heck’s Bakery, along with the real property located at 2038 W. Roscoe Street, Chicago, was obtained by respondent and his two brothers, Lawrence and Robert Madoch, on January 3,1984 (during the course of the marriage).

At trial, petitioner called respondent’s brother, Lawrence, as an adverse witness. Lawrence testified that Heck’s Bakery and the real estate were purchased for approximately $130,000. Respondent, Lawrence and Robert became shareholders in Heck’s Bakery, but none of them used any of their personal funds for the purchase; instead the money was drawn from the Cosmopolitan National Bank custodial account funded by their parents. Respondent and Lawrence later entered into a loan agreement with Wells Fargo Credit Corporation for equity mortgage financing in the amount of $75,000 for working capital and expansion of the business.

Lawrence stated that his father retained 20% of the Augusta Bakery shares, and the remaining stock was split among his 12 grandchildren. Augusta Bakery was rated “Triple A” by Dun and Bradstreet and it was a “money maker.” Augusta Bakery was dissolved after failing to pay the annual filing fee, and that property has since been sold for delinquent taxes. Augusta Bakery is also currently known as “Heck’s Bakery.” According to Lawrence, after the purchase of Heck’s Bakery, both businesses and the bread routes were consolidated in Heck’s Bakery and operated as one trade name.

Lawrence further testified that respondent received a weekly check for $30 from 1982 through 1986 from Augusta Bakery, and varying amounts of cash ranging from $100 to $350 per week during that same period. Respondent received no cash or checks from either bakery in 1987 or 1988 because of a lack of operating capital in the business due to a union strike and a cash shortage. According to Federal income tax returns, the two bakeries had a combined income of over $70,000 in 1987.

Lawrence stated at a previous deposition that respondent would receive a salary for currently working at the bakery equal to what he had earned as a court reporter (approximately $45,000) after taking over the bakery management in September 1988. Lawrence testified at trial that respondent had not received a salary for working in the bakery during the past three months in order not to deplete working capital.

Robert Madoch, respondent’s brother, also testified as an adverse witness. Robert stated that he managed the bakery until September 1988, at which time he quit and respondent became manager. (After his own dissolution of marriage, Robert retained his ownership interest in both bakeries.) Robert considered himself, Lawrence and respondent to be the owners of Augusta Bakery, and he acquired his interest in 1984 from his father. Although he never saw the actual stock, Robert believed there was supposed to be 25% of the stock in his children’s names, and that his brothers acquired their interests from his father in the same manner for their children. According to Robert, checks for $20,000 representing the profits from Augusta Bakery were written, but they were never cashed and remain in a safe at the bakery. Robert was not aware that Augusta Bakery had been dissolved or that the bakeries had been consolidated.

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Bluebook (online)
571 N.E.2d 1029, 212 Ill. App. 3d 1007, 157 Ill. Dec. 10, 1991 Ill. App. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-madoch-illappct-1991.