In re Marriage of Metz

2020 IL App (2d) 181029-U
Appellate Court of Illinois·Decided April 6, 2020·No. 2-18-1029·Unpublished

Opinion

No. 2-18-1029

Order filed April 6, 2020

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

In re MARRIAGE OF ) Appeal from the Circuit Court RAE ANN METZ, ) of McHenry County.

)

Petitioner-Appellant, )

)

and ) No. 16-DV-0126 )

CHRIS W. METZ, ) Honorable ) Michael E. Coppedge,

Respondent-Appellee. ) Judge, Presiding.

JUSTICE BRIDGES delivered the judgment of the court.

Justices Schostok and Hudson concurred in the judgment.

ORDER

¶1 Held: (1) The trial court’s finding that certain real property owned by respondent was non- marital was not against the manifest weight of evidence, (2) the trial court did not abuse its discretion in determining child support and maintenance, and (3) the trial court did not abuse its discretion in awarding only a portion of the petitioner’s requested attorney fees. Therefore, we affirmed.

¶2 Petitioner, Rae Ann Metz, appeals from the judgment dissolving her marriage to respondent, Chris Metz. She contends that the circuit court erred in several ways: (1) determining that certain property owned by Chris was non-marital, (2) determining Chris’s income for the

purposes of calculating maintenance and child support, and (3) awarding only a portion of Rae Ann’s requested attorney fees. For the following reasons, we affirm.

¶3 I. BACKGROUND

¶4 Chris and Rae Ann were married on August 5, 1997, and Rae Ann filed a petition for dissolution of marriage on February 16, 2016. A trial was held over nine days from July 2018 to October 2018. At the time of the trial, Chris was 56 and Rae Ann was 59. The parties had two children aged 14 and 16.

¶5 Rae Ann testified to the following. Prior to the marriage, Rae Ann worked as a buyer at Sears with a salary of $62,500. She left Sears at the end of 1996 and went to work at Montgomery Wards about six months later as a junior buyer at a salary of $75,000. She was let go from Montgomery Wards in January 1998. The parties then decided that Rae Ann would stay home with the children.

¶6 In 2014, Rae Ann obtained her real estate license and worked as a realtor for Berkshire Hathaway from 2014 to 2015. In December 2015, Rae Ann purchased a Snap Fitness franchise. She closed the franchise in January 2017 because it was not profitable. Rae Ann then restarted her real estate practice, but she spent only a few hours each day working. Rae Ann testified that she was the primary caregiver for the children, and that while Chris has visitation time on the weekends, he rarely exercised it as his relationship with the children was strained. Thus, she bore most of the expenses for the children’s care. Her monthly expenses totaled $12,120.26.

¶7 Deborah Gordon testified as an expert for Chris in the field of vocational analysis. Gordon testified that she met with Rae Ann and had her complete some vocational testing. She further testified that based on the testing, she believed Rae Ann was best suited to work either in sales or real estate and determined that Rae Ann’s earning potential was between $41,000 and $57,000.

¶8 Chris testified that he owned 97.5% of Novation Industries, Inc., f/k/a W.M. Plastics, Inc., a custom injection molding company, and was the company’s CEO. He testified that he started working for Novation in 1979 and left in 1980. He then resumed working for Novation in 1982 and has worked there ever since. Chris testified that he typically worked 20 to 24 hours a week, Tuesday through Thursday, and his base salary was $186,000 per year. He also testified that because Novation was an S corporation, its income was reported on his tax returns, but that Novation retained its earnings, only issuing dividends sufficient to cover his tax obligations. He testified that Novation also paid for his cell phone; provided him with two company vehicles, a Toyota Highlander and a Toyota Avalon; paid for his gas; paid the insurance on the vehicles; and provided him two company credit cards, which he used for business expenses including travel and entertainment. Peter Martel, Novation’s comptroller since 2006, corroborated Chris’s testimony regarding his compensation from Novation.

¶9 Chris testified that he purchased his first shares of Novation in 1983, 1 when his father died, and that his mother gifted him the remaining shares prior to his marriage to Rae Ann. Based on the stock certificates produced at trial, these gifts appear to have occurred over a period of time spanning from December 1988 to January 1997.

¶ 10 Chris testified that Novation was located at 5151 Bolger Court in McHenry, Illinois. Novation leased the property, which was owned by a land trust. The beneficiary of the land trust was a limited liability company owned by Chris and his mother, (who both owned a 50% interest) registered as 5151 Bolger Court, LLC, hereinafter referred to as Property.

¶ 11 Chris testified that he first acquired the Property in either 2000 or 2001, and that the building was constructed in 2001. He further testified that he did not use any of his own money to

1 It appears from the stock certificates that this actually occurred in 1982.

purchase the Property, and that the collateral used included his interest in Novation, but not any other personal assets.

¶ 12 Chris’s testimony was corroborated by Thomas Moran. Moran testified that he was the senior vice president of commercial lending with MB Financial. Further, he testified that Novation had been a client of his since around 1993 or 1994, and that he underwrote the bonds for the Property in 2001. He testified that the loan was secured by the Property, Chris’s stock in Novation, and Novation’s assets, and that Chris had not personally guaranteed the loan.

¶ 13 Chris testified that in 2012, he sold 50% of his interest in the Property to his mother in order to repay a home equity loan which was coming due that year. This testimony was corroborated by Carl Yudell, Novation’s attorney, who testified that he represented Chris’s mother in the 2012 transaction.

¶ 14 With regard to Novation’s financial state, Chris testified that the company was not doing well, that it had overdrawn its account, and that it was at its maximum credit limit. He also testified that he would likely have to pledge any insurance policies Novation had as collateral to avoid default.

¶ 15 Moran testified that Novation had five loans with MB Financial: (1) the loan on the building, (2) a $1.5 million line of credit, (3) one small term loans in the amounts of $44,000, (4) one small term loan in the amount of $50,000 to $60,000, (5) and a line of credit for machinery and equipment in the amount of $150,000 to $200,000. He further testified that per the terms of those loans, there were certain covenants that Novation had to comply with or risk being declared in default. He testified that Novation was in violation of two covenants, which he described as the debt service covenant and the balance sheet covenant. He testified that the bank had not yet decided what to do regarding Novation’s loans but was leaning towards taking additional collateral to

secure the loans, in part due to the fact that Novation had a healthy balance sheet as a result of its retained earnings. Novation had a life insurance policy on Chris’s mother in the amount of $1 million, and Moran testified that the bank was considering taking the cash value of the policy as additional collateral for Novation’s loans.

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