In re Marriage of Onishi-Chong

2020 IL App (2d) 180824
Appellate Court of Illinois·Decided October 19, 2020·No. 2-18-08242-18-1015·Published·Cited by 4 cases

Opinion

Digitally signed by Reporter of Decisions Reason: I attest to Illinois Official Reports the accuracy and integrity of this document Appellate Court Date: 2020.10.19 09:48:16 -05'00'

In re Marriage of Onishi-Chong, 2020 IL App (2d) 180824

Appellate Court In re MARRIAGE OF KAREN I. ONISHI-CHONG, Petitioner- Caption Appellant, and MICHAEL T. CHONG, Respondent-Appellee.

District & No. Second District Nos. 2-18-0824, 2-18-1015 cons.

Filed February 20, 2020 Rehearing denied March 18, 2020

Decision Under Appeal from the Circuit Court of Du Page County, No. 12-D-1741; the Review Hon. Timothy J. McJoynt, Judge, presiding.

Judgment Affirmed.

Counsel on Robert H. Lang and Audrey Mense, of Thompson Coburn LLP, of Appeal Chicago, and Todd D. Scalzo, of Mirabella, Kincaid, Frederick & Mirabella, LLC, of Wheaton, for appellant.

Steven N. Peskind, of Peskind Law Firm, of St. Charles, for appellee.

Panel JUSTICE BURKE delivered the judgment of the court, with opinion. Presiding Justice Birkett and Justice Zenoff concurred in the judgment and opinion. OPINION

¶1 Petitioner, Karen I. Onishi-Chong, filed a petition pursuant to section 2-1401 of the Code of Civil Procedure (Code) (735 ILCS 5/2-1401 (West 2018)) to set aside a marital settlement agreement (MSA) based on the alleged fraudulent concealment of a purported scheme to reduce the salary of respondent, Michael T. Chong, while their divorce was pending. During their marriage, respondent, who was a 50% owner of Voyage Financial Group, LLC (Voyage), equally split the profits with his partner, Thomas Royce. Petitioner alleged that, after the dissolution judgment, she discovered that respondent had misrepresented his actual income during the divorce proceedings and colluded with his partner to conceal his income to reduce maintenance and support. She sought to vacate the decree or alternatively to reset maintenance retroactively to the date of the dissolution judgment. ¶2 Respondent filed a motion for summary judgment to dismiss the section 2-1401 petition pursuant to section 2-1005 of the Code (id. § 2-1005), arguing that petitioner failed to exert due diligence and that the claim was barred under the doctrine of res judicata. The trial court granted respondent’s motion for summary judgment, determining that, if petitioner had been lied to during the pretrial, the prove-up, or some time earlier, this was discoverable by petitioner if she chose to pursue it, but she did not. Petitioner appeals, raising several arguments. We affirm.

¶3 I. BACKGROUND ¶4 A. Divorce Proceeding ¶5 Petitioner filed for divorce in August 2012. The parties litigated their divorce for a period of approximately 22 months. Throughout the proceedings the parties engaged in full discovery. Petitioner served respondent with interrogatories and document requests for records related to his income, assets, and debts. Among those documents were records from Voyage, a financial planning firm. Petitioner needed these records to establish respondent’s income for the purpose of maintenance and child support. 1 Respondent represented that he was earning $240,000 to $365,000 per year from 2012 through 2014. ¶6 On April 14, 2014, petitioner tendered to the trial court a pretrial memorandum, which we observe petitioner omitted from her statement of facts. Petitioner alleged in the memorandum that respondent “intentionally reduced his 2012 and 2013 income due to the pending divorce” and that she believed his annual income had been $518,235. Her conclusion was based on the following reasoning: “In 2006, Michael and his business partner Thomas Royce founded Voyage Financial Group, LLC, a company that assists Kraft Food employees [with] their retirement benefits after the employee has left Kraft. Michael and Thomas each own 50% of the business. Pursuant to Voyage’s operating agreement, Michael and Thomas each received equal compensation from the company through 2011. *** Interestingly, in 2012, the same year in which Karen filed for divorce, Michael’s income suddenly diverged from Thomas’ income resulting in a difference of $25,798. *** Again in 2013

1 At the time the judgment for divorce was entered, the amount of child support remained pending.

-2- while the parties’ divorce was still pending, Michael and Thomas’ income differed by $196,669. Not only is Michael’s income lower than Thomas’ income, Michael’s income is also lower than other financial managers at Voyage, even though Michael is a 50% owner of the company. Despite repeated discovery requests, Michael has not been able to provide any corporation meeting minutes or intraoffice memorandum explaining this divergence in Michael and Thomas’ income. Based on the divergence coinciding with the filing and pendency of her petition for dissolution, Karen believes Michael intentionally reduced his income in order to reduce maintenance and child support. Consequently, Karen believes Michael’s 2013 income to be around $518,235.00 (assigning to Michael half of the difference between Michael and Thomas’ 2013 income).” ¶7 Petitioner also sought half the value of respondent’s ownership interest in Voyage. She noted that a joint valuation of Voyage had been conducted by Lee Gould of Lee Gould & Associates. He was a joint valuation expert, retained by both parties to value Voyage, who had provided the parties’ attorneys a brief summary of his valuation calculations. ¶8 After engaging in full discovery, including the use of Gould, the parties settled the dissolution proceedings by agreement. Petitioner states in her appellate brief that relying on respondent’s and Royce’s representations, she “voluntarily entered into the marital settlement agreement [MSA] in April of 2014.” In part, the parties’ MSA requires respondent to pay petitioner unallocated family support of $12,500 per month for a period of 54 months, or $150,000 per year. ¶9 At the prove-up hearing on April 16, 2014, the following colloquy took place between respondent’s attorney, Mark Farrow, and both parties: “MR. FARROW: Based upon the discovery conducted, you are both satisfied that there has been a full and complete disclosure of income, assets, and liabilities; and as of today you are directing our office to conduct no further discovery in this case; is that correct? PETITIONER: Yes. RESPONDENT: Yes. MR. FARROW: Is it your mutual intention to waive all claims of dissipation of assets, concealment of assets, and reimbursement of the marital estate; is that right? PETITIONER: Yes. RESPONDENT: Yes.” ¶ 10 The terms of settlement were set forth at the prove-up on April 16, 2014. The trial court approved the MSA, which was later incorporated into the judgment of dissolution, entered on May 13, 2014. In subsequently denying petitioner’s section 2-1401 petition, the court commented that the April 16, 2014, hearing addressed respondent’s income and that the MSA was silent as to that issue. ¶ 11 The MSA provides, in relevant part, as follows: “G. *** The parties represent that they have disclosed to each other all information with respect to their income, assets and debts. The parties acknowledge that each has been fully informed of and is conversant with the wealth, property, estate and income of the other and that each has been fully informed of his and her respective rights in the premises.

-3- H. The parties further acknowledge their respective rights to conduct discovery depositions, valuations, request financial information from the other party by way of interrogatories, requests to admit, requests to produce documents, to subpoena witnesses to testify and to produce documents, and to have a full trial on the merits of this action.

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