Johnessee v. Schnepf

2012 IL App (4th) 110767, 975 N.E.2d 1090
CourtAppellate Court of Illinois
DecidedApril 6, 2012
Docket4-11-0767
StatusPublished
Cited by2 cases

This text of 2012 IL App (4th) 110767 (Johnessee v. Schnepf) 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
Johnessee v. Schnepf, 2012 IL App (4th) 110767, 975 N.E.2d 1090 (Ill. Ct. App. 2012).

Opinion

ILLINOIS OFFICIAL REPORTS Appellate Court

Johnessee v. Schnepf, 2012 IL App (4th) 110767

Appellate Court CONNIE JOHNESSEE, DOROTHY SMITH, BRENDA JOHNSON, and Caption JOE SCHNEPF, Plaintiffs-Appellants, v. LYNDLE SCHNEPF; JOHN SCHNEPF; CAROLYN SCHAFFER; and RAYMOND SCHNEPF, Individually and as Successor Trustee of the MALETA MAXINE SCHNEPF FEBRUARY 2001 TRUST, Defendants-Appellees.

District & No. Fourth District Docket No. 4-11-0767

Argued March 28, 2012 Filed April 6, 2012 Rehearing denied May 8, 2012

Held In an action arising from a dispute over the purported modification of a (Note: This syllabus land trust by the settlor’s removal of plaintiffs as beneficiaries, the trial constitutes no part of court’s orders granting defendant’s motions to dismiss and for summary the opinion of the court judgment were reversed and the cause was remanded with directions to but has been prepared reconsider plaintiffs’ motions for judgment on the pleadings and by the Reporter of summary judgment based on the appellate court’s finding that the trust Decisions for the was not an amendable land trust, since the language of the trust reflected convenience of the the settlor’s intention that all of the property placed in the trust would reader.) remain in the trust until it was distributed to the beneficiaries according to the terms of the trust.

Decision Under Appeal from the Circuit Court of Pike County, No. 09-MR-47; the Hon. Review Thomas J. Brannan, Judge, presiding. Judgment Reversed and remanded.

Counsel on John B. Leonard (argued), of Mt. Sterling, for appellants. Appeal Mark S. Cochran and Michael G. Barton, both of Bellatti, Barton & Cochran, LLC, of Springfield, and William H. Strang (argued), of Strang & Parish, Ltd., of Jerseyville, for appellees.

Panel JUSTICE POPE delivered the judgment of the court, with opinion. Presiding Justice Turner and Justice Steigmann concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs appeal, arguing (1) the trial court’s determination the Maleta Maxine Schnepf February 2001 Trust (Trust) is an amendable Illinois land trust was erroneous as a matter of law based upon the pleadings in this case; (2) the court erred in denying plaintiffs’ motion for judgment on the pleadings and motion for summary judgment; and (3) the court erred in ruling on the competing motions for summary judgment because plaintiffs were denied an opportunity to be heard on either of the competing motions. We reverse the court’s orders granting defendant Raymond Schnepf’s motions to dismiss and motions for summary judgment and remand this case for further proceedings with directions to reconsider plaintiffs’ motions for judgment on the pleadings and summary judgment based on our finding the Trust was not an amendable land trust.

¶2 I. BACKGROUND ¶3 As this appeal does not involve counts II through V of plaintiffs’ complaint, we will not discuss those portions of plaintiffs’ complaint. In December 2009, plaintiffs filed a complaint for declaratory judgment against defendants. In count I, plaintiffs alleged Maleta created the Trust on February 1, 2001. Maleta transferred certain property into the Trust by a deed in trust. Plaintiffs and defendants are all of Maleta’s living children. Plaintiffs allege they were beneficiaries of the Trust. ¶4 On May 12, 2005, Maleta purportedly executed a modification to the Trust, which modified the beneficiaries of the Trust. This modification removed plaintiffs as beneficiaries of the Trust. The Trust did not contain an express provision granting any person the power to alter, amend, or modify the trust. As a result, plaintiffs argued the modification should be ignored and the Trust read as it was originally drafted, with the plaintiffs as beneficiaries of the trust.

-2- ¶5 Plaintiffs’ complaint also contained alternate counts. In plaintiffs’ alternate count I, plaintiffs alleged the act of crossing out the names of the plaintiffs and defendant Carolyn Schaffer was not a valid method of removing plaintiffs and Carolyn Schaffer as beneficiaries of the Trust, assuming Maleta had the legal authority to execute the modification. In plaintiffs’ second alternate count I, plaintiffs alleged: “even if Maleta *** had the legal authority to execute the Modification to Trust Agreement and Declaration of Trust, said Modification, on the information and belief of Plaintiffs, was not the free and voluntary act of Maleta *** in that Defendants John Schnepf or Raymond Schnepf pressured and forced her into executing the said Modification.” In plaintiffs’ third alternate count I, plaintiffs alleged Maleta was either pressured to execute the modification or she neither personally crossed out plaintiffs’ names nor initialed the same. On information and belief, plaintiffs alleged the initials were forgeries done by an unknown third party. ¶6 In April 2010, plaintiffs filed a motion for judgment on the pleadings with regard to count I. According to the motion, the allegations denied by defendants were matters that could be determined by the trial court after the court reviewed the relevant trust documents. Plaintiffs argued the trust could not be modified because the trust did not reserve the right to modify. ¶7 On May 17, 2010, Raymond filed a motion for summary judgment as to count I. Raymond agreed with plaintiffs’ motion for judgment on the pleadings no genuine issues of fact existed. The court only needed to decide “the narrow legal issue of whether the Modification to Trust Agreement and Declaration of Trust dated May 12, 2005[,] *** was a valid amendment” to the Trust. According to Raymond’s motion, the Trust was a specialized “ ‘Illinois land trust’ ” in which the trustee held both legal and equitable title to the farmland with the interest of the beneficiary being personal property. Raymond argued the Trust was readily amendable during Maleta’s lifetime despite the lack of a reservation of the right to modify because it was an Illinois land trust. ¶8 Raymond also filed a motion for summary judgment on plaintiffs’ alternate count I, stating the only issue in dispute was a legal question, i.e., whether the act of crossing out the names of plaintiffs and defendant Carolyn Schaffer was a valid method of removing the same individuals as beneficiaries. According to defendant’s motion: “It is the sworn testimony of Attorney John Coonrod that when he met with Maleta Maxine Schnepf to sign the Modification to Trust Agreement and Declaration of Trust, she understood that her actions in crossing out the names of Plaintiffs and Defendant Carolyn Shaffer [sic] and initialing those changes immediately prior to signing the modification was an effective way to amend the document and that she intended for the deletions to be recognized as controlling.” ¶9 Raymond also filed a motion to dismiss plaintiffs’ second alternate count I, alleging an absence of well-pleaded facts. ¶ 10 In addition, Raymond filed a motion for summary judgment on plaintiffs’ third alternate count I, arguing “the cause of action asserted in Paragraph 16A of Plaintiffs’ Third Alternate

-3- Count I is the same cause of action asserted in Plaintiffs’ Second Alternate Count I and should be stricken from Plaintiffs’ Third Alternate Count I.” Raymond again cited to the sworn testimony of attorney John Coonrod quoted above. ¶ 11 On May 18, 2010, plaintiffs filed a motion for summary judgment as to count I. Plaintiffs restated and incorporated the statements and arguments contained in their motion for judgment on the pleadings. ¶ 12 In August 2010, the trial court found the Trust was an amendable land trust. The court stated the term “land trust” is given the same definition by the Land Trust Beneficial Interest Disclosure Act (765 ILCS 405/1

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2012 IL App (4th) 110767, 975 N.E.2d 1090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnessee-v-schnepf-illappct-2012.