Karlow v. Hupke

2025 IL App (3d) 240475-U
CourtAppellate Court of Illinois
DecidedSeptember 26, 2025
Docket3-24-0475
StatusUnpublished

This text of 2025 IL App (3d) 240475-U (Karlow v. Hupke) 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
Karlow v. Hupke, 2025 IL App (3d) 240475-U (Ill. Ct. App. 2025).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2025 IL App (3d) 240475-U

Order filed September 26, 2025 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

GEORGENE M. KARLOW, Independent ) Appeal from the Circuit Court Executor of the Estate of Rita Jeanne ) of the 12th Judicial Circuit, Hoffman, deceased, beneficiary of the Rita ) Will County, Illinois, Jeanne Hoffman Declaration of Trust dated ) 08/16/1990 and beneficiary of the Norman ) Hoffman Declaration of Trust dated ) 08/16/1990, and JENNIFER M. BURR, ) beneficiary of the Rita Jeanne Hoffman ) Declaration of Trust dated 08/16/1990 and ) beneficiary of the Norman Hoffman Declaration ) of Trust dated 08/16/1990, ) ) Plaintiffs-Appellees, ) ) v. ) Appeal Nos. 3-24-0475 ) 3-24-0499 JAMES H. HUPKE, as Successor Co-Trustee ) 3-24-0577 of the Rita Jeanne Hoffman Declaration of ) Circuit No. 21-CH-122 Trust dated 08/16/1990 and of the Norman ) Hoffman Declaration of Trust dated 08/16/1990, ) LAUREN M. COLLINS, individually, as Power ) of Attorney for Rita Jeanne Hoffman, as Power ) of Attorney for Norman Hoffman, and as ) Successor Co-Trustee of the Rita Jeanne ) Hoffman Declaration of Trust dated 08/16/1990 ) and of the Norman Hoffman Declaration of ) Trust dated 08/16/1990, COLLEEN M. ) COLLINS, an individual, KAYLEIGH REYES, ) an individual, ) Defendants, ) Honorable ) John C. Anderson, (Lauren M. Collins and James H. Hupke, ) Bennett J. Braun, Defendants-Appellants.) ) Judges, Presiding.

___________________________________________________________________________

PRESIDING JUSTICE BRENNAN delivered the judgment of the court. Justices Holdridge and Peterson concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The trial court granted plaintiffs’ motion to enforce settlement agreement. Reversed and remanded.

¶2 Plaintiffs, Georgene M. Karlow and Jennifer M. Burr, moved for partial summary

judgment on their claims against defendants, James H. Hupke, Lauren M. Collins, Colleen M.

Collins, and Kayleigh Reyes, alleging various forms of mismanagement and breach of fiduciary

duties with respect to the Rita Jeanne Hoffman Declaration of Trust dated 8/16/90 and the Norman

Hoffman Declaration of Trust dated 8/16/1990. Kayleigh, a stepdaughter of Lauren’s, was

subsequently dismissed from the suit. The remaining parties entered into settlement negotiations.

Counsel jointly representing James and Lauren withdrew, and the parties disputed whether a

settlement agreement had been reached prior to counsels’ withdrawal. Plaintiffs moved to enforce

the alleged settlement agreement. The trial court, Judge John C. Anderson, granted the motion

and denied subsequent motions to reconsider. Lauren and James filed notices of appeal in appeal

Nos. 3-24-0475 and 3-24-0499. While those appeals were pending, plaintiffs pursued, inter alia,

a motion to turnover trust assets and the $325,000 settlement amount. The trial court, Judge

Bennett J. Braun, granted the motion in part, but continued the matter to determine whether James

and Lauren were jointly and severally liable for the $325,000 payment. Lauren moved to

2 reconsider Judge Braun’s handling of the motion for turnover, which the court denied. Lauren

appealed that denial in appeal No. 3-24-0577. This court consolidated all three appeals. James

filed a motion for this court to determine jurisdiction, arguing that the matter of joint and several

liability remained unresolved. We denied the motion without prejudice and asked the parties to

address jurisdiction in their appellate briefs. For the reasons that follow, we determine that we

have jurisdiction, and we reverse and remand.

¶3 I. BACKGROUND

¶4 In 1990, Norman and Rita Hoffman, born in the 1920’s, executed the aforementioned

trusts. Norman and Rita were the trustees of their respective trusts. When Norman passed away

in 2017, James, a trusted family friend born in the 1950’s, and Lauren, a granddaughter born in

the 1970’s, became successor co-trustees of Norman’s trust. After Norman’s death, Rita was the

primary beneficiary of Norman’s trust. Rita passed away in February 2020, and James and Lauren

were charged with winding down Norman’s trust on behalf of the contingent beneficiaries. Upon

Rita’s death, James and Lauren became successor co-trustees of Rita’s trust as well. Norman and

Rita were survived by four children, including plaintiff Georgene and defendant Colleen, as well

as numerous grandchildren, including plaintiff Jennifer and defendant Lauren, all of whom were

beneficiaries of the trusts.

¶5 In 2016, Rita appointed Lauren to serve as power of attorney for her finances. Also around

that time, Rita named Colleen as a joint account holder to one of her personal bank accounts.

¶6 On March 26, 2021, plaintiffs filed a Petition for Inventory and Accounting of Trust, and

Accounting from Power of Attorney. They alleged, inter alia, breach of fiduciary duty and fraud,

against Lauren and James as co-trustees of Norman’s and Rita’s trusts; Lauren, as agent under

power of attorney for Rita; and Colleen as an individual.

3 ¶7 On April 28, 2023, following substantial discovery, plaintiffs moved for partial summary

judgment against Lauren, James, and Colleen in their respective capacities. On May 5, 2023,

plaintiffs amended their petition for inventory, purporting to conform to the proofs relative to the

motions for partial summary judgment. The basic allegations against the parties were as follows.

In September 2020, Lauren, as co-trustee of Norman’s trust, prematurely distributed $177,000

from the trust to herself and $133,000 to Colleen, as beneficiaries of the trust, representing their

respective pro rata shares. Also in September 2020, Lauren, as co-trustee of Rita’s trust,

distributed $48,000 from the trust to herself, $87,000 to Colleen, and $9,000 to Kayleigh, as

beneficiaries of the trust, again representing their respective pro rata shares. No other beneficiaries

received distributions and, as the trust expenses had yet to be paid, it remained uncertain whether

other beneficiaries who were entitled to equal shares would receive the same monetary

distributions as Lauren, Colleen, and Kayleigh. Lauren testified in deposition that she had invested

her premature disbursement and that she had access to those funds. Lauren, as power of attorney,

allegedly misappropriated as much as $170,000 of Rita’s personal and trust funds. Lauren claimed

that the funds represented gifts that her grandparents had instructed her to take over the years that

she had helped to care for them. She did not receive any other payment. James, as co-trustee,

allegedly stood silent while Lauren made the premature distributions (though Lauren’s deposition

testimony indicates that James knew of the premature distributions and incorrectly believed them

to be permissible). James never received payment or any funds from the trust. Colleen allegedly

aided and abetted Lauren. The other allegations against Colleen largely concerned the usage of

funds in the account jointly held by Colleen and Rita and are not central to the instant appeal.

¶8 A. June and July 2023 Settlement Negotiations

4 ¶9 In June and July of 2023, the parties engaged in settlement negotiations via e-mail. On

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