Kotlisky v. Kotlisky

552 N.E.2d 1206, 195 Ill. App. 3d 725, 142 Ill. Dec. 465, 1990 Ill. App. LEXIS 361
CourtAppellate Court of Illinois
DecidedMarch 22, 1990
Docket1-88-3667
StatusPublished
Cited by7 cases

This text of 552 N.E.2d 1206 (Kotlisky v. Kotlisky) 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
Kotlisky v. Kotlisky, 552 N.E.2d 1206, 195 Ill. App. 3d 725, 142 Ill. Dec. 465, 1990 Ill. App. LEXIS 361 (Ill. Ct. App. 1990).

Opinion

JUSTICE LINN

delivered the opinion of the court:

Adolph Kotlisky died in California in 1948, leaving a substantial estate divided into a number of trusts to provide for his wife, Lila, and their children, Allan, Norman, Rose, and Phyllis. Lila established during her lifetime “The Allan Trust” for the benefit of Allan. He borrowed money from this trust and from Lila. Lila Kotlisky died in September 1986. At issue in the pending litigation is the disposition of one trust, “Trust A,” which was set up in Adolph’s will, and the question whether Allan’s share in Trust A should be set off by the amount of money he is alleged to owe Lila’s estate because of the loans he received during her lifetime. Plaintiffs are Norman Kotlisky, individually, as executor of Lila’s estate and as trustee of Trust A under Adolph’s will; Rose Kotlisky; and Phyllis Kotlisky Poplawski.

Plaintiffs filed an action for declaratory judgment in the circuit court of Cook County, seeking an adjudication that defendant, Allan, was indebted to Lila’s estate, as evidenced by certain promissory notes. Further, they requested a declaration that his inheritance interest in the corpus of Trust A, located in a Chicago bank, be used to satisfy that debt. In attempting to serve defendant with process, plaintiffs hired a special process server in California, defendant’s State of residence. Two attempts failed, and he was never personally served. Plaintiffs then effected service by publication, after which they obtained a default judgment against defendant. He filed a special and limited appearance to test the Illinois court’s jurisdiction over him and moved to quash service of summons. The trial court held that the service by publication was good and denied the motion to quash. Plaintiffs then proceeded to a prove up of damages and received a judgment award of approximately $555,000 on a complaint requesting the principal sum of $258,550 plus interest and attorney fees.

The single issue on appeal is whether the trial court had jurisdiction to enter the judgment of default and damages.

We reverse.

Background

Norman Kotlisky resides in Chicago, Illinois. Phyllis, Rose, and Allan are residents of California. In their complaint for declaratory judgment and other relief, plaintiffs allege that Allan transacted business in Illinois within the meaning of the Illinois “long-arm” statute (Ill. Rev. Stat. 1987, ch. 110, par. 2—209(a)(1)), “by, among other things, executing certain promissory notes that are the subject matter of this action.”

Plaintiffs allege that Trust A was established under the will of Adolph Kotlisky, dated August 6, 1941. In 1948, Adolph died and his will was admitted to probate in California. According to his will, plaintiffs allege, “Trust A was to be used primarily for Lila’s benefit [and, upon her death] Trust A was to terminate and the property distributed in two equal shares,” to Allan and Phyllis. 1 Lila and Norman were the trustees, and upon Lila’s death in September 1986, Norman became sole surviving trustee. The corpus of Trust A consisted of approximately $2 million in cash and securities, held in a bank in Chicago.

The complaint further alleges that the “Allan Trust” was established in March 1966 by Lila as grantor, with Lila, Clement Caditz, and Richard H. Levin as trustees. Defendant was the primary beneficiary of this trust, which was to last until December 1986 or Lila’s death, whichever occurred first.

Plaintiffs allege that upon Lila’s death in September 1986, “the Allan Trust was divided into equal shares for Norman, Allan, Phyllis, and Rose, who could receive the income of the trust, in the trustees’ discretion, until December 31, 1986, when the accumulated income of the Allan Trust was distributed in equal shares to Norman, Allan, Phyllis, and Rose, and the principal of the Allan Trust was to be paid to the Estate of Lila, of which plaintiff Norman Kotlisky is the sole trustee.”

The complaint further alleges that Allan borrowed money from Lila and from the Allan Trust and that he has failed and refused to make payments on these debts. Under Lila’s will, her estate was to be divided in four equal shares: one each for Norman, Phyllis, and Rose, and one share to be divided between Allan’s two children. Norman, as trustee of Trust A and executor of Lila’s estate, seeks to distribute the funds in Trust A and collect the monies Allan owes the estate. Since Norman is also a beneficiary under the will, he requests the court’s intervention by the declaratory proceeding. According to the complaint, he has already distributed all of the monies in Trust A except $216,104.25, which he calculates is the amount that Allan owes Lila’s estate.

The complaint requests that a judgment be entered declaring that defendant owes the amount of $258,550, plus interest and attorney fees, to Lila’s estate and to further declare that the funds in Trust A be used to satisfy the debt.

After the complaint was filed, plaintiffs’ attorneys directed a special process server to serve Allan with process in California, in July 1987. The record indicates that the first attempt at service failed. Plaintiffs’ attorney contacted a California attorney who had represented Allan on previous matters to see if he would accept service on behalf of his client, but ultimately this attempt at service also failed. Plaintiffs’ attorney then hired an investigator to locate Allan, also to no avail. In November 1987 plaintiffs’ attorney again hired the special process server to serve Allan at a court hearing pending in Federal court in California. This service attempt also failed.

In February 1988 plaintiffs caused notice of their lawsuit to be placed for publication in the Chicago Daily Law Bulletin. Thereafter, plaintiffs moved for entry of default judgment on the grounds that Allan had not appeared nor answered the complaint.

Default judgment was granted on September 1, 1988, and the prove up was set for October 14. On that date, Allan, through counsel, filed a special and limited appearance and moved to quash service of summons and vacate default on the grounds that the Illinois court had not obtained jurisdiction over him because plaintiffs had not complied with the statutory requisites of section 2 — 208(b) of the Code of Civil Procedure. (Ill. Rev. Stat. 1987, ch. 110, par. 2—208(b).) This section governs personal service over nonresident defendants.

Plaintiffs’ response simply asserted that service by publication was a proper mode of service, without citing any case authority. It further stated in conclusory fashion that Allan had waived his jurisdictional objections by citing to the merits of the case in one paragraph of his motion.

At the hearing the trial court heard brief argument and denied the motion to quash. The court and plaintiffs’ attorneys also discussed the form of the proofs to be presented in the prove up of damages. The record does not contain a transcript of the prove up proceedings, but the judgment appealed from states in pertinent part, “Judgment is hereby entered in favor of Norman Kotlisky as Executor of the Estate of Lila Kotlisky and against the Defendant, Allan I.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dombrowski v. Larson Lodge
630 N.E.2d 973 (Appellate Court of Illinois, 1994)
La Salle Nat. Bank of Chicago v. Akande
600 N.E.2d 1238 (Appellate Court of Illinois, 1992)
Kottmeyer v. Consolidated Rail Corp.
579 N.E.2d 1211 (Appellate Court of Illinois, 1991)
Poplar Grove State Bank v. Powers
578 N.E.2d 588 (Appellate Court of Illinois, 1991)
Ideal Insurance Agency, Inc. v. Shipyard Marine, Inc.
572 N.E.2d 353 (Appellate Court of Illinois, 1991)
General Electric Railcar Services Corp. v. Wilmington Trust Co.
567 N.E.2d 400 (Appellate Court of Illinois, 1990)
Burnhope v. National Mortgage Equity Corp.
567 N.E.2d 356 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
552 N.E.2d 1206, 195 Ill. App. 3d 725, 142 Ill. Dec. 465, 1990 Ill. App. LEXIS 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kotlisky-v-kotlisky-illappct-1990.